The City is hereby authorized to utilize the procedures described in Ohio R.C. 3929.86 C and D, 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 in the City, whereby the amount recovered for the fire loss to the structure under all policies, exceed the sum of five thousand dollars ($5,000) unless there is a 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 Ohio R.C. 715.26(F) shall transfer to the City Manager in the aggregate 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 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, 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 City Manager shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the City has not commenced to remove, repair or secure the building or other structure.
(b) Upon receipt of proceeds of the City as authorized by this section, the City Manager 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.
(1) When transferring the funds as required in subsection (a) hereof, 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.
(2) The fund shall be returned to the named insured and insureds when repair, removal or securing of the building or other structure has been completed and the required proof received by the City Manager, if the City has not incurred any costs for such repair, removal or securing. If the City has incurred any costs for repair, 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 deposition of the damaged property has been negotiated.
(c) The City Manager is hereby designated as the office authorized to carry out the duties of this section. The City Manager shall file a certified copy of this section with the Superintendent of Insurance of the State of Ohio.
(Ord. 4275. Passed 3-7-88.)