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• E-mail Memo: <br /> To: Heidi Nelson, Assistant. City Administrator <br /> From: Mark Lenz, T.C. Field & Company <br /> Re: Rating basis for excess liability insurance for the City of Ramsey <br /> Date: December 4, 2007 <br /> Previously we discussed the changes the in the Municipal Tort Claims <br /> Acf that increase the liability limits for cities effective January 1, <br /> 2008 from $300,000 per person and. $1,000,000 per occurrence to $400,000 <br /> per person and $1,200,000 per occurrence. In addition we discussed <br /> obtaining optional excess liability quotations for the city council's <br /> consideration. Excess liability is available in $1,000,000 increments, <br /> typically up to $5,000,000. Larger limits are available if desired. <br /> Excess liability insurance for municipalities is based upon the <br /> exposures (means to measure the potential) of the underlying liability <br /> for the city. This would include: total expenditures, water pumpage, <br /> water payroll, street miles, land use actions- conditional uses, <br /> variances, et al. Those factors are then provided to a reinsurer who <br /> then rates up the excess liability. The LMCIT has not yet perfected its <br /> rating software for 2008 as yet, so they are unable to provide <br /> .quotations at this time.-Once we receive the application materials from <br /> the city and the underwriter can rate up the city's exposures and. <br /> forward them to the reinsurer, we can provide quotations for the- City <br /> Council's consideration. Because the LMCIT is a trust, even though <br /> <br />• this will likely go into the new year, there will be no gap in <br />coverage. Further, the LMCIT will provide an endorsement that increases <br /> the liability limits for the city to the new limit at no additional <br /> cost. <br />• <br />-i23- <br />