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MEMO .5 To* Steve Sarkozy, City Manager Ed Burrell, Finance Director Subject-. Tort Liability Limits February 10, 1998 On January 1, 1998 the tort liability limits for governmental units were changed as follows: 1997 199 Per Person Limit 001)000 $300,000 Per Occurrence Limit 600,000 750}000 The City's insurance carrier, The League of Minnesota Cities Insurance Trust (LMCIT) has modified its coverage to allow cities the following options 'in 1998. Not to waive the statutory limits If this claimant tion is chosen, an individual claimant could not be able to recover more than 00,000 on any claim to which statutory limits apply. Waive the tuto limits, This tion would allow a single claimant to potentially recover up to $750,000 on a l� . single occurrence. The total all claimants would be able to recover for a single occurrence to which the statutory limits apply would also be limited to $750,X0 regardless of the number of claimants. The LIM IT requires that the City Council make the decision on which option the City insurance coverages will have. The additional cost of the option to waive the monetary limits on tort liability is estimated to be three and one Half percent(3.5%) of the liability premium, or about $5,000 per gear. A co ley I of the LICT waiver form is attached. Please put this on the council work session on February 177. 1998.