[Ord. 2013-672, 3/12/2013]
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 West Norriton 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.
[Ord. 2013-672, 3/12/2013]
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 Part 2. 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.
[Ord. 2013-672, 3/12/2013]
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the
Township Manager issues a certificate or, at the discretion of the
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 policies covering the building or other structure, the following
procedure must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the Township Manager in the aggregate $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.
B.
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.
C.
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 the Township shall
be disbursed in accordance with policy terms.
D.
After the transfer, the named insured may submit a contractor's signed
estimate of the cost of 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.
E.
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.
F.
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 shall be followed.
G.
Upon receipt of the proceeds under this section, the Township shall
do the following:
(1)
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 is 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.
(2)
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.
(3)
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.
H.
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.
[Ord. 2013-672, 3/12/2013]
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
the Township under applicable law.
[Ord. 2013-672, 3/12/2013]
The Township Commissioners may, by resolution, adopt procedures and regulations to implement Act 98 of 1992 and this Part 2 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.
[Ord. 2013-672, 3/12/2013]
Any owner of property, any named insured, any insurer, or any
person, firm or corporation who violates the provisions of this Part
2 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 like amount
are now, by law, recoverable.
