[Ord. 250, 3/19/2007, § 1]
1. No insurance company, association or exchange (hereinafter "insurers")
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 Wrightstown, Bucks County, Pennsylvania, where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insurer is furnished by the Treasurer of
the Township of Wrightstown 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"), 40 P.S. § 638(b),
and unless there is compliance with the procedures set forth in §§ 508(c)
and 508(d) of the Act, 40 P.S. § 638(c), (d).
2. Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Township of Wrightstown has incurred as costs for removal,
repair or securing of a building or other structure on the property
(collectively "municipal expenses"), the Secretary of the Township
of Wrightstown shall immediately render a bill for such work, if she
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 of the Township of Wrightstown shall furnish
a certificate within 14 working days after the request to the insurer
(or at her 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.
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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 this subsection, the insurer shall transfer to the Secretary of the Township of Wrightstown an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of Subsection 3 hereof.
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3. When all municipal claims and municipal expenses have been paid pursuant to Subsection
2 of this section or when the Treasurer of Wrightstown Township has issued a certificate described in Subsection 2A indicating that there are no municipal claims or municipal expenses against the property, the insurer shall pay the claim of the named insured.
4. 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 procedures set forth in this subsection shall apply in place of the procedure specified in Subsection
2 hereof:
A. The insurer shall transfer from the insurance proceeds to the Treasurer
of the Township of Wrightstown, Bucks County, 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 the Township of Wrightstown,
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 Secretary of the Township of Wrightstown 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 Secretary of the Township of Wrightstown, Bucks County, Pennsylvania,
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 Township of
Wrightstown 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 Township of Wrightstown in connection with such removal,
repair or securing 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 Township of Wrightstown
and that the procedures under this subsection shall be followed.
(3)
After the transfer, the named insured may submit to the Township
of Wrightstown a contractor's signed estimate of the cost of removing,
repairing or securing the building or other structure, in which event
the Secretary of the Township of Wrightstown shall, if such estimate
is deemed by the Secretary of the Township of Wrightstown to be reasonable,
return to the insured the amount of the funds transferred to the Township
of Wrightstown in excess of that amount required to pay the municipal
expenses; provided, however, that the Township of Wrightstown has
not commenced to remove, repair or secure the building or other structure
in which case the Township of Wrightstown will complete the work.
(4)
Pay to the Secretary of Wrightstown, Bucks County, Pennsylvania,
for reimbursement to the Wrightstown Township general fund, the amount
of the municipal expenses paid by the Township of Wrightstown.
(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 of Wrightstown that the repair, removal or securing
of the building or other structure has been completed in accordance
with all applicable codes and regulations of the Township of Wrightstown.
(6)
Nothing in this section shall be construed to limit the ability
of the Township of Wrightstown to recover any deficiency in the amount
of municipal claims or municipal expenses recovered pursuant to this
Part, or to insure proceeds, by an action at law or in equity to enforce
the codes of the Township of Wrightstown or to enter into an agreement
with the named insured with regard to such other disposition of the
proceeds as the Township of Wrightstown may deem responsible.
[Ord. 250, 3/19/2007, § 2]
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 the Township of Wrightstown or any
public official of the Township of Wrightstown an insured under a
policy of insurance or to create an obligation to pay delinquent property
taxes or unpaid removal of liens or expenses other than as provided
in this Part.
[Ord. 250, 3/19/2007, § 3]
An insurance company, association or exchange making payment
of policy proceeds under this Part for delinquent taxes or structural
removal liens or removal expenses incurred by the Township of Wrightstown
shall have a full benefit of such payment including all rights of
subrogation and of assignment.
[Ord. 250, 3/19/2007, § 4]
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. 250, 3/19/2007, § 5; as amended by Ord. 266,
9/17/2007]
The Secretary of the Township of Wrightstown shall transmit
a certified copy of this Part promptly to the Pennsylvania Department
of Community and Economic Development or to the successor agency of
the Pennsylvania Department of Community and Economic Development.
[Ord. 250, 3/19/2007, § 6]
Any owner of property, any named insured or insurer who violates
the provisions of this Part or who shall fail to comply with any of
the requirements hereof shall be sentenced upon conviction thereof
to pay a fine not greater than $1,000 plus cost in any default of
payment.