[Ord. 1097, 7/10/1995, § 1; as amended by Ord.
1295, 9/9/2013]
1. 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 in the Borough
of Bristol (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 Borough's Treasurer with a certificate
pursuant to § 508(b) of the Insurance Company Law of 1921,
as amended by Act 98 of 1992 and Act 93 of 1994 (collectively, the
"Act"), 43 P.S. § 638, and unless there is compliance with
the procedure set forth in § 508(c) and (d) of the Act.
2. Where there are delinquent taxes, assessments, penalties or user charges against the property ("municipal claims"), or there are expenses which the Borough has incurred as costs for the removal, repair or securing of a building or other structure on the property (collectively "municipal expenses"), the Manager of the Borough shall immediately render a bill for such work, if he 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 Treasurer shall furnish a certificate within 14 working days after the request, to the insurer, a certificate (or at his discretion an oral notification confirmed in writing) either (A) stating that there are no unpaid municipal claims or expenses against the property; or (B) specifying the nature and amount of such claims or expenses, accompanied by a bill 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. Upon receipt of a certificate and bill pursuant to paragraph (B) of the preceding sentence, the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection
3 hereof.
3. When all municipal claims and municipal expenses have been paid pursuant to Subsection
2 of this section, of where the Treasurer has issued a certificate described in 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 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 to the insured, such insured
has submitted to the insurer, with a copy to the Borough, 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 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 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 Borough to
be required in removing, repairing or securing the building or structure
as required by this Part. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Borough
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 Borough
and that the procedures under this subsection shall be followed.
(3)
After the transfer, the named insured may submit to the Borough
a contractor's signed estimate of the costs of removing, repairing
or securing the building or other structure, in which event the Treasurer
shall, if such estimate is deemed by the Treasurer to be reasonable,
return to the insured the amount of the funds transferred to the Borough
in excess of that required to pay the municipal expenses, provided
that the Borough has not commenced to remove, repair or secure the
building or other structure, in which case the Borough will complete
the work.
(4)
Pay to the Manager, for reimbursement to the Borough general
fund, the amount of the municipal expenses paid by the Borough.
(5)
Pay the remaining balance in the fund (without interest) to
the named insured upon the receipt of a certificate issued by the
Director of Building Regulations (or other applicable official of
the Borough) that the repair, removal or securing of the building
or other structure has been completed in accordance with all applicable
codes and regulation of the Borough.
D. Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency in the amount of municipal claims
or municipal expenses recovered pursuant to this Part, or to insurance
proceeds, by an action at law or equity to enforce the codes of the
Borough or to enter into an agreement with the named insured with
regard to such other disposition of the proceeds as the Borough may
deem reasonable.
4. Any owner of property, any named insured or insurer who violates
the provisions of this section or who shall fail to comply with any
of the requirements hereof shall be liable, upon summary conviction,
to fines and penalties not exceeding $1,000, which fines and penalties
may be collected by suit or summary proceeding brought in the name
of the Borough before any magisterial district judge or recovered
as debts of the like amount are now recoverable by law.
[Ord. 1097, 7/10/1995, § 1; as amended by Ord.
1295, 9/9/2013]
The Secretary of the Borough shall transmit a certified copy
of this Part promptly to the Department of Community and Economic
Development of the Commonwealth of Pennsylvania.
[Ord. 1097, 7/10/1995, § 1]
Nothing in this Part shall be construed to affect any suit or
proceeding in any court, any right acquired or liability incurred,
any permit issued, or any cause or causes of action existing under
other ordinances of the Borough prior to the enactment of this Part.