When the loss agreed to between the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or other structure, the following procedure shall be followed:
A. The insurer shall transfer from the insurance proceeds to the Treasurer in the aggregate $2,000 for each $15,000 and each fraction of that amount of a claim, unless subsection (B) of this Section applies.
B. If at the time of a loss report the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the foregoing transfer formula, the insurer shall transfer from the insurance proceeds the amount specified in the estimate and the insurer shall provide the Township with the name and address of the named insured(s).
C. The transfer of proceeds shall be on a pro rata basis by all insurers insuring the building or other structure.
D. Policy proceeds remaining after the transfer to the Township shall be disbursed in accordance with the policy terms.
E. 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 Treasurer shall return the amount of the fund in excess of the estimate to the named insured if the Township has not commenced to remove, repair or secure the building or other structure.
(Ord. 65, 5/2/2002, § 6)