[Amended 3/8/2012]
1.
No insurance company, association of exchange (hereinafter "insurer")
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 of Montour, Columbia County, Pennsylvania (the "Township"),
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insurer is furnished by the
Treasurer of the Township with a certificate pursuant to Section 508(b)
of the Insurance Company Law of 1921, as amended by Act 98 of 1992
and Act 93 of 1994 (collectively the "Act"), and unless there is compliance
with the procedures set forth in Section 508(c) and 508(d) of the
Act.[1]
[1]
Editor's Note: See 40 P.S. § 362 et seq.
2.
Effect of Delinquent Taxes.
A.
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which the Township has incurred as costs for removal, repair or securing
of a building or other structure on the property (collectively "municipal
expenses"), the Secretary of the Township shall immediately render
a bill for such work, if not already done. Upon written request of
the named insured specifying the description of the property, the
name and address of the insurer and the date of receipt by the insurer
of a loss report of the claim, the Treasurer of the Township shall
furnish a certificate within 14 days after the request to the insurer
either:
B.
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection A of this section, the insurer shall transfer to the Secretary of the Township an amount from the insurance proceeds sufficient to pay said sums prior to making payment to the named insured, subject to the provisions of § 1-1101(3) hereof.
3.
When all municipal claims and municipal expenses have been paid pursuant to § 1-1101(2) of this Part or when the Township Treasurer has issued a certificate described in 1-1101(2)(A) hereof indicating that there are no municipal claims or municipal expenses against the property, 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 or structure, the following procedures must be followed:
A.
The insurer shall transfer from the insurance proceeds to the Township
Treasurer, in the aggregate, $2,000 for each $15,000 of such claim
or fraction thereof.
B.
If at the time a loss report is submitted by the insured, such insured
has submitted to the insurer, with a copy to the Township, a contractor's
signed estimate of the cost 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 Secretary of the Township from the insurance proceeds the amount
specified in the estimate. If there is more than one insurer, the
transfer of proceeds shall be on a pro-rata basis by all insurers
insuring the building or other structure.
C.
Upon receipt of the above described portion of the insurance proceeds
the Secretary of the Township shall do the following:
(1)
Place the proceeds in a separate fund to be used solely as security
against the total municipal expenses anticipated by the Township to
be required in removing, repairing or securing the building or structure
as required by this Part. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Township
in connection with such removal, repair or securing or any proceedings
related thereto;
(2)
Mail to the named insured at the address received from the insurer
a notice that the proceeds have been received by the Township and
that the procedures under this subsection she be followed;
(3)
After the transfer, the named insured may submit to the Township
a contractor's signed estimate of the cost of removing, repairing
or securing the building or other structure, in which event the Township
Secretary shall, if such estimate is deemed by the Township Secretary
to be reasonable, return to the insured the amount of the funds transferred
to the Township in excess of that amount required to pay the municipal
expenses; provided, however, that the Township has not commenced to
remove, repair or secure the building or other structure in which
case the Township will complete the work;
(4)
Pay to the Secretary of the Township for reimbursement to the
Township General Fund, the amount of the municipal expenses paid by
the Township.
(5)
Pay the remaining balance in the fund without interest to the
named insured upon receipt of a certificate issued by the Township
Secretary that the repair, removal or securing of the building or
other structure has been completed in accordance with all applicable
Codes and Regulations of the Township.
(6)
Nothing in this section shall be construed to limit the ability
of the Township to recover any deficiency in the amount of municipal
claims or municipal expenses recovered pursuant to this Part, or to
insurance proceeds, by an action at law or in equity to enforce the
Township Codes or to enter into an agreement with the named insured
with regard to such other disposition of the proceeds as the Township
may deem responsible.
[Amended 3/8/2012]
Nothing in this Part 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 Part or to make the Township or any public official
of the Township 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 Part.
[Amended 3/8/2012]
An insurance company, associated or exchange making payment
of policy proceeds under this Part for delinquent taxes or structural
removal liens or removal expenses incurred by the Township shall have
full benefit of such payment including all rights of subrogation and
of assignment.
[Amended 3/8/2012]
This Part 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.
[Amended 3/8/2012]
The Secretary of the Township shall transmit a certified copy
of this Part promptly to the Pennsylvania Department of Community
and Economic Development.
[Amended 3/8/2012]
Any owner of property, any named insured or insurer who violates
the provisions of this Part or who shall fail to comply with any of
the requirements hereof shall be sentenced upon conviction thereof
to pay a fine not greater 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 in which an offense shall continue shall be deemed
a separate offense.
[Amended 3/8/2012]
The provisions of this Part are severable. If any sentence,
clause or section of this Part is for any reason found to be unconstitutional,
illegal or invalid, such decision shall not affect the validity of
any of the remaining provisions of this Part. It is hereby declared
as a legislative intent that this Part would have been adopted had
such unconstitutional, illegal or invalid provision been included
herein.
[Amended 3/8/2012]
This Part shall take effect five days after the adoption thereof
[Amended 3/8/2012]
Any ordinances, or parts of ordinances, in conflict herewith
be and the same are hereby repealed.
