[HISTORY: Adopted by the Board of Supervisors of the Township of Kidder as indicated in article histories. Amendments noted where applicable.]
Article I Fire Insurance Claims
[Adopted 11-18-1993 by Ord. No. 89]
The Secretary is hereby appointed as the designated officer who is authorized to carry out all responsibilities and duties stated herein.
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 structure located within the Township of Kidder (hereinafter the "municipality") where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the named insured or insuring agent is furnished by the Secretary 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.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Secretary issues a certificate indicating that 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 as 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 the building restructure, the following procedures must be followed:
The insuring agent shall transfer from the insurance proceeds to the designated officer of the Township of Kidder in the aggregate of $2,000 for each $15,000 of a claim and for each fraction of that amount of a claim, this section to be applied such that if the claim is $15,000 or less, the amount transferred to the Township of Kidder shall be $2,000; or
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 in an amount less than the amount calculated under the foregoing transfer formula, the insuring agent shall transfer to the Township of Kidder from the insurance proceeds the amount specified in the estimate.
The transfer of proceeds shall be on a pro rate basis by all companies, associations or exchanges insuring the building or other structure.
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 Township of Kidder in excess of the estimate to the named insured if the Township of Kidder has not commenced to remove, repair or secure the building or other structure.
Upon receipt of proceeds under this section, the Township of Kidder shall do the following:
The designated officer shall place the proceeds in the separate fund to be used solely as security against the total cost of removing, repairing or securing the building or structure which is incurred by the Township of Kidder. Such cost shall include, without limitation, any engineering, legal or administrative costs incurred by the Township of Kidder in connection with such removal, repair or securing of the building or any proceedings related thereto; and
It is the obligation of the insuring agent when transferring the proceeds to provide the Township of Kidder 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 that the proceeds have been received by the Township of Kidder and notify the named insured that the procedures under this subsection shall be followed; and
When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the Township of Kidder and the required proof of such completion received by the designated officer, and if the Township of Kidder has not incurred any costs for repairs, removal or securing, the funds shall be returned to the named insured. If the Township of Kidder has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the funds and if excess funds remain, the Township of Kidder shall transfer the remaining funds to the named insured.
Nothing in this section shall be construed to limit the ability of the Township of Kidder to recover any deficiency. Furthermore, nothing in this subsection shall be construed to prohibit the Township of Kidder 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.
The Township Supervisors of the Township of Kidder 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.
Any person who violates or permits a violation of this chapter shall, upon being found liable therefor in a civil enforcement proceeding commenced by the township before a District Justice, pay a fine of not more than $600, plus all court costs, including reasonable attorney's fees, incurred by the township in the enforcement of this chapter. No judgment shall be imposed until the date of the determination of the violation by the District Justice. If the defendant neither pays nor timely appeals the judgment, the township may enforce the judgment pursuant to the applicable Rules of Civil Procedure. Each day a violation exists shall constitute a separate offense. Further, the appropriate officers or agents of the township are hereby authorized to seek equitable relief, including injunction, to enforce compliance herewith.