[HISTORY: Adopted by the Township Council of the Township
of College 9-2-2010 by Ord. No. O-10-09. Amendments noted where applicable.]
A.
No insurance company, association or exchange (hereinafter "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the
Township of College, Centre County, Pennsylvania, where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500 unless the insurer is furnished by the Secretary of
the Township of College with a certificate pursuant to Section 508(b)
of the Insurance Company Law of 1921,[1] as amended by Act 98 of 1992 and Act 93 of 1994 (collectively,
the "Act") and unless there is compliance with the procedures set
forth in Section 508(c) and 508(d) of the Act.
[1]
Editor's Note: See 40 P.S. § 341.
B.
Delinquent taxes, assessments, penalties and user charges.
(1)
Where there are delinquent taxes, assessments, penalties, or user
charges against the property ("municipal claims"), or there are expenses
which the Township has incurred as costs for removal, repair, or securing
of a building or other structure on the property (collectively, "municipal
expenses"), the Secretary of the Township shall immediately render
a bill for such work, if not already done. Upon written request of
the named insured specifying the description of the property, the
name and address of the insurer and the date of receipt by the insurer
of a loss report of the claim, the Secretary of the Township shall
furnish a certificate within 14 days after the request to the insurer
either:
(2)
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurer shall transfer to the Secretary of the Township an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section, or when the Township Secretary has issued a certificate described in Subsection B(1)(a), indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure, the following procedures must be followed:
(1)
The insurer shall transfer from the insurance proceeds to the Township
Secretary, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
(2)
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Township, a contractor's
signed estimate of the cost of removing, repairing, or securing the
building or other structure in an amount less than the amount calculated
under the foregoing transfer formula, the insurer shall transfer to
the Secretary of the Township of College from the insurance proceeds
the amount specified in the estimate. If there is more than one insurer,
the transfer of proceeds shall be on a pro-rata basis by all insurers
insuring the building or other structure.
(3)
Upon receipt of the above-described portion of the insurance proceeds,
the Secretary of the Township of College, Centre County, Pennsylvania,
shall do the following:
(a)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Township to
be required in removing, repairing, or securing the building or structure
as required by this chapter. Such costs shall include, without limitation,
any engineering, legal, or administrative costs incurred by the Township
in connection with such removal, repair, or securing or any proceedings
related thereto;
(b)
Mail to the named insured at the address received from the insurer
a notice that the proceeds have been received by the Township and
that the procedures under this subsection shall be followed;
(c)
After the transfer, the named insured may submit to the Township
of College a contractor's signed estimate of the cost of removing,
repairing, or securing the building or other structure, in which even
the Township Secretary shall, if such estimates deemed by the Township
Secretary to be reasonable, return to the insured the amount of the
funds transferred to the Township of College in excess of that amount
required to pay the municipal expenses; provided, however, that the
Township has not commenced to remove, repair, or secure the building
or other structure, in which case the Township will complete the work;
(d)
Pay to the Secretary of the Township for reimbursement to the
Township General Fund the amount of the municipal expenses paid to
the Township;
(e)
Pay the remaining balance in the fund without interest to the
named insured upon receipt of a certificate issued by the Township
Secretary that the repair, removal, or securing of the building or
other structure has been completed in accordance with all applicable
codes and regulations of the Township;
(f)
Nothing in this section shall be construed to limit the ability
of the Township to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this chapter, or
to insurance proceeds, by an action at law or in equity to enforce
the Township codes or to enter into an agreement with the named insured
with regard to such other disposition of the proceeds as the Township
may deem responsible.
Nothing in this chapter 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 chapter or to make the Township or any public official
of the Township 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 chapter.
An insurance company, association or exchange making payment
of policy proceeds under this chapter for delinquent taxes or structural
removal liens or removal expenses incurred by the Township of College
shall have full benefit of such payment including all rights of subrogation
and of assignment.
This chapter shall be liberally construed 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.
The Secretary of the Township of College shall transmit a certified
copy of this chapter promptly to the Pennsylvania Department of Community
and Economic Development.
Any owner of property, any named insured or insurer who violates
the provisions of this chapter or who shall fail to comply with any
of the requirements hereof shall be sentenced upon conviction thereof
to pay a fine not greater than $1,000 plus costs and, in default of
payment of said fine and costs, to a term of imprisonment not to exceed
30 days. Each day in which an offense shall continue shall be deemed
a separate offense.
