[HISTORY: Adopted by the Board of Supervisors of the Township
of Union as indicated in article histories. Amendments noted where
applicable.]
[Adopted 9-19-2011 by Ord. No. 2011-06]
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 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's Treasurer with a certificate pursuant
to the Fire Insurance Escrow Act and unless there is compliance with
the procedure set forth in the Act. [Note: Act 93 of 1994. See 40
P.S. § 638.]
A.
Where there are delinquent taxes, assessments, penalties or user
charges against the property damaged by fire ("municipal claims")
or there are expenses which the Township has incurred as costs for
the removal, repair or securing of a building or other structure on
the property (collectively, "municipal expenses"), the Treasurer,
or other person designated, of the Township shall immediately render
a bill for such municipal claims and municipal expenses.
B.
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, within 14 working days after the request, to the insurer,
a certificate (or at the Treasurer's discretion an oral notification
confirmed in writing) either:
(1)
Stating that there are no unpaid municipal claims or municipal expenses
against the property.
(2)
Specifying the nature and amount of such municipal claims or municipal
expenses, accompanied by a statement for such amounts. 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.
When all municipal claims and municipal expenses have been paid pursuant to § 116-2, or where the Treasurer has issued a certificate described in § 116-2B(1) 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:
A.
The insurer shall transfer, from the insurance proceeds to the Township
Treasurer, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
B.
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Township, 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 formula, the insurer shall transfer to the Township
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.
C.
Upon receipt of the above-described portion of the insurance proceeds,
the Township Treasurer shall do the following:
(1)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Township to
be required in removing, repairing or securing the building or structure.
Such expenses shall include, without limitation, all engineering,
legal or administrative fees and costs incurred by the Township in
connection with such removal, repair or securing or any proceedings
related thereto.
(2)
Mail to the named insured, at the address received from the insurer,
a notice that the proceeds have been received by the Township and
that the procedures enacted herein shall be followed.
(3)
After the transfer of the proceeds into the separate fund, the named
insured may submit to the Township a contractor's signed estimate
of the costs of removing, repairing or securing the building or other
structure, and proceed with the work, provided that the Township has
not commenced to remove, repair or secure the building or other structure,
in which case the Township will complete the work and deduct the municipal
expenses incurred from such separate fund.
(4)
Pay as reimbursement to the Township general fund, the amount of
the municipal expenses incurred and paid by the Township.
(5)
Pay the remaining balance in the separate fund (without interest)
to the named insured upon receipt of a certificate issued by the Code
Enforcement Officer of the Township (or other applicable official
of the Township) that the repair, removal or securing of the building
or other structure has been completed in accordance with all applicable
ordinances, codes and regulations of the Township.
D.
Nothing in this article shall be construed to limit the ability of
the Township to recover any deficiency in the amount of municipal
claims or municipal expenses recoverable pursuant to this article
or recoverable under any other state law, or other ordinance, or to
insurance proceeds, by an action at law or equity to enforce the ordinances,
codes and regulations of the 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 reasonable.
