[Ord. 1098, passed 4-26-1993]
The Town Manager or such official's designee is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated in this article.
[Ord. 1098, passed 4-26-1993]
No insurance company, association or exchange (hereinafter the
"insuring agent") doing business in the Commonwealth of Pennsylvania
shall pay a claim of a named insured for fire damage to a building
or other structure located within the Town (hereinafter the "Municipality")
where the amount recoverable for the fire loss to the building or
other structure under all policies exceeds $5,000 unless the insuring
agent is furnished by the Municipal Treasurer with a Municipal certificate
pursuant to Section 508(B) of Act 98 of 1992 and unless there is compliance
with Section 508(C) and (D) of Act 98 of 1992 and the provisions of
this article.
[Ord. 1098, passed 4-26-1993]
(a) Where, pursuant to (B)(1)(I) of Act 98 of 1992, the Municipal Treasurer
issues a certificate indicating 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 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 building restructure, the following procedures shall be followed:
(1)
The insuring agent shall transfer from the insurance proceeds
to the designated officer of the Municipality in the aggregate of
$1,000 for each $20,000 of a claim and for each fraction of the amount
of a claim. This section is to be applied, such that if the claim
is $20,000 or less, the amount transferred to the Municipality shall
be $1,000; or
(2)
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 Municipality from the insurance proceeds the amount
specified in the estimate.
(3)
The transfer of proceeds shall be on a pro rata basis by all
companies, associations or exchanges insuring the building or other
structure.
(4)
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.
(5)
Upon receipt of the proceeds under this section, the Municipality
shall do the following:
A.
The designated officer shall place the proceeds in a 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 other structure or any proceedings related thereto; and
B.
It is the obligation of the insuring agent 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 designated officer shall
contact the named insured, certify the proceeds have been received
by the Municipality and notify the named insured the procedures under
this section must be followed; and
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 designated 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;
and
D.
To the extent interest is earned on proceeds held by the Municipality
pursuant to this section and not returned to the named insured, such
interest shall belong to the Municipality. To the extent the proceeds
are returned to the named insured, interest earned on such proceeds
shall be distributed to the named insured at the time the proceeds
are returned.
(6)
Nothing in this section shall be construed to limit the ability
of the Municipality to recover any deficiency. Furthermore, nothing
in this section shall be construed to prohibit the Municipality and
the named insured from entering into an agreement permitting the transfer
of funds to the named insured if some other reasonable disposition
of the damaged property has been negotiated.
[Ord. 1098, passed 4-26-1993]
Council may by resolution adopt procedures and regulations to
implement Act 98 of 1992 and this article and may by resolution fix
reasonable fees to be charged for municipal activities or services
provided pursuant to Act 98 of 1992 and this article; including but
not limited to issuance of certificates and bills, performance of
inspections and opening separate fund accounts.
[Ord. 1098, passed 4-26-1993]
The provisions of this article shall be severable and, if any
of the provisions hereof shall be held to be invalid or unenforceable,
the remaining provisions of this article shall remain in effect.
[Ord. 1098, passed 4-26-1993]
Any owner of property, any named insured or any insuring agent
who violates any provision of this article shall be subject to a penalty
of up to $1,000 per violation.