[HISTORY: Adopted by the Board of Supervisors of the Township
of Barrett as indicated in article histories. Amendments noted where
applicable.]
[Adopted 11-8-2006 by Ord. No. 147]
This article shall be known and may be cited as the "Barrett
Township Fire Insurance Escrow Ordinance."
A.
No insurance company, association or exchange (hereinafter "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to structure located within the
Township of Barrett, Monroe County, Pennsylvania ("Barrett Township"
or "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 Barrett 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"),[1] and unless there is compliance with the procedures set
forth in Section 508(c) and (d) of the Act.[2]
B.
Delinquent municipal claims or expenses.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property (collectively "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 Treasurer 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:
(2)
Taxes, assessment, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims or expenses under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B of this section, the insurer shall transfer to the Treasurer 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 Subsection C(3) hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section or when the Township Treasurer has issued a certificate described in Subsection B(1) 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:
(1)
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.
(2)
If at any 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, replacing 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 Treasurer of the Township of Barrett from the insurance proceeds
the amount specified in the estimate. If there is more than one insurer,
the transfer or proceeds shall be on a pro rata basis by all insurers
insuring the building or other structures.
(3)
Upon receipt of the above-described portion of the insurance proceeds,
the Treasurer of Barrett Township shall do the following:
(a)
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 article. 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.
(b)
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 shall be followed.
(c)
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
Treasurer shall, if such estimates are deemed by the Township Treasurer
(in consultation with the Township Engineer) 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.
(d)
Pay to the Treasurer of the Township for reimbursement to the
Township general fund the amount of the municipal expenses paid by
the Township.
(e)
Pay the remaining balance in the fund without interest to the
named insured upon receipt of a certificate issued by the Township
Treasurer 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.
(f)
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 article or
to insurance proceeds recovered pursuant to this article, or to insurance
proceeds, by an action at law or in equity to enforce the Township
Code 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.
Nothing in this article shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
proceeds payable under insurance policy or for any other act performed
pursuant to this article 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 article.
An insurance company, association or exchange making payment
of policy proceeds under this article for delinquent taxes or structural
removal liens or removal expenses incurred by Barrett Township shall
have the full benefit of such payment, including all rights of subrogation
and of assignment.
This article 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 blight and deterioration.
The Treasurer of Barrett Township shall transmit a certified
copy of this article, promptly after enactment, to the Pennsylvania
Department of Community and Economic Development.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
Any owner of property and any named insured or insurer who violates
the provisions of this article or who shall fail to comply with any
of the requirements hereof shall be sentenced, upon summary conviction
thereof before a Magisterial District Judge, 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 90 days. Each day in
which an offense shall continue shall be deemed a separate offense.
The provisions of this article are severable. If any sentence,
clause or section 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 article. It is hereby declared
as the legislative intent that this article would have been adopted
had such unconstitutional, illegal or invalid provisions had not been
included herein.
All ordinances or parts of ordinances in conflict herewith shall
be and the same are hereby repealed.
This article shall take effect five days after it is adopted.
