[HISTORY: Adopted by the Borough Council of the Borough of
Larksville as indicated in article histories. Amendments noted where
applicable.]
[Adopted 6-17-1997 by Ord. No. 3-1997 (Ch. 105, Art. I, of the 1987 Code)]
The Treasurer or such official's designee (hereinafter,
the "Municipal Officer") is hereby appointed as the designated officer
who is authorized to carry out all responsibilities and duties of
the municipalities stated herein.
As used in this chapter, the following terms shall have the
meanings indicated:
Any loss occurring after the effective date of this article
and covered under a policy of fire insurance, including any endorsements
or riders to the policy.
No insurance company, association or exchange (hereinafter the
"insurer") doing business in the Commonwealth of Pennsylvania shall
pay a claim of a named insured for fire damage to a structure located
within Larksville Borough (hereinafter the "municipality") where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500 unless the insurer is furnished by the Municipal Officer
with a municipal certificate pursuant to Section 508(b)[1] and unless there is compliance with Sections 508(c) and
(d)[2] and the provisions of this article.
After full compliance with the requirements of Section 508(b)(1)(i),[1] 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 structure, the following
procedures shall be followed:
A.
The insurer shall transfer from the insurance proceeds to the Municipal
Officer the aggregate of $2,000 for each $15,000 of a claim and for
each fraction of that amount of claim, provided that this section
is to be applied such that if the claim is $15,000 or less, the amount
transferred to the municipality shall be $2,000; and that, if at the
time of a loss report the named insured has submitted a contractor's
signed estimate of the costs 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 municipality from the insurance proceeds the amount based upon
the estimate.
B.
The transfer of proceeds 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 municipality shall
be disbursed in accordance with the policy terms.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
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 municipality in excess
of the estimate to the named insured, if the municipality has not
commenced to remove, repair or secure the building or other structure.
Upon receipt of the proceeds under this section, the municipality
shall do the following:
A.
The Municipal Officer 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 municipality. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the municipality
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
B.
It is the obligation of the insurer when transferring the proceeds
to provide the municipality 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 Municipal Officer shall contact the named
insured, certify that the proceeds have been received by the municipality
and notify the named insured that the procedures under this subsection
shall be followed.
C.
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion
received by the Municipal Officer, and if the municipality has not
incurred any costs for repairs, removal or securing, the fund shall
be returned to the named insured. If the municipality 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 municipality shall transfer the remaining funds to the named insured.
D.
To the extent that interest is earned on proceeds held by the municipality
pursuant to this section, and retained by it, such interest shall
belong to the municipality. 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.
Nothing in this section shall be construed to limit the ability
of the municipality to recover any deficiency. Furthermore, nothing
in this article shall be construed to prohibit the municipality 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.
The Borough Council may by resolution adopt procedures and regulations
to implement Section 508[1] and this article and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508 and this article, including but not limited to issuance
of certificate and bills, performance of inspections and the opening
of separate fund accounts.
[1]
Editor's Note: See 40. P.S. § 638.
Any owner of property, any named insured or any insurer who
violates this article shall be subject to a penalty of up to $1,000
per violation.
[Adopted 2-21-2017 by Ord. No. 1-2017]
The Larksville Borough administrative offices are hereby authorized
and directed, assisted by and in coordination with the Borough's Fire
Department, to ascertain what insurance coverage may be applicable
and available under any given circumstance and to take all necessary
and affirmative steps to apply for and receive reimbursement from
any insurance carrier(s) where a property owner is or may be insured
to reimburse Larksville Borough for any costs and/or expenses incurred
for services, supplies, and/or equipment used for or provided to the
property owner by Larksville Borough and/or its Fire Department.
Under no circumstances shall any property owner ever receive
a bill or similar statement from Larksville Borough and/or its Fire
Department for fire protection or other services provided by the Larksville
Borough Fire Department, except in cases of false alarms and fires
intentionally set by the property owner.
This article shall be liberally construed to accomplish its
purpose of obtaining reimbursement to Larksville Borough from insurance
proceeds only for costs and/or expenses incurred while providing services
pursuant to the duties of the Larksville Borough Fire Department.
