[Adopted 3-2-1995 as Ord.
No. 1407]
The Treasurer or such official's designee (hereinafter, the "municipal
officer") is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties of the municipality stated herein.
As used in this Article, the following terms shall have the meanings
indicated:
FIRE LOSS OR CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim of a
named insured for fire damage to a structure located within the City of Butler
(hereinafter the "municipality") where the amount recoverable for the fire
loss to the structure under all policies exceeds seven thousand five hundred
dollars ($7,500.), unless the insurer and the named insured comply with the
provisions of Section 508 (b) of Act 98 of 1992 and the provisions of this Article and Article
II relating to escrow procedure for fire insurance.
The transfer of proceeds to the Municipal Officer shall be on a pro
rata basis by all insurers with applicable policies of insurance providing
protection for the fire loss.
The Mayor and Council of the City of Butler may by resolution adopt
procedures and regulations to implement Section 508 of Act 98 of 1992 and this Article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 of Act 98 of 1992 and this Article, including but not limited to issuance
of certificates and bills.
Any owner of property and named insured or any insurer who violates
any of the provisions of this Article shall, upon conviction before a District
Justice, be subject to a fine of not more than three hundred dollars ($300.),
plus costs of prosecution and, in default of payment of such fine and costs,
shall be subject to imprisonment for not more than thirty (30) days.
[Adopted 3-2-1995 as Ord.
No. 1408]
The Treasurer or such official's designee (hereinafter, the "municipal
officer") is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties of the municipality stated herein.
As used in this Article, the following terms shall have the meanings
indicated:
FIRE LOSS OR CLAIM FOR FIRE DAMAGE
Any loss occurring after the effective date of this Article and covered
under a policy of fire insurance, including any endorsements or riders to
the policy.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim or a
named insured for fire damage to a structure located within the City of Butler
(hereinafter the "municipality") where the amount recoverable for the fire
loss to the structure under all policies exceeds seven thousand five hundred
dollars ($7,500.), unless the insurer is furnished by the municipal officer
with a municipal certificate pursuant to Section 508 (b) of Act 98 of 1992 and unless there is compliance with Section 508(c) and (d) of
Act 98 of 1992 and the provisions of this Article.
After full compliance with the requirements of Section 508 (b)(1)(i)
of Act 98 of 1992 and Article
I (involving the payment of delinquent taxes from fire insurance proceeds), the insurer shall pay the claim of the named insured; provided, however, that if the loss is agreed upon by the named insured and the insurer equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building structure, the following procedures shall be followed:
A. The insurer shall transfer from the insurance proceeds
to the municipal officer for the aggregate of two thousand dollars ($2,000.)
for each fifteen thousand dollars ($15,000.) of a claim and for each fraction
of that amount of a claim, provided that this section is to be applied such
that if the claim is fifteen thousand dollars ($15,000.) or less, the amount
transferred to the municipality shall be two thousand dollars ($2,000.); and
that, if at the time of a loss report the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure in an amount less than the amount calculated under the
foregoing transfer formula, the insurer shall transfer to the municipality
from the insurance proceeds the amount based upon the estimate.
B. The transfer of proceeds shall be on a pro rata basis
by all companies, associations or exchanges insuring by building or other
structure. Policy proceeds remaining after the transfer to the municipality
shall be disbursed in accordance with the policy terms.
After the transfer, the named insured may submit a contractor's signed
estimate of the costs of removing, repairing or securing the building or other
structure, and the designated officer shall return the amount of the funds
transferred to the municipality in excess of the estimate to the named insured,
if the municipality has not commenced to remove, repair or secure the building
or other structure.
Upon receipt of proceeds under this §
158-11, the municipality shall do the following:
A. The municipal officer shall place the proceeds in the
separate fund to be used solely as security against the total cost of removing,
repairing or securing the building or structure which is incurred by the municipality.
Such costs shall include, without limitation, any engineering, legal or administrative
costs incurred by the municipality in connection with such removal, repair
or securing of the building or any proceedings related thereto.
B. It is the obligation of the insurer when transferring
the proceeds to provide the municipality with the name and address of the
named insured. Upon receipt of the transferred funds and the name and address
of the named insured, the municipal officer shall contact the named insured,
certify that the proceeds have been received by the municipality and notify
the named insured that the procedures under this subsection shall be followed.
C. When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion received
by the municipal officer, and if the municipality has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the municipality has incurred costs for repairs, removal or securing
of the building or other structure, the costs shall be paid from the fund
and, if excess funds remain, the municipality shall transfer the remaining
funds to the named insured.
D. To the extent that interest is earned on proceeds held
by the municipality pursuant to this section, and retained by it, such interest
shall belong to the municipality. To the extent that proceeds are returned
to the named insured, interest earned on such proceeds shall be distributed
to the named insured at the time that the proceeds are returned.
E. Nothing in this section shall be construed to limit the
ability of the municipality to recover any deficiency. Furthermore, nothing
in this Article shall be construed to prohibit the municipality and the named
insured from entering into an agreement that permits the transfer of funds
to the named insured if some other reasonable disposition of the damaged property
has been negotiated.
The Mayor and Council of the City of Butler may by resolution adopt
procedures and regulations to implement Section 508 of Act 98 of 1992 and this Article and may by resolution fix reasonable fees to
be charged for municipal activities or services provided pursuant to Section
508 of Act 98 of 1992 and this Article, including but not limited to issuance
of certificates and bills, performance of inspections and opening separate
fund accounts.
Any owner of property and named insured or any insurer who violates
any of the provisions of this Article shall, upon conviction before a District
Justice, be subject to a fine of not more than three hundred dollars ($300.),
plus costs of prosecution and, in default of payment of such fine and costs,
shall be subject to imprisonment for not more than thirty (30) days.