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Res. #24-001 - Not to Waive Liability Insurance Limits
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Res. #24-001 - Not to Waive Liability Insurance Limits
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2/6/2024 2:33:31 PM
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LEAGUE �)f <br />MINNESOTA <br />CITIES <br />LIABILITY COVERAGE — WAIVER FORM <br />w ... . ,,.. -_--- <br />Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust <br />(LMCIT) must complete and return this form to LMCIT before the member's effective date of <br />coverage. Return completed form to your underwriter or email to „llpil^;Illlmg„plf ini„i <br />The decision to waive or not waive the statutory tort limits must be made annually by the <br />member's governing body, in consultation with its attorney if necessary. <br />Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort <br />liability limits to the extent of the coverage purchased. The decision has the following effects: <br />• If the member does not waive the statutory tort limits, an individual claimant could recover no more <br />than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could <br />recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000, <br />These statutory tort limits would apply regardless of whether the member purchases the optional <br />LMCIT excess liability coverage. <br />If the member waives the statutory tort limits and does notpurchase excess liability coverage, a single <br />claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap <br />liability limits are only waived to the extent of the member's liability coverage limits, and the LMCIT <br />per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to <br />which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of <br />claimants. <br />• If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant <br />could potentially recover an amount up to the limit of the coverage purchased. The total all claimants <br />could recover for a single occurrence to which the statutory tort limits apply would also be limited to <br />the amount of coverage purchased, regardless of the number of claimants. <br />Claims to which the statutory municipal tort limits do not apply are not affected by this decision. <br />LEAGUE OF MINNESOTA CITIES 145 University Avenue West 1 IH.- (651) 281-1200 FXw (651) 281-1298 <br />INSURANCE TRUST 5t. Paul, Minnesota 55103 "1°P (800) 925-1122 www.Imc.org <br />
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