[HISTORY: Adopted by the Board of Supervisors of the Township
of Shirley as indicated in article histories. Amendments noted where
applicable.]
[Adopted 8-28-2008 by Ord. No. 2008-4]
The Township Secretary or such official's designee is hereby
appointed as the designated officer 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 fire damage to a structure
located within Shirley Township (hereinafter the "municipality") 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 Municipal Treasurer with a municipal certificate pursuant to the
appropriate provisions of the Insurance Company Law of 1921,[1] as amended, and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 341 et seq.
A.
The Municipal Treasurer shall, upon the written request of the named
insured specifying the tax description of the property, name and address
of the insuring agent and the date agreed upon by the insuring agent
and the named insured as the date of the 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 purpose of this subsection, the municipality 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.
Upon the receipt of a certificate pursuant to Subsection A(1) of this section, the insuring agent 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 insuring agent 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 insuring agent, the insured property owner and the municipality shall follow the procedures set forth in Subsections D and E of this section.
C.
Upon the receipt of a certificate and bill pursuant to Subsection A(2) of this section, the insuring agent 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. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
D.
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 insuring agent shall transfer from the insurance proceeds to the designated officer of the municipality 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, securing, or rebuilding the building or other structure in an amount less than the amount calculated under the foregoing transfer formula, the insuring agent 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 the municipality 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, securing, or rebuilding 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 municipality has not commenced to remove, repair or secure the building or other structure. This subsection only applies to municipalities that have adopted an ordinance authorizing the procedure described in Subsections D and E of this section and applies only to fire losses that occur after the adoption of the ordinance. The ordinance shall designate the officer authorized to carry out the duties of this section.
E.
Upon receipt of proceeds by the municipality as authorized by this
section, the designated officer 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 municipality. When transferring
the funds as required in this article, an insuring agent shall provide
the municipality with the name and address of the named insured, whereupon
the municipality 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.
The funds shall be returned to the named insured when repairs, removal
or securing of the building or structure have been completed and the
required proof received by the designated officer if the municipality
has not incurred any costs for repairs, removal, securing, or rebuilding.
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. Nothing in this section
shall be construed to limit the ability of a municipality to recover
any deficiency. Further, nothing in this subsection 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. In the event that the owner or builder does not intend
to rebuild or repair the building or other structure, the escrowed
funds shall be paid to the insured upon completion of the process
of removing and/or securing the property. In the event that the owner
or builder intends to rebuild or repair the building or other structure,
the escrowed funds shall not be paid to the insured until a certificate
of occupancy has been issued. The Township may from time to time adopt
a policy as to this process.
F.
Proof of payment by the insuring agent of proceeds under a policy in accordance with Subsection D of this section 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 insuring agent with Subsection D of this section.
G.
Nothing in this section shall be construed to make an insuring agent
liable for any amount in excess of proceeds payable under its insurance
policy or for any other act performed pursuant to this section or
to make 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 section.
H.
An insuring agent making payments of policy proceeds under this section
for delinquent taxes or structure removal liens or removal expenses
under this section for delinquent taxes or structure removal liens
or removal expenses incurred by a municipality shall have a full benefit
of such payment, including all rights of subrogation and of assignment.
The Township Board of Supervisors may by resolution adopt procedures
and regulations to implement the Insurance Company Law of 1921[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to the Insurance Company Law of 1921 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. § 341 et seq.
Any owner of property, any named insured or any insuring agent
who violates this article shall be subject to a penalty of up to $1,000
per violation.