[Adopted 5-1-1995 by Ord.
No. HR-242]
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 Tredyffrin Township under the terms of Section 508(a) of the Insurance Company Law of 1921, as amended, 40 P.S. § 638(a), unless the insurance company, association or exchange is furnished with a certificate pursuant to §
117-2 of this article and unless there is compliance with the procedures set forth in §§
117-3 and
117-4 of this article.
When the loss agreed to between the named insured and the company, association
or exchange equals or exceeds 60% of the aggregate limits of liability on
all fire policies covering the building or other structure, the insurance
company, association or exchange shall transfer from the insurance proceeds
to the Township Manager or his/her designee the amounts required by and in
accordance with the procedures set forth in 40 P.S. § 638(c). Policy
proceeds remaining after the transfer to the township shall be disbursed in
accordance with the policy terms. The named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure after the transfer, and the Township Manager or his/her
designee shall return the amount of the fund in excess of the estimate to
the named insured if the township has not commenced to remove, repair or secure
the building or other structure. The Township Manager or his/her designee
shall carry out the duties of this section.
Upon receipt of the proceeds by the township as authorized by §
117-3, the Township Manager or his/her designee shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the township. When transferring the funds as required in §
117-3, an insurance company, association or exchange shall provide the township with the name and address of the named insured, whereupon the township 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 section shall be followed. The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed and the required proof received by the Township Manager or his/her designee if the township has not incurred any costs for repairs, removal or securing. If the township 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 township shall transfer the remaining funds to the named insured. Nothing in this article shall be construed to limit the ability of the township to recover any deficiency. Further, nothing in this section shall be construed to prohibit the township 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 total costs incurred by the township for the removal, repair or
securing of a building or other structure under this article shall include,
but not be limited to, all administrative, personnel and overhead costs incurred
by the township in accordance with generally accepted accounting procedures.
Upon the enactment of this article, the Township Secretary shall file
an exact copy of the article with the Department of Community and Economic
Development, together with the name, position and phone number of the municipal
official responsible for compliance with Section 508 of the Insurance Company
Law of 1921, as amended.