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<br />, t <br /> <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 />r-e- 0/ Minnuofa Crne. <br />CiDu promoting o=J1tmctl <br /> <br />November 29, 2006 <br /> <br />To: LMCIT members and agents <br /> <br />From: Pete Tritz <br /> <br />Re: Rates, dividends, and coverage changes <br /> <br />Enclosed are materials explaining the dividend actions and the changes in coverage and premium <br />rates LMCIT members will see for the coming year. As always, feel free to contact LMCIT if <br />you have questions or comments about any of these. <br /> <br />A couple of the changes will call for some action or decisions by the city. In particular, we'd <br />suggest that the city pay particular attention to these two: <br /> <br />· The statutes require minimum limits of $50,000 for uninsured/underinsured motorist <br />coverage. Many cities have elected to increase that limit to $1 million. The premium charge <br />for that increased limit will increase substantially this year. In light of that increase, cities <br />should review why they carry the increased limit, what value if any that increased limit <br />provides to the city, and whether it continues to make sense for the city to purchase higher <br />UMlUIM coverage limits on city vehicles. <br /> <br />· There are some changes and new limitations in how the LMCIT liability coverage will <br />respond to a claim against a city employee which results from the employee's activities as a <br />member or officer in an outside organization. Cities should review what organizations city <br />employees are involved in and whether those organizations have addressed their liability <br />risks, and decide whether participating in the organization will be considered part of the <br />employee's duties as a city employee. <br /> <br />Finally, for several years LMCIT has been working on finding a better solution to covering the <br />risk of flood damage to city buildings. We've developed some ideas for how LMCIT might be <br />able to provide flood coverage, but it would involve some additional cost to member cities. The <br />LMCIT Board is looking for feedback from cities and agents about whether to go ahead with the <br />project. The enclosed memo outlines how a flood coverage program might work, and what the <br />benefits and costs might be. Please review it and let us know what you think. <br /> <br />AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER <br />