[HISTORY: Adopted by the City Council of the City of Pittston
as indicated in article histories. Amendments noted where applicable.]
[Adopted 2-15-1995 by Ord. No. 1995-1]
The City Administrator shall supervise the administration of
this article by the City Treasurer, or such official's designee (hereinafter
the "municipal officer"), who is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties
of the municipality stated herein.
As used in this article, the following terms shall have the
meanings indicated:
Any loss occurring after the effective date of this article
and covered under a policy of fire insurance, including any endorsements
or riders to the policy.
A.
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 the
City of Pittston (hereinafter the "municipality") where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insurer is furnished by the City Administrator
with a municipal certificate pursuant to Section 508(b)[1] and unless there is compliance with Sections 508(c) and
(d)[2] and the provisions of this article. (See Article II of this chapter, requiring payment of delinquent taxes from fire insurance proceeds.)[3]
B.
After full compliance with the requirements of Section 508(b)(1)(i)[4] (and Article II of this chapter), 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 shall be followed:
(1)
The insurer shall transfer from the insurance proceeds to the City
Treasurer the aggregate of $2,000 for each $15,000 of a claim and
for each fraction of the amount of a claim, provided that this section
is to be applied such that if the claim is $15,000 or less, the amount
transferred to the municipality shall be $2,000, and that 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 insurer shall transfer to
the municipality from the insurance proceeds the amount based upon
the estimate.[5]
(2)
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
Policy proceeds remaining after the transfer to the municipality shall
be disbursed in accordance with the policy terms.
[4]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
C.
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 designated officer shall return
the amount of the funds transferred to the municipality in excess
of the estimate to the named insured, if the municipality has not
commenced to remove, repair or secure the building or other structure.
D.
Upon receipt of proceeds under this section, the municipality shall
do the following:
(1)
The City 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 municipality. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the municipality
in connection with such removal, repair or securing of the building
or any proceedings related thereto; and[6]
(2)
It is the obligation of the insurer when transferring the proceeds
to provide the municipality 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 municipal officer shall contact the named
insured, certify that the proceeds have been received by the municipality
and notify the named insured that the procedures under this subsection
shall be followed; and
(3)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion
received by the municipal officer, and if the municipality has not
incurred any costs for repairs, removal or securing, the fund shall
be returned to the named insured. If the municipality has incurred
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 municipality shall transfer the remaining funds to the named insured;
and
(4)
To the extent that interest is earned on proceeds held by the municipality
pursuant to this section, and retained by it, such interest shall
belong to the municipality. 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.
E.
Nothing in this section shall be construed to limit the ability of
the municipality to recover any deficiency. Furthermore, nothing in
this article shall be construed to prohibit the municipality 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 City Council may, by resolution, adopt procedures and regulations
to implement Section 508[1] and this article and may, by resolution, fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508 and this article, including but not limited to issuance
of certificates and bills, performance of inspections and opening
separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or any insurer who
violates this article shall be subject to a penalty of up to $1,000
per violation. Each day of violation shall constitute a separate offense.
[Adopted 2-15-1995 by Ord. No. 1995-2]
The City Administrator shall direct the enforcement of this
article through the City Treasurer, or such official's designee (hereinafter
the "municipal officer"), who is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties
of the municipality stated herein.
As used in this article, the following terms shall have the
meanings indicated:
Any loss occurring after the effective date of this article
and covered under a policy of fire insurance, including any endorsements
or riders to the policy.
A.
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 the
City of Pittston (hereinafter the "municipality") where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insurer and the named insured comply with
the provisions of Section 508(b)[1] and the provisions of this article. (See Article I of this chapter, establishing escrow procedures for payment of fire insurance proceeds.)
[1]
Editor's Note: See 40 P.S. § 638(b).
B.
Tax status certificates; determination of delinquency.
(1)
The municipal officer shall, upon the written request of the named
insured specifying the tax description of the property, name and address
of the insurer and the date agreed upon by the insurer and the named
insured as the date of the receipt of a loss report of the claim,
furnish the insurer either of the following within 14 working days
of the request:
(a)
A certificate or, at the discretion of the municipality, a verbal
notification, which shall be confirmed in writing by the insurer 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 officer's
certificate or verbal notification, the municipality has not certified
any amount as total costs incurred by the municipality for the removal,
repair or securing of a building or other structure of the property;
or
(b)
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 certificate and also showing, as of the date of the municipal
officer's certificate, the amount of the total costs, if any,
certified to the municipal officer that have been incurred by the
municipality for the removal, repair or securing of a building or
other structure on the property. For the purposes of this subsection,
the municipality shall provide to the municipal officer the total
amount, if any, of such costs, if available, or the amount of costs
known to the municipality at the time of the municipal officer's
certificate.
(2)
A tax, assessment, penalty or user charge becomes delinquent at the
time and on the date a lien could otherwise have been filed against
the property by the municipality under applicable law.
D.
Upon the receipt of a certificate and bill pursuant to Subsection B(1)(b) of this article, the insurer shall return the bill to the municipal officer and transfer to the municipal officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill or the full amount of the insurance proceeds, whichever is the lesser amount. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
E.
Nothing in this section shall be construed to limit the ability of
the municipality to recover any deficiency.
A.
The transfer of proceeds to the municipal officer shall be on a pro
rata basis by all insurers with applicable policies of insurance providing
protection for fire loss.
B.
The City of Pittston may, by resolution, adopt procedures and regulations
to implement Section 508[1] and this article and may, by resolution, fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508 and this article, including but not limited to issuance
of certificates and bills.
[1]
Editor's Note: See 40 P.S. § 638.
Any owner of property, any named insured or any insurer who
violates this article shall be subject to a penalty of up to $1,000
per violation. Each day the violation continues shall be deemed a
separate offense.