Article 1505
DISPOSITION OF INSURANCE COVERING FIRE-DAMAGED STRUCTURES
Sections:
1505.02 Notification of delinquent taxes, assessments or penalties.
1505.03 Losses exceeding 60 percent of aggregate limits.
1505.04 Payment of taxes, assessments, penalties, and charges.
1505.05 Responsible officer designated.
1505.06 Losses greater than $7,500.
1505.08 Insurance information.
1505.09 Recovery of costs – Agreements.
1505.01 Payment of claims.
No insurance company, association or exchange (hereinafter referred to as “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 City of Meadville where the amount recoverable for the fire loss to the structure under all policies exceeds $7,500 unless the insurer has complied with the requirements set forth in this article and in Sections 508(a) through (d) of the Act of July 9, 1992, P.L. Section 682, known as Act 98 of 1992, as amended by Act of October 13, 1994, P.L. 609, known as Act 93 of 1994, the provisions of which Act are hereby adopted by reference together with any amendments thereto, as though set forth in full (hereinafter referred to as “the Act”). (Ord. 3413 § 1, 1995)
1505.02 Notification of delinquent taxes, assessments or penalties.
(A) In accordance with Section 508(b) of the Act, the city treasurer shall, upon the written request of the named insured specifying the tax description of the property, the name and address of the insurance company, association or exchange and the date agreed upon by the insurance company, association or exchange and the named insured as of the date of a loss report of the claim, furnish the insurance company, association or exchange either of the following within 14 days of the request:
(1) A certificate or, at the discretion of the city, a verbal notification which shall be confirmed in writing by the insurer, to the effect that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the property and that, as of the date of the treasurer’s certificate or verbal notification, the city has not certified any amount of total costs incurred by the city for the removal, repair or securing of a building or other structure on the property; or
(2) A certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified in the request that have not been paid as of the date of certificate and also showing, as of the date of the treasurer’s certificate, the amount of the total costs, if any, certified to the treasurer that have been incurred by the city for the removal, repair or securing of a building or other structure on the property. For purposes of this subsection only, the city shall certify to the treasurer the total amount, if any, of such costs.
(B) A tax, assessment, penalty or user charge becomes delinquent at the time and on the date a lien could otherwise have been filed against the property by the city under applicable law. (Ord. 3413 § 1, 1995)
1505.03 Losses exceeding 60 percent of aggregate limits.
Upon receipt of a certificate pursuant to MMC 1505.02(A)(1), the insurer shall pay the claim of the named insured in accordance with the policy terms, unless the loss agreed to between the named insured and the insurer equals or exceeds 60 percent of the aggregate limits of liability on all fire policies covering the building or other structure. In the case of such a loss, the insurer, the insured property owner and the city shall follow the procedures set forth in MMC 1505.06 and 1505.07. (Ord. 3413 § 1, 1995)
1505.04 Payment of taxes, assessments, penalties, and charges.
Upon the receipt of a certificate and bill pursuant to MMC 1505.02(A)(2), the insurer shall return the bill to the city treasurer and transfer to the treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The city upon receipt of such amount shall apply or credit it to payment of the items shown in the bill. (Ord. 3413 § 1, 1995)
1505.05 Responsible officer designated.
The city finance director is hereby designated as the officer authorized to carry out the responsibilities imposed under MMC 1505.06 through 1505.08 and Sections 508(c) and (d) of the Act. (Ord. 3413 § 1, 1995)
1505.06 Losses greater than $7,500.
In accordance with Section 508(c) of the Act, if the fire loss is greater than $7,500, and equals or exceeds 60 percent of the aggregate limits of liability on all fire insurance policies covering the building or structure, as agreed between the named insured and the insurer, then the insurer shall transfer from the insurance proceeds to the city finance director such amounts as shall be determined in accordance with the following schedule:
(A) If the named insured and insurer have agreed on a proof of loss, and the named insured has submitted a contractor’s signed estimate of the costs of removing, repairing or securing the building or structure, the amount specified in the estimate shall be transferred to the city finance director.
(B) In all other cases, the insurer shall transfer to the city finance director, in the aggregate, $2,000 for each $15,000, and each fraction of that amount, of the agreed upon loss.
(C) The transfer of proceeds shall be on a pro rata basis by all insurers insuring the building or other structure. Policy proceeds remaining after the transfer to the city shall be disbursed in accordance with the policy terms. (Ord. 3413 § 1, 1995)
1505.07 Use of proceeds.
Upon receipt of proceeds under MMC 1505.06, the city shall do the following:
(A) The city finance director 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 city. Such costs shall include, without limitation, any engineering, legal or administrative costs incurred by the city in connection with such removal, repair or securing of the building or any proceedings related thereto; and
(B) It is the obligation of the insurer when transferring the proceeds to provide the city 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 city finance director shall contact the named insured, certify that the proceeds have been received by the city and notify the named insured that the procedures under this subsection shall be followed; and
(C) When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable regulations and orders of the city and the required proof of such completion has been received by the city finance director, and if the city has not incurred any costs for repairs, removal or securing of the building or other structure, the fund shall be returned to the named insured. If the city 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 city shall transfer the remaining funds to the named insured; and
(D) To the extent that interest is earned on proceeds held by the city pursuant to this section, and retained by it, such interest shall belong to the city. 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. (Ord. 3413 § 1, 1995)
1505.08 Insurance information.
At the request of the city finance director or his representative, any person who owns a building or structure damaged by fire or who is a named insured under a fire insurance policy covering such building or structure shall provide information to the finance director regarding the insurer or insurers providing fire insurance covering such property and any other pertinent information relating thereto. An insurer with insurance coverage on a building or structure within the city which has been damaged by fire shall provide information to the city finance director concerning the insurance, the loss and any other pertinent information relating thereto. (Ord. 3413 § 1, 1995)
1505.09 Recovery of costs – Agreements.
Nothing in this article shall be construed to limit the ability of the city to recover any deficiency. Furthermore, nothing in this article shall be construed to prohibit the city 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. (Ord. 3413 § 1, 1995)
1505.10 Procedures – Fees.
The city council may by resolution adopt procedures for administering the Act and this article and may by resolution fix reasonable fees to be charged for administrative services provided pursuant to the Act and this article, including, but not limited to, issuance of certificates and bills, and opening separate fund accounts. (Ord. 3413 § 1, 1995)
1505.11 Violation – Penalty.
Any person or insurance company, association or exchange who shall violate any provision of this code or shall fail to comply with any of the requirements thereof shall, upon conviction in a summary proceeding, be sentenced to pay a fine of not more than $1,000 plus costs, and in default of payment shall be sentenced to imprisonment for not more than 30 days. (Ord. 3413 § 1, 1995)