No insurance company, association or exchange doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within East Goshen Township under the terms of § 508(a) of the Insurance Company Law of 1921, as amended, 40 P.S. § 638(a), unless the insurance company, association or exchange is furnished with a certificate pursuant to §
141-2 of this chapter and unless there is compliance with the procedures set forth in §§
141-3 and
141-4.
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 insurance company, association or exchange shall transfer from
the insurance proceeds to the Township Manager or his/her designee
the amounts required by and in accordance with the procedures set
forth in 40 P.S. § 638(c). Policy proceeds remaining after
the transfer to the Township 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 or securing the
building or other structure after the transfer, and the Township Manager
or his/her designee shall return the amount of the fund 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. The Township
Manager or his/her designee shall carry out the duties of this section.
Upon receipt of the proceeds by the Township as authorized by §
141-3, the Township Manager or his/her designee 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 Township. When transferring the funds as required in §
141-3, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township 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 section shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Township Manager or his/her designee if the Township has not incurred any costs for repairs, removal or securing. If the Township 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 Township shall transfer the remaining funds to the named insured. Nothing in this chapter shall be construed to limit the ability of the Township to recover any deficiency. Further, nothing in this section 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 total costs incurred by the Township for the removal, repair
or securing of a building or other structure under this chapter shall
include, but not be limited to, all administrative, personnel and
overhead costs incurred by the Township in accordance with generally
accepted accounting procedures.
Upon the enactment of this chapter, the Township Secretary shall
file an exact copy of the chapter with the Department of Community
and Economic Development, together with the name, position and phone
number of the municipal official responsible for compliance with § 508
of the Insurance Company Law of 1921, as amended.