[HISTORY: Adopted by the Board of Commissioners of the Township
of Ridley as indicated in article histories. Amendments noted where
applicable.]
[Adopted 3-23-2011 by Ord. No. 1972[1]]
[1]
Editor's Note: This ordinance also repealed former Art.
I, Fire Insurance Claims, adopted 11-18-1992 by Ord. No. 1696, as
amended.
The Township Manager is hereby appointed as the designated official
who is authorized to carry out all responsibilities and duties stated
herein.
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 Ridley where the amount recoverable for the fire loss
to the structure under all policies exceeds $7,500, unless the insurer
is furnished by the Ridley Township Treasurer 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"), and
unless there is compliance with the procedures set forth in Section
508(c) and (d) of the Act.[1]
[1]
Editor's Note: See 40 P.S. § 638.
B.
Issuance of bill and certificate for municipal claims and expenses.
(1)
Where there are delinquent taxes, assessments, penalties or user
charges against the property ("municipal claims"), or there are expenses
which Ridley 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 Ridley Township Treasurer shall immediately
render a bill for such work, if she has not already done so. Upon
written request of the named 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 her 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 however, that if the loss agreed upon by the 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 of Ridley,
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 of
Ridley 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 of Ridley in connection with such removal,
repair or securing or any proceedings related thereto; and
(b)
Mail to the named insured, at the address received from the
insurer, a notice that the proceeds have been received by the Township
of Ridley and that the procedures under this subsection shall be followed.
(c)
After the transfer, the named insured may submit to the Township
of Ridley 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 of Ridley in excess of that required to pay the municipal
expenses; provided the Township of Ridley has not commenced to remove
or secure the building or other structure, in which case the Township
of Ridley will complete the work.
(d)
Pay to the Township of Ridley Treasurer, for reimbursement to
the Township of Ridley General Fund, the amount of the municipal expenses
paid by the Township of Ridley.
(e)
Pay the remaining balance in the fund (without interest) to
the named insured upon receipt of a certificate issued by the Ridley
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 of Ridley.
(f)
Nothing in this section shall be construed to limit the ability
of the Township of Ridley 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 of Ridley or to enter into an
agreement with the named insured with regard to such other disposition
of the proceeds as the Township of Ridley 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 the Township of Ridley, any Township
of Ridley 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 of liens or removal expenses incurred by the Township of Ridley
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 urban blight and deterioration.
The Manager of Ridley Township shall transmit a certified copy
of this article promptly to the Pennsylvania Department of Community
Affairs.
Any owner of property, 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 conviction thereof,
to 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 30
days. Each day on which an offense shall continue shall be deemed
a separate offense.
