[Ord. 173, 9/27/2005]
The Township Treasurer or such official's designee (hereinafter
the “municipal officer”) is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties
of the municipality stated herein.
[Ord. 173, 9/27/2005]
As used in this Part, the following terms shall have the meanings
indicated:
Any loss occurring after the effective date of this Part
and covered under a policy of fire insurance, including any endorsements
or riders to the policy.
[Ord. 173, 9/27/2005]
1.
No insurance
company, association or exchange (hereinafter the “insurer”)
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for damage to a structure located within the Township
of Smithfield (hereinafter the “municipality”) where the
amount recoverable for the fire loss to the structure under all policies
exceeds $7,500 unless the insurer is furnished by the municipal officer
with a municipal certificate pursuant to Section 508(B) and unless
there is compliance with Section 508(c) and (d) and the provisions
of this Part.
2.
After full
compliance with the requirements of Section 508(b)(1)(i), 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:
A.
The insurer
shall transfer from the insurance proceeds to the municipal officer
the aggregate of $2,000 for $15,000 of a claim and for each fraction
of the amount of a claim, provided that this Section is to be applied
such that of the claim is $15,000 or less, the amount transferred
to the municipality shall be $2,000 and that, 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
the foregoing transfer formula, the insurer shall transfer to the
municipality from the insurance proceeds the amount based upon the
estimate.
B.
The transfer
of proceeds shall be on a prorated basis by all companies, associations
or exchanges, insuring the building or other structure. Policy proceeds
remaining after the transfer to the municipality shall be disbursed
in accordance with the policy terms.
3.
After the
transfer, the named insured may submit a contractors 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.
4.
Upon receipt
of proceeds under this Section, the municipality shall do the following:
A.
The municipal
officer 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 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 any proceedings
related thereto.
B.
It is
the obligation of the insurer 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 municipal officer shall contact the named insured, certify
that the proceeds have been received by the municipality and notify
the named insured that the procedures under this subsection shall
be followed.
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 municipality
and the required proof of such completion received by the municipal
officer, and if the municipality has not incurred any 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.
D.
To the
extent that interest is earned on proceeds held by the municipality
pursuant to this Section, and retained by it, such interest shall
belong to the municipality. 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.
5.
Nothing
in this Section shall be construed to limit the ability of the municipality
to recover any deficiency. Furthermore, nothing in this Part shall
be construed to prohibit the municipality 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. 173, 9/27/2005]
The Township may by resolution adopt procedures and regulations
to implement Section 508 and this Part and may by resolution fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Section 508 and this Part, including but not limited to issuance
of certificates and bills, performance of inspections and opening
separate fund accounts. The Township Board of Supervisors may also
periodically, by resolution, adjust the amounts provided for herein
to account for inflation or changes in State Law.
[Ord. 173, 9/27/2005]
Any owner of property, any named insured or any insurer who
violates this Part shall be subject to a penalty of up to $1,000 per
violation.
