1529.01  INSURANCE REQUIREMENTS.
   The Village of New Washington is hereby authorized to utilize the procedure described in Ohio R.C. 3929.86 whereby no insurance company doing business within the State shall pay a claim to a named insured for fire damage to a structure located within the Village 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 and the company equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company in accordance with Ohio R.C. 715.26(F) shall transfer from the insurance proceeds to the Village Clerk 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 and the insurance company, the named insured has 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 Village shall be disbursed in accordance with the policy terms.  The named insured 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, provided the Village has not commenced to remove, repair or secure the building or other structure.
   (b)   Upon receipt of the proceeds by the Village as authorized by this section, the Village Clerk shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing the building or structure incurred by the Village pursuant to Ohio R.C. 715.261.
      (1)   When transferring the funds as required in subsection (a) hereof, an insurance company shall provide the Village with the name and address of the named insured whereupon the Village shall contact the same, certify the proceeds have been received by the Village and notify them the following procedures will be followed.
      (2)   The fund shall be returned to the named insured when repairs or removal or securing of the building or other structure has been completed and the required proof received by the designated officer, if the Village has not incurred any costs for such repairs, removal or securing.  If the Village incurs 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 the remaining funds to the named insured.  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 from entering into an agreement that permits the transfer of funds to the named insured if some other reasonable disposition of the damaged property has been negotiated.
   (c)   The Clerk is hereby designated as the officer authorized to carry out the duties of this section.  The Clerk shall file a certified copy of this section with the Superintendent of Insurance of the State.
      (Ord. 697.  Passed 7-12-93.)