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CASE # 18 <br /> <br />By: <br /> <br />EXCESS LIABILITY INSURANCE <br />Sandra G. Ashley, Finance Officer <br /> <br />Background: <br /> <br />The City of Ramsey's Insurance Agent of Record, Michael L. Hadtrath, <br />met with City Staff on Monday, September 18, 1989 to review the <br />excess liability coverage the City has carried for a number of years. <br />Mr. Hadtrath pointed out that the $1,000,000 excess is not a per <br />event coverage, but is an annual aggregate. In addition, the cost of <br />this coverage is significant at $20,000/year; whereas, our general <br />liability premium is $18,000 for $600,000 limits - no annual aggregate. <br />To quote Mr. Hadtrath, "This is a terrible buy." <br /> <br />Attached is a letter received from Mr. Hadtrath that states his position <br />and recommendation. <br /> <br />Observation: <br /> <br />In the event governmental immunity for judgments in excess of $600,000 <br />does not apply or ceases to exist, the amount of any judgment could far <br />exceed $1,000,000. For this reason, excess liability coverage at $1,000,000 <br />may or may not give the City sufficient protection. <br /> <br />Recommendation: <br /> <br />The City's Insurance Agent of Record and staff recommend the City not <br />renew this coverage for the policy year beginning 10/01/89. <br /> <br />COUNCIL ACTION: <br /> <br />Motion to renew/not renew the City's Excess Liability coverage for the <br />policy year beginning 10/01/89. <br /> <br />Review Checklist: <br /> <br />City Administrator X <br />City Attorney X <br />City Engineer <br />Community Development Director <br /> <br />Chief of Police <br />Finance Officer <br />Public Works Supervisor <br />Other <br /> <br /> <br />