(a) The City of Wickliffe is hereby authorized to utilize the procedure established in Division (C) and (D) of Section 3929.86, of the Ohio Revised Code, 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 located within the City of Wickliffe where the amount recoverable for the fire loss to the structure under all policies exceeds five thousand dollars ($5,000.00) unless there is compliance with the following procedures:
(1) When the loss agreed to between the named insured or insured and the company or 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, in accordance with Division (F) of Section 715.26 of the Ohio Revised Code, shall transfer from the insurance proceeds to the Fire Chief in the aggregate two thousand dollars ($2,000.00) for each fifteen thousand dollars ($15,000.00), 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 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 prorata basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the City of Wickliffe 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 City of Wickliffe has not commenced to remove, repair, or secure the building or other structure.
(4) Upon receipt of the proceeds by the City of Wickliffe as authorized by this Section, the Finance Director shall place the proceeds in the City Treasury in a separate subfund within Special State and County Fund No. 1700.83, entitled “Special State Fire Loss Insurance”, to be used solely as security against the total cost of removing, repairing, or securing, incurred by the City of Wickliffe, pursuant to Section 715.261 of the Ohio Revised Code.
(5) When transferring the funds as required in Division (c) of this Section, an insurance company shall provide the City of Wickliffe with the name and address of the named insured or insureds, whereupon the City of Wickliffe shall contact the named insured or insureds, certify that the proceeds have been received by the City of Wickliffe, and notify them that the following procedures will be followed:
(6) The fund shall be returned to the named insured or insureds when repairs, removal, or securing of the building or other structure have been completed and the required proof received by the designated officer, if the City of Wickliffe has not incurred any costs for such repairs, removal, or securing. If the City of Wickliffe has incurred any costs for repairs, removal, or securing of the building or other structure, such costs shall be paid from the fund; and if excess funds remain, the City of Wickliffe shall transfer the remaining funds to the named insured or insureds. Nothing in this Section shall be construed to limit the ability of a municipal corporation to recover any deficiency under Section 715.261 of the Revised Code.
(7) Nothing in this Division 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 of the damaged property has been negotiated.
(b) Chief or designee of the City of Wickliffe hereby is designated as the officer authorized to carry out the duties of this Section. The Fire Chief shall file a certified copy of this Ordinance with the Superintendent of Insurance of the State of Ohio.
(Ord. 1999-54. Passed 6-28-99.)