[HISTORY: Adopted by the Borough Council
of the Borough of East Stroudsburg as indicated in article histories.
Amendments noted where applicable.]
[Adopted 3-19-1996 by Ord. No. 1044, approved
3-19-1996]
The Borough 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:
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.
A.
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 Borough of East Stroudsburg (hereinafter the "municipality")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insurer is furnished by the
municipal officer with a municipal certificate pursuant to Section
508(b)[1] and unless there is compliance with Sections 508(c) and
(d)[2] and the provisions of this article.
B.
After full compliance with the requirements of Section
508(b)(1)(i),[3] 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 60% of the aggregate limits of liability
on all fire policies covering the building structure, the following
procedures shall be followed:
(1)
The insurer shall transfer from the insurance proceeds
to the municipal officer the aggregate of $2,000 for each $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 $15,000
or less, the amount transferred to the municipality shall be $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.
(2)
The transfer of proceeds shall be on a prorated basis
by all companies, associations or exchanges insuring the building
or other structure. Policy proceeds remaining after the transfer to
the municipality shall be disbursed in accordance with the policy
terms.
[3]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
C.
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.
D.
Upon receipt of proceeds under this section, the municipality
shall do the following:
(1)
The municipal officer shall place the proceeds in
the separate fund to be used solely as security against the total
costs of removing, repairing, or securing the building or structure
which are 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.
(2)
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.
(3)
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.
(4)
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 Borough Council may by resolution adopt
procedures and regulations to implement Section 508 and this article
and may by resolution fix reasonable fees to be charged for municipal
activities or services provided pursuant to Section 508[1] and this article, including but not limited to issuance
of certificates and bills, performance of inspections and opening
separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or
any insurer who violates this article shall be subject to a penalty
of up to $1,000 per violation.
[Adopted 3-19-1996]
The Borough Treasurer or such officials 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:
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.
A.
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 Borough of East Stroudsburg (hereinafter the "municipality")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insurer and the named insured
comply with the provisions of Section 508(b)[1] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b).
B.
Certificate.
(1)
The Municipal Officer shall, upon the written request
of the named insured specifying the tax description of the property,
name and address of the insurer and the date agreed upon by the insurer
and the named insured as the date of the receipt of a loss report
of the claim, furnish the insurer either of the following within 14
working days of the request:
(a)
A certificate or, at the discretion of the municipality,
a verbal notification which shall be confirmed in writing by the insurer
to the effect that, as of the date specified in the request, there
are no delinquent taxes, assessments, penalties or user charges against
the property and that, as of the date of the municipal officer's certificate
or verbal notification, the municipality has not certified any amount
as total costs incurred by the municipality for the removal, repair
or securing of a building or other structure on the property; or
(b)
A certificate and bill showing the amount of
delinquent taxes, assessments, penalties and user charges against
the property as of the date specified in the request that have not
been paid as of the date of the certificate and also showing, as of
the date of the municipal officer's certificate, the amount of the
total costs, if any, certified to the municipal officer that have
been incurred by the municipality for the removal, repair or securing
of a building or other structure on the property. For the purposes
of this clause, the municipality shall provide to the municipal officer
the total amount, if any, of such costs, if available, or the amount
of costs known to the municipality at the time of the municipal officer's
certificate.
(2)
A tax, assessment, penalty or user charge becomes
delinquent at the time and on the date a lien could otherwise have
been filed against the property by the municipality under applicable
law.
C.
Upon the receipt of a certificate pursuant to § 92-8B(1)(a) of this article, the insurer shall pay the claim of the named insured in accordance with the policy terms.
D.
Upon the receipt of a certificate and bill pursuant to § 92-8B(1)(b) of this article, the insurer shall return the bill to the municipal officer and transfer to the municipal officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill.
E.
Nothing in this section shall be construed to limit
the ability of the municipality to recover any deficiency.
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 fire loss.
The Borough Council may by resolution adopt
additional procedures and regulations to implement Section 508[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508 and this article, including but not limited to issuance
of certificates and bills.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or
any insurer who violates this article shall be subject to a penalty
of up to $1,000 per violation.
