HomeMy WebLinkAbout17-001 2017 LMCIT Insurance Non Waiver
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-001
A RESOLUTION ELECTING THE NON WAIVER OF STATUTORY MUNICIPAL TORT
LIABILITY LIMITS AND DECLINING EXCESS LIABILITY INSURANCE COVERAGE
Motion By: McGuire Second By: Thompson
WHEREAS, Minnesota Statutes 466.04 imposes limits on municipal tort liability; and
WHEREAS, The City of Prior Lake has the option to waive the protection of statutorily
imposed limits on what a claimant can recover in a tort liability action: and
WHEREAS, The League of Minnesota Cities Insurance Trust (LMCIT) offers municipalities
the option to purchase excess liability insurance; and
WHEREAS,
The Prior Lake City Council has evaluated whether to waive the limit on tort
liability and whether to purchase excess liability coverage for non-tort claims;
and
WHEREAS, The City of Prior Lake has historically exhibited relatively low claims experience.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA that the City of Prior Lake hereby exercises the following elections with respect to
the available LMCIT insurance options:
X
The City of Prior Lake DOES NOT WAIVE the monetary limits on
municipal tort liability established by MN Statutes 466.04 effective for the
2017 policy year.
X
The City of Prior Lake declines excess liability coverage effective for the
2017 policy year.
Passed and adopted by the Prior Lake City Council this 9th day of January, 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
rote
LEAGUE OF CONNECTING &INNOVATING
MINNESOTA SINCE 1913
CITIES
LIABILITY COVERAGE - WAIVER FORM
LMCIT members purchasing coverage must complete and return this form to LMCIT before the effective date of
the coverage. Please return the completed form to your underwriter or email to pstech@lmc.org -
This decision must be made by the member's governing body every year. You may also wish to discuss these issues with
your attorney.
League of Minnesota Cities Insurance Trust(LMCIT) members that obtain liability coverage from LMCIT must decide
whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following
effects:
If the member does not waive the statutory tort limits, an individual claimant would be able to recover no more than
$500,000 on any claim to which the statutory tort limits apply. The total all claimants would be able to recover for a
single occurrence to which the statutory tort limits apply would be limited to$1,500,000. These statutory tort limits
apply regardless of whether the city purchases the optional excess liability coverage.
If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could
potentially recover up to$2,000,000 for a single occurrence. (Under this option, the tort cap liability limits are waived to
the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is$2 million.)The total all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited
to$2,000,000, regardless of the number of claimants.
If the member 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 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.
City of Prior Lake
LMCIT Member Name
Check one:
❑X The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes,
Section 466.04.
❑ The member WAIVES the mon tary limits on municipal tort liability established by Minnesota Statutes, Section
466.04 to the extent of the lim'tof the liability coverage obtained from LMCIT.
Date of city c u cil/gov mi ody eeting January 09,2017
Signature — Position City Manager
145 UNIVERSITY AVE.WEST PHONE:(651)281-1200 FAX:(651)281-1299
ST. PAUL, MN S5103-2044 TOLL FREE:(800)925-1122 WEB:WWW.LMC.ORG