[Adopted 5-6-1994 by Ord.
No. 678, approved 5-6-1994]
No insurance company, association or exchange insuring property in the Borough of Darby and doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the Borough of Darby where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000, unless the issuance company, association or exchange is furnished with a certificate pursuant to §
87-2 of this article and unless there is compliance with the procedures set forth in §§
87-3 and
87-4 of this article.
When the loss agreed to between the named insured and the company,
association or exchange equals or exceeds 60% of the aggregate limits
of liability on all fire policies covering the building or other structure,
the insurance company, association or exchange shall transfer from
the insurance proceeds to the Treasurer/Tax Collector of the Borough
of Darby in the aggregate a sum of $1,000 for each $20,000, and each
fraction of that amount, of a claim, or, if at the time of a proof
of loss agreed to between the named insured and the insurance company,
association or exchange the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insurance company, association or
exchange shall transfer from the insurance proceeds the amount specified
in the estimate. The transfer of 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 Borough of Darby shall be disbursed in accordance with the policy
terms. The named insured may submit a contractor's signed estimate
of the costs of removing, repairing or securing the building or other
structure after the transfer, and the designated officer shall return
the amount of the fund in excess of the estimate to the named insured
if the Borough of Darby has not commenced to remove, repair or secure
the building or other structure. This section only applies to fire
losses that occur after the adoption of this article.
Upon receipt of proceeds by the Borough of Darby as authorized by this article, the Darby Borough Treasurer/Tax Collector shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Borough of Darby. When transferring the funds as required in §
87-3 of this article, an insurance company, association or exchange shall provide the Borough of Darby with the name and address of the named insured, whereupon the Borough of Darby shall contact the named insured, certify that the proceeds have been received by the Borough of Darby and notify the named insured that the procedures under this section shall be followed. The fund shall be returned to the named insured when repair, removal or securing of the building or other structure have been completed and the required proof received by the Darby Borough Treasurer/Tax Collector if the Borough of Darby has not incurred any costs for repair, removal or securing. If the Borough of Darby 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 Borough of Darby shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Borough of Darby to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Borough of Darby 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.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with §
87-3 of this article is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with §
87-3 of this article.
Nothing in this article 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 article or to make the Borough of Darby, and Darby
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 article.
An insurance company, association or exchange making payments
of policy proceeds under this article for delinquent taxes or structure
removal liens or removal expenses incurred by the Borough of Darby
shall have a full benefit of such payment, including all rights of
subrogation and of assignment.
This article 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.
Any person, firm or corporation who shall violate any provision
of this article shall, upon conviction thereof, be sentenced to a
fine of not more than $600 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 a violation of this article shall continue shall
be deemed a separate offense.