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CASE <br /> <br /> DECIDE WHETHER OR NOT TO WAIVE <br />STATUTORY LIABILITY LIMITS FOR INSURANCE APPLICATION <br />By: Heidi A. Nelson, Asst. City Administrator <br /> <br />Background: <br /> <br />Staff recently completed the annual application for general liability and property <br />insurance through the League of Minnesota Cities Insurance Trust (LMCIT). LMCIT <br />requires that city councils officially waive or decline to waive statutory tort liability <br />limits. Past practice for the City of Ramsey has been to not waive the tort liability limits <br />set by state statute, therefore the policy was renewed without waiving. If Council would <br />choose to waive the limit, the premium would be adjusted to reflect the potential <br />increased liability assumed by the City. <br /> <br />Effective January 1, 2003, the statutory tort liability limit is $1,000,000 per occurrence; <br />$300,000 per claimant. Claimants who have actual damages that exceed the per claimant <br />limit of $300,000, will not be compensated for damages beyond the $300,000 limit unless <br />the City Council chooses to waive the statutory limits per claimant. With the waiver, <br />actual damages up to the $1,000,000 per occurrence could be paid. <br /> <br />Because the potential amount paid for claims increases if the Council chooses to waive <br />the statutory limits, premiums are somewhat higher if limits are waived. Upon advice of <br />the City Attorney, the Council has declined to waive the monetary limits in previous <br />years. <br /> <br />Attached to this case is a copy of the LMCIT Waiver Form more fully explains the policy <br />changes. <br /> <br />Committee Action: <br /> <br />Motion to recommend that Council NOT WAIVE the monetary limits on municipal tort <br />liability established by Minnesota Statues 466.06. <br /> <br />Reviewed by: <br />City Administrator <br />City Attorney <br />Finance Officer <br /> <br />FC: 01/14/2003 <br /> <br /> <br />