[HISTORY: Adopted by the Borough Council of the Borough of
Munhall 12-29-1992 by Ord. No. 1353; amended in its entirety at time
of adoption of Code (see Ch. 1, General Provisions, Art. I). Subsequent
amendments noted where applicable.]
A.
No insurance company, association or exchange (hereinafter "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the
Borough where the amount recoverable for the fire loss to the structure
under all policies exceeds $7,500, unless the insurer is furnished
by the Borough Treasurer 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 procedures set forth in Section 508(c) and (d) of the Act.[1]
[1]
Editor's Note: See 40 P.S. § 638.
B.
Municipal claims or expenses.
(1)
Where
there are delinquent taxes, assessments, penalties or user charges
against the property ("municipal claims"), or there are expenses which
the Borough has incurred as a cost for the removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the Assistant Secretary-Treasurer of the Borough shall
immediately render a bill for such work, if he has not already done
so. Upon written request of the named insured specifying the tax description
of the property, the name and address of the insurer and the date
of receipt by the insurer of a loss report of the claim, the Treasurer
shall furnish a certificate within 14 working days after the request,
to the insurer, a certificate (or at his discretion an oral notice
confirmed in writing) either:
(2)
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B(1)(b) of this section, the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section, or where the Treasurer has issued a certificate described in Subsection B(1)(a) indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured; provided, however, that if the loss agreed upon by the named insured and the insurer 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:
(1)
The insurer shall transfer from the insurance proceeds to the Treasurer,
in the aggregate, $2,000 for each $15,000 of such claim or fraction
thereof.
(2)
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Borough, a contractor's
signed estimate of the cost of removing, repairing or securing the
building or other structure in an amount less than the amount calculated
under the foregoing transfer formula, the insurer shall transfer to
the Treasurer from the insurance proceeds the amount specified in
the estimate. If there is more than one insurer, the transfer of proceeds
shall be on a pro rata basis by all insurers insuring the building
or other structure.
(3)
Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer shall do the following:
(a)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Borough to
be required in removing, repairing or securing the building or structure
as required by this chapter. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing or any proceedings
related thereto; and
(b)
Mail to the named insured, at the address received from the
insurer, a notice the proceeds have been received by the Borough and
that the procedures under this subsection shall be followed.
(c)
After the transfer, the named insured may submit to the Borough
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable,
return to the insured the amount of the funds transferred to the Borough
in excess of that required to pay the municipal expenses, provided
the Borough has not commenced to remove, repair or secure the building
or other structure, in which case the Borough will complete the work.
(d)
Pay to the Assistant Secretary-Treasurer, for reimbursement
to the Borough general fund, the amount of the municipal expenses
paid by the Borough.
(e)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Assistant
Secretary-Treasurer that the repair, removal or securing of the building
or other structure has been completed in accordance with all applicable
codes and regulations of the Borough.
(f)
Nothing in this section shall be construed to limit the ability
of the Borough to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this chapter, or
to insurance proceeds, by an action at law or in equity to enforce
the codes of the Borough or to enter into an agreement with the named
insured with regard to such other disposition of the proceeds as the
Borough may deem responsible.
Nothing in this chapter shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
proceeds payable under its insurance policy or for any other act performed
pursuant to this chapter or to make this Borough, any Borough official,
a municipality or public official an insured under a policy of insurance
or to create an obligation to pay delinquent property taxes or unpaid
removal liens or expenses other than as provided in this chapter.
An insurance company, association or exchange making payment
of policy proceeds under this chapter for delinquent taxes or structure
removal liens or removal expenses incurred by the Borough shall have
a full benefit of such payment, including all rights of subrogation
and of assignment.
This chapter shall be liberally construed to accomplish its
purpose to deter the commission of arson and related crimes, to discourage
the abandonment of property and to prevent urban blight and deterioration.
The Secretary of the Borough shall transmit a certified copy
of this chapter promptly to the Pennsylvania Department of Community
and Economic Development.
Any owner of property, any named insured or insurer who violates the provisions of this chapter or who shall fail to comply with any of the requirements hereof shall be sentenced, upon conviction thereof, to a fine as provided in Chapter 1, Article II, General Penalty, of the Code of the Borough of Munhall, plus costs, and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day on which an offense shall continue shall be deemed a separate offense.
