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C <br /> <br />145 University Avenue West, St. Paul, MN 55103-2044 <br /> Phone: (612) 281-1200 ° (800) 925-1122 <br /> Fax: (612) 281-1299 ° TDD (612) 281-1290 <br /> <br /> I <br /> ! <br /> I <br /> I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />November 17, 1997 <br /> <br />To: LMCIT member cities and agents <br /> <br />From: LMCIT <br /> <br />Re: Municipal tort liability limit increase <br /> <br />Effective January 1, 1998, the statutory municipal tort liability limits will increase to $300,000 <br />per claimant, $750,000 per occurrence. LMCIT liability coverage will be adjusted to reflect the <br />change. <br /> <br />New and renewal coverage. All LMCIT coverage written or renewed after November 15 will <br />be issued with a $750,000 per occurrence limit. Unlike the current coverage form, under the <br />new coverage form the statutory per-claimant liability limit will not automatically be waived. <br />The revised limits structure is explained in more detail below. <br /> <br />Existing coverage. Most LMCIT members whose liability coverage renews after January 1 <br />will automatically receive a mid-term endorsement increasing their current coverage limit to <br />$750,000 per occurrence. (Cities who currently carry the optional excess liability coverage <br />already have sufficient coverage limits to cover the increase in the statutory limits, so these <br />cities won't receive the mid-term endorsement.) There will be no charge for this endorsement. <br /> <br />Limits for new and renewal coverage <br /> <br />For many years, LMCIT liability coverage has been written with a combined single limit of <br />$600,000 per occurrence. (There are also some sub-limits and/or aggregate limits on coverage <br />for certain exposures.) The coverage document has also explicitly provided that the statutory <br />per-claimant limit of $200,000 was waived. As a result, the city had $600,000 of coverage limits <br />available per occurrence; and an individual claimant could potentially recover up to $600,000 for <br />his/her injuries, notwithstanding the $200,000/claimant statutory limit. <br /> <br />The revised liability coverage differs in two important ways: <br /> <br />· It carries a limit of $750,000 per occurrence to match the statute; and <br /> <br />· The per-claimant statutory liability limit will no longer be automatically waived. <br /> <br />/50 <br /> <br />AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER <br /> <br />I <br />I <br />I <br /> <br /> <br />