[Ord. 2016-04, 9/13/2016]
1. No insurance company, association or exchange (hereinafter "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within Plumstead
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 with a certificate pursuant to Subsection 508(b) of
the Insurance Company Law of 1921, as amended by Act 98 of 1992 and
Act 93 of 1994 (40 P.S. § 638) (the "Act") and unless there
is compliance with the procedures set forth in Subsections 508(c)
and (d) of the Act, as amended.
2. Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which Plumstead Township has incurred as a cost for the removal, repair
or securing of a building or other structure on the property (collectively
"municipal expenses"), the Township shall immediately render a bill
for such work, if it 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 Township shall furnish,
within 14 working days after the request, to the insurer, a certificate
(or at the Township's discretion, an oral notice confirmed in writing)
either:
A. Stating that there are no unpaid municipal claims or municipal expenses
against the property; or
B. Specifying the nature and amount of such claims or expenses, accompanied
by a bill for such amounts.
C. 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.
3. Upon receipt of a certificate and bill pursuant to Subsection
2 above, the insurer shall transfer to the Township an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of this chapter.
4. When all municipal claims and municipal expenses have been paid pursuant to Subsection
3 above, or where the Township has issued a certificate described in Subsection
2A above 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 Treasurer
of the Township, 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 Plumstead Township, a
contractor's signed estimate of the cost 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 of the Township from the insurance
proceeds the amount specified in the estimate.
C. 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.
D. Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer of the Township 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 Plumstead Township
to be required in removing, repairing, or securing the building or
structure as required by this chapter. Such costs shall include, without
limitation, any engineering, legal, or administrative costs incurred
by Plumstead 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 the proceeds have been received by Plumstead Township
and that the procedures under this chapter shall be followed.
(3)
After the transfer, the named insured may submit to Plumstead
Township a contractor's signed estimate of the cost of removing, repairing,
or securing the building or other structure, in which event the Treasurer
of the Township shall, if such estimate is deemed by the Treasurer
of the Township to be reasonable, return to the insured the amount
of the funds transferred to Plumstead Township in excess of that required
to pay the municipal expenses, provided the Township has not commenced
to remove, repair, or secure the building or other structure, in which
case the Township will complete the work.
(4)
Pay to the Treasurer of the Township, for reimbursement to the
Plumstead Township general fund, the amount of the municipal expenses
paid by the Township.
(5)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Secretary
of the Township that the repair, removal, or securing of the building
or other structure has been completed in accordance with all applicable
codes and regulations of Plumstead Township.
5. Nothing in this Part shall be construed to limit the ability of Plumstead
Township to recover any deficiency in the amount of municipal claims
or municipal expenses recovered pursuant to this chapter, or to insurance
proceeds, by an action at law or in equity to enforce the codes of
Plumstead 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 responsible.
[Ord. 2016-04, 9/13/2016]
Nothing in this Part shall be construed to make an insurance
company, association, or exchange liable for any amount in excess
of proceeds payable under its insurance policy or for any other act
performed pursuant to this Part or to make Plumstead Township, or
any public Plumstead Township official, an insured under a policy
of insurance or to create an obligation to pay delinquent property
taxes or unpaid removal liens or expenses other than as provided in
this Part.
[Ord. 2016-04, 9/13/2016]
An insurance company, association, or exchange making payment
of policy proceeds under this Part for delinquent taxes or structure
removal liens or removal expenses incurred by Plumstead Township shall
have a full benefit of such payment, including all rights of subrogation
and of assignment.
[Ord. 2016-04, 9/13/2016]
This Part shall be liberally construed to accomplish its purpose
to deter the commission of arson and related crimes, to discourage
the abandonment of property, and to prevent urban blight and deterioration.
[Ord. 2016-04, 9/13/2016]
The Secretary of the Township shall transmit a certified copy
of this Part promptly to the Pennsylvania Department of Community
and Economic Development.
[Ord. 2016-04, 9/13/2016; as amended by A.O.]
Any owner of property, named insured, or insurer who violates
the provisions of this Part or who shall fail to comply with any of
the requirements hereof shall, upon conviction in a summary proceeding
brought before a Magisterial District Judge under the Pennsylvania
Rules of Criminal Procedure, be guilty of a summary offense and shall
be punishable by a fine of not more than $1,000, plus costs of prosecution.
In default of payment thereof, the defendant may be sentenced to imprisonment
for a term not exceeding 90 days. Each day or portion thereof that
such violation continues or is permitted to continue shall constitute
a separate offense, and each section of this Part that is violated
shall also constitute a separate offense.