HRA 08-14 Renewal of General Liability & Property Insurance & Auth Waiver of Statutory Tort Liability on the League of Mn Cities Insurance Trust Policy November 3, 2008 HRA Report 2008-14
• RENEWAL OF GENERAI. LIABILITY AND PROPERTY INSURANCE AND
AUTHORIZE WAIVER OF STATUTORY TORT LIABILITY ON THE
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST POLICY
Proposed Action
Staff recommends adoption of the following: Move to approve renewal of the LMCIT Insurance Policy ..
for the HRA and to waive the statutorv tort liability limits to the extent of the covera�e purchased
Adoption of this motion will result in staff moving forward with the proposed LMCIT insurance,coverage .
including waiver of the statutory tort liability limits. The recommendation to waive the statutory tort liability
limits is based on past HRA Board action.
Overview
The renewal date for the HRA Insurance Policy is 11/1/08 and is for a one year period. The LMCIT has
indicated that insurance rates will increase about 0% for fleet liability insurance, 2=3% for automobile
physical damage, 2-6% for liability insurance and 2-3% for property insuranc,e due to recent overall
industry claim history. Our actual increases will be known once the renewal application has been
submitted and the rate quoted. Our specific claim history,which has been low for the HRA will-also have
an impact_on the rates. The premiurn for the 200Z-08 insurance year was $20,333 which was a$1,311
decrease over the previous year.
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Primarv Issues to Consider ,
• Election of waiver of tort limits for liability
• Liability exposure if we elect to waive the tort limits forliability
Staff Recommendation
. Finance recommends renewal of the LMCIT Insurance Policy based on past HRA Board action and to waive 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
Supporting Information
• LMCIT Waiver Form -
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Christine Harkess, CPA, CGFM
Finance Director
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LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
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:
�!f the cify does not waive the statutory tort limifs, an individual claimant would be able to recover no
more than $400,OOO.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 $1,200,000. These statutory tort limits would apply regardless of whether or not the city
purchases the optional excess liability coverage.
o If the city waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to $1,200,000. 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 $1,200,000., regardless of the number of claimants.
a 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.
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H,opkir,ls�Hf�A� , ���: ���� accepts liability coverage limits of ;;�� � M. ��. ��t�f�.Q�� . . �� � from the
�eague of Minnesota Cities Insurance Trust (LMCIT).
�C�i�E,ck�O�i� .
❑ 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 HRA Board meeting t�0���k��C�:3;� � `° ���
2�fi0���.` ` � �.�,<<; � ;,,
Sf�fla��.lt`����'c�„�.�°�3 �;�� �,s �� �;�, ,. F�ES �. ';��' �.`�i�„l��l� �� �v�l'��f�l" � a��,���.��..;
Return this completed form to LMCI7; 145 UniversityAve. W., St. Pau/, MN. 55103 2044
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