No insurance company, association or exchange doing business in the Commonwealth of Pennsylvania shall pay a claim of a named insured for fire damage to a structure located within East Bradford Township under the terms of Section 508(a) of the Insurance Company Law of 1921, as amended, 40 P.S. § 638(a), unless the insurance company, association or exchange is furnished with a certificate pursuant to §
58-2 of this chapter and unless there is compliance with the procedures set forth in §§
58-3 and
58-4 of this chapter.
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 Township Treasurer the amounts required
by and in accordance with the procedures set forth in 40 P.S. § 638(c).
Policy proceeds remaining after the transfer to the Township shall
be disbursed in accordance with the policy terms. The named insured
may submit a contractor's signed estimate of the costs of removing,
repairing or securing the building or other structure after the transfer,
and the Township Treasurer shall return the amount of the fund 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.
The Township Treasurer shall carry out the duties of this section.
Upon receipt of the proceeds by the Township as authorized by §
58-3, the Township Treasurer 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 Township. When transferring the funds as required in §
58-3, an insurance company, association or exchange shall provide the Township with the name and address of the named insured, whereupon the Township shall contact the named insured, certify that the proceeds have been received by the Township 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 Township Treasurer if the Township has not incurred any costs for the repairs, removal or securing. 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 excess funds remain, the Township shall transfer the remaining funds to the named insured. Nothing in this chapter shall be construed to limit the ability of the Township to recover any deficiency. Further, 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.