SECTION 114
FIRE INSURANCE TRUST
114.1 General.
Ohio statutes require the creation of a Fire Insurance Trust Fund. The language explaining the requirements of the fund shall read as follows:
Ohio statutes require the creation of a Fire Insurance Trust Fund. The language explaining the requirements of the fund shall read as follows:
A.
A fire insurance trust fund is to be created in the accounting records of the city. It is to be maintained from all other funds of city money, and is to be administered as a trust fund for the purposes described in the remainder of this section. The Director of Finance shall administer this trust fund for the purposes specified in Revised Code 3929.86.
B.
In the event of any loss by fire within the City of Oakwood when the amount of said loss agreed to between the named insured or insureds and the company or companies insuring said loss equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building or structure insured, the insurance company or companies shall transfer from the insurance proceeds to the Director of Finance of the city in the aggregate $2,000.00 for each $15,000.00, and each fraction of that amount, of a claim, or such higher amount as may be required under Revised Code 3929.86(C) or other applicable state law. In the alternative, 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 Director of Finance shall transfer from the insurance proceeds the amount specified in the estimate. This shall be done in accordance with Revised Code 715.26(F).
C.
Such transfer of proceeds shall be on a pro rata basis by all companies insuring the building or other structure. 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 finance shall return the amount of the fund 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.
D.
Upon receipt of proceeds by the city as authorized by this section and by Revised Code 3929.86, the Director of Finance shall place the proceeds in the fire insurance trust fund to be used solely as security against the total cost of removing, repairing, or securing incurred by the city pursuant to R.C. 715.261 or Section 109 dealing with emergency measures of this code. When transferring the funds as required by this section, an insurance company shall provide the Director of Finance with the name and address of the named insured or insureds; and that Director shall contact the named insured or insureds, certify that the proceeds have been received by the City of Oakwood and notify them that the following procedures will be followed:
1.
The fund shall be returned to the named insured or insureds when the repairs or removal, or securing of the building or other structure have been completed and the required proof received by the Director of Finance, if the City of Oakwood 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 Oakwood shall transfer the remaining funds to the named insured or insureds. Nothing in this code shall be construed to limit the ability of the City of Oakwood to recover any deficiency under Section 715.261 of the Ohio Revised Code.
2.
Nothing in this section shall be construed to prohibit the City of Oakwood 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.