[Ord. 08-2009-550, 8/27/2009]
The Board of Commissioners of the Township of Salisbury, Lehigh
County, Pennsylvania, has determined that it is in the best interest
of the health, safety and welfare of the citizens and inhabitants
of Salisbury Township to enact this Part 6 adopting the provisions
and requirements relating to the payment of certain insurance loss
claims as provided in Act No. 1992-98 of the General Assembly of the
Commonwealth of Pennsylvania, as hereinafter provided.
[Ord. 08-2009-550, 8/27/2009]
As used in this Part 6, the following terms shall have the meanings
indicated:
The person duly appointed by Salisbury Township Board of
Commissioners from time to time to carry out the duties and responsibilities
imposed pursuant to this Part 6. Initially, the designated officer
shall be the Township Secretary.
The person duly appointed by the Salisbury Township Board
of Commissioners as the Township Treasurer from time to time.
Salisbury Township, Lehigh County, Pennsylvania.
[Ord. 08-2009-550, 8/27/2009]
1.
From and after the effective date of this Part 6, it shall be unlawful
for any person to pay or cause to be paid the proceeds of any insurance
claim or policy to a named insured expect in compliance with Act No.
1992-98 of the General Assembly of the Commonwealth of Pennsylvania,
enacted July 9, 1992, and in accordance with the provisions of this
Part 6 and the following requirements and procedures:
A.
No insurance company, association or exchange doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within the municipality where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the insurance company, association or exchange is furnished with a certificate pursuant to Subsection 1B of this section and unless there is compliance with the procedures set forth in Subsections 1B and C of this section.
B.
Procedure.
(1)
The Municipal Treasurer shall, upon the written request of the
named insured specifying the tax description of the property and the
date agreed upon by the insurance company, association or exchange
and the name insured as of the date of the receipt of a proof of loss
of the claim, furnish the named insured either of the following, which
shall then be supplied by the named insured to the company, association
or exchange:
(a)
A certificate to the effect that, as of the date specified in
the request, there are no delinquent taxes, assessments, penalties
or user charges against the property and that, as of the date of the
Treasurer's certificate, the municipality has certified any amount
as total costs incurred by the municipality for the removal, repair
or securing of a building or other structure on the property; or
(b)
A certificate and bill showing the amount of delinquent taxes,
assessments, penalties and user charges against the property as of
the date specified in the request that have not been paid as of the
date of the certificate and also showing, as of the date of the Treasurer's
certificate, the amount of the total costs, if any, certified to the
Treasurer that have been incurred by the municipality for the removal,
repair or securing of a building or other structure of the property.
For the purposes of this subsection, the municipality shall certify
to the Treasurer the total amount, if any, of such costs.
(2)
Upon receipt of a certificate pursuant to Subsection 1B(1)(a) of this section, the insurance company, association, or exchange shall pay the claim of the named insured in accordance with the policy terms, unless 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. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the municipality shall follow the procedures set forth in Subsections 1C and D of this section.
(a)
Upon the receipt of a certificate and bill pursuant to Subsection 1B(1)(b) of this section, the insurance company, association or exchange shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The municipality shall receive the amount and apply or credit it to payment of the items shown in the bill.
C.
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 designated officer of the municipality
in the aggregate of $2,000 for each $15,000 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 prorate basis
by all companies, associations or exchanges insuring the building
or other structure. Policy proceeds remaining after the transfer to
the municipality 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 municipality shall be disbursed
in accordance with the policy terms. The named insured may submit
a contractor's signed estimate to the named insured if the municipality
has not commenced to remove, repair or secure the building or other
structure.
D.
Upon receipt of proceeds by the municipality as authorized by this section, the designated officer 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 municipality. When transferring the funds as required in Subsection 1C of this section, an insurance company, association or exchange shall provide the municipality with the name and address of the named insured, whereupon the municipality shall contact the named insured, certify that the proceeds have been received by the municipality and notify the named insured that the procedures under this subsection shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the designated officer if the municipality has not incurred any costs of repairs, removal or securing. If the municipality 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 municipality shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the municipality to recover any deficiency. Further, nothing in this subsection shall be construed to prohibit the municipality 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. 08-2009-550, 8/27/2009]
Any violation or failure to comply with any provisions of the
Part 6 shall constitute a summary offense. Any person, partnership
or corporation who or which shall violate any of the provisions of
this Part 6 shall, upon conviction thereof in a summary proceeding,
be sentenced to pay a fine of not more than $1,000. In default of
payment of the fine, such person, the members of such partnership,
or the officers of such corporation shall be liable to imprisonment
for not more than 30 days. Each day that a violation is continued
shall constitute a separate offense. All fines collected for the violation
of this Part 6 shall be paid over to the municipality.
