The village is hereby authorized to utilize the procedure described in R.C. § 3929.86(c) and (d), whereby no insurance company doing business in the state shall pay a claim of 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 $5,000, unless there is a 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 limits of liability on all fire policies covering the building or structure, the insurance company or companies, in accordance with R.C. § 715.26(F), shall transfer from the insurance proceeds to the Clerk-Treasurer of the village $1,000 for each $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.
(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 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 has not commenced to remove, repair, or secure the building or other structure.
(B) (1) Upon payment of the insurance proceeds to the village as authorized by this section, the Clerk-Treasurer 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 pursuant to R.C. § 715.261.
(2) (a) Transferring the funds as required in division (C) below, 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 the proceeds have been received by the village, and shall notify them that the following procedures will be followed: 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 has not incurred any costs for such repairs, removal or securing.
(b) If the village 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 shall transfer the remaining funds to the named insured or insureds.
(c) Nothing in this section shall be construed to limit the ability of a municipal corporation to recover any deficiency under R.C. § 715.261.
(3) Nothing in this division (B) 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-Treasurer of the village is hereby designated as the officer authorized to carry out the duties of this section. The Clerk-Treasurer shall file a certified copy of this section with the Superintendent of Insurance of the state.
(Ord.852, passed 11-19-1985)