[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]
INSURING AGENT
Any insurance company, association or exchange.
NAMED INSURED
The person or persons or entity who are insured for the building or structure where the fire occurred.
TOWNSHIP
The Township of East Pennsboro, Cumberland County, Pennsylvania.
TOWNSHIP MANAGER
The Township Manager of the Township of East Pennsboro, Cumberland County, Pennsylvania.
TREASURER
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.