(A) No insurance company doing business in Ohio shall pay a claim of a named insured for fire damage to a building or structure located within the village where the amount recoverable under all applicable policies exceeds $5,000, unless the following procedures are followed:
(1) When the loss agreed to be the insured(s) and the insurance company or companies equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies shall transfer to the Clerk-Treasurer for the village from the insurance proceeds either:
(a) In the aggregate, $2,000 for each $15,000, and each fraction of that amount, of a claim; or
(b) If at the time that such loss is agreed to, the named insured(s) have submitted a contractor’s signed estimate of the costs of removing, repairing, or securing the building or structure, the amount specified in the estimate.
(2) The transfer of proceeds shall be on a pro rata basis by all companies insuring the building or structure.
(3) Policy proceeds remaining after the transfer to the village may be disbursed in accordance with the policy terms.
(4) If the insured(s) submit a contractor’s estimate of the costs of removing, repairing, or securing the building or structure after the transfer, the Clerk-Treasurer shall return to the named insured(s) the amount of the funds deposited with the village in excess of the estimate, provided the village has not commenced to remove or repair or secure the building or structure.
(B) Proof of payment by an insurance company or companies in compliance with this section is conclusive evidence of the discharge of its obligation to the insured under the policy to the extent of the payment made to the village.
(C) An insurance company making payment of policy proceeds under this section shall have the full benefit of such payment including all rights of subrogation and of assignment.
(D) This section shall not be construed to prohibit the village and the named insured(s) from entering in to an agreement that permits the transfer of funds to the named insured(s) if some other reasonable disposition of the damaged property has been negotiated.
(Ord. 72, passed 12-20-00)