[HISTORY: Adopted by the Borough Council of the Borough of
Avis as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-7-1992 by Ord. No. 202 (Ch. 1, Part 5, of the 1992 Code of
Ordinances)]
No insurance company, association or exchange insuring property in this Borough and doing business in this commonwealth shall pay a claim of a named insured for fire damage to a structure located within this Borough where the amounts recoverable for the fire loss to the structure under all policies exceeds $5,000, unless the insurance company, association or exchange is furnished with a certificate pursuant to § 323-2 of this article and unless there is compliance with the procedures set forth in §§ 323-3 and 323-4 of this article.
A.
The Borough Treasurer shall, upon the written request of the named
insured specifying the tax description of the property and the date
agreed upon by the insurance company, association or exchange and
the named insured as the date of the receipt of a proof of loss of
the claim, furnish the named insured either of the following, which
shall then be supplied by the named insured to the company, association
or exchange:
(1)
A certificate to the effect that, as of the date specified in the
request, there are no delinquent taxes, assessments, penalties or
user charges against the property and that, as of the date of the
Treasurer's certificate, no municipality has certified any amount
as total costs incurred by the municipality for the removal, repair
or securing of a building or other structure on the property; or
(2)
A certificate and bill showing the amount of delinquent taxes, assessments,
penalties and user charges against the property as of the date specified
in the request that have not been paid as of the date of the certificate
and also showing, as of the date of the Treasurer's certificate,
the amount of the total costs, if any, certified to the Treasurer
that have been incurred by a municipality for the removal, repair
or securing of a building or other structure on the property. For
the purposes of this subsection, the Borough shall certify to the
Treasurer the total amount, if any, of such costs.
B.
Payment of claim.
(1)
Upon receipt of a certificate pursuant to Subsection A(1) of this section, the insurance company, association or exchange shall pay the claim of the named insured in accordance with the policy terms, unless 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. In the case of such a loss, the insurance company, association or exchange, the insured property owner and the Borough shall follow the procedures set forth in §§ 323-3 and 323-4 of this article.
(2)
Upon the receipt of a certificate and bill pursuant to Subsection A(2) of this section, the insurance company, association or exchange shall return the bill to the Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough shall receive the amount and apply or credit it to payment of the time shown in the bill.
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 Treasurer of the Borough in the aggregate
$1,000 for each $20,000, and each fraction of that amount, of a claim,
or, if at the time of a proof of loss agreed to between the named
insured and the insurance company, association or exchange, the named
insured has submitted a contractor's signed estimate of the costs
of removing, repairing or securing the building or other structure,
the insurance company, association or exchange shall transfer from
the insurance proceeds the amount specified in the estimate. The transfer
of proceeds shall be on a pro rata basis by all companies, associations
or exchanges insuring the building or other structure. Policy proceeds
remaining after the transfer to the Borough shall be on pro rata basis
by all companies, associations or exchanges insuring the building
or other structure. Policy proceeds remaining after the transfer to
the Borough 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 designated officer shall return
the amount of the fund in excess of the estimate to the named insured
if the Borough has not commenced to remove, repair or secure the building
or other structure. This section only applies to fire losses that
occur after the adoption of this article.
Upon receipt of proceeds by the Borough as authorized by this article, the Borough 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 Borough. When transferring the funds as required in § 323-3 of this article, an insurance company, association or exchange shall provide the Borough with the name and address of the named insured, whereupon the Borough shall contact the named insured, certify that the proceeds have been received by the Borough and notify the named insured that the procedures under this section 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 Borough Treasurer, if the Borough has not incurred any costs for repairs, removal or securing. If the Borough 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 Borough shall transfer the remaining funds to the named insured. Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Further, nothing in this section shall be construed to prohibit the Borough 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.
Proof of payment by the insurance company, association or exchange of proceeds under a policy in accordance with § 323-3 of this article is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment and of compliance by the company, association or exchange with § 323-3 of this article.
Nothing in this article 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 article or to make the Borough, any Borough official,
a municipality or public 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 article.
An insurance company, association or exchange making payments
of policy proceeds under this article for delinquent taxes or structure
removal liens or removal expenses incurred by the Borough shall have
a full benefit of such payment, including all rights of subrogation
and of assignment.
This article 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.
Any person, firm or corporation who shall violate any provision
of this article shall, upon conviction thereof, be sentenced to a
fine of not more than $600 plus costs and, in default of payment of
said fine and costs, to a term of imprisonment not to exceed 30 days.
Each day on which a violation of this article shall continue shall
be deemed a separate offense.
