(a) The city is hereby authorized to utilize the procedure 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 situated within the city, where the amount recoverable for the fire loss to the structure under all policies exceeds $5,000, unless there is compliance with the following procedures:
(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 Ohio R.C. 715.26(F), shall transfer from the insurance proceeds to the Director of Public Safety in the aggregate $1,000 for each $20,000, and each fraction of that amount of the 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, the company or companies 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 Director of Public Safety shall return the amount of the funds 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.
(2) Upon receipt of proceeds by the city as authorized by this section, the Director of Public Safety 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.
When transferring the funds as required in this subsection, 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 procedure will be followed:
The funds shall be returned to the named insured or insureds when repair, removal, or securing of the building or other structure has been completed and the required proof has been received by the Director of Public Safety. If the city has incurred any costs for such 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 disposition of the damaged property has been negotiated.
(3) The Director of Public Safety is hereby designated as the officer authorized and directed to carry out the duties of this section. The Director of Public Safety shall file a certified copy of this section with the Superintendent of Insurance of the State of Ohio.
(b) The Director of Finance and Public Record, as authorized by Ohio R.C. 5705.09(F), shall establish a fund for the purpose of receiving and disbursing monies in accordance with the procedures specified in this section.
(c) The Director of Finance and Public Record is hereby authorized and directed to promulgate rules and regulations regarding the receipt and expenditure of monies received by the city for the purposes specified in this section. No expenditure of monies from the fund authorized by this section shall be made except in accordance with the rules and regulations promulgated by the Director of Finance and Public Record.
(Ord. 13-2013, passed 4-1-2013)