[HISTORY: Adopted by the Borough Council of the Borough of
West Mifflin as indicated in article histories. Amendments noted where
applicable.]
[Adopted 7-20-2010 by Ord. No. 1169]
From time to time, the Borough shall designate the official
responsible for carrying out the duties as are described herein. Such
person shall be the designated officer by the Borough to make certifications,
file claims, etc., and carry out all functions as may be necessary
to effectuate Borough claims pursuant to the legislation referred
to hereinabove. At the present time, the Borough hereby designates
the Borough Manager as the appropriate officer.
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 West Mifflin Borough (hereinafter the "Borough") where
the amount recoverable for the fire loss to the structure under all
policies exceeds $7,500, unless the named insured or insuring agent
is furnished by the Municipal Manager with a municipal certificate
pursuant to Section 508(b) of Act 98 of 1992,[1] and unless there is compliance with Section 508(c) and
(d) of Act 98 of 1992[2] and the provisions of this article.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992,[1] as amended, the Municipal Manager issues a certificate
indicating that there are no delinquent taxes, assessments, 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, all structures thereon and contents therein
and the total cost of removal of all debris or damaged contents of
such structure, the following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the Borough Manager in the aggregate of $2,000 for each $15,000 of
a claim and for each fraction of the amount of a claim, this section
to be applied such that if the claim is $15,000 or less, the amount
transferred to the Borough shall be $2,000.
B.
If, at the time of a proof of loss agreed to between the named insured
and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the Borough from the insurance proceeds the amount specified in the
estimate.
C.
The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.
After the transfer, the named insured shall submit a contractor's
signed estimate within 60 days of the costs of removing, repairing
or securing the building or other structure, and the Borough Manager
shall return the amount of the funds transferred to the Borough in
excess of the estimate to the named insured, following commencement
of work by the contractor, if the Borough has not commenced to remove,
repair or secure the building, its contents or other structures on
the property.
E.
Upon receipt of proceeds under this section, the Borough shall do
the following:
(1)
The Borough Manager shall place the proceeds in a separate fund to
be used solely as security against the total costs of removing, repairing,
or securing the building, the contents or structures which are incurred
by the Borough. Such costs shall also include, without limitation,
any engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing of the building
or any proceedings related thereto; and
(2)
It is the obligation of the insuring agent when transferring the
proceeds to provide the Borough 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 designated officer shall contact the named
insured, certify that the proceeds have been received by the Borough
and notify the named insured that the procedures under this subsection
shall be followed; and
(3)
When repairs, removal or securing of the building, the contents or
other structures have been completed in accordance with all applicable
regulations and orders of the Borough and the required proof of such
completion received by the designated officer, and if the Borough
has not incurred any costs for repairs, removal of debris or contents
or securing, the fund shall be returned to the named insured. If the
Borough has incurred costs for repairs, removal of debris or contents
or securing of the building or other structure, the cost shall be
paid from the fund, and, if excess funds remain, the Borough shall
transfer the remaining funds to the named insured; and
(4)
To the extent that interest is earned on proceeds held by the Borough
pursuant to this section, and not returned to the named insured, such
interest shall belong to the Borough. 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.
F.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Borough 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.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Borough of West Mifflin may, by resolution, adopt procedures
and regulations to implement Act 98 of 1992,[1] as amended, and this article and may, by resolution, fix
reasonable fees to be charged for municipal activities or services,
including but not limited to certificates and bills, performance of
inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
An owner of property, any named insured or any insuring agent
who violates this article shall be subject to a civil penalty of up
to $1,000 per violation.
