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- - - <br /> � � <br /> j oF CONNECTING & INNOVATING <br /> '� �INNESOTA <br /> SI13CE 1913 <br /> CITIES <br /> Date: November 4 2010 <br /> � <br /> To: LMCIT Members and Agents <br /> From: Pete Tritz, LMCIT Administrator <br /> RE: 2010-11 Rates and Dividends <br /> 2010-11 Property/Casualty and Workers' Compensation Rates and Dividends <br /> Members will see various rate changes in LMCIT's Property/Casualty (P/C) and Workers' <br /> Compensation (WC) programs for the 2010-2011 underwriting year. In addition, the P/C program <br /> will return a$10 million dividend to members. <br /> Following is a summary of P!C rate changes, effective November 15, 2010: <br /> • Liability rates will increase 3 percent. <br /> • Property rates will decrease 4 percent. <br /> • Auto Physical Damage rates will decrease 10 percent. ' <br /> • Liquor liability rates for off-sale operations will decrease 5 percent. Rates for on-sale � <br /> • operations will go unchanged. I <br /> • Bond rates will decrease 10 percent. <br /> • There will be no change in rates for the Auto Liability, Uninsured/tJnderinsured Motorist, j <br /> Excess Liability, and Machinery Breakdown coverages. <br /> Following is a summary of WC rate changes, effective January 1, 2011: I <br /> • Overall premium rates will decrease 2 percent. <br /> • Rates for volunteer firefighters will go unchanged.. <br /> • Volunteer accident coverage rates will decrease 12 percent, subject to a minimum premium. <br /> The rate changes outlined above don't mean members' actual premiums will necessarily increase <br /> or decrease by these exact amounts. Actual premiums are also affected by changes in city <br /> expenditures, property values, payrolls, other exposure measures, and experience rating. <br /> Property/Casualty Dividend <br /> Members of the P/C program will share in a$10 million dividend this year. Members received a <br /> $9 million dividend during 2009 and $4 million during 2008. Tota1 returned P/C dividends since <br /> 1987 is $194 million. <br /> As in the past, the dividend will be distributed during mid-December 2010. The dividend formula <br /> will be the same as that used during the past several years. According to the formula, a city's shaze <br /> is proportionate to the difference between the city's total earned premiums and total incurred <br /> losses for a11 years the city has been a member, with large individual losses capped for purposes of <br /> • <br /> LEAGU E O F MI N N E S OTA C IT I E S 145 UNIVERSiTY AVE. WEST PHONE: (651) 281-1200 Fnx: (651) 281-1298 <br /> I N S U RAN C E T RU ST ST. PAUL, MN SS103-2044 TOLL FREE: �800) 92$-1122 WEB: WWW.LMC.ORG <br />