CCP 06-13-1994 - Laserfiche WebLink

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funds which LMCIT uses to pay claims are really the joint property of all of LMCIT's member cities. The purpose of the coverage document is to spell out which claims will be paid with . those funds. LMCIT therefor has a duty to all of its member cities to payout those funds only in accordance with the coverage document, and to make sure that the coverage document is being properly interpreted. To pay a claim which we believe is excluded by the language of the coverage document would amount to using the member cities' funds to make a gift. This is not the first time LMCIT has found itself in the position of having to disclaim coverage for a member city's claim. The claims arising out of the alleged air quality problems in the city of Coon Rapids' ice arena several years ago, which fell under the coverage's "pollution" exclusion; and the recent claims against the member cities of the Minnesota police Recruitment system, which fell under the "joint powers" exclusion, are two other examples. In both of those instances, . the LMCIT Board reviewed the issues and developed ways to cover similar situations in the future - just as LMCIT has done by developing the optional open meeting law defense coverage that is now available. In short, we believe that in fairness to the member cities, LMCIT must continue to make coverage decisions based on what the coverage document actually says and what it actually covers - not on what we may later decide it should have said or should have covered. This appeal is simply one more step in the process that assures that the coverage document is being . interpreted and applied correctly. The members of the LMCIT Board are very interested in hearing your views on this or any other issue involving LMCIT. Please feel free to contact any of the Trustees, or Pete Tritz or Tom Grundhoefer at the League office, with any comments, questions, or suggestions you may have. $!;;~ ~ stene or, Lindstrom Chairman, LMCIT Board of Trustees .