(a) The procedure described in Ohio R.C. 3929.86(C) and (D) is hereby authorized by the Village of Utica.
(b) The Village Fiscal Officer is the officer authorized to carry out the duties under Ohio R.C. 3929.86.
(c) Pursuant to said code section, the procedure for acceptance of security deposits from insurance companies in the event of certain fire losses shall be as follows:
(1) This procedure applies to an insurance company’s payment of a claim of a named insured or insureds for fire damage to a structure located within the Village of Utica, where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000).
(2) When the loss agreed to between the named insured(s) and the company or companies equals or exceeds sixty percent 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 Utica Fiscal Officer 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(s) and the insurance company or companies, the named insured(s) 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 to the Utica Fiscal Officer the amount specified in the estimate.
The transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure.
(3) The named insured(s) 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 Fiscal Officer shall return the amount of the fund in excess of the estimate to the named insured(s), provided that the Village has not commenced to remove, repair or secure the building or other structure.
(4) Upon receipt of proceeds by the Village as authorized by this section, the Fiscal Officer 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 Ohio R.C. 715.261.
(5) Upon receipt of funds from an insurance company under this section, the Village shall contact the named insured(s), certify that the proceeds have been received by the Village, and notify the named insured(s) that the following procedures will be followed:
A. The fund shall be returned to the named insured(s) when repairs, removal or securing of the building or other structure has been completed and the required proof has been received by the Fiscal Officer, if the Village has not incurred any costs for the repairs, removal or securing. However, the fund shall be returned to the named insured(s) no later than sixty days after the Village Fiscal Officer receives the required proof.
B. If the Village has incurred any costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund, and if excess funds remain, the Village shall transfer, no later than sixty days after all such costs have been paid, the remaining funds to the named insured(s).
(d) Nothing in this section shall be construed to limit the ability of the Village to recover any deficiency under Ohio R.C. 715.261.
(Ord. 08-002. Passed 3-11-08.)