[HISTORY: Adopted by the Board of Commissioners of the Township
of Radnor 11-23-2015 by Ord. No.
2015-19. 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 Radnor
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 with a certificate pursuant to Subsection 508(b) of
the Insurance Company Law of 1921, as amended by Act 98 of 1992 and
Act 93 of 1994 (40 P.S. § 638) (the "Act") and unless there
is compliance with the procedures set forth in Subsections 508(c)
and (d) of the Act, as amended.
B.
Municipal claims and expenses.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which Radnor Township has incurred as a cost for the removal, repair
or securing of a building or other structure on the property (collectively
"municipal expenses"), the Township shall immediately render a bill
for such work, if it 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 Township shall furnish
a certificate within 14 working days after the request, to the insurer,
a certificate (or at the Township's 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.
C.
Upon receipt of a certificate and bill pursuant to Subsection B above, the insurer shall transfer to the Township an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of this chapter.
D.
When all municipal claims and municipal expenses have been paid pursuant to Subsection C above, or where the Township has issued a certificate described in Subsection B(1) above 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 Secretary
of the Township, 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 Radnor Township, 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 Secretary of the Township from the insurance proceeds the amount
specified in the estimate.
(3)
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.
(4)
Upon receipt of the above-described portion of the insurance proceeds,
the Secretary of the Township 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 Radnor Township
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 Radnor Township in connection with such removal, repair, or securing
or any proceedings related thereto.
(b)
Mail to the named insured, at the address received from the
insurer, a notice that the proceeds have been received by Radnor Township
and that the procedures under this chapter shall be followed.
(c)
After the transfer, the named insured may submit to Radnor Township
a contractor's signed estimate of the cost of removing, repairing,
or securing the building or other structure, in which event the Secretary
of the Township shall, if such estimate is deemed by the Secretary
of the Township to be reasonable, return to the insured the amount
of the funds transferred to Radnor Township in excess of that required
to pay the municipal expenses; provided, the Township has not commenced
to remove, repair, or secure the building or other structure, in which
case the Township will complete the work.
(d)
Pay to the Township, for reimbursement to the Radnor Township
general fund, the amount of the municipal expenses paid by the Township.
(e)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Secretary
of the Township that the repair, removal, or securing of the building
or other structure has been completed in accordance with all applicable
codes and regulations of Radnor Township.
(f)
Nothing in this chapter shall be construed to limit the ability
of Radnor Township 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 Radnor Township or to enter into an agreement with the
named insured with regard to such other disposition of the proceeds
as the Township 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 Radnor Township or any
public Radnor Township 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 Radnor Township 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 Township shall transmit a certified copy
of this chapter promptly to the Pennsylvania Department of Community
and Economic Development.
Any owner of property, 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 of not more than $1,000 plus costs. Each day for which an
offense shall continue shall be deemed a separate offense.
