PRINTER'S NO. 1441

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1111

Session of

2015

INTRODUCED BY SCHREIBER, COHEN, McNEILL, MURT, McCARTER, THOMAS,

M. DALEY AND KINSEY, MAY 5, 2015

REFERRED TO COMMITTEE ON INSURANCE, MAY 5, 2015

associations, reciprocal and inter-insurance exchanges, and

fire insurance rating bureaus, and the regulation and

supervision of insurance carried by such companies,

associations, and exchanges, including insurance carried by

the State Workmen's Insurance Fund; providing penalties; and

repealing existing laws," in fire and marine insurance,

further providing for municipal certificate required prior to

payment of fire loss claims.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

(c) When the loss agreed to between the named insured and

the company, association or exchange equals or exceeds sixty per

centum (60%) of the aggregate limits of liability on all fire

policies covering the building or other structure, the insurance

company, association or exchange shall transfer from the

insurance proceeds to the designated officer of the municipality

in the aggregate [two thousand dollars ($2,000)] four thousand

dollars ($4,000) for each fifteen thousand dollars ($15,000) and

each fraction of that amount of a claim, or, if at the time of a

loss report the named insured has submitted a contractor's

the building or other structure in an amount less than the

other structure. Policy proceeds remaining after the transfer to

the municipality shall be disbursed in accordance with the

policy terms. The named insured may submit a contractor's signed

estimate of the costs of removing, repairing or securing the

building or other structure after the transfer, and the

designated officer shall return the amount of the fund 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. This subsection only applies to municipalities that

have adopted an ordinance authorizing the procedure described in

authorized by this section, the designated officer shall place

the proceeds in a separate fund to be used solely as security

against the total cost of removing, repairing or securing

incurred by the municipality. When transferring the funds as

required in subsection (c) of this section, an insurance

company, association or exchange shall provide the municipality

with the name and address of the named insured, whereupon the

municipality shall contact the named insured, certify that the

named insured that the procedures under this subsection shall be

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. The repairs, removal or

securing of the building or other structure must be completed

within one year of the receipt of proceeds by the municipality

under this subsection. Nothing in this section shall be

construed to limit the ability of a municipality to recover any

deficiency. Further, nothing in this subsection shall be

construed to prohibit the municipality and the named insured

municipality under subsections (a) and (b) of this section or

subsections (c) and (d) of this section, or both, an exact copy

of the ordinance shall be filed with the Department of Community

[Affairs] and Economic Development, together with the name,

position and phone number of the municipal official responsible

for compliance with this section. Each municipality enacting an

ordinance under this section shall supply the information

required by this subsection to the Department of Community

of its ordinance. The Department of Community [Affairs] and

municipality fails to provide a copy of the ordinance to the

Department of Community [Affairs] and Economic Development.

* * *

Section 2. This act shall take effect in 60 days.