The Village is hereby authorized to utilize the procedure described in Ohio R.C. 3929.86(c) and (d), whereby no insurance company doing business in the State shall pay a claim of a named insured for fire damage to a structure located within the Village where the amount recoverable for fire loss to the structure under all policies exceed five thousand dollars ($5,000) unless there is compliance with the following procedures:
(a) (1) When the loss agreed to between the named insured or insureds and the company or companies equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies in accordance with Ohio R.C. 715.26(F) shall transfer from the insurance proceeds to the Village Administrator in the aggregate two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000), and each fraction of that amount of the claim; or if at the time of a proof of loss agreed to between the named insured or insureds and the insurance company or companies, the named insured or insureds have submitted a contractors’ signed estimate of the costs of removing, repairing or securing the building or other structure, the company or companies shall transfer from the insurance proceeds the amount specified in the estimate. Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the Village shall be disbursed in accordance with the policy terms.
(2) The named insured or insureds 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 Village Administrator shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the Village has not commenced to remove, repair or secure the building or other structure.
(b) (1) Upon receipt of proceeds by the Village as authorized by this section, the Village Administrator shall place the proceeds in a separate fund to be used solely as securely against the total cost of removing, repairing or securing incurred by the Village pursuant to Ohio R.C. 715.261.
(2) When transferring the funds are required in subsection (a)(1) hereof, an insurance company shall provide the Village with the name and address of the named insured or insureds, whereupon the Village shall contact the named insured or insureds, certify that the proceeds have been received by the Village and notify them that the following procedure shall be followed:
A. The fund shall be returned to the named insured or insureds when repairs, or removal or securing of the building or other structure have been completed and the required proof received by the Village Administrator, if the Village has not incurred any costs for such repairs, removal or securing. The fund shall be returned to the named insured or insureds no later than sixty days after the Village Administrator receives the required proof. If the Village has incurred any costs for repairs, removal or securing of the building or other structure, such costs shall be paid from the fund and if excess funds remain, the Village shall transfer no later than sixty (60) days after all such costs have been paid, the remaining funds to the named insured or insureds. Nothing in this section shall be constructed to limit the ability of the Village to recover any deficiency under Ohio R.C. 715.261.
B. Nothing in this section shall be construed to prohibit the Village and the named insured or insureds from entering into an agreement that permits the transfer of funds to the named insured or insureds if some other reasonable disposition of the damaged property has been negotiated.
(c) The Village Administrator is hereby designated as the officer authorized and directed to carry out the duties of this section. The Village Clerk shall file a certified copy of this section for public record with the Superintendent of Insurance of the State of Ohio.
(Ord. 677-94. Passed 7-12-94.)
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