[HISTORY: Adopted by the City Council of the City of New Kensington
as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Fire prevention — See Ch. 115.
[Adopted 1-12-1993 by Ord.
No. 6-92; amended in its entirety 1-10-1995
by Ord. No. 5-94]
[Amended 11-9-1999 by Ord.
No. 5-99]
The Municipal 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.
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 City
of New Kensington (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 Municipal Treasurer
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[1] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638(b), (c) and (d).
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992,[1] the Municipal Treasurer shall, upon written request, issue 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:
A.
The certificate shall be issued within 14 working days
of the request.
B.
The insuring agent shall transfer from the insurance
proceeds to the designated officer of the municipality in the aggregate of
$2,000 for each $15,000 of a claim and for each fraction of that amount of
a claim. If at the time of a loss report 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 insurance company, association or
exchange shall transfer from the insurance proceeds the amount specified in
the estimate.
C.
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, the insuring agent shall transfer to the
municipality from the insurance proceeds the amount specified in the estimate.
D.
The transfer of proceeds shall be on pro rata basis by
all companies, associations or exchanges insuring the building or other structure.
E.
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 municipality in excess of the estimate to the
named insured, if the municipality has not commenced to remove, repair or
secure the building or other structure.
F.
Upon receipt of proceeds under this section, the municipality
shall do the following:
(1)
The designated officer shall place the proceeds in the
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
municipality. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the municipality 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 municipality 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 municipality 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 have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion received
by the designated officer, and if the municipality has not incurred any costs
for repairs, removing or securing, the fund shall be returned to the named
insured. If the municipality 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 municipality shall transfer the remaining
funds to the named insured.
(4)
To the extent that interest is earned on proceeds held
by the municipality pursuant to this section, and not returned to the named
insured, such interest shall belong to the municipality. 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.
G.
Nothing in this section shall be construed to limit the
ability of the municipality to recover any deficiency. Furthermore, nothing
in this subsection shall be construed to prohibit the municipality 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.
[1]
Editor's Note: See 40 P.S. § 638(b)(1)(i).
The Council of the City of New Kensington may by resolution adopt procedures
and regulations to implement Act 98 of 1992[1] 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.
[1]
Editor's Note: See 40 P.S. §§ 636.1 and 638.
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.
