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O IEOF jrEA0 CONNECTING & INNOVATING <br /> MINNESOTA SINCE 1913 <br /> CITIES <br /> November 18, 2013 <br /> To: LMCIT Members and Agents <br /> From: Pete Tritz, LMCIT Administrator <br /> Dan Greensweig, LMCIT Assistant Administrator <br /> Liam Biever, LMCIT Underwriting Manager <br /> RE: 2013 -14 Coverage Changes. Rates, and Dividends <br /> The League of Minnesota Cities Insurance Trust ( LMCIT) Board has approved rates and several coverage <br /> changes for the 2013 -14 underwriting year. In addition, members of the property/casualty program will <br /> share in a $10 million dividend. Following is a summary of changes that will take place this coming year. <br /> Property /Casualty Premium Rates, Effective November 15, 2013 <br /> • Liability and auto liability rates will remain flat on average, but adjustments related to the second year <br /> of transition to the new liability rating method mean the effects on individual members' premiums will <br /> vary. <br /> • Liquor liability rates will decrease on the average, and a new experience -based credit/debit system will <br /> be implemented. This will result in an average premium decrease of 14 %, but the effect on individual <br /> members' premiums will vary between flat to a 23% decrease. <br /> • Excess liability rates will decrease 5% <br /> • All other rates will be unchanged, including property and auto physical damage rates. <br /> Workers' Compensation Premium Rates, Effective January 1, 2014 <br /> • Overall premium rates will increase 10 %. <br /> • Rates for volunteer firefighters will increase an additional 3 %. These rates are based on population <br /> served, rather than payroll, and therefore lag all other class rates essentially by the amount of annual <br /> wage inflation. This slight increase will allow volunteer firefighter rates to stay in line with other job <br /> classes. <br /> • Volunteer accident coverage rates will decrease 15 %. <br /> Dividends <br /> • Property/casualty members will share in a $10 million dividend. The dividend will be distributed mid - <br /> December 2013 to those who are property/casualty members as of December 1, 2013. <br /> Coverage Changes <br /> There are a number of coverage changes that will take effect for property/casualty coverage written or <br /> renewed on or after November 15, 2013 and for workers' compensation coverage written or renewed on or <br /> after January 1, 2014. Please see pages 4 and 5 for more information. <br /> LEAGUE OF MINNESOTA CITIES 145 UNIVERSITY AVE. WEST PHONE: (6S1) 281 -1200 PAx. (6S1) 281 -1298 <br /> INSURANCE TRUST ST. PAUL, MN 55103 -2044 TOLL FREE: (800) 92S -1122 WEB: WWW.LMC.OKG <br />