CR 2000-045 Authorize Renewal Of The League Of Minnesota Cities Insurance Trust Policy
e
e
.
1 y
o
March 16, 2000
~
1< Co
o P K \ ""
Council Report 00-045
AUTHORIZE RENEWAL OF THE LEAGUE OF MINNESOTA CITIES INSURANCE
TRUST POLICY
Pmposed Action
Staff recommends adoption of the following: Move to renew the League of Minnesota Cities
Insurance Tmst policy at $177,073 and waive the statutory t011liability limits to the extent of the
covera~e 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, 2000, the statutory municipal tort liability limits are $300,000 per claimant, $1,000,000
per OCCUlTence. The statutory tort liability limit of $1,000,000 is an increase over last years' limit of
$750,000. The $300,000 per claimant liability is not automatically waived and the city council must
make the decision to either waive the t011liahility limit or not. The cities insurance premium has
increased 9(% over last year. A portion of the increase is attributed to the Shady Oak Beach location
being insured for a full year. Also, part ofthe increase is attributed to the new statutory tort limit of
$ ] ,000,000 per occurrence.
Primary Issues to Consider
· Irthe City of Hopkins docs not waive the statutory tort limits, an individual claimant would be able
to recover no morc 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 occurrence 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.
· If the City of Hopkins waives the statutory tort limits and does not purchase excess liability
coverage, a single claimant could potentially recover LIP to $ I ,000,000 on a single OCCUlTence. The
total which all claimants would be able to recover for a single occunence to which the statutory tort
1 imits apply is also limited to $1,000,000, regardless of the number of claimants.
. The cost of waiving the statutory tort limit is approximately $4,216 and is already included in the
cities annual premium amount.
Staff Recommendation
Finance recomlllends renewal of the policy, excluding medical payments coverage and waiving of the
monetary limits on the tort liability established by Minnesota Statutes 466.04, to the extent of the limits
of the liability coverage obtained from LMCIT.
Supportin2: Information
. Premium Summary
. L crT iabi!" y coverage waiver [01111
't:oi1 Yager
Finance Director
e
PREMIUM SUMMARY
1999 2000
PROPERTY 17,653 22,171
Y2K Expanded Coverage 462 503
INLAND MARINE 3,067 2,987
LIABILITY 92,498 99,538
Y2K Expanded Coverage 4,626 4,978
A UTa LIABILITY 17,438 20,294
A UTO PHYSICAL DAMAGE 18,789 19,032
CRIME 327 Included
. -BOlLER & MACHINERY 2,759 2,986
EMPLOYEE DISHONESTY 1,462 1,353
Facultative Rein, -GL 933 667
Sub Total
160,014
174,509
OPEN MEETING LAW
1,828
1,919
PETROFUND
244
270
VOLUNTEERAD&D
376
375
TOTALS
162,462
177,073
-
23
e
-
.
LMCIT LlABILTIY COVERAGE - WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive or not to waive the statutory limits has the following effects.
> If the city 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 occurrence to which the statutory tort limits apply
would be limited to $1,000,000. These statutory tort limits would apply regardless of whether or not the
city purchases the optional excess liability coverage.
> If the city 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 occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply
would also be limited to $1,000,000, regardless of the nwnber of claimants.
> If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the nwnber of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
The decision must be made by the city council. Cities purchasing coverage must complete and return
this form to the LMCIT before the effective date of the coverage. For further information, contact
LMCIT. You may also wish to discuss these issues with your city attorney.
The City of accepts liability coverage limits of $
from the League of Minnesota Cities Insurance Trust (LMCIT).
Check one:
The city DOES NOT WAIVE the monetary limits on municipal tort liability established
by Minnesota Statutes 466.04.
xx The city WAIVES the monetary limits on tort liability established by Minnesota Statutes
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting
Signature
Position
Return this completedfrom to IMeIT, 145 University Ave. W, St. Paul A4N 55103-2044
Page 1 of 1