CHAPTER 9-1900. FIRE INSURANCE ESCROW ACCOUNTS: MUNICIPAL CERTIFICATE REQUIRED PRIOR TO PAYMENT OF FIRE LOSS CLAIMS 1189
Notes
1189 | Added, 1994 Ordinances, p. 84. Section 2 of the Ordinance provides that this Chapter shall apply only to fire losses on or after 60 days from enactment. Enrolled bill read "Chapter 9-1800" in error, since a Chapter 9-1800 already exists. Chapter caption and all included Section numbers have been changed by the Code editor to conform to Chapter 9-1900. Renumbered all included Section numbers and added definition 3. Section 3 of the Ordinance provides that it shall be effective as of the effective date of Act No. 93 of 1994, which amended Section 508 of the Insurance Company Law of 1921. Act No. 93 of 1994 became effective on January 11, 1995. |
(1) Commissioner. The Commissioner of Licenses and Inspections.
(2) Covered Claim. A claim of a named insured for fire damage to a building or other structure located within the City of Philadelphia, if the amount recoverable for the fire loss to the building or other structure under all policies exceeds seven thousand five hundred dollars ($7,500), or such other minimum amount as may be provided in Section 508 of The Insurance Company Law of 1921 as amended, and if the loss agreed upon by the named insured and the Insuring Agent or Agents equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building and other structures covered under the same policies.
(3) Delinquent. 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.
(4) Insuring Agent. 1190 An insurance company, association or exchange which has issued a policy of insurance covering fire damage to a building or other structure.
Notes
1190 | Renumbered, Bill No. 1055 (approved June 28, 1995), 1995 Ordinances, p. 770. |
(1) The Commissioner of Licenses and Inspections is hereby designated as the officer authorized to carry out the duties of the City under Sections 508(C) and 508(D) of the Insurance Law of 1921.
(2) The Commissioner of Licenses and Inspections shall carry out all duties and responsibilities assigned in this Chapter, and shall take any other actions necessary to implement this Chapter and Sections 508(C) and 508(D) of the Insurance Law of 1921.
(1) For every Covered Claim as defined in Section 9-1901, the Insuring Agent or Agents shall transfer to the Commissioner from the insurance proceeds either:
(a) two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000) of a claim, or two thousand dollars ($2,000) if the claim is less than fifteen thousand dollars ($15,000), or such other amount as may be provided by Section 508 of The Insurance Company Law of 1921, as amended; or
(b) If at the time of a loss report of the claim, 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 formula set forth in subsection 9-1903(1)(a), then the amount specified in such estimate. Any such estimate must include the name, address and City business income and receipts tax account number of the contractor. 1191
(2) Whenever an Insuring Agent transfers proceeds to the City under subsection 9-1903(1), it shall provide the Commissioner with the following information:
(a) The name and address of the named insured;
(b) The address of the insured property;
(c) The date of loss;
(d) The amount of the loss agreed to between the named insured and the Insuring Agent;
(e) The aggregate limits of liability for all fire insurance policies issued by the Insuring Agent covering the property; and
(f) A copy of the certificate issued by the City Treasurer to the named insured pursuant to Section 9-1905.
(3) If there is more than one (1) Insuring Agent for a Covered Claim, then the transfer of insurance proceeds required by subsection 9-1903(1) shall be on a pro rata basis by all Insuring Agents.
(4) Upon receipt of such proceeds, the Commissioner shall:
(a) Deposit such proceeds with the City Treasurer, who shall place such proceeds, together with any other proceeds received pursuant to this Chapter, in a separate fund to be used solely in accordance with Section 9-1904;
(b) Certify to the named insured that the proceeds have been received by the City, and notify the named insured that the procedures set forth in Section 9-1904 will be followed.
Notes
1191 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
(1) After the transfer of proceeds under subsection 9-1903(1)(a), and if the City has not commenced to remove, repair, or secure the building or other structure, then the named insured may submit to the Commissioner a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, and the Commissioner shall then return to the named insured the amount of proceeds transferred to the City in excess of such estimate. Any such estimate must include the name, address and City business income and receipts tax account number of the contractor. 1192
(2) When repairs, removal or securing of the building or other structure have been completed in accordance with all applicable laws and regulations, and when proof of such completion has been received by and in form satisfactory to the Commissioner, then the transferred proceeds shall be returned to the name insured, provided the City has not incurred any costs for repairs, removal or securing of the building or other structure. If the City has incurred such costs, including, but not limited to, any engineering, legal, police or administrative costs incurred in connection with such removal, repair or firefighting costs incurred as a result of the building or other structure not being secured in a timely manner as ordered by the Department, then such costs shall be paid from the transferred proceeds, and if any transferred proceeds remain, the City shall return such remainder to the named insured.
Notes
1192 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
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