[HISTORY: Adopted by the Board of Commissioners of the Township of Robinson as indicated in article histories. Amendments noted where applicable.]
Article I Fire Insurance Claims
[Adopted 4-12-1999 by Ord. No. 4-1999 (Ch. 1, Part 12, of the 1989 Code)]
The Township Secretary or such official as the Township Commissioners may designate ("designated official") is hereby appointed as the designated official who is authorized to carry out all responsibilities and duties stated herein.
No insurance company, association or exchange (hereinafter, the "insuring agent") doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for the fire damage to a structure located within the Township of Robinson where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insuring agent is furnished by the designated official with a Township certificate pursuant to Act 98 of 1992, as amended, and unless there is compliance with Act 98 of 1992, as amended, and the provisions of this article.
Editor's Note: See 40 P.S. § 638.
Where, pursuant to Act 98 of 1992, as amended, the designated official issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user charges against real property, the insuring agent may pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building restructure, the following procedures must be followed pursuant to Act 98 of 1992, as amended:
The insuring agent shall transfer from the insurance proceeds to the designated official of the Township in the aggregate of $2,000 for each $15,000 of a claim, and for each fraction of that amount of a claim, this subsection is to be applied such that, if the claim is $15,000 or less, the amount transferred to the Township shall be $2,000.
If at the time of a proof of loss agreed to between the named insured and the insuring agent the name insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, the insuring agent shall transfer to the Township 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.
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 official shall return the amount of the funds transferred to the Township in excess of the estimate to the named insured, if the Township has not commenced to remove, repair or secure the building or other structure.
Upon receipt of proceeds under this section, the Township shall perform the following:
The designated official shall place the proceeds in a 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 Township. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the Township in connection with such removal, repair or securing of the building or any proceedings relating thereto.
It is the obligation of the insuring agent when transferring the proceeds to provide the Township 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 designated official shall contact the named insured, certify that the proceeds have been received by the Township, and notify the named insured that the procedures under this subsection shall be followed.
When repair, removal or securing of the building or other structure has been completed in accordance with all applicable regulations and orders of the Township, and the required proof of such completion received by the designated official, and if the Township has not incurred any costs for repair, removal or securing of the building or other structure, the fund shall be returned to the named insured. If the Township has incurred costs for repair, removal or securing of the building or other structure, the costs shall be paid from the fund, and if excess funds remain, the Township shall transfer the remaining funds to the named insured.
To the extent that interest is earned on proceeds held by the Township pursuant to this section and not returned to the named insured, such interest shall belong to the Township. 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.
Nothing in this section shall be construed to limit the ability of the Township to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the 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.
The Township of Robinson may, by resolution, adopt procedures and regulations to implement Act 98 of 1992, as amended, and this article and may, by resolution, fix reasonable fees to be charged for Township activities or services provided pursuant to Act 98 of 1992, as amended, and this article, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts. Said fees shall be the responsibility of the named insured.
Any person who has violated or knowingly permitted the violation of the provisions of this article shall, upon being found liable therefor in civil enforcement proceeding commenced by the Township, pay a fine of not more than $1,000 plus all court costs, including reasonable attorneys' fees incurred by the Township. No judgment shall commence or be imposed, levied or be payable until the date of the determination of a violation by the Magisterial District Judge.
If the violator neither pays the fine and court costs, nor timely appeals the judgment, the Township may enforce the judgment.
All judgment, costs and reasonable attorneys' fees collected for violations of this article shall be paid over to the Township.