The Village of Haskins is hereby authorized to utilize the procedure described in Divisions (c) and (d) of Section 3929.86, of the Ohio Revised Code, whereby no insurance company doing business in the State of Ohio shall pay a claim of a named insured for fire damage to a structure located within the Village of Haskins 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 (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies in accordance with the division (F) of Section 715.26 of the Ohio Revised Code shall transfer from the insurance proceeds to the Clerk- Treasurer of the Village one thousand dollars ($1,000) for each twenty thousand dollars ($20,000) and each fraction of that amount of a claim, or, if at the time of the 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, shall transfer from the insurance proceeds the amount specified in the estimate.
(1) 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 of Haskins 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 designated officer shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the Village of Haskins has not commenced to remove, repair or secure the building or other structure.
(b) Upon payment of the insurance proceeds to the Village as authorized by this Section, the Clerk 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 Village of Haskins pursuant to Ohio R.C. 715.261.
(1) Transferring the funds as required in subsection (a) hereof, an insurance company shall provide the Village of Haskins with the name and address of the named insured or insureds, whereupon the Village of Haskins shall contact the named insured or insureds, certify the proceeds have been received by the Village of Haskins, and shall notify them that the following procedures will be followed:
(2) The fund shall be returned to the named insured or insureds when repairs, removal or securing of the building or other structure has been completed and the required proof received by the designated officer, if the Village of Haskins has not incurred any costs for such repairs, removal or securing. If the Village of Haskins has incurred any costs for repairs, removal or securing of the building or other structure, such costs shall be paid to the fund, and if excess funds remain, the Village of Haskins shall transfer the remaining funds to the named insured or insureds. Nothing in this Section shall be construed to limit the ability of a municipal corporation to recover any deficiency under Ohio R.C. 715.261.
(3) Nothing in this section shall be construed to prohibit the municipal corporation 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 has been negotiated.
(c) The Clerk of the Village of Haskins is hereby designated as the officer authorized to carry out the duties of this section. The Clerk shall file a certified copy of this ordinance with the Superintendent of Insurance of the State of Ohio.
(Ord. 270. Passed 9-16-85.)
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