[Ord. 524-92, 12/1/1992, § 1]
The Commonwealth of Pennsylvania enacted Act 98 of 1992, effective
on September 7, 1992, amending the Insurance Company Law of 1921 to,
provide procedures for payment of certain fire loss claims. It is
the purpose of said legislation to deter the commission of arson and
related crimes, to discourage the abandonment of property, and to
prevent urban blight and deterioration. The Board of Commissioners
desires to adopt an ordinance pursuant to § 508 of the Insurance
Company Law of 1921, 40 P.S. § 638, to provide for the payment
of proceeds from certain fire loss claims to the Township of East
Pennsboro, Cumberland County, Pennsylvania.
[Ord. 524-92, 12/1/1992, § 2]
Any insurance company, association or exchange.
The person or persons or entity who are insured for the building
or structure where the fire occurred.
The Township of East Pennsboro, Cumberland County, Pennsylvania.
The Township Manager of the Township of East Pennsboro, Cumberland
County, Pennsylvania.
The Township Treasurer of the Township of East Pennsboro,
Cumberland County, Pennsylvania.
[Ord. 524-92, 12/1/1992, § 3]
The Township Manager or such official's designee is hereby
appointed as the designated person who is authorized to carry out
all responsibilities and duties stated herein.
[Ord. 524-92, 12/1/1992, § 4; as amended by Ord.
757-2009, 7/1/2009]
No insuring agent 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 where the amount recoverable for the fire
loss to the structure under all policies exceeds $7,500, unless the
named insured or insuring agent is furnished by the Treasurer with
a Township certificate pursuant to § 508(B) of Act 98 of
1992, as amended, 40 P.S. § 638, and unless there is compliance
with § 508(C) and (D) of Act 98 of 1992, as amended and
the provisions of this Part.
[Ord. 524-92, 12/1/1992, § 5; as amended by Ord.
757-2009, 7/1/2009]
1.
Pursuant to § 508(B)(1)(I) of Act 98 of 1992, as amended,
40 P.S., § 638, the Treasurer issues a certificate indicating
that there are no delinquent taxes, assessments, penalties or user
charges against real property, the insuring agent shall pay the claim
of the named insured; provided, however, that if the loss is agreed
upon by the named insured and the insuring agent equals or exceeds
60% of the aggregate limits of liability on all fire policies covering
the building restructure, the following procedures must be followed:
A.
The insuring agent shall transfer from the insurance proceeds to
the Township in the aggregate of $2,000 for each $15,000 of a claim
and for each fraction of that amount of a claim, this section to be
applied such that if the claim is $15,000 or less, the amount transferred
to the Township shall be $2,000.
B.
If at the time of a proof of loss agreed to between the named insured
and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, the insuring agent shall transfer to
the Township from the insurance proceeds the amount specified in the
estimate.
C.
The transfer of proceeds shall be on pro rata basis by all insuring
agents insuring the building or other structure.
D.
After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, and the designated officer shall return
the amount of the funds transferred to the Township 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.
E.
Upon receipt of proceeds under this section, the Township shall do
the following:
(1)
The Treasurer shall place the proceeds in the separate fund
to be used solely as security against the total costs of removing,
repairing, or securing the building or structure which are incurred
by the Township. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the township
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(2)
It is the obligation of the insuring agent when transferring
the proceeds to provide the Township with the name and address of
the named insured. Upon receipt of the transferred funds and the name
and address of the named insured, the designated officer 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.
(3)
When repairs, removal, or securing of the building or other
structure have been completed in accordance with all applicable regulations
and orders of the Township and the required proof of such completion
received by the designated officer, and if the Township has not incurred
any costs for repairs, removal or securing, the fund shall be returned
to the named insured. 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.
(4)
To the extent that interest is earned on proceeds held by the
Township pursuant to this section, and not returned to the named insured,
such interest shall belong to the Township. To the extent that proceeds
are returned to the named insured, interest earned on such proceeds
shall be distributed to the named insured at the time that the proceeds
are returned.
F.
Nothing in this section shall be construed to limit the ability of
the Township to recover any deficiency. Furthermore, nothing in this
subsection 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.
[Ord. 524-92, 12/1/1992, § 6]
The Board of Commissioners may by resolution adopt procedures
and regulations to implement Act 98 of 1992, as amended, 40 P.S. § 638,
and this Part and may by resolution fix reasonable fees to be charged
for township activities or services provided pursuant to Act 98 of
1992, as amended, and this Part including, but not limited to, issuance
of certificates and bills, performance of inspections and opening
separate fund accounts.
[Ord. 524-92, 12/1/1992, § 7; as amended by Ord.
757-2009, 7/1/2009]
Any person, firm or corporation who shall violate any provision
of this Part, upon conviction thereof, shall be sentenced to pay a
fine of not more than $1,000 plus costs and, in default of payment
of said fine and costs, to a term of imprisonment not to exceed 30
days. Each day that a violation of this Part continues shall constitute
a separate offense.
