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<br /> <br />LMC <br /> <br />League of Minnesota Cities <br />Insurance Trust <br />145 University Avenue West, st. Paul, MN 55103-2044 <br />(651) 281-1200 · (800) 925-1122 <br />Fax: (651) 281-1298 · TOD: (651) 281-1290 <br />www.lmnc.org <br /> <br />I.-gw. 0/ Mi,.nuobJ Cmu <br />Cil.ia promoting =cel!tmCfl <br /> <br />November 29, 2006 <br /> <br />To: LMCIT Members and Agents <br /> <br />From: LMCIT Board of Trustees <br /> <br />Re: 2006 - 2007 Property/Casualty Rates and Dividend <br />2007 Workers' Compensation Rates <br /> <br />Property/casualty rates and dividend for 2006 - 2007 <br /> <br />Rates <br /> <br />Here are the premium rate changes LMCIT members will see at their next renewal. The <br />property/casualty rate changes apply to renewals on or after November 15, 2006. <br /> <br />. Municipal liability rates will decrease 3%. <br />. Property rates will increase 10%. <br />. Auto liability rates will decrease 3%. <br />. Auto physical damage will decrease 3%. <br /> <br />In addition to these changes, there's a significant rate change for increased limits on UM/UIM. <br />The rate for $1 million limits will increase 250%. Rates for the basic $50,000 limit will remain <br />unchanged. As we review our loss experience, it's clear that our rates are insufficient to reflect <br />the risk associated with UMIUIM claims - particularly at the increased limit. The increase <br />reflects the actual risk based on our loss experience. <br /> <br />The rate increase will no doubt cause some cities to reevaluate whether the higher limits are <br />really necessary. To help in that evaluation we've redrafted our risk management memo on auto <br />coverage options to include a full discussion of the UMIUIM options. That memo is available on <br />our website or by calling the League offices. <br /> <br />There are no changes for excess liability, machinery breakdown, liquor liability, bond rates, or <br />open meeting law defense. <br /> <br />Rate changes are primarily driven by loss experience. The rate changes listed do not mean that <br />your city's actual premium will necessarily increase or decrease by these exact amounts. <br />Although rates do indeed influence premiums, your city's actual premium will also be affected <br />by changes in expenditures, property values, payrolls, and other exposure measures, and also by <br />changes in your experience rating. <br /> <br />AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER <br />