[HISTORY: Adopted by the Board of Supervisors of the Township
of Easttown 11-19-2007 by Ord. No. 378-07. Amendments noted where
applicable.]
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 Easttown Township under the terms of Section 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 § 203-2 of this chapter and unless there is compliance with the procedures set forth in §§ 203-3 and 203-4 of this chapter.
A.
The Township Manager or his/her designee shall, upon written request
of the named insured specifying the tax description of the property,
name and address of the insurance company, association or exchange
and the date agreed upon by the insurance company, association or
exchange and the named insured as the date of the receipt of a loss
report of the claim, and the payment of a certification fee in the
amount as set from time to time by resolution of the Board of Supervisors
to cover the administrative expense of processing the request and
copying, 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 Township, a verbal notification
which shall be confirmed in writing by the insured 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 Manager's certificate or verbal notification,
the Township has not certified any amount as total costs incurred
by the Township 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 or 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 Manager's certificate,
the amount of the total costs, if any, certified to the Manager or
his/her designee that have been incurred by the Township for the removal,
repair or securing of a building or other structure on the property.
For the purposes of this subsection, the Township Manager shall certify
the total amount, if any, of such costs. For the purposes of this
chapter, 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 Township under applicable law or ordinance.
B.
Upon receipt of a certificate pursuant to Subsection A(1) of this section, the insurance company, association or exchange 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 company, association or exchange 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 insurance company, association or exchange, the insured property owner and the Township shall follow the procedures as set forth in §§ 203-3 and 203-4 of this chapter.
C.
Upon receipt of a certificate and bill pursuant to Subsection A(2) of this section, the insurance company, association or exchange shall return the bill to the manager or his/her designee and transfer to the Manager or his/her designee an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs shown on the bill. In the case of a loss subject to §§ 203-3 and 203-4 of this chapter, the insurance company, association or exchange shall transfer to the Manager or his/her designee the amount from the insurance proceeds shown on the bill separately from the amounts transferred under § 203-3 of this chapter. The Township shall receive the amount and apply or credit it to payment of the items shown in the bill.
[Amended 6-2-2014 by Ord.
No. 422-14]
When the loss agreed to between the named insured and the insurance
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), as amended. 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.
[Amended 12-15-2014 by Ord. No. 424-14]
Upon receipt of the proceeds by the Township as authorized by § 203-3, 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 § 203-3, 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 Township and notify the named insured that the procedures under this section shall be followed. The funds 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.
[Amended 12-15-2014 by Ord. No. 424-14]
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
numbers of the Township official responsible for compliance with Section
508 of the Insurance Company Law of 1921, as amended (40 P.S. § 638).
