[Ord. 517, 9/7/1993, § 1]
The Township Secretary or such official's designee is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties stated herein.
[Ord. 517, 9/7/1993, § 2; as amended by Ord. 652,
4/13/2011]
No insurance company, association or exchange (hereinafter the
"insuring agent") 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 of Collier (hereinafter the "Township")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insuring agent is furnished
by the Township Treasurer with a municipal certificate pursuant to
§ 508(B) of the Insurance Company Law of 1921, 40 P.S. § 638
and unless there is compliance with § 508(C) and (D) of
the Act and the provisions of this part.
[Ord. 517, 9/7/1993, § 3; as amended by Ord. 652,
4/13/2011]
1.
Where pursuant to § 508(b)(1)(I) of the Insurance Company
Law of 1921, 40 P.S. § 638, the Township Treasurer issues
a certificate 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 agreed upon by the named insured and the insuring agent
equals or exceeds 60% of the aggregate limits of liability on all
fire policies covering the building restructure, the following procedures
must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Township in the aggregate of $2,000
for each $15,000 of a claim and for each fraction of that amount 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 proof of loss agreed between the name insured
and the insuring agent, the name insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the Borough from the insurance proceeds the amount specified in the
estimate.
C.
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
D.
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 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.
Upon receipt of proceeds under this section, the Township shall do
the following:
(1)
The designated officer shall place the proceeds in a 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 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)
It is the obligation of the insuring agent when transferring
the proceeds to provide the Township 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 designated officer shall contact
the named insured, certify that the proceeds have been received by
the Township and notify the name insured that the procedures under
this subsection shall be followed.
(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 Township and the required proof of such completion
received by the designated officer, and if the Township has not incurred
any costs for repairs, removal or securing, the fund shall be returned
to the named insured. If the Township has incurred costs for repairs,
removal or securing of the building or other structure, the costs
shall be paid from the fund and, if the excess funds remain, the Township
shall transfer the remaining funds to the named insured.
(4)
To the extent that interest is earned on 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 that the proceeds
are returned.
F.
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 if some other reasonable disposition
of the damaged property has been negotiated.
[Ord. 517, 9/7/1993, § 4; as amended by Ord. 652,
4/13/2011]
The Board of Commissioners of the Township of Collier may, by
resolution, adopt procedures and regulations to implement § 508
of the Insurance Company Law of 1921, 40 P.S. § 638, and
this part and may, by resolution, fix reasonable fees to be charged
for Township activities or services provided pursuant to § 508
of the Insurance Company Law of 1921, 40 P.S. § 638, and
this part including, but not limited to, issuance of certificates
and bills, performance of inspections and opening separate fund accounts.
[Ord. 517, 9/7/1993, § 5; as amended by Ord. 652,
4/13/2011]
Any owner of property, any named insured or any insuring agent
who violates this part, upon conviction thereof, shall be sentenced
to pay a fine of not more than $1,000 plus costs and, in default of
payment of said fine and costs, to a term of imprisonment not to exceed
30 days. Each day that a violation of this part continues shall constitute
a separate offense.
