Pursuant to Ohio R.C. 3929.86(C) and (D), no insurance company doing business in the State of Ohio 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 ($5,000.00), unless there is compliance with the following procedures:
(a) (1) When the loss agreed to between the named insured or insureds and the company or companies equals or exceeds 60% of the aggregate limit of liability on all fire damage policies covering the building or structure, the insurance company or companies, in accordance with Ohio R.C. 715.26(F), shall transfer from the insurance proceeds to the Clerk-Treasurer in the aggregate two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000), 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 fire damaged building or structure, shall transfer from the insurance policy proceeds the amount specified in the estimate.
(2) 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.
(3) The named insured or insureds may submit a contractor's signed estimate of the costs of removing, repairing or securing the building or structure after the transfer, and the Clerk-Treasurer shall return the amount of the fund in excess of the estimate to the named insured or insureds, provided that the Village has not commenced to remove, repair or secure the building or other structure.
(b) (1) Upon receipt of proceeds by the Village as authorized by this section, the Clerk- Treasurer shall place the proceeds in the Fire Insurance Fund (the "Fund") provided for in Section 232.11, which shall be used solely as security against the total cost of removing, repairing or securing said fire damage structure incurred by the Village pursuant to Ohio R.C. 715.261.
(2) When transferring said funds pursuant to Ohio R.C. 3929.86(C), an insurance company shall provide the Village with the name and address of the named insured or insureds, whereupon the Village shall contact the named insured or insureds, certify that the proceeds have been received by the Village and notify them that the following procedures will be followed:
A. The fire insurance proceeds deposited in the Fund shall be returned to the named insured or insureds when repairs, or removal, or securing of the building or other fire damage structure have been completed and the required proof received by the Clerk-Treasurer, if the Village has not incurred any costs for such repairs, removal or securing of the building or other fire damage structure. If the Village has incurred any costs for repairs, removal or securing of the building or other fire damage 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 or insureds. Nothing in this section shall be construed to limit the ability of the Village to recover any deficiency under Ohio R.C. 715.26 and 715.261.
B. Nothing in this section shall be construed to prohibit the Village 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 Clerk-Treasurer is hereby designated as the officer authorized to carry out the duties of this section.
(Ord. 10-07-01. Passed 7-13-10.)