[HISTORY: Adopted by the Board of Supervisors of the Township of
Lawrence as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-15-1996 by Ord. No. 96-7]
No insurance company, association or exchange insuring property in Lawrence Township and doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within Lawrence Township where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurance company, association or exchange is furnished with a certificate pursuant to § 67-2 of this article and unless there is compliance with the procedures set forth in §§ 67-3 and 67-4 of this article.
A.
A. [1]The Lawrence Township Treasurer shall, upon the written request
of the named insured specifying the tax description of the property, name
and address of the insurance company, association or exchange and the date
agreed upon by the insurance company, association or exchange and the named
insured as the date of receipt of a loss report of the claim, furnish the
insurance company, association or exchange either of the following within
14 working days of the request:
(1)
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 Treasurer's certificate or verbal notification,
no municipality has 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
(2)
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 Treasurer's certificate,
the amount of the total costs, if any, certified to the Treasurer that have
been incurred by a municipality for the removal, repair or securing of a building
or other structure on the property. For the purposes of this subsection, Lawrence
Township shall certify to the Treasurer the total amount, if any, of such
costs. 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.
B.
Payment of claim.
(1)
Upon receipt of a certificate pursuant to Subsection A(1) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurance company, association or exchange, the insured property owner and Lawrence Township shall follow the procedures set forth in §§ 67-3 and 67-4 of this article.
(2)
Upon receipt of a certificate and bill pursuant to Subsection A(2) of this section, the insurance company, association or exchange shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. Lawrence Township shall receive the amount and apply or credit it to payment of the items shown in the bill.
When the loss agreed to between the named insured and the company, association
or exchange equals or exceeds 60% of the aggregate limits of liability on
all fire policies covering the building or other structure, the insurance
company, association or exchange shall transfer from the insurance proceeds
to the Treasurer of Lawrence Township in the aggregate $2,000 for each $15,000,
and each fraction of that amount, of a claim, or, 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 insurance company, association or exchange shall transfer from
the insurance proceeds the amount specified in the estimate. The transfer
of proceeds shall be on a pro rata basis by all companies, associations or
exchanges insuring the building or other structure. Policy proceeds remaining
after the transfer to Lawrence Township shall be on a pro rata basis by all
companies, associations or exchanges insuring the building or other structure.
Policy proceeds remaining after the transfer to Lawrence Township shall be
disbursed in accordance with the policy terms. The named insured may submit
a contractor's signed estimate of the costs of removing, repairing or
securing the building or other structure after the transfer, and the designated
officer shall return the amount of the fund in excess of the estimate to the
named insured if the Lawrence Township has not commenced to remove, repair
or secure the building or other structure. This section only applies to fire
losses that occur after the adoption of this article.
Upon receipt of proceeds by Lawrence Township as authorized by this article, the Lawrence Township Treasurer shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Lawrence Township. When transferring the funds as required in § 67-3 of this article, an insurance company, association or exchange shall provide Lawrence Township with the name and address of the named insured, whereupon Lawrence Township shall contact the named insured, certify that the proceeds have been received by Lawrence Township and notify the named insured that the procedure under this section shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Lawrence Township Treasurer, if Lawrence Township has not incurred any costs of repairs, removal or securing. If Lawrence Township 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, Lawrence Township shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of Lawrence Township to recover any deficiency. Further, nothing in this section shall be construed to prohibit Lawrence Township 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.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with § 67-3 of this article is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with § 67-3 of this article.
Nothing in this article shall be construed to make an insurance company,
association or exchange liable for any amount in excess of proceeds payable
under its insurance policy or for any other act performed pursuant to this
article or to make this Lawrence Township, any Lawrence Township official,
a municipality or public official, an insured under a policy of insurance,
or to create an obligation to pay delinquent property taxes or unpaid removal
liens or expenses other than as provided in this article.
An insurance company, association or exchange making payments of policy
proceeds under this article for delinquent taxes or structure removal liens
or removal expenses incurred by Lawrence Township shall have a full benefit
of such payment including all rights of subrogation and of assignment.
This article shall be liberally constructed to accomplish its purpose
to deter the commission of arson and related crimes, to discourage the abandonment
of property and to prevent urban blight and deterioration.
When an ordinance is first passed or adopted by a municipality under
Subsection (a) and (b) of 40 P.S. § 638 or Subsections (c) and (d)
of 40 P.S. § 638, or both, an exact copy of the ordinance shall
be filed with the Department of Community and Economic Development together
with the name, position and phone number of the municipal official responsible
for compliance with 40 P.S. § 638. Each municipality enacting an
ordinance under 40 P.S. § 638 shall supply the information required
by 40 P.S. § 638 to the Department of Community and Economic Development
as part of the implementation of its ordinance. The Department of Community
and Economic Development shall periodically produce a register listing of
those municipalities filing the ordinance. This register shall be made available
to insurance companies at minimum cost. An insurance company, association
or exchange shall not be required to comply with any municipal ordinance if
the municipality fails to provide a copy of the ordinance to the Department
of Community and Economic Development.
Any person who violates or permits a violation of this article shall,
upon conviction in a summary proceeding brought before a District Justice
under the Pennsylvania Rules of Criminal Procedure, be guilty of a summary
offense and shall be punishable by a fine of not less than $50 nor more than
$1,000, plus costs of prosecution. In default of payment thereof, the defendant
may be sentenced to imprisonment for a term not exceeding 30 days. Each day
or portion thereof that such violation continues or is permitted to continue
shall constitute a separate offense, and each section of this article that
is violated shall also constitute a separate offense.
This article shall be enforced as follows:
A.
Violations of the article shall be enforced by the Lawrence
Tcownship police, or the Lawrence Township Code Enforcement Officer,
who shall determine in each instance whether a violation has occurred under
the provisions hereinafter set forth. Upon determining that a violation has
occurred, the officer shall impose the aforesaid penalty(ies) upon the violator.[1]
B.
The officer shall serve the penalty assessment upon the
violator by personal service or certified mail.
