[HISTORY: Adopted by the Borough Council of the Borough of
Wyalusing 12-19-2005 as Ch. 15
of the 2005 Code. Amendments noted where applicable.]
[Added 8-7-2017; amended
at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
The purpose of this chapter is to regulate insurance claims
as authorized under the Insurance Company Law of 1921 found at 40
P.S. § 341.
The following words and phrases when used in this chapter shall
have, unless the context clearly indicates otherwise, the meanings
given to them in this section:
The Borough of Wyalusing, Bradford County, Pennsylvania.
All costs for repairs, removal or securing of a structure
thereof actually incurred by the Borough, including but not limited
to all of the following:
Every individual, person, firm and corporation identified
by name in a policy of insurance insuring against losses sustained
on account of fire to which this chapter applies.
Every insurance company, association, exchange and other
entity paying a claim for fire damage sustained by a structure or
building located within the Borough of Wyalusing.
Fire damage sustained by any structure or building situate
within the Borough of Wyalusing.
Includes an individual, firm, corporation and other entity.
Every piece, parcel or tract of real estate located in the
Borough of Wyalusing.
The duly appointed Secretary of the Borough of Wyalusing.
Every building or other structure located upon property located
in the Borough of Wyalusing.
The elected Real Estate Tax Collector for the Borough of
Wyalusing.
The tax parcel identification number assigned from time to
time to the property by the Tax Assessment Office of Bradford County,
Pennsylvania.
The Insurance Company Law of 1921, as amended.[1]
[1]
Editor's Note: See 40 P.S. § 341 et seq.
No insurer doing business in the Commonwealth of Pennsylvania
shall pay a claim of an insured for fire damage to a structure on
a parcel located within the Borough where the amount recoverable for
the fire loss to the structure under all policies exceeds $7,500 unless
and until the insurer complies with each of the following requirements:
A.
When a structure on property located within the Borough sustains
fire damage, and on account of which the amount recoverable for the
fire loss to the structure under all policies of insurance issued
by an insurer exceeds $7,500, the named insured shall submit a written
request to the Tax Collector, signed by every named insured, which
written request shall contain all the information as hereinafter provided,
and the Tax Collector shall issue to the insurer within 14 working
days of the request:
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
(1)
A certificate or, at the discretion of the Borough, a verbal notification,
which shall be confirmed in writing by the insurer to the effect that,
as of the date agreed upon by the insurer and the named insured as
the date of the receipt of a loss report of the claim, there are no
delinquent taxes, assessments, penalties or user charges against the
property and that, as of the date of the certificate or verbal notification,
the Borough has not certified any amount as total costs incurred by
the Borough for the removal, repair or securing of a structure on
the parcel; or
(2)
Certificate and bill, as certified by the Tax Collector, showing,
as of the date of the certificate, the following:
(a)
The amount of delinquent taxes, assessments, penalties and user
charges, if any, against the property specified in the request that
have not been paid; and
(b)
The amount of total costs, if any, that have been incurred by
the Borough for the removal repair or securing of a structure on the
property.
B.
A tax, assessment, penalty or user charge becomes delinquent at the
time and on the date a lien could otherwise have been filed against
the property by the Borough under applicable law.
Upon the receipt of a certificate issued by the Tax Collector to an insured pursuant to § 216-4A(1) of this chapter and/or Section 508(b)1(i) of the Act, as amended,[1] the insurer may pay the claim of the insured in accordance
with the policy terms, unless the loss agreed to between the insured
and the insurer equals or exceeds 60% of the aggregate limits of liability
on all fire insurance policies covering the structure. In the case
of such a loss, the insurer shall follow the procedures set forth
in this chapter and in Section 508(c) and (d) of the Act.[2]
A.
Upon the receipt of a certificate and bill pursuant to § 216-4A(2) of this chapter and/or Section 508(b)1(ii) of the Act,[1] the insurer shall return the bill to the Tax Collector
and transfer to the Tax Collector the lesser of the following amounts:
(1)
An amount from the insurance proceeds necessary to pay the taxes,
assessment, penalties, charges and costs as shown on said bill; or
(2)
The total amount of the insurance proceeds.
[1]
Editor's Note: See 40 P.S. § 508(b)1(ii).
B.
The Borough shall receive the amount and apply or credit it to payment
of the items shown in the bill.
A.
When the loss agreed to between the insured and the insurer equals
or exceeds 60% of the aggregate limits of liability on all fire insurance
policies covering the structure, the insurer shall transfer to the
Secretary from the insurance proceeds:
(1)
In the aggregate $2,000 for each $15,000 and each fraction of that
amount of a claim; or
(2)
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 Subsection A(1), the insurer shall transfer from the insurance proceeds the amount specified in the estimate.
B.
The transfer of proceeds shall be on a pro rata basis by every insurer
insuring the structure, building or the property. The insurance policy
proceeds remaining after the transfer to the Secretary shall be disbursed
in accordance with the policy terms.
Upon receipt of fire insurance proceeds as contemplated by this
chapter and the Act, the Secretary shall deposit the proceeds in an
interest-bearing account with any federally insured bank or savings
and loan association. Every account shall comply with the following
requirements:
A.
A separate account must be established for each insured fire loss,
provided that in the event that the amount received for any one loss
is in excess of the amount that may be federally insured by any one
institution, then the amount received shall be placed so that the
entire amount received, and any interest thereafter earned, may be
fully insured.
B.
The account shall bear the name of each insured followed by the identifier
"Fire Escrow Fund";
C.
The account shall contain the social security number or the federal
tax identification number, if applicable, of one of the insured;
D.
Until the proceeds are disbursed according to the provisions of this
chapter or the provisions of the Act, all interest earned on said
proceeds shall remain in said account or accounts and shall be available
to pay any costs for repairs, removal or securing of the structure
incurred by the Borough; and
E.
No account may be established or funds placed with any institution
having a mortgage or judgment lien against the real estate.
Upon transfer of any funds to the Secretary pursuant to this
chapter or Section 508(c) of the Act,[1] the Secretary shall notify the insured, in writing, at
the last known address of the insured, as supplied by their insurer
making said transfer, of the following:
A.
All repairs, removal and/or securing of the structure have been completed;
and
B.
The Borough has not incurred any costs for repairs, removal or securing
of the structure.
[1]
Editor's Note: See 40 P.S. § 508(c).
If the Borough has incurred any costs for repairs, removal or
securing of the structure, as defined in this chapter or the Act,
all such costs for repairs, removal or securing of the structure shall
be paid from the fund, and if excess funds remain, the Secretary shall
return the remaining funds to the insured.
A.
In the event that the amount of the fund held by the Secretary, including
interest thereon, is insufficient to pay all the costs for repairs,
removal or securing of the structure incurred by the Borough, as deemed
in this chapter or the Act, the Borough shall, and is hereby authorized
to, with or without further notice, commence any and all legal action
at law and/or equity against every insured, every person claiming
an ownership interest in and to the property or the structure and/or
the property, for the balance of all costs for repairs, removal or
securing of the structure incurred by the Borough, as defined in this
chapter or the Act.
B.
In the event that the Borough does commence a legal action at law
and/or equity against an insured, a person claiming an ownership interest
in and to the property or the structure and/or the property, the Borough
is authorized to collect in addition to the balance of all costs for
repairs, removal or securing of the structure incurred by the Borough,
as defined in this chapter or the Act, all attorney's fees actually
incurred by the Borough in the prosecution of said action(s) and all
expenses and costs thereof.
In the event that the insured shall submit to the Secretary
a written estimate from and signed by a contractor estimating the
costs of removing, repairing or securing the structure after the escrow
fund has been established, the Secretary shall return to the insured
the amount of the fund in excess of the written estimate so submitted
by the insured upon the following conditions:
Notwithstanding any provision of this chapter or the Act, the
Borough, every insured and every person claiming an ownership interest
in the property herein may enter into a written agreement that permits
the transfer of the fund held by the Secretary to the named insured
upon satisfactory terms and conditions relating to the removing, repairing
or securing the structure or other disposition of the property and/or
the payment for the costs of removing, repairing or securing the structure.
The contents of the application for a certificate submitted
to the Secretary by the insured for a certificate or a certificate
and bill to be issued pursuant to this chapter shall contain all information
requested by the Secretary, which shall include, but not be limited
to, the following:
A.
Full legal name of every insurer.
B.
Complete mailing address for every insurer.
C.
Every claim number assigned by each and every insurer.
D.
Date of fire loss.
E.
Agreed proof of claim date (date agreed upon by the insurer and the
insured as the date of the receipt of a proof of loss of the claim).
F.
Proper name of every insured as contained in every policy applicable.
G.
Complete mailing address for every named insured.
H.
Every known telephone number of each named insured.
I.
Tax parcel number of the property.
Whenever any report of an inspection performed by the Borough
Engineer and/or the Borough Code Enforcement Officer pursuant to this
chapter or any other inspection finds or discloses that the structure
involved in the loss requires removal, repair or securing, the Borough
shall notify every insured of all of the following:
A.
The fact that an inspection occurred;
B.
The date said inspection occurred;
C.
The contents of the report of inspection, including any recommendations
concerning corrective action required to be done;
D.
The date by which the insured must commence corrective action to
remove, repair or secure the structure;
E.
The date by which the insured must complete corrective action to
remove, repair or secure the structure;
F.
Notice that the Borough shall undertake and perform all corrective
action in the event that the insured shall fail to commence corrective
action by the corrective action commencement date;
G.
Notice that the Borough shall complete all corrective action in the
event that the insured shall fail to complete corrective action by
the corrective action commencement date; and
H.
Notice that the Borough shall collect all costs as provided in this
chapter.
In the event that the insured fails to commence the corrective
action required by the Report of Inspection of the Borough Engineer
and/or the Borough Code Enforcement Officer and/or any other person
by the corrective action commencement date contained in the notice
to be given pursuant to this chapter, the Borough may, without further
notice to the insured, and without the necessity of securing bids
therefor, commence corrective action for the removal, repairing or
securing of the structure by entering into contracts and/or using
Borough employees and equipment.
A.
Every notice pursuant to § 216-16 of this chapter shall be served upon every insured by depositing the same in the United States Mail, certified mail, return receipt requested, addressed to the address of the insured as follows:
B.
Every notice shall be conclusively deemed to be received by every
insured and every person claiming an ownership interest in the property
upon deposit of the notice in the mail addressed to the insured only.
When any building or structure within the Borough is damaged
by fire and, in the opinion of the Fire Chief, the amount of damage
amounts to at least $7,500, the Fire Chief shall deliver a Report
of Damage to the Secretary, which report will include the name and
mailing address of the owners thereof and the name and address of
any insurer provided to the Fire Chief by the owners thereof.
The Borough is hereby authorized to adopt resolutions from time
to time to fix reasonable fees to be charged for certificates, certificates
and bills, performance of inspections and opening separate fund accounts.
This chapter shall be liberally construed to accomplish its
purpose to deter to the commission of arson and related crimes, to
discourage the abandonment of property and to prevent blight and deterioration.
[Amended 8-7-2017]
Any person, firm or corporation who shall violate any provision
of this chapter shall, upon being found in violation thereof, be subject
to a civil penalty not to exceed $600 per violation for each day of
violation and for violation of each applicable section of the chapter.
If the penalty is not paid, the Borough shall initiate a civil action
for collection in accordance with the Pennsylvania Rules of Civil
Procedure. In addition, if found in violation, the violator shall
be subject to the assessment for court costs and reasonable attorney
fees incurred by the Borough in enforcement proceedings. The Council
delegates the initial determination of the chapter violation and service
of notice of violation to the Code Enforcement Officer. The Borough
may enforce the chapter in equity in the Bradford County Court of
Commons.
[Added 8-7-2017]
In the event that any individual section or provision within
this chapter shall be found invalid, the invalidity shall pertain
only to the specific section, and all other aspects of this chapter
shall remain in full force and effect.
