This article is enacted pursuant to the Insurance
Company Law of 1921, as amended by Act 98 of 1992 and Act 93 of 1994,
providing for the payment of certain proceeds from fire loss claims
to the Borough. (See 40 P.S. § 631 et seq.)
The Borough Secretary or his/her designee is
hereby appointed as the officer of the Borough to manage all responsibilities
set out herein.
No fire insurance company, association or exchange
doing business in the Commonwealth of Pennsylvania shall pay a claim
of an insured for fire damage to a structure located within the Borough
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless said company, association or exchange
requests and receives a certificate pursuant to Section 508(b) of
Act 98 of 1992 as amended by Act 93 of 1994 and unless there is compliance
with Section 508(c) and (d) of said Act(s) pursuant to the provisions
of this article. (See 40 P.S. § 638.)
When the Borough issues a certificate indicating
that there are no delinquent taxes, assessments, penalties or user
charges against the damaged property, the company, association or
exchange shall pay the claim of the insured; provided, however, that
if the loss equals or exceeds 60% of the aggregate limits of liability
on all policies covering the building or structure, the escrow provisions
set out in Section 508(c) and (d) of Act 98 of 1992, as amended by
Act 93 of 1994, shall be followed; and Section 508(c) and (d) of said
Act(s) are incorporated within this article as though fully set out
herein. (See 40 P.S. § 638.)
The Borough shall set fees for the issuance
of certificates and bills, the performance of inspections, the opening
of escrow accounts and other services provided pursuant to this article.
Any person issued a certificate pursuant to §
231-3 of this article shall be given notice of the existence of this article.
Any person and the principal of any firm or
the chief executive of any corporation violating any provision of
this article shall, upon conviction thereof, be subject to the maximum
penalties provided by law.