[HISTORY: Adopted by the Board of Supervisors
of the Township of Exeter as indicated in article histories. Amendments
noted where applicable.]
[Adopted 8-13-2007 by Ord. No. 640]
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 a structure located
within the Township of Exeter where the amount recoverable for the
fire loss to the structure under all policies exceeds $7,500, unless
the insurer is furnished by the Township Treasurer with a certificate
pursuant to § 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 § 508(c) and (d) of the Act.
[1]
Editor's Note: See 40 P.S. § 638.
B.
Delinquent taxes, assessments, penalties and user
charges.
(1)
Where there are delinquent taxes, assessments, penalties
or user charges against the property ("municipal claims"), or there
are expenses which the Township has incurred as a cost for the removal,
repair or securing of a building or other structure on the property
(collectively, "municipal expenses"), the Secretary of the Township
shall immediately render a bill for such work, if he has not already
done so. Upon written request of the named insured specifying the
tax 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 shall furnish a certificate within 14 working days after
the request, to the insurer, a certificate (or at his discretion an
oral notice confirmed in writing) either:
(2)
Taxes, assessments, penalties and user charges shall be deemed delinquent for this purpose if a lien could have been filed for such claims under applicable law. Upon receipt of a certificate and bill pursuant to Subsection B(1)(a) of this section, the insurer shall transfer to the Treasurer an amount from the insurance proceeds sufficient to pay such sums prior to making payment to the named insured, subject to the provisions of Subsection C hereof.
C.
When all municipal claims and municipal expenses have been paid pursuant to Subsection B of this section, or where the Treasurer has issued a certificate described in Subsection B(1)(a) 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 Treasurer, in the aggregate, $2,000 for each $15,000 of such
claim or fraction thereof.
(2)
If at the 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, 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 Treasurer from the insurance proceeds the amount
specified in the estimate. If there is more than one insurer, the
transfer of proceeds shall be on a pro rata basis by all insurers
insuring the building or other structure.
(3)
Upon receipt of the above described portion of the
insurance proceeds, the Treasurer 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 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 Treasurer shall, if such estimate is deemed by the Treasurer to
be reasonable, return to the insured the amount of the funds transferred
to the Township in excess of that required to pay the municipal expenses;
provided, 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, 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 Secretary 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, by an action at law or
in equity to enforce the codes of the Township 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 its insurance policy or
for any other act performed pursuant to this article or to make this
Township, any Township official, a municipality or public official
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 structure removal expenses incurred by the Township shall
have a 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 urban
blight and deterioration.
The Secretary of the Township shall transmit
a certified copy of this article promptly to the Pennsylvania Department
of Community and Economic Development.
Any person, firm or corporation who shall violate
any provision of this article, upon conviction thereof in an action
brought before a District Justice in the manner provided for the enforcement
of summary offenses under the Pennsylvania Rules of Criminal Procedure,
shall be sentenced to pay a fine of not more 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 that a violation of this article continues
or each section of this article which shall be found to have been
violated shall constitute a separate offense.
