[Adopted 8-11-1999 by Ord. No. 77]
This article shall be known and may be cited
as the "Fire Insurance Proceeds Ordinance."
The following words and phrases when used in
this article shall have, unless the context clearly indicates otherwise,
the meanings given to them in this section:
AGREED PROOF OF CLAIM DATE
The date agreed to by the insurer and insured as the date
of receipt of a proof of loss of a claim for fire loss to a property
or structure.
CONTRACTOR FIRE COSTS
The total costs for repairs, removal or securing of a structure
thereof agreed to by a contractor including, but not limited to, all
of the following:
A.
The actual labor costs of every contractor agent,
servant or employee involved in the repairing, removing or securing;
FIRE COSTS
All costs for repairs, removal or securing of a structure
thereof actually incurred by the Township, including, but not limited
to, all of the following:
A.
The actual labor costs of every Township agent,
servant or employee involved in the repairing, removing or securing;
F.
Administrative fee of 10% of the total fees
and costs.
INSURED
Every individual, person, firm and corporation identified
by name in a policy of insurance insuring against losses sustained
on account of fire to which this article applies.
INSURER
Every insurance company, association, exchange, and other
entity doing business within the Commonwealth of Pennsylvania insuring
and paying a claim for fire damage sustained by a building or structure
located within the Township.
LOSS
Fire damage sustained by any structure or building situate
within the Township.
MUNICIPAL CLAIM
The total value of all municipal taxes, assessments, claims,
user charges, penalties, interests and costs of collection owed to
the Township.
PERSON
Includes an individual, firm, corporation and other entity.
PROPERTY
A piece, parcel or tract of real estate located in the Township,
including every structure thereon.
STRUCTURE
Every building or other structure located upon property located
in the Township.
TAX PARCEL NUMBER
The tax parcel identification number assigned from time to
time to the property by the Tax Assessment Office of Beaver County,
Pennsylvania.
THE ACT
Section 508 of the Insurance Company Law of 1921, as amended,
40 P.S. § 638.
TOWNSHIP
The Township of Potter, Beaver County, Pennsylvania.
TREASURER
The duly elected Real Estate Tax Collector of the Township.
No insurer shall pay a claim of an insured for
fire damage to any property or structure located within the Township
where the amount recoverable for the fire loss to the property and
structure under all policies exceeds $7,500 unless and until the insurer
complies with each of the following requirements:
A. Receives a certificate pursuant to this article;
B. Transfers from the insurance proceeds the amount required
under this article; and
C. Provides the Township Treasurer with the information
regarding the insured required under this article.
Upon the written request of the named insured,
signed by every named insured, identifying the property, the name
and address of the insurer, and the agreed proof of claim date, the
Township Treasurer shall furnish the named insured, who shall then
forward to the insurer either:
A. A certificate to the effect that:
(1) As of the date specified in the request, there are
no delinquent municipal claims against the property; and
(2) As of the date of the certificate, the Township has
not certified any amount as fire costs against the property; or
B. A certificate and bill showing:
(1) As of the date specified in the request, the amount,
if any, of all delinquent municipal claims against the property that
have not been paid as of the date of the certificate; and
(2) As of the date of the certificate, the amount, if
any, of all fire costs against the property that have been incurred
by the Township.
Upon receipt of any insurance proceeds by the
Township Treasurer pursuant to this article or Section 508(d) of the
Act, the Township Treasurer shall notify every named insured in writing
at the last known address of the insured, as supplied by the insurer
making said transfer, all of the following:
A. The amount of insurance proceeds that have been received
by the Township Treasurer; and
B. The procedures of this article and Section 508(d)
of the Act shall be followed concerning said proceeds.
In the event the insured shall submit to the
Township Treasurer a written estimate from and signed by a contractor
estimating the total contractor fire costs against the property after
the insurer makes a transfer to the Township Treasurer from the insurance
proceeds and the escrow fund has been established, the Township Treasurer
shall return to the insured the amount of the fund in excess of the
written estimate of the total contractor fire costs so submitted by
the insured upon the following conditions:
A. The Township has not commenced to remove, repair or
secure the property or structure; and
B. Satisfactory proof has been submitted to the Township
Treasurer, by inspection or otherwise, that the contractor who submitted
the written estimate has commenced removing, repairing or securing
the property or structure.
Notwithstanding any provision of this article
or the Act, the Board of the Township, any insured, and/or any person
claiming or having an ownership interest in the property may enter
into a written agreement that permits the transfer of the escrow fund
held by the Township as security for the total costs of removing,
repairing, or securing the property or structure from the Township
Treasurer to or for the benefit of the named insured upon terms and
conditions satisfactory to the Board of the Township.
The contents of the application for a certificate
submitted to the Township Treasurer by the insured for a certificate
or a certificate and bill to be issued pursuant to this article, shall
contain all information requested by the Township Treasurer, which
shall include, but not be limited to, the following:
A. Full, legal name of every insurer;
B. Complete mailing address for every insurer;
C. Every claim number assigned by each and every insurer;
E. Agreed proof of claim date (date agreed upon by the
insurer and the insured as the date of the receipt of a proof of loss
of the claim);
F. Proper name of every named insured as contained in
every policy applicable;
G. Complete mailing address for every named insured;
H. Every known telephone number of each named insured;
I. Tax parcel number of the property;
J. Beaver County Deed Book volume(s) and page(s) for
the property;
K. Complete legal name and mailing address of every mortgage
and judgment lien holder; and
L. Such other information as may be determined from time
to time by the Township Treasurer in order to implement the provisions
of this article.
The Township Engineer and/or the Township Code
Enforcement Officer shall perform every inspection required to be
done or performed by this article or the Act to confirm the completion
or failure to complete any act by an insured or any contractor of
an insured, and the costs thereof shall be paid by the insured from
the fund held by the Township Treasurer as costs and as provided by
this article.
Whenever any report of an inspection performed
by the Township Engineer and/or the Township Code Enforcement Officer
pursuant to this article or any other inspection finds or discloses
that the property and/or structure involved in the loss requires removal,
repair or securing, the Township shall notify every named insured
of all of the following:
A. The fact of that an inspection occurred;
B. The date said inspection occurred;
C. The contents of the report of inspection, including
any recommendations concerning corrective action required to be done;
D. The date by which the insured must commence corrective
action to remove, repair or secure the structure;
E. The date by which the insured must complete corrective
action to remove, repair or secure the structure;
F. Notice that the Township shall undertake and perform
all corrective action in the event the insured shall fail to commence
corrective action by the corrective action commencement date;
G. Notice that the Township shall complete all corrective
action in the event the insured shall fail to complete corrective
action by the corrective action commencement date; and
H. Notice that the Township shall collect all costs as
provided in this article.
In the event that the insured fails to commence
the corrective action required by the report of inspection of the
Township Engineer and/or the Township Code Enforcement Officer and/or
any other person authorized by the Township by the corrective action
commencement date contained in the notice to be given pursuant to
this article, the Township may, without further notice to the insured,
and without the necessity of securing bids therefore, commence corrective
action for the removal, repairing or securing of the property and/or
structure by either using Township employees and equipment or entering
into contracts with third parties or both.
When any property or structure within the Township
is damaged by fire and in the opinion of the Chief of the Volunteer
Fire Department (Fire Chief) the amount of the damage amounts to at
least $7,500, the Fire Chief shall deliver a report of damage to the
Township Treasurer, which report shall include the identity of every
owner thereof and every insurer known to the Fire Chief.
The Township is hereby authorized to adopt resolutions
from time to time to fix reasonable fees to be charged for certificates,
certificates and bills, performance of inspections and opening separate
fund accounts.
This article shall be liberally construed to
accomplish its purpose to deter to the commission of arson and related
crimes, to discourage the abandonment of property, and to prevent
blight and deterioration.
[Amended 11-14-2001 by Ord. No. 88]
A. General enforcement provisions.
(1) Any person who violates any provision of this article
shall be subject to all of the following:
(a)
Shall be guilty of a summary criminal offense.
(b)
Shall, upon conviction, pay the criminal penalty specified in Subsection
B.
(c)
Shall, upon conviction, be subject to imprisonment specified in Subsection
C.
(2) Each day that a violation is continued shall constitute
a separate offense.
B. The criminal penalty for a violation of this article
shall be as follows:
(1) For a first offense, a sum not less than $500 nor
more than $1,000.
(2) For a second or subsequent offense, a sum of not less
than $750 nor more than $1,000.
C. The penalty of imprisonment for a violation of this
article shall be as follows:
(1) For a first offense, a period not more than 10 days.
(2) For a second or subsequent offense, a period not less
than five days nor more than 15 days.