The City 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 City where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000), unless there is compliance with the following procedures:
(a) When the loss agreed to between the named insured or insureds and the company or companies equals or exceeds sixty percent of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies shall, in accordance with Ohio R.C. 715.26(F), transfer from the insurance proceeds to the Fire Chief, in the aggregate, two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000), and each fraction of that amount, of a claim. Alternatively 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 contractor's signed estimate of the costs of removing, repairing or securing the building or other structure, the insurance 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 City shall be disbursed in accordance with the policy terms.
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 designated officer shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided the City has not begun to remove, repair or secure the building or other structure.
(b) Upon receipt of the proceeds by the City, as authorized by this section, the Chief 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 City pursuant to Ohio R.C. 715.261.
When transferring the funds as required in this section, an insurance company shall provide the City with the name and address of the named insured or insureds, whereupon the City shall contact the named insured or insureds, certify that the proceeds have been received by the City and notify them that the following procedures will be followed. The fund shall be returned to the named insured or insureds when repairs, removal or securing of the building or other structure have been completed and the required proof received by the designated officer, if the City has not incurred any costs for such repairs, removal or securing. If the City 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 City shall transfer the remaining funds to the named insured or insureds.
Nothing in this section shall be construed to limit the ability of the City to recover any deficiency under Ohio R.C. 715.261. Nothing in this section shall be construed to prohibit the City 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 Fire Chief and the Building Inspector are hereby designated as officers authorized to carry out the duties of this section.
(Ord. 89-233. Passed 10-16-89; Ord. 98-155. Passed 7-6-98.)