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injuries. Excess coverage under the waiver option.makes more funds available to compensate the <br />• victims in that kind of situation. <br />The cost of the excess liability coverage is about 25% greater if the city waives the statutory tort <br />limits. The cost difference is proportionally greater than the cost difference at the primary level <br />because for a city that carries excess coverage, waiving the statutory tort limits increases both the per - <br />claimant exposure and the per -occurrence exposure. <br />WaivingStatutoryTort Liability Limits: increase in Risk? <br />y <br />There is no increase in risk for the city to end up with liability if LMCIT doesn't cover it The waiver <br />form specifically says the city is waiving the statutory tort liability limits only to the extent of the <br />p y <br />city's coverage, <br />Of course, that's not to say there is no risk the oity's liability could exceed its coverage limits, We <br />listed earlier a number of ways that could happen to any city. But the waiver doesn't increase that <br />risk, <br />Can we Waive the Statutory Tort Limits for the Primary Coverage but not for the <br />Excess Coverage? <br />No. If the city decides to waive the statutory tort limits, that waiver applies to the full extent of the <br />coverage limits the city has, The city cannot partially waive the statutory 'limits, <br />Is there a Simple way to Summarize the Options? <br />It's not necessarily simple, but the table on the following <br />page is a shorthand summary of what the effect would be of <br />the various coverage structure options in different <br />circumstances, <br />Pete Tritz 12/10 <br />5 <br />Your League Resource <br />Feel free to call the Underwriting <br />Department at 651-281-1200 or <br />800-925-1122 with any <br />questions, <br />