[Adopted 3-8-1993 (§§ 6.31 to 6.35 of the
1986 Code)]
The Allegheny Township Treasurer or such official's
designee is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties stated herein.
[Amended 1-10-2005 by Ord. No. 2-2005]
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 Allegheny (hereinafter
the "Township") where the amount recoverable for the fire loss to
the structure under all policies exceeds $7,500, unless the insuring
agent is furnished by the Township Treasurer with a Township 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. A fee of
$15 will the charged for the Township certificate.
Where, pursuant to Section 508 (b)(1)(i) of
Act 98 of 1992, the Township Treasurer 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 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 or other structure, the following procedures must be
followed:
A. The insuring agent shall transfer from the insurance
proceeds to the designated officer of the Township in the aggregate
$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 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 from the insurance proceeds the amount specified in
the estimate.
[Amended 1-10-2005 by Ord. No. 2-2005]
B. The transfer of proceeds shall be on pro rata basis
by all companies, associations or exchanges insuring the building
or other structure.
C. 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 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.
D. Upon receipt of proceeds under this section, the Township
shall do the following:
(1) The designated officer shall place the proceeds in
a 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 Township. Such costs shall include, without limitation,
any engineering, legal or administrative costs incurred by the Township
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(2) It is the obligation of the insuring agent when transferring
the proceeds to provide the Township 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 and notify the named insured that the procedures under
this subsection shall be followed.
(3) When repairs, removal or securing of the building
or other structure has been completed in accordance with all applicable
regulations and orders of the Township and the required proof of such
completion received by the designated officer, and if the Township
has not incurred any costs for repairs, removal or securing, the fund
shall be returned to the named insured. 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.
(4) To the extent that interest is earned on proceeds
held by the Township pursuant to this section, and not returned to
the named insured, such interest shall belong to the Township. 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.
E. Nothing in this section shall be construed to limit
the ability of the Township to recover any deficiency. Furthermore,
nothing in this subsection 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 Board of Supervisors 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 Township
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 owner of property, any named insured or
any insuring agent who violates this article shall be subject to a
penalty of up to $1,000 per violation.