(a) No insurance company doing business in this State shall pay a claim of a named insured for fire damage to a structure located within the City of Troy, Ohio, where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000.00), unless the company is in compliance with the procedures set forth below.
(b) (1) When the loss agreed to between the named insured or insureds and the insurance companies equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies shall transfer from the insurance proceeds to the Auditor of the City of Troy in the aggregate of two thousand dollars ($2,000) for each fifteen thousand dollars ($15,000) and each fraction of that amount, of a claim.
(2) The transfer of proceeds shall be on a prorated basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the Auditor of the City of Troy shall be disbursed in accordance with the policy terms.
(c) (1) Upon receipt of the proceeds from the insurance company or companies, the Auditor of the City of Troy shall place the proceeds in a separate fund to be designated as the “Fire Loss Security 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.
(2) The insurance company or companies shall provide the Auditor of the City of Troy with the name and address of the named insured or insureds, whereupon the Auditor of the City of Troy shall contact the named insured or insureds and certify that the proceeds have been received by the Auditor of the City of Troy and notify them that the following procedures will be followed:
A. The deposit shall be returned to the named insured or insureds when repairs, or removal of the building or other structures have been completed and the required proof has been received by the Auditor of the City of Troy, if the City of Troy has not incurred any costs for the repairs, removal, or securing. The deposit shall be returned to the named insured or insureds no later than thirty days after the Auditor of the City of Troy receives the required proof. If the City of Troy has incurred any costs for repairs, removal, or securing of the building or other structure, the costs shall be paid from the “Fire Loss Security Fund”, and if excess deposits remain, the Auditor of the City of Troy shall transfer, no later than sixty days after all such costs have been paid, the remaining deposit to the named insured or insureds. Nothing in this Section shall limit the ability of the City of Troy to recover any deficiency under Ohio R.C. 715.261.
B. Nothing in this section shall be construed to prohibit the City of Troy and the named insured or insureds from entering into an agreement that permits the transfer of the “Fire Loss Fund” to the named insured or insureds if some other reasonable disposition of the damaged property has been negotiated.
(d) Nothing in this chapter shall be construed to make an insurance company liable for any amount in excess of the proceeds payable under its insurance policy or for any other act performed pursuant to this chapter or to make the City of Troy or the Financial Officer an insured under a policy of insurance, or to create an obligation and to pay delinquent property taxes or unpaid removal liens or expenses other than as provided in this chapter.
(e) An insurance company making payment of policy proceeds under this section for structure removal liens or removal expenses incurred by the City of Troy shall have the full benefit of such payment including any rights of subrogation or assignment.
(f) As used in this Ordinance “Insurance Company” includes the Ohio Fair Plan Underwriting Association as established in the Ohio R.C. 3929.43.
(g) This Chapter shall be liberally construed to accomplish its purposes to deter the commission of arson and related crimes, to discourage the abandonment of property, and to prevent urban blight and deterioration.
(Ord. 46-05. Passed 12-19-05.)
CODIFIED ORDINANCES OF TROY