ORDINANCE NO. 89 - 96
AN ORDINANCE OF THE TOWNSHIP OF REDSTONE, FAYETTE COUNTY,
PENNSYLVANIA, ENACTED PURSUANT TO ACT 93 OF 1994, WHICH
AMENDED ACT 98 OF 1992, (THE FIRE INSURANCE ESCROW LAW), AND
WHICH PROVIDES THAT IN CERTAIN FIRE LOSSES THE INSURANCE
COMPANY, ASSOCIATION OR EXCHANGE SHALL TRANSFER
INSURANCE PROCEEDS TO A DESIGNATED OFFICER OF THE
MUNICIP ALITY TO HOLD AS SECURITY AGAINST THE TOTAL COST OF
THE MOVING, REPAIRING OR SECURING THE DAMAGED BUILDING AND
WHICH PROVIDES FOR FEES, PENALTIES FOR VIOLATION, AND WHICH
SETS FORTH PROCEDURES AND REQUIREMENTS PERTAINING TO
WHICH INSURANCE PROCEEDS AND TO THE IMPLEMENTATION OF ACT
98 OF 1992, ACT 93 OF 1994, AND ANY OTHER APPLICABLE PROVISION
OF LAW, IN SAID MUNICIPALITY.
WHEREAS, the General Assembly of the Commonwealth of Pennsylvania has enacted Act
93 of 1994 which amended Act 98 of 1992 and the Insurance Company Law of 1921 to provide
: procedures for the payment of certain fire loss claims; and,
WHEREAS, it is the purpose of said legislation to deter the commission of arson and related
crimes, to discourage the abandonment of property, and to prevent blight and deterioration; and,
WHEREAS, the municipality desires to adopt an ordinance pursuant to Section 508 of the
. Insurance Company Law of 1921, as amended, to provide for the payment of proceeds from certain
tire loss claims to the Municipality.
IT IS THEREFORE ORDAINED AND ENACTED by the governing body of the
municipality as follows:
The municipal secretary or such person as the governing body of the municipality may .
. designate 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 municipality where the amount recoverable for the tire loss to the:
structure under all policies exceeds Seven Thousand Five Hundred ($7,500.00) Dollars, unless the
Insuring Agent is furnished by the municipal secretary with a municipal certificate pursuant to .
Section 508 (b)(1) of Act 93 of 1994 and unless there is a compliance with Section 508 (c) and (d)
of Act 93 of 1994 and the provisions of this Ordinance.
Pursuant to Section 508(b) ( 1) of the Act 93 of 1994, the municipal secretary shall provide
a certificate of delinquent claims, if any, to the Insuring Agent within fourteen (14) days of any .
If the municipal secretary determines 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 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:
(1) The Insuring Agent shall transfer from the insurance proceeds to the designated
officer of the Municipality in the aggregate of $2,000.00 for each $15,000.00 of a claim and for each'
fraction ofthat amount of a claim, this section to be applied such that if the claim is $15,000.00 or .
less, the amount transferred to the Municipality shall be $2,000.00; or