[Ord. 7200, passed 2-23-1995]
The City Treasurer, or such official's designee, is hereby
appointed as the designated officer who is authorized to carry out
all responsibilities and duties of the City stated herein.
[Ord. 7200, passed 2-23-1995]
A "fire loss" or claim for fire damage is defined as any loss
occurring after the effective date of this section and covered under
a policy of fire insurance, including any endorsements or riders to
the policy.
[Ord. 7200, passed 2-23-1995]
(a) No insurance company, association or exchange doing business in the
Commonwealth of Pennsylvania shall pay a claim of a named insured
for fire damage to a structure located within the City where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the insurer is furnished by the City Treasurer
with a municipal certificate pursuant to Section 508(b) of Act 98
of 1992 and unless there is compliance with Sections 508(c) and (d)
of such Act, the provisions of this article and the provisions of
Article 1522 - Payment of Delinquent Taxes from Fire Insurance Proceeds.
(b) The City Treasurer shall include in his communications with the insurers,
notice that the City has adopted Article 1522 - Payment of Delinquent
Taxes from Fire Insurance Proceeds and that Article 1522 is in effect.
(c) After full compliance with the requirements of Section 508(b)(1)(i)
and Article 1522, the insurer shall pay the claim of the named insured,
provided however, that if the loss is 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:
(1)
The insurer shall transfer from the insurance proceeds to the
City Treasurer the aggregate of $2,000 for each $15,000 of a claim
and for each fraction of that amount of a claim, provided that this
section is to be applied such that if the claim is $15,000 or less,
the amount transferred to the City of New Castle shall be $2,000;
and
(2)
If at the time of a lost 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 City from the insurance proceeds the amount
based upon the estimate.
(3)
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 City shall be
disbursed in accordance with the policy terms.
(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 City, in excess of the
estimate to the named insured, if the City has not commenced to remove,
repair or secure the building or other structure.
(5)
Upon receipt of the proceeds under this section, the City shall
do the following:
A.
The City Treasurer 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 City. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the City, in connection
with such removal, repair or securing of the building or any proceedings
related thereto; and
B.
It is the obligation of the insurer when transferring the proceeds
to provide the City 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 City Treasurer shall contact the named insured,
certify that the proceeds have been received by the City and notify
the named insured that the procedures under this subsection shall
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 order of the City and the required proof of such completion received
by the designated officer, and if the City has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the
named insured. If the City 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 City shall transfer
the remaining funds to the named insured; and
D.
To the extent that interest is earned on proceeds held by the
City, pursuant to this section, and retained by it, such interest
shall belong to the City. 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.
(6)
Nothing in this article shall be construed to limit the liability
of the City to recover any deficiency. Furthermore, nothing in this
article shall be construed to prohibit the City 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.
[Ord. 7200, passed 2-23-1995]
A fee of $25 shall be charged for the issuance of certificates
and bills, performance of inspections, and opening separate fund accounts.
[Ord. 7200, passed 2-23-1995]
The provisions of this article shall be severable and, if any
of the provisions hereof shall be invalid or unenforceable, the remaining
provisions of this article shall remain in effect.
[Ord. 7200, passed 2-23-1995]
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.