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HADTR~TH t~ ASSOCIATES, INC. <br />Licensed Insurance Agents Since 1955 <br /> <br />199 COON RAPIDS BLVD., SUITE 110 <br />COON RAPIDS, MINNESOTA 55433 <br />(612) 784-9574 FAX (612) 784-9572 <br /> <br />September 20, 1989 <br /> <br />Ms. Sandra G. Ashley <br />Finance Officer <br />City of Ramsey <br />15153 Nowthen Blvd NW <br />Ramsey, Mn 55303 <br /> <br />RE: Excess Liability <br /> <br />Dear Ms. Ashley: <br /> <br />Per our meeting of 9-18-89 regarding Excess Liability, it would be my <br />recommendation that this coverage not be purchased. Your total General <br />Liability premium is approximately $18,000 for $600,000 limits. There <br />is no annual aggregate on this primary general liability coverage. <br /> <br />The $1,000,000 Excess that you currently have in force and have purchased <br />in the past, cost the City almost $20,000 a year. This is a terrible buy. <br />Traditionally, Excess policies should cost no more then 10 to 20% of the <br />primary. In your case, approximately $2000 to $4000 maximum. <br /> <br />I believe the City should immediately drop the renewal of this coverage, <br />save the $20~000. a year and plead governmental immunity for judgments in <br />excess of $600,000. <br /> <br />It should be noted that Ramsey is one of the very few cities that still <br />carry Excess Liability. If the City wishes to increase the General <br />Liability limits, again which I don't recommend, it would be far more <br />cost effective to place coverage with another carrier. <br /> <br />assume that the City will concur with my recommendations and, therefore, <br />have not ordered the renewal of the excess policy. <br /> <br />Should you have any further questions regarding this matter, please let <br />me know. <br /> <br />Regarding the issue of the $5000 deductible, I am awaiting word of the <br />cost of eliminating this and will give you a call when I receive it. <br /> <br />MLH/lls <br /> <br />CC David Hartley <br /> Admin. <br /> <br /> <br />