[HISTORY: Adopted by the Board of Supervisors of the Township of West Manchester 12-20-2007 by Ord. No. 07-12. Amendments noted where applicable.]
The short title of this chapter shall be the "West Manchester Township Fire Insurance Escrow Ordinance," and the same may be cited in that manner.
The following words, terms and phrases shall have ascribed to them the meanings herein set forth, unless the use of such word, term or phrase in context clearly indicates a different meaning:
- INSURING AGENT
- Any insurance company, association or exchange.
- NAMED INSURED
- The person or persons who are insured for the building or structure where the fire occurred.
- West Manchester Township.
- The Treasurer of West Manchester Township or his designee.
The Treasurer of the Township, or his designee, is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
When a fire loss occurs on any property within the Township, the named insured and the insuring agent shall supply all insurance information to the Treasurer as required by this chapter.
No insuring agent doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire loss or damage to a structure located in the Township where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the named insured or the insuring agent complies with the provisions of Act 98 of 1992, as amended, and the provisions of this chapter.
Editor's Note: See 40 P.S. § 638 et seq.
The 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 insuring agent either of the following within 14 working days of the request:
A certificate or, at the discretion of the Township, a verbal notification which shall be confirmed in writing by the insuring agent, 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 municipal 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
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 municipal certificate and also showing, as of the date of the municipal certificate, the amount of the total costs, if any, certified by the Township that have been incurred by the Township for the removal, repair, or securing of a building or other structure on the property.
Where, pursuant to the provisions of this chapter, the Township Treasurer issues a certificate indicating that there are no delinquent taxes, assessment, penalties or user charges against real property, the insuring agent shall 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 or structure, the following procedures must be followed:
The insuring agent shall transfer from the insurance proceeds to the Treasurer of the Township in the aggregate $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, this section 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 loss report, the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in the amount less than the amount calculated as provided in Subsection A above, 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 Treasurer 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 do the following:
The Treasurer shall place the proceeds in the 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 related 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 Treasurer 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 repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Township and the required proof of such completion received by the Treasurer and if the Township has not incurred any 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.
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 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 Board of Supervisors of the Township may by resolution adopt procedures and regulations to implement Act 98 of 1992, as amended, and this chapter, 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 chapter, including, but not limited to, issuance of certificates and bills, performance of inspections and opening separate fund accounts.
Editor's Note: See 40 P.S. § 638.
The Treasurer of the Township shall file an exact copy of this chapter, as amended, and all further amendments with the Pennsylvania Department of Community and Economic Development together with the name and phone number of the Treasurer of the Township.
Any owner of property, any named insured or any insuring agent violating the provisions of this chapter shall pay a civil penalty to the Township in an amount not to exceed $600 per violation. If the penalty imposed by the Township is not voluntarily paid, the Township shall initiate a civil enforcement proceeding before a District Justice pursuant to the provisions of Section 1601 of the Second Class Township Code.
Editor's Note: See 53 P.S. § 66601.