[HISTORY: Adopted by the Board of Supervisors of the Township of Upper Providence 10-3-2011 by Ord. No. 518. Amendments noted where applicable.]
No insurance company, association or exchange (hereinafter the "insurer") doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within Upper Providence Township (hereinafter "Township") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500, unless the insurer is furnished by the Township Manager with a certificate pursuant to Section 508(b) of the Insurance Company Law of 1921, as amended by Act 98 of 1992 and Act 93 of 1994 (collectively, the "Act") and unless there is compliance with the procedure set forth in Section 508(c) and (d) of the Act.
The Township Manager is hereby appointed as the designated officer who is authorized to carry out all the responsibilities and duties as stated herein. It shall be the duty of the Township Manager to issue the certifications required under this chapter. However, the Township Manager shall only be responsible for ascertaining the amount of any and all real estate taxes due, assessment penalties or user charges against real property.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Township Manager issues a certificate or, at the discretion of Upper Providence Township, a verbal notification, which shall be confirmed in writing by the insurer, 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 as agreed upon by the named insurer and the insuring agent equals or exceeds 60% of the aggregate limits of liability on all fire polices covering the building or other structure, the following procedure must be followed:
The insuring agent shall transfer from the insurance proceeds to the Township Manager in the aggregate of $2,000 for each $15,000 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 an amount less than the amount calculated under the foregoing transfer formula, the insuring agent shall transfer to the Township from the insurance proceeds the amount specified in the estimate.
The transfer proceeds shall be on a pro-rata basis by all companies, associations or exchanges insuring the building or other structure. Policy proceeds remaining after the transfer to Upper Providence Township shall be disbursed in accordance with policy terms.
After the transfer, the named insured may submit a contractor's signed estimate of the cost of the removing, repairing or securing the building or other structure and the Township Manager 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.
When transferring funds under this section, an insurance company, association or exchange shall provide the Township with the name and address of the named insured.
Upon receipt of the information set forth in Subsection E of this section, the Township shall contact the named insured to certify that the proceeds have been received by the Township and notify the named insured that the procedure under this section be followed.
Upon receipt of the proceeds under this section, the Township shall do the following:
The Township Manager shall place the proceeds in a separate fund to be used solely as security against the total cost 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.
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 is received by the Township Manager, and if the Township has not incurred any cost for repairs, removal or securing, the funds shall be returned to the named insured. If the Township has incurred cost for repairs, removal or securing of the building or other structure, the cost 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 the 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 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 or from negotiating some other reasonable disposition of the damaged property.
Where, pursuant to Section 508(b)(1)(ii), Act 98 of 1992, the Township Manager issues a certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the real property that have not been paid as of the date of the certificate and also showing, as of the date of the certificate, the amount of the total costs, if any, certified to the Township Manager that have been incurred by the Township for removal, repair or securing of the building or other structure on the real property, the insuring agent shall return the bill to the Township Manager and transfer to the Township Manager an amount from the insurance proceeds necessary to pay the taxes, assessment, penalties, charges and costs as shown on the bill. The Township, upon receipt of the amount, shall apply or credit it to the payment of the items shown on the bill. A tax assessment, penalty or user charge becomes delinquent at the time and/or on the date a lien could have otherwise been filed against the property by Upper Providence Township under applicable law.
The Township Supervisors may, by resolution, adopt procedures and regulations to implement Act 98 of 1992 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 and this chapter, including, but not limited to, the issuance of certifications and bills, the performance of inspections, and the opening of separate fund accounts.
Any owner of property, any named insured, any insurer, person, firm or corporation who violates the provisions of this section or shall fail to comply with any of the requirements herein stated shall be liable, upon summary conviction, to fines and penalties not exceeding $1,000, which fines and penalties may be collected by suit or summary proceedings brought in the name of the Township before any Magisterial District Judge or recovered as debts of the like amount are now by law recoverable.