CR2002-064 - Renew Insurance
Cl1Y OF
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May 2L, 2002 Council Report 02-064
HOPKINS
AUTHORIZE RENEWAL OF THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
. Proposed Action POLICY
Staff recommends adoption of the following: Move to renew the League of Minnesota Cities Insurance
Trust policy and continue to waive the statutory tort liability limits to the extent of the coverage
purchased.
Adoption of this motion will result in staff moving forward with the proposed insurance coverage,
excluding medical payments coverage.
Overview
As of January 1, 2002, the statutory municipal tort liability limits continue to be $300,000 per claimant,
$1,000,000 per occurrence. The statutory tort liability limit of $1,000,000 is the same as last year. The
$300,000 per claimant liability is cUlTently waived. The city council must make the decision to not waive the
tort liability limit.
The cities insurance premium will increase approximately $4,000 or 3% over last years premium. The
increase is the result of higher general liability costs from increased operational costs. Finance continues to
recommend the current deductible amount of $20,000/$40,000 with $1,000 per occurrence after reaching the
maximum of $40,000.
Primary Issues to Consider
. The City of Hopkins cUITently waives the statutory tort limits and does not purchase excess liability
. coverage. A single claimant could potentially recover up to $1,000,000 on a single OCCUITence. The total
which all claimants would be able to recover for a single OCCUlTence to which the statutory tort limits
apply is also limited to $1,000,000, regardless of the number of claimants. The cost of waiving the
statutory tort limit is approximately $3,600 and is already included in the cities annual premium amount.
. If the City of Hopkins does not waive the statutory tort limits, an individual claimant would be able to
recover no more than $300,000 on any claim to which the statutory tort limits apply. The total which all
claimants would be able to recover for a single OCCUITence to which the statutory tort limits apply, would
be limited to $1,000,000. These statutory tort limits apply regardless of whether or not the city purchases
optional excess liability coverage.
Staff Recommendation
Finance recommends renewal of the policy, excluding medical payments coverage and waiving of the
monetary limits on the t011 liability established by Minnesota Statutes 466.04, to the extent of the limits of the
liability coverage obtained from LMCIT.
Supportim! Information
. Premium Summary
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. Lori Yager
Finance Director
financial Impact: (approximately) $143,000 Budgeted: Yes Source: All funds I
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Market Premium Summary
Coverages Expiring Renewing Company 2 Company 3
Property $24,094 $21 ,291
Boiler & Machinery 3,149 3,408
I nland Marine 2,587
Employee Dishonesty 1,157 1,051
General Liability 74,095 77,921
No Fault Sewer
Commercial Auto 33,054 33,095
Subtotal $135,549 $139,353 $0 $0
Worker's Compensation
e Volunteer AD&D 375 375
Petrofund 304 368
Umbrella Liability
Open Meeting Law 1,546 1,635
Facultative Reinsurance 1,034 1,379
Grand Total $138,808 $143,110 $0 $0
Notes and highlights:
1. Payment Plan: Direct Bill and Volunteer AD&D Coverage, Agency Bill
2. Carriers
cg] Admitted
cg] Nonadmitted
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