2003-01-08 CC Packet - Laserfiche WebLink

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We've enclosed a chart showing your city's share of this year's LMCIT property/casualty dividend, how that compares with your premiums, and what your city's past premiums and dividends have been. Each city's share of the total dividend depends on the city's total premiums and losses for all the years the city has been a member ofLMCIT. The longer your city has been a member and the more successful you've been in avoiding losses, the greater your city's dividend. LMCIT premiums for 2003 One ofLMCIT's fundamental goals is to provide the coverage cities need at a stable and predictable cost. That's not to say that costs will never increase. Rising medical costs and state assessments mean that LMCIT's work camp rates have to increase for 2003, and higher reinsura.llce costs will mea.'1 higher property premiums too. Fortu.l1ately, good loss experience has also made it possible to reduce liability premiums for 2003, offsetting a good part of the higher property and work camp rates. As a result LMCIT member cities will see a very modest increase in their total premiums for property, liability, auto, and work comp coverage for 2003, but that increase will be nothing like the 20%, 50% or even greater increases that private insurance buyers are seeing. At the end of the day, what the premium rates are and whether LMCIT can return a dividend both depend, quite simply, on what the losses are. And LMCIT's member cities have done an outstanding job of controlling and avoiding losses. That takes both the support of the city's elected officials and the efforts of your city staff. That commitment to controlling losses pays off for all of us. As Minnesota city officials, we can all be proud of what we're accomplishing cooperatively through LMCIT. As LMCIT's Trustees, we'd like to say thank you and congratulations to you and your city employees. Questions If you have any questions about your city's share of LMCIT dividends or our premium rates for 2003, please call Pete Tritz, LMCIT Administrator, at 651-281-1265; Ann Gergen, LMCIT Associate Administrator, at 651-281-1291; or any of the members of the LMCIT Board.