CR 98-42 Authorize Renewal of the League of Mn Cities Insurance Trust PolicyFebruary 3,1998
Supporting Information
• Premium Summary
• LMCIT liability • verage — waiver form
Lon ager
Finance Director
Council Report 98 -042
AUTHORIZE RENEWAL OF THE LEAGUE OF MINNESOTA CITIES INSURANCE
TRUST POLICY
Proposed Action
Staff recommends adoption of the following: Move to renew the League of Minnesota Cities
Insurance Trust policy at $147 462 and 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, 1998, the statutory municipal tort liability limits increased to $300,000 per
claimant, $750,000 per occurrence. In the past the per claimant liability was $200,000 and this limit
was automatically waived for municipalities. The new limit of $300,000 is not automatically waived
and the city council must make the decision to either waive the tort liability limit or not.
Primary Issues to Consider
• 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 occurrence to which the statutory
tort limits apply would be limited to $750,000. These statutory tort limits would apply
regardless of whether or not the city purchases the 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 up to $750,000 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 $750,000, regardless of the number of claimants.
• The cost of waiving the statutory tort limit is approximately $3,817 and is already included in the
cities annual premium amount
Staff Recommendation
Finance recommends 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.
PREMIUM SUMMARY
1997 1998
PROPERTY 10,299 12,792
INLAND MARINE 3,061 2,931
LIABILITY 83,766 93,159
ERRORS & OMISSIONS 6,298 Incl.
AUTO LIABILITY 13,667 17,092
AUTO PHYSICAL DAMAGE 15,645 16,656
CRIME 1,138 1,665
BOILER & MACHINERY 1,982 2,640
Sub Total 135,856 142,862
OPEN MEETING LAW
VOLUNTEER AD &D
1,601
375
1,478
375
TOTALS 137,832 148,788
22
COVERAGE PREMIUM
1. $1,000,000 Excess Liability
OPTIONS FOR 1998
With Waiver of Immunity 25,669
Without Waiver of Immunity 21,352
2. Medical Payments Savings 1,326
3. "Does Not Waive" Savings 3,817
4. Optional Deductibls Quotes:
$1,000 Deductible, additional premium of: 17,572
$2,500 Deductible, additional premium of: 10,250
23
LMCIT LIABILITY 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 $750,000. 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 $750,000 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 $750,000, regardless of the number 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 number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and return
this form to 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.
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 completed form to LMCIT, 145 University Ave. W., St. Paul, MN. 55103 -2044
Page 1 of 1