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HomeMy WebLinkAboutGeneral Insurance 2015-2016 Covenant Number: COMMON COVERAGE DECLARATIONS CMC 38108 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES Previous Covenant Number: INSURANCE TRUST CMC 36912 (Herein called LMCIT) Item 1. CITY and MAILING ADDRESS OAK PARK HEIGHTS, CITY OF 14168 OAK PARK BLVD PO BOX 2007 OAK PARK HEIGHTS MN 55082-2007 Item 2.COVERAGE PERIOD: From: 07/07/2015 To: 07/07/2016 12:01 AM Standard Time at Mailing Address on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4.COVERAGE PARTS: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES TO PROVIDE THE COVERED PARTY WITH COVERAGES SHOWN BELOW FOR WHICH A PREMIUM CHARGE IS STATED: PROPERTY, CRIME, BOND, and PETROFUND Premium Property$ 34,432 Additional Covered Loss or Damages INCLUDED Water and Supplemental Flood Coverage INCLUDED Crime INCLUDED Bond $ 334 Petrofund INCLUDED EQUIPMENT BREAKDOWN $ 2,493 MUNICIPAL LIABILITY $ 40,807 Medical and Related Expense INCLUDED AUTOMOBILE LIABILITY $ 3,915 AUTOMOBILE PHYSICAL DAMAGE $ 932 TOTAL$ 82,913 Item 5. GENERAL ANNUAL AGGREGATE DEDUCTIBLE: DOES NOT APPLY Item 6. PREMIUM IS DUE AND PAYABLE: ANNUAL - IN ADVANCE Item 7. FORMS APPLICABLE TO ALL COVERAGE PARTS: CCM(11/09) Item 8. DECLARATIONS APPLICABLE: DEC-011(11/09) DEC-012(11/14) DEC-013(11/14) DEC-016(11/14) Executive Director, LMCIT LMCIT DEC-011 (11/86) (Rev. 11/09) COVENANT NUMBER: CMC 38108 COMMON CONDITIONS ALL COVERAGE PARTS INCLUDED IN THIS COVENANT ARE SUBJECT TO THE FOLLOWING CONDITIONS: made a part of this covenant or by acknowledgment by 1. CANCELLATION AND NON-RENEWAL LMCIT that an endorsement will be issued at a later date. a. The city shown in the Declarations may cancel this covenant by mailing or delivering to LMCIT 3. RATING AUTHORITY AND advance written notice of cancellation. EXAMINATION OF THE CITY’S BOOKS AND RECORDS b. LMCIT may cancel this covenant by mailing or delivering to the city shown in the Declarations LMCIT shall have full discretionary authority to written notice of cancellation at least: promulgate rates and establish the premium to be charged for the coverage period under this covenant. (1) 10 days before the effective date of the cancellation if LMCIT cancels for nonpayment of LMCIT may, at its discretion or at the city’s request, premium; or examine and audit the city’s books as they relate to this covenant during the coverage period and up to one year (2) 30 days before the effective date of the thereafter and, accordingly, make any necessary cancellation if LMCIT cancels for any other reason. adjustments in premium. No premium adjustments will be made after one year following the expiration of the c. LMCIT will mail or deliver its notice to the city coverage period. shown in the Declarations last mailing address known to LMCIT. 4. INSPECTIONS AND SURVEYS d. Notice of cancellation will state the effective date of LMCIT has the right, but it is not obligated to: cancellation. The coverage period will end on that date. a. Make inspections and surveys at any time. e. If this covenant is canceled, LMCIT will send the b. Give the city reports on the conditions it finds; and city shown in the Declarations any premium refund due. If LMCIT cancels, the refund will be pro-rata. c. Recommend changes. If the city cancels, the refund may be less than the pro-rata. The cancellation will be effective even if Neither LMCIT’s right to make inspections nor its LMCIT has not made or offered a refund. making any report thereon shall constitute any undertaking on behalf of or for the benefit of the city or f. If LMCIT decides not to renew this covenant, others to determine or warrant that such property or LMCIT will mail or deliver to the city shown in the operations are safe or healthful or free from hazard or Declaration written notice of the non-renewal not are in compliance with any law, rule or regulation. less than 30 days before the expiration date. These conditions apply not only to LMCIT, but also to g. If notice is mailed, proof of mailing will be any rating advisory, rate service, or similar organization sufficient proof of notice. which makes inspections, surveys, reports, or recommendations. 2. CHANGES 5. PREMIUMS This covenant contains all the agreements between LMCIT and the city concerning the coverage afforded. The city shown in the Declarations: The city shown in the Declarations is authorized to make a. Is responsible for the payment of all premiums; and changes in the terms of this coverage agreement with the consent of LMCIT. The coverage terms can be amended b. Will be the payee for any return premiums. or waived only by endorsement issued by LMCIT and LMCIT CCM (11/89 (Rev. 11/09) Page 1 of 3 COVENANT NUMBER: CMC 38108 coverage is primary, excess, contingent, or any other 6. TRANSFER OF THE CITY’S RIGHTS AND basis, unless that policy or coverage is specifically DUTIES UNDER THIS COVENANT written to be excess over this covenant. The city’s rights and duties under this covenant may not b. This coverage is primary for any of the following be transferred without the written consent of LMCIT. losses: 7. OVERLAP OF COVERAGE (1) A covered loss of business personal effects, with respect to any coverage provided under the In the event of a dispute between LMCIT and one or employee’s homeowners’ insurance or similar more insurers as to which policy or coverage agreement coverage. applies to a covered loss, LMCIT shall indemnify the city for any legal or other expenses which are necessarily (2) A covered loss of contents or mobile property in incurred by the city in determining whether LMCIT or the city’s care, custody and control that is used to the insurer(s) shall bear the loss. Such indemnification maintain the operations of the city, with respect to shall be made only if it is determined that payment of the coverage provided under an insurance policy of the loss shall be made under this covenant. If the loss is owner covering that property. shared by LMCIT and one or more insurers, indemnification shall be made in the same proportion as (3) A covered loss resulting from the city’s the loss payment. The city and LMCIT shall cooperate maintenance or use, including loading or unloading, in the development and execution of reasonable of any owned automobile that is not a trailer. procedures to resolve the dispute. (4) A covered loss resulting from the city’s 8. ASSESSIBILITY maintenance or use, including loading or unloading, of any trailer the city does not own but which is All cities in the joint coverage pool are jointly and connected to an owned automobile. severally liable for all claims and expenses of the pool. The amount of any liabilities in excess of assets may be (5) Any covered liability claim against a party who assessed to the members of the pool when a deficiency is has been added by endorsement as an additional identified. covered party under this covenant, unless that endorsement specifically provides that this covenant 9. NUCLEAR HAZARD is excess. LMCIT, under this covenant, does not cover any loss or (6) A covered loss to a covered automobile as claim for damage that is caused in part or in total by provided by the Municipal Automobile Physical nuclear reaction or radiation, or radioactive Damage Coverage. contamination, however caused. (7) A covered loss to a builders risk property as 10. CONCEALMENT OR FRAUD provided by Buildings in the Course of Construction, Alteration or Repair Coverage. This covenant is void if the city has intentionally concealed or misrepresented any material fact or 12. RECOVERIES circumstance relating to this covenant. Except as otherwise required by statute, any “net 11. OTHER COVERAGE recovery” from a third party on a covered loss will be allocated between the city and LMCIT in proportion to a. Except as provided in paragraph b., this coverage is their respective shares of the total covered loss. “Net excess over the following: recovery” means the total amount recovered from a third party; minus the cost of obtaining that recovery; but “net (1) Any liability insurance policy of another party recovery” does not include amounts LMCIT recovers on which the covered party is an additional insured from a reinsurer, The city’s share of the covered loss or additional named insured. includes any applicable deductible; any amounts for which the city is responsible under any co-pay (2) Any other valid and collectible insurance policy provisions; and any amounts which exceed the or other coverage, whether such other policy or applicable coverage limit. LMCIT CCM (11/89 (Rev. 11/09) Page 2 of 3 COVENANT NUMBER: CMC 38108 it be deemed to apply to an action brought by a covered 13. TRANSFER OF RIGHTS OF RECOVERY party, or any of its officers, employees or agents against AGAINST OTHERS TO LMCIT the city or another covered party. Except as provided below, if any person or organization 15. COVENANT EXPIRATION DATE to or for whom LMCIT makes payment under this covenant has rights to recover damages from another, Covenant expires on the expiration date unless the city those rights are transferred to LMCIT to the extent of has requested that coverage be extended and LMCIT has LMCIT’s payment. That person or organization must do sent a written confirmation of the extension to the city. everything necessary to secure our rights and must do nothing before or after a loss to impair them. 16. RIGHT TO OFFSET a. The city may waive the city’s rights against another Notwithstanding any other provision of this covenant to party in writing prior to a covered loss or damage the contrary, if the city fails to make timely payment of but this does not apply to a covered loss or damage amounts owed to LMCIT, including premiums, penalties, as provided by the Municipal Bond Coverage or deductibles, co-pays, premium audit adjustments or Municipal Crime Coverage. The city does not need retrospective rating plan charges, LMCIT, in addition to to notify LMCIT in writing. other remedies available to it, shall have the right to retain and offset any amounts owed to the city and apply b. The city may waive the city’s rights against another the amounts so retained against the unpaid and overdue party in writing after a covered loss or damage as amounts. Amounts owed to the city, which are subject provided by the Municipal Property Coverage, only to an offset include, but are not limited to, dividends, if at the time of loss that party is one of the premium audit adjustments, retrospective rating plan following: adjustments, and claims payments owed to the city by (1) Another covered party covered by this covenant LMCIT. (2) Another entity (a) Owned or controlled by the city; or (b) That owns or controls the city. 14. DUTY TO COOPERATE The city, or other covered party, including its officers, employees or agents, shall fully cooperate with LMCIT in the processing and investigation of claims under this covenant. In addition, the city, or other covered party, including its officers, employees or agents, shall not take any action nor do anything that would impair or prejudice the investigation or processing of any claim, or LMCIT’s defense of any claim or suit. If the city, or other covered party, including its officers, employees or agents fails to cooperate or takes any action or does anything that impairs or prejudices the investigation or processing of any claim, or LMCIT’s defense of any claim or suit,LMCIT shall have the right to withdraw coverage with respect to such claim or suit or to modify, cancel or not renew coverage. Notwithstanding the above, nothing herein shall be construed to apply to a legitimate response by the city, a covered party, or any of its officers, employees and agents, to a request for information made as part of a legal proceeding or pursuant to other statutory or legal obligation; nor shall LMCIT CCM (11/89 (Rev. 11/09) Page 3 of 3 Covenant Number: MUNICIPAL PROPERTY, CRIME, BOND, PETROFUND, CMC 38108 and EQUIPMENT BREAKDOWN DECLARATIONS Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (Herein called LMCIT) Item 1. CITY: OAK PARK HEIGHTS, CITY OF Item 2.COVERAGE PERIOD: From: 07/07/2015 To: 07/07/2016 12:01 AM Standard Time at Mailing Address on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4.COVERAGE: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES TO PROVIDE THE COVERED PARTY WITH COVERAGES SHOWN BELOW FOR WHICH A LIMIT IS STATED: Item 5.COVERAGE PART ONE – PROPERTY Section I – Property General Limit of Coverage Per Occurrence $ 17,580,288 This general limit is subject to the sublimits as described in Section VI, Limits of Coverage and Valuation, and the specific property limit. Terrorism loss occurrence-shared limit $ 50,000,000 This limit is subject to the provisions of the Terrorism Losses -Special Pool Limit Endorsement ME079(11/09) Section II – Additional Covered Loss or Damages 1.Loss of Revenue,Extra Expense and Expediting Expense $ 5,000,000. Per Occurrence 2. Demolition and Debris Removal (Direct Physical Damage to Covered Property) 25% of the Estimated Replacement Cost of the Covered Property (No Direct Physical Damage to Covered Property) $ 50,000. Per Occurrence 3. Leasehold Interest $ 500,000. Per Location 4. Accounts Receivable $ 500,000. Per Location 5. Valuable Papers and Records $ 500,000. Per Location 6. Utility Services $ 100,000. Per Occurrence 7.Green Building Expenses 1% of the Contract Cost but not to exceed $100,000. Per Location 8. Asbestos Clean up, Abatement and Removal $ 250,000. Per Location 9.Pollutan t Cleanup and Removal $ 250,000. Per Location 10. Errors $ 500,000. Per Occurrence 11. Rental Reimbursement $ 250,000. Annual Aggregate 12. Arson Reward $ 5,000. Per Fire Loss 13. Extraordinary Expense $ 250,000. Annual Aggregate 14. Data Security Breach Expenses $ 250,000. Annual Aggregate Section IV - Water and Supplemental Flood Coverage $ 500,000. Per Occurrenc e $ 500,000. Annual Aggregate LMCIT DEC-012(11/86)(Rev.11/14) Page 1 of 3 COVENANT NUMBER: CMC 38108 Item 6.REFER TO SCHEDULE OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN THE SECTION I COVERAGE; THE SCHEDULE OF COVERED MOBILE PROPERTY FOR THE MOBILE PROPERTY INCLUDED IN THE SECTION I COVERAGE AND THE SCHEDULE OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN SECTION IV COVERAGE. Item 7.DEDUCTIBLE (Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): COVERAGE PART ONE – PROPERTY $ 1,000 Per Occurrence Item 8.COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. MPCBP(11/14) PM-100(11/03) ME079(11/09) ME063(11/01) MPCBP-209(11/05) MPCBP-215(11/09) PM-109(11/07) Item 9. MORTGAGE HOLDER (if applicable): Item 10. COVERAGE PART TWO – CRIME LIMIT OF COVERAGE PER OCCURRENCE $ 250,000 Item 11.DEDUCTIBLE (Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): COVERAGE PART TWO – CRIME $ 1,000 Per Occurrence Item 12. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. ME063(11/01) MPCBP(11/14) LMCIT DEC-012(11/86)(Rev.11/14) Page 2 of 3 COVENANT NUMBER: CMC 38108 Item 13. COVERAGE PART THREE – BOND LIMIT OF COVERAGE PER OCCURRENCE: $ 100,000 DEDUCTIBLE (Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): COVERAGE PART THREE - BOND $ 1,000 Per Occurrence Item 14.COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. MPCBP(11/14) ME063(11/01) Item 15. COVERAGE PART FOUR – PETROFUND (Claims made) LIMITS OF REIMBURSEMENT BENEFIT MAXIMUM REIMBURSABLE COSTS AND DEFENSE COSTS EACH TANK RELEASE $ 250,000 REIMBURSABLE COSTS AND DEFENSE COSTS AGREEMENT TERM AGGREGATE $ 250,000 DEDUCTIBLE: COVERAGE PART FOUR - PETROFUND NOT APPLICABLE Item 16. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. MPCBP(11/14) ME063(11/01) Item 17. EQUIPMENT BREAKDOWN COVERAGE EQUIPMENT BREAKDOWN LIMIT: $ 17,449,971 DEDUCTIBLE: $ 1,000 ANY ONE ACCIDENT Item 18.COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. BM-200(11/13) BM-212(11/01) PM-100(11/03) ME063(11/01) LMCIT DEC-012(11/86)(Rev.11/14) Page 3 of 3 COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE LMCIT MPCBP (11/05) (Rev. 11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY COVERAGE PART ONE LMCIT MPCBP (11/05) (Rev. 11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND ITINDEX PROPERTY COVERAGE - PART ONE PAGE SECTION I - PROPERTY COVERAGE................................................................................................1-2 1. COVERAGE AGREEMENT...........................................................................................................1 a. COVERED PROPERTY................................................................................................................1 b. PROPERTY NOT COVERED....................................................................................................1-2 SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE.................................................2-5 1. COVERAGE AGREEMENT...........................................................................................................2 a. LOSS OF REVENUE,EXTRA EXPENSE AND EXPEDITING EXPENSE................................. 2 b. DEMOLITION AND DEBRIS REMOVAL................................................................................. 2 c. LEASEHOLD INTEREST..........................................................................................................2-3 d. ACCOUNTS RECEIVABLE............................................................................................................3 e. VALUABLE PAPERS AND RECORDS..........................................................................................3 f. UTILITY SERVICES.....................................................................................................................3 g. GREEN BUILDING EXPENSES....................................................................................................3 2. COVERAGE AGREEMENT...........................................................................................................3 a. ASBESTOS CLEANUP, ABATEMENT AND REMOVAL..........................................................3 b. POLLUTANT CLEANUP AND REMOVAL.................................................................................3 c. ERRORS.........................................................................................................................................4 d. RENTAL REIMBURSEMENT......................................................................................................4 e. ARSON REWARD..........................................................................................................................4 f. EXTRAORDINARY EXPENSE.................................................................................................4-5 g. DATA SECURITY BREACH EXPENSES ...5 SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED..........................................5-7 SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE.......................................7-8 SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION, ALTERATION OR REPAIR COVERAGE...............................................................................................8 SECTION VI - LIMITS OF COVERAGE AND VALUATION........................................................8-13 SECTION VII - DEFINITIONS............................................................................................................13-18 LMCIT MPCBP (11/05) (Rev.11/14) Page i COVENANT NUMBER: CMC 38108 SECTION VIII - CONDITIONS...........................................................................................................19-21 LMCIT MPCBP (11/05) (Rev.11/14) Page ii COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY COVERAGE PART ONE Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning, as given in SECTION VII - DEFINITIONS. duties and what is or is not covered. SECTION I - PROPERTY COVERAGE (5) We will pay for loss to covered property that is 1. COVERAGE AGREEMENT temporarily at an unscheduled location that you do not own, lease or operate, as described in We will pay for direct physical loss of or damage to SECTION VI - LIMITS OF COVERAGE AND your covered property unless the cause of loss or VALUATION. damage is not covered, as described under SECTION III - CAUSES OF LOSS AND DAMAGES NOT b. PROPERTY NOT COVERED COVERED. The amount we will pay for loss or damage is limited as described in SECTION VI - We will not cover the following types of property: LIMITS OF COVERAGE AND VALUATION. (1) Aircraft; a. COVERED PROPERTY (2) Animals (except for police dogs); (1) We will cover the following types of property: (3) Automobiles, vehicles, or self-propelled machines (a) Building/contents described in the Schedule of that are licensed for use on public roads; Covered Property. (4) Bills, currency, deeds, evidences of debt, money, (b) Property in the open described in the Schedule notes or securities; of Covered Property. (5) Builders risk property; (c) Mobile property valued at $25,000 replacement cost or less if identified as covered on (6) Bridges, roadways, walks, patios or other paved the Schedule of Covered Mobile Property; and surfaces, except golf courseproperty; mobile property valued at greater than $25,000 replacement cost and is listed on the Schedule of (7) Contraband or property in the course of illegal Covered Mobile Property. transportation or trade; (2) We will pay for loss to newly acquired or (8) Cost of excavations, grading, backfilling or filling; constructed building/contents or property in the open at any one location as described in (9) Land, subsoil, crops or lawns except golf course SECTION VI - LIMITS OF COVERAGE AND property,materials necessary for a green building VALUATION. or materials necessary for a wastewater lagoon; (3) We will pay for loss to newly acquired or (10) Pilings, piers, wharves or docks; constructedmobile property as described in SECTION VI - LIMITS OF COVERAGE AND (11) Underground and buried pipes, flues or drains VALUATION. including those that are part of the city’s general collection system; except for underground and (4) We will pay for loss to covered property in transit buried pipes, flues or drains that are: as described in SECTION VI - LIMITS OF COVERAGE AND VALUATION. LMCIT MPCBP (11/05) (Rev 11/14) Page 1 of 21 COVENANT NUMBER: CMC 38108 a) Part of the water treatment plant, wastewater basement; treatment plant, lift station or gas reduction (13) Retaining walls that are not part of the covered station; or property; b) Part of a geothermal heating and cooling (14) Transmission and distribution lines and poles and system. equipment that are usual to the transmission of (12) Foundations of buildings, structures, machinery or electricity. This does not include substations and boilers if their foundations are below: transformers. (a) The lowest basement floor; or (15) Trees and shrubs that are not within 100 feet of a building. (b) The surface of the ground, if there is no SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE resulting from direct physical loss or damage to 1. COVERAGE AGREEMENT covered property. We will provide coverage for the following loss or (2) Leasehold interest means: damage unless the cause of loss or damage is not covered, as described under SECTION III - CAUSES (a) The excess of the fair rental value of similar OF LOSS AND DAMAGES NOT COVERED. The premises over the actual rent payable by you as amount we will pay for loss or damage is limited as lessee (including any maintenance or operating described in SECTION VI - LIMITS OF COVERAGE charges paid by the lessee) during the unexpired AND VALUATION. term of the lease; and a. LOSS OF REVENUE, EXTRA EXPENSE AND (b) The rental income that would have been EXPEDITING EXPENSE earned by you from sublease agreements, over and above the rental expense specified in the lease We will pay for the actual loss of revenue,extra between you and the lessor. expense or expediting expense sustained by you due to the necessary suspension of youroperations during the (3) When covered property is rendered wholly or period of recovery caused by direct physical loss or partially untenantable by a direct physical loss or damage to any covered property. damage and the lease is canceled by the lessor in accordance with the conditions of the lease or by b. DEMOLITION AND DEBRIS REMOVAL statutory requirements of the state in which the damaged or destroyed covered property is located, We will cover the following expenses: we will cover the pro rata proportion from the date (1) The cost of necessary demolition and removal of of loss to expiration date of the lease (to be paid debris of covered property and non-covered without discount) on your interest in: property from a covered location resulting from (a) Improvements and betterments to covered direct physical loss or damage to covered property during the unexpired term of the lease property; or that is not covered under any other section of Part (2) The cost of removal of debris of non-covered One of the covenant; or property from your covered location which results (b) The amount of advance rental paid by you and from a specified cause of loss. not recoverable under the terms of the lease for the c. LEASEHOLD INTEREST unexpired term of the lease. (1) We will provide coverage for leasehold interest (4) We will cover your leasehold interest when your LMCIT MPCBP (11/05) (Rev 11/14) Page 2 of 21 COVENANT NUMBER: CMC 38108 covered property is rendered wholly or partially Authority. untenantable and the lease is canceled by the lease or by statutory requirements of the state in which 2. COVERAGE AGREEMENT the damaged or destroyed covered property is We will provide coverage for the following loss or located. damage. The amount we will pay for loss or damage (5) We will cover your leasehold interest for the first is limited as described in SECTION VI - LIMITS OF three months succeeding the date of the loss and COVERAGE AND VALUATION. the net lease interest for the remaining months of the unexpired lease. We will not be liable for any a. ASBESTOS CLEANUP, ABATEMENT AND increase of loss that may be occasioned by the REMOVAL suspension, lapse, or cancellation of any license, We will pay for your expense to clean up, abate or or by the exercising of any option to cancel the remove from covered property asbestos particles that lease. are discharged, dispersed, or released, subject to the following conditions: d. ACCOUNTS RECEIVABLE (1) The discharge, dispersal or release must have We will pay for loss or damage to your accounts occurred accidentally and must begin and end receivable caused by direct physical loss or damage to your accountsreceivable.within 72 hours; (2) The discharge, dispersal or release must not be the e. VALUABLE PAPERS AND RECORDS result of planned building renovation, remodeling We will pay for loss or damage to valuable papersand or demolition activities; and records caused by direct physical loss or damage to (3) The expenses must be incurred within 90 days of your valuable papers and records. the discharge, dispersal or release. f. UTILITY SERVICES b. POLLUTANT CLEANUP AND REMOVAL (1) We will pay for loss or damage to covered property caused by an interruption of a utility We will pay for: service to your covered property. (1) Your expense to cleanup, abate or remove from covered property, pollutants other than asbestos, (2) We will pay for the actual loss of revenue,extra expense or expediting expense sustained by you that are discharged, dispersed, or released; or due to the necessary suspension of youroperations (2) Except for damage caused by a specified cause of during the period of recovery caused by an loss, direct physical loss or damage to your interruption of a utility service to your covered covered property resulting from the discharge, property. dispersal or release of pollutants. This interruption must be caused by direct physical This coverage is subject to the following conditions: loss or damage to utility service property. (1) The discharge, dispersal or release must have g. GREEN BUILDING EXPENSES occurred accidentally and must begin and end within 72 hours; We will cover the following expenses: (2) The discharge, dispersal or release must not be the (1) Reasonable and necessary extra cost for the recertification of the damaged covered property as result of planned building renovation, remodeling or demolition activities; and required by a Green Authority. (3) The expenses must be incurred within 90 days of (2) Reasonable and necessary extra cost to recycle the damaged covered property as required by a Green the discharge, dispersal or release. LMCIT MPCBP (11/05) (Rev 11/14) Page 3 of 21 COVENANT NUMBER: CMC 38108 LMCIT's property/casualty program, upon c. ERRORS submission of a claim LMCIT will pay for any We will pay for loss to any covered propertyif the loss extraordinary and unanticipated cost or expense is not covered solely because of: the city incurs which: (1) Any inadvertent error in the description or (a) Is necessary for the purpose of protecting the location of the building/contents, property in the public health and safety, protecting city property, open, mobile property, or builders risk property or meeting the city's legal obligations; and covered by the covenant, which inadvertent error existed at the inception date of the covenant; or (b) Is not covered by any other provision of this covenant, any other LMCIT coverage covenant, or (2) Any inadvertent error in the description or any insurance policy. location of the building/contents, property in the open, mobile property, or builders risk property inThe city must provide to LMCIT any information endorsements to the covenant; or or documentation needed or requested in order to determine if these conditions are met. The (3) Failing through an inadvertent error to schedule determination of whether these conditions are met (a) any building/contents, property in the open, will be at LMCIT's sole discretion. mobile property, or builders risk property owned by the city at the inception of the covenant, or (b) (2) The city at its discretion may elect to pursue any newly acquired or constructed building/ recovery from third parties of any cost or expense contents, property in the open, mobile property orpaid under SECTION II, 2. f. The city is solely builders risk property during the term of the responsible for any costs incurred in pursuing coverage document. recovery. The city may include such costs as part of its extraordinary expense claim, subject to the (4) It is a condition of this coverage that such limit established in SECTION II, 2. f. (3). The inadvertent error shall be reported and corrected provisions of Common Conditions 12 and 13 do when discovered. not apply to claims paid under SECTION II, 2, f. d. RENTAL REIMBURSEMENT (3) Limit: We will pay for rental reimbursement expenses LMCIT will not pay more than $250,000 for incurred by you for the rental of mobile property that claims under SECTION II, 2. f., during the was a result of a covered loss to yourmobileproperty. coverage year, regardless of the number of claims, occurrences or incidents. (1) No deductibles apply to this coverage. (4) Reimbursement of extraordinary expense (2) This coverage does not apply while there is spare payment: or reserve equipment available to you for your operations. For any claims for extraordinary expense which are paid under SECTION II, 2. f., the city must e. ARSON REWARD reimburse LMCIT as provided in this paragraph. The amount to be paid to LMCIT will equal the In the event that a covered fire loss was theresult of an amount needed to reimburse LMCIT for the full act of arson, we will reimburse you for rewards you amount of any claims that LMCIT pays under pay for information leading to convictions for that act SECTION II, 2. f. The city may, at its discretion, of arson. reimburse LMCIT through payment of equal annual installments over a period of up to five f. EXTRAORDINARY EXPENSE years from the date the claim is paid. Each installment will be billed and payable at the same (1) Extraordinary expense payment: time as the city's annual renewal premium for LMCIT property/casualty coverage. If the city As a benefit associated with being a member of ceases to be a member of the LMCIT LMCIT MPCBP (11/05) (Rev 11/14) Page 4 of 21 COVENANT NUMBER: CMC 38108 property/casualty program, the full amount, technologies if needed to determine the extent together with any accrued interest, will be of the data security breach. immediately due and payable on the date that the city ceases to be a member. (3) The cost of providing notice to any person whose personal information has been acquired No interest will apply if reimbursement is made by an unauthorized person. You may elect any within one year of the date the cost or expense was of the following forms of notice, to the extent incurred. If the city elects to pay the permitted by law: reimbursement in more than one annual installment, interest at the rate of 3% annually (a)Written notice to the most recent available shall be included in the amount owed beginning address in your records; one year from the date the cost or expense was incurred. (b) Electronic notice; or (5) Termination of benefits: (c) Substitute notice, consisting of e-mail notice, posting notice on your Web site, and notification of The LMCIT Board of Trustees may terminate the media. benefit provided under SECTION II, 2. f. at any time upon 10 days written notice to the city, if the (4) The cost of notifying consumer reporting Board determines that it is necessary to protect the agencies that compile and maintain files on interests of LMCIT or its member cities. consumers on a nationwide basis, as defined by United States Code, title 15, section 1681a, of the Termination of this coverage shall not affect any timing, distribution, and content of the notices. claims that the city has submitted to LMCIT before the effective date of termination of coverage. (5) The cost of providing a credit report and up to one year’s credit monitoring service notice to g. DATA SECURITY BREACH EXPENSES any person whose personal information was acquired by an unauthorized person. We will pay for the following expenses if you have had, or reasonably believe to have had, a data security (6) The expense of using a professional service to breach: reasonably restore the affected person’s identity. (1) Outside legal expenses to review the data security (7) Any other reasonable expenses incurred by you breach and how you should respond to it. to respond to a data security breach. (2) The expense of professional information SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED whether driven by wind or not; 1. CAUSES OF LOSS NOT COVERED (2) Mudslide or mudflow; We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or (3) Water that backs up or overflows from a sewer, damage is excluded regardless of any other cause or drain or sump; or event that contributes concurrently or in any sequence to the loss. (4) Water under the ground surface pressing on, or flowing or seeping through: a. WATER (a) Foundations, walls, floors or paved surfaces; (1) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all LMCIT MPCBP (11/05) (Rev 11/14) Page 5 of 21 COVENANT NUMBER: CMC 38108 (b) Basements, whether paved or not; or pollutants is itself caused by a specified cause of loss. (c) Door, windows or other openings; This exclusion does not apply to pollutant cleanup except for coverage that is provided by water and and removal as provided in SECTION II, 2.b. supplemental flood coverage as described in SECTION IV - WATER AND SUPPLEMENTAL c. Damages caused by dishonest or criminal acts by FLOOD COVERAGE. you, or your employees: But if loss or damage by fire, explosion or (1) Acting alone or in collusion with others; or sprinkler leakage results, we will pay for that (2) Whether or not occurring during the hours of resulting loss or damage. employment. This exclusion does not apply to mobile property. This exclusion does not apply to acts of destruction by your employees; but theft by b. NUCLEAR HAZARD employees is not covered. Nuclear reaction or radiation, or radioactive contamination, however caused. d. Damages caused by explosion of steam boilers, steam pipes, steam engines or steam turbines But if loss or damage by fire results, we will pay for owned or leased by you, or operated under your that resulting loss or damage. control. c. WAR But if loss or damage by fire or combustion explosion results, we will pay for that resulting (1) War, including undeclared or civil war; loss or damage. (2) Warlike action by a military force, including We will also pay for loss or damage caused by or action in hindering or defending against an actual resulting from the explosion of gases or fuel or expected attack, by any government, sovereign within the flues or passages through which the or other authority using military personnel or other gases of combustion pass. agents; or e. The cost to repair or replace faulty workmanship, (3) Insurrection, rebellion, revolution, usurped power, materials, construction or design. or action taken by governmental authority in hindering or defending against any of these. This exclusion does not apply to c omputer equipment data and media. 2. DAMAGES NOT COVERED f. The cost to repair or replace mechanical We will not pay for the following damages: breakdown, including rupture or bursting caused by centrifugal force. a. Damage to your electrical devices, appliances or wires caused by artificially generated electric This exclusion does not apply to computer current including electric arcing. equipment data and media. This exclusion does not apply to computer g. Damages caused by: equipment data and media. (1) Rust, corrosion, decay, deterioration, disease, b. Damage caused by the discharge, dispersal, hidden or latent defect, or any quality in property seepage, migration, release or escape of pollutants. that causes it to damage or destroy itself; This exclusion does not apply if the discharge, (2) Mold or other fungus or fungi, fungal spores, dispersal, seepage, migration, release or escape of or fungal fragments or metabolites, such as LMCIT MPCBP (11/05) (Rev 11/14) Page 6 of 21 COVENANT NUMBER: CMC 38108 mycotoxins or volatile organic components; shortage disclosed upon taking inventory. (3) Settling, shrinking or expanding; or i. Seizure or destruction of property by order of governmental authority. (4) Wear and tear. But we also will pay for acts of destruction This exclusion does not apply if the above damage ordered by governmental authority and taken at results from a specified cause of loss. the time of a fire to prevent its spread, if the fire would be covered under this coverage part. The exclusion for damages caused by disease does not apply to policedogs. j. The cost of fire department service charges that the city is legally obligated to pay. h. Unexplained loss, mysterious disappearance, or SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE But if loss or damage by fire, explosion or 1. COVERAGE AGREEMENT sprinkler leakage results, we will not pay for that resulting loss or damage under this SECTION IV. a. For your building/contents, property in the open, or builders risk property subject to the exclusions b. (1) For any building/contents, property in the and limitations in paragraph b. below, we will pay open, or builders risk property for which Code A for: is shown on the Schedule of Covered Property, no additional exclusions apply to the coverage (1) Direct physical loss of or damage to your provided under this section. building/contents, property in the open, or builders risk property described in the Schedule of Covered (2) For any building/contents, property in the Property; and open, or builders risk property for which Code B is shown on the Schedule of Covered Property, the (2) Any additional covered losses or damages as coverage provided by this section is specifically in described in SECTION II - ADDITIONAL addition to and in excess of the applicable COVERED LOSS OR DAMAGE as a result of National Flood Insurance Program coverage. direct physical loss of or damage to your building/ contents, property in the open, or builders risk (3) For any building/contents, property in the property which are caused by: open, or builders risk property for which Code C is shown on the Schedule of Covered Property, we (a) Flood, surface water, waves, tides, tidal will not pay for any loss or damage resulting from waves, overflow of any body of water, or their any occurrence which would be considered a spray, all whether driven by wind or not; flood for the purpose of the National Flood (b) Mudslide or mudflow; Insurance Program. (c) Water that backs up or overflows from a (4) For any newly acquired or constructed sewer, drain or sump; or covered property, covered property in transit, or covered property that is temporarily at an (d) Water under the ground surface pressing unscheduled location, as provided by SECTION I, on, or flowing or seeping through: 1.a., COVERED PROPERTY; or builders risk property as provided by SECTION V, 1., i) Foundations, walls, floors or paved BUILDINGS IN THE COURSE OF surfaces; CONSTRUCTION, ALTERATION, OR REPAIR COVERAGE, that are not shown on the Schedule ii) Basements, whether paved or not; or of Covered Property, we will pay any loss or any damage as if the water and supplemental flood iii) Doors, windows or other openings. coverage was shown as Code C on the Schedule of LMCIT MPCBP (11/05) (Rev 11/14) Page 7 of 21 COVENANT NUMBER: CMC 38108 Covered Property. damages covered under this SECTION IV is limited as described in SECTION VI - LIMITS OF COVERAGE 2. LIMITS OF COVERAGE AND VALUATION. The maximum amount we will pay for all losses or SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION, ALTERATION, OR REPAIR COVERAGE 1. COVERAGE AGREEMENT 2. PROPERTY NOT COVERED a. We will pay for direct physical loss of or damage We will not cover the following types of property: to yourbuilders risk property unless the cause of a. Any builders risk property if the approved loss or damage is not covered, as described under estimated total project cost exceeds $2,000,000 as SECTION III - CAUSES OF LOSS AND of the date construction commenced. DAMAGES NOT COVERED. The amount we will pay for loss or damage is limited as described b. Land, subsoil, crops or lawns except golf course in SECTION VI - LIMITS OF COVERAGE AND property ormaterials necessary for a green VALUATION. building. b. We will pay for loss to builders risk property in 3. ADDITIONAL COVERED LOSS OR transit as described in SECTION VI - LIMITS OF COVERAGE AND VALUATION. DAMAGE COVERAGE c. We will pay for loss to builders risk property that We will pay for covered losses and damages as is at a temporary location other than the described in SECTION II - ADDITIONAL construction location as described in SECTION VI COVERED LOSS OR DAMAGE as a result of direct - LIMITS OF COVERAGE AND VALUATION. physical damage to yourbuilders risk property. d. We will also cover the interest of contractors and 4. WATER AND SUPPLEMENTAL FLOOD subcontractors in builders risk property during construction to the extent of the city's obligation We will pay for loss or damage to yourbuilders risk for a covered physical loss or damage to such property as described in SECTION IV - WATER covered property as specified in the applicable AND SUPPLEMENTAL FLOOD COVERAGE. contract. Such interest of contractors and subcontractors is limited to the property for which 5. ADDITIONAL DEFINITIONS they have been hired to perform such work and such interest will not extend to any loss of Project cost means the cost of construction, materials, revenue,extra expense, or expediting expense and architectural, legal, financial and other sustained by the contractor and subcontractors as professional services relating to the construction, provided by this covenant. alteration or repair project. SECTION VI - LIMITS OF COVERAGE AND VALUATION buildings/contents,property in the open or 1. LIMITS OF COVERAGE builders risk property in any one occurrence. a.We will not pay for more than the general limit per c. We will not pay for loss or damage in any one occurrence specified in Item 5 of the Declarations. occurrence until the amount of loss or damage exceeds the Deductible in Item 7 of the b. We will not pay for more than the specific Declarations. We will then pay the amount of loss property limit for loss or damage to any LMCIT MPCBP (11/05) (Rev 11/14) Page 8 of 21 COVENANT NUMBER: CMC 38108 or damage in excess of the Deductible, up to the specified in Item 5 of the Declarations and are applicable limits of coverage: listed below. The limits are in addition to the general limit per occurrence and the specific (1) The Deductible applies against the total loss property limit: incurred by you from any one occurrence, regardless of the number of locations involved. (1) Loss of revenue, extra expense and expediting expense: $5,000,000 per occurrence (2) If two or more deductibles in Item 7 of the Declarations for property coverage apply to one (2)Demolition and debris removal: For each occurrence for you, the total to be deducted will occurrence, an amount equal to 25% of the not exceed the largest deductible applicable. estimated replacement cost of the covered property as stated in the Schedule of Covered Property. d. The sublimits stated below are per occurrence and However, if there is no direct physical loss or are part of and not in addition to the specific damage to covered property, the most we will pay property limit: is $50,000 per occurrence. (1) The cost to reproduce or restore electronic These limits do not apply to golf course property. data: $1,000,000 (3) Leasehold interest: $500,000 per location (2) Fine arts: $500,000 (4) Accounts receivable: $500,000 per location (3) Personal effects: $25,000 per occurrence, but not to exceed $2,500 per employee.(5) Valuable papers and records: $500,000 per location (4) Business personal effects: $25,000 per occurrence, but not to exceed $5,000 per (6) Utility Services: $100,000 per occurrence employee. (7) Green Building Expenses: 1% of the contract e. The sublimits stated below are per occurrence and cost but not to exceed $100,000 per location. are part of and not in addition to the general limit (8) Asbestos clean-up, abatement and removal: per occurrence: $250,000 per location (1) Covered property in transit: $250,000 (9) Pollutant cleanup and removal: $250,000 per (2) Unscheduled location: $500,000 location (3) Golf course property: $100,000 per (10) Errors: 90% of the loss, subject to $500,000 occurrence for direct damage to golf course per occurrence property and debris removal of covered property (11) Rental reimbursement: $250,000 per annual and non-covered property. aggregate f. The sublimits stated below are in addition to the (12) Arson reward: $5,000 per fire loss general limit per occurrence: (13) Extraordinary expense: $250,000 per annual (1) Newly acquired or constructed building/ aggregate contents or property in the open at any one location: $5,000,000 (14) Data security breach expenses: $250,000 per annual aggregate. (2) Newly acquired or constructed mobile property: $500,000 per unit h. The limit for damage caused by criminal acts other than vandalism or arson is $1,000,000 per g. Except as provided in paragraph h. the limits for occurrence. This limit applies to any direct the additional covered loss or damage are LMCIT MPCBP (11/05) (Rev 11/14) Page 9 of 21 COVENANT NUMBER: CMC 38108 physical loss or damages as provided in Section I property is less than the sum of the replacement and to any additional covered loss or damages as cost to repair the property plus the reduction, if provided in Section II. This limit is part of and not any, in the fair market value of the repaired in addition to the general limit per occurrence and property. the specific property limit. (b) Replacement cost means the cost to repair or i. The limits for water and supplemental flood replace covered property that is damaged or coverage are specified in Item 5 of the destroyed, using new materials of equivalent size, Declarations and are stated below: kind and quality. Replacement cost includes any additional costs necessary to comply with (1) $500,000 per occurrence. applicable building codes or other county, state, or federal requirements. But replacement cost does (2) The water and supplemental flood coverage not include: annual aggregate is the most we will pay for water and supplemental flood coverage loss during the i) Costs necessary solely to comply with the annual coverage period. city’s own zoning or other requirements or: (3) The sublimits stated below are per occurrence ii) The cost to correct violations of law which and are part of and not in addition to the per existed prior to the loss. occurrence limit: (2) Adjustment: (a) Golf course property: $100,000 Except as provided in b. below, in the event of (b) Property in transit: $250,000 direct physical loss of or damage to your covered property, the basis of adjustment will be as j. The limits for Building s in the Course of follows: Construction, Alteration, or Repair Coverage are: (a) If the covered property is destroyed and is (1) Any one location: $2,000,000 replaced or rebuilt, LMCIT will pay the following: (2) The limits stated below are part of and not in i) If the covered property is replaced or addition to the any one location limit: rebuilt at the same location, the replacement cost of the covered property with similar size (a) Property in transit: $250,000 and construction; (b) Temporary location: $500,000 ii) If the covered property is replaced or rebuilt at a different location, the replacement k. The limit for vacant property is the fair market cost cannot be greater than if you would have value of the damaged property. This limit applies rebuilt at the same location with similar size to any direct physical loss or damages as provided and construction; or in Section I and to any additional covered loss or damages as provided in Section II. This limit is iii) If the covered property is replaced or part of and not in addition to the general limit per rebuilt at the same location with different size occurrence and the specific property limit. or construction, the replacement cost cannot be greater than if you would have rebuilt at the 2. LOSS VALUATION same location with similar size and construction. a. GENERAL PROVISIONS (b) If the covered property is destroyed and is not (1) Definitions: replaced or rebuilt, LMCIT will pay the fair market value of the property at the time of the loss. (a) Covered property is deemed to be destroyed if the replacement cost to rebuild or replace the (c) If the covered property is damaged but not LMCIT MPCBP (11/05) (Rev 11/14) Page 10 of 21 COVENANT NUMBER: CMC 38108 destroyed and is repaired, LMCIT will pay the For accounts receivable,LMCIT will pay for all actual replacement cost to repair the property plus amounts due from your customers that you are the amount of the reduction, if any, in the fair unable to collect; interest charges on any loan market value of the repaired property. required to offset amounts you are unable to collect pending our payment of these amounts; (d) If the covered property is damaged but not collection expenses in excess of your normal destroyed and remains in service without being collection expenses that are made necessary by the repaired, LMCIT will pay the amount of the loss; and other reasonable expenses you incur to reduction, if any, in the fair market value of the re-establish youraccounts receivable. If you are damaged property. unable to establish the amount of accounts receivable outstanding at the time of the loss, we (e) If the covered property is damaged but not will use the average monthly amounts of accounts destroyed and the city elects not to repair it but to receivable for the 12 months immediately raze or otherwise dispose of the property, LMCIT preceding the month in which the loss occurs, will pay to the city the estimated replacement cost adjusting to reflect the normal business during the to repair the property. loss month. (3) Limitation: (4) Fine arts: In any event, LMCIT will not pay you more than For fine arts which are destroyed, LMCIT will pay your financial interest in the covered property. the fair market value, regardless of whether the covered property is replaced or not. b. SPECIAL PROVISIONS (5) Mobile property: (1) Valuable papers and records: For mobile property that is damaged or destroyed, For valuable papers and records,LMCIT will pay LMCIT will not pay for more than the amount you the cost of blank materials for reproducing the actually spent to repair or replace the damaged records, plus the cost of labor to transcribe or copy mobile property; or 200% of the fair market value the records when there is a duplicate, or to of the damaged property, whichever is less. reproduce the data of records. (6) Policedogs: (2) Computer equipment, electronic data and electronic media: A policedog is considered to be destroyed if because of injury or disease the dog is not able to For computer equipment, electronic data, and perform the dog's normal functions and there is no electronic media,LMCIT will pay the cost to reasonable prospect that the dog will be able to do replace destroyed computer equipment with so. equipment of equal or greater processing ability; the cost to reproduce or restore electronicdata; (a) For police dogs that are destroyed, LMCIT and the cost to repair or replace electronic media will pay for the cost to replace the dog and the cost with the same kind and quality of material. Any of any necessary training. replacement equipment must be able to perform the same function as the destroyed equipment. (b) If a police dog is injured as a result of an accident or an intentional act, LMCIT will pay the Unauthorized intrusive codes or programming, cost of necessary treatment and care to enable the such as computer viruses or hacking that are dog to resume performing the dog's normal entered into yourcomputer equipment, electronic functions. But LMCIT will not pay the cost of data, or electronic media are considered direct treatment and care to treat or prevent disease. physical loss of or damage to your covered property. For any single occurrence,LMCIT will not pay (3) Accounts receivable: LMCIT MPCBP (11/05) (Rev 11/14) Page 11 of 21 COVENANT NUMBER: CMC 38108 more than the amount you actually spend to procedures; replace the police dog or for care and treatment of ii) Bills, invoices and other vouchers; and the police dog, or 200% of the fair market value of the police dog, whichever is less. iii) Deeds, liens or contracts. (7) Trees and shrubs: (2) The amount of extra expense loss LMCIT will pay will be determined based on: (a) For a tree or shrub which is destroyed, LMCIT will pay the actual cost to replace it with a tree or (a) All expenses that exceed the normal operating shrub of similar type and of a size that is normally expenses that would have been incurred by considered to be reasonable and practical to operations during the period of recovery if no transplant, regardless of whether the tree or shrub direct physical loss or damage had occurred. We is replaced or not. will deduct from the total of such expenses: (b) For a tree or shrub that is damaged but not i) The salvage value that remains of any destroyed, LMCIT will pay the actual cost of any property bought for temporary use during the service, treatment, or repair that is actually period of recovery once operations are performed. resumed; But, we will not pay more than the actual cost to ii) Any extraexpense that is paid for by other replace it with a tree or shrub of similar type and insurance, except for insurance that is written of a size that is normally considered to be subject to the same plan, terms and conditions reasonable and practical to transplant. and provisions as this insurance; and (8) Business personal effects: (b) All necessary expenses that reduce the business income loss that otherwise would have Notwithstanding the provisions of paragraph 11. been incurred. of the Common Conditions, LMCIT coverage for business personal effects is primary with respect to (3) We will reduce the amount of your: any coverage provided under the employee's homeowner's insurance or similar coverage. (a) Loss of revenue loss, other than extra expense or expediting expense to the extent you can resume c. LOSS OF REVENUE, EXTRA EXPENSE AND youroperations, in whole or in part, by using EXPEDITING EXPENSE PROVISIONS damaged or undamaged property (including merchandise or stock) at the described location or (1) The amount of loss of revenue loss LMCIT will elsewhere. pay, will be determined based on: (b) Extra expense or expediting expense loss to (a) The gross revenue of the city before the direct the extent you can return youroperations to physical loss or damage occurred; normal and discontinue such extra expense or (b) The likely gross revenue of the city if no expediting expense. physical loss or damage had occurred; However, if you do not resume operations, or do (c) The operating expenses, including payroll not resume operations as quickly as possible, we expenses, necessary to resume operations with the will pay based on the length of time it would have same quality of service that existed just before the taken to resume operations as quickly as possible. direct physical loss or damage; and d. APPRAISAL AND ARBITRATION (d) Other relevant sources of information, Either party may make a written demand for including: arbitration if the city and LMCIT disagree on any of i) Your financial records and accounting the following: LMCIT MPCBP (11/05) (Rev 11/14) Page 12 of 21 COVENANT NUMBER: CMC 38108 (1) The fair market value of covered property prior to agree, either may request that selection be made the loss or damage; by a judge of a court having jurisdiction. The two appointees will each separately state their (2) The fair market value of covered property after the respective estimates of the value or cost which is loss or damage; in question. If they fail to agree, they will submit their differences to the umpire. A decision agreed (3) The fair market value of covered property after to by any two will be binding. repair; or Each party will: (4) The estimated cost to repair the covered property. In this event, each party will select a competent (a) Pay the cost of its own appointee; and and impartial person. Each appointee shall be a professional appraiser or other person with (b) Share equally the expense of the umpire and appropriate professional expertise. The two any other expenses related to the arbitration appointees will select an umpire. If they cannot process. SECTION VII – DEFINITIONS 1. Accounts receivable means: b. Alterations or repair of the city's existing buildingor property in the open. a. All amounts due from your customers that you are unable to collect and there is a loss; c. Addition to the city's existing building or property in the open. b. Interest charges on any loan required to offset amounts you are unable to collect pending our d. Builders risk property also includes: payment of these accounts; (1) Foundation of the building or property in c. Collection expenses in excess of your normal the open in the course of construction or an collection expenses that are made necessary by theaddition to the city's existing building or loss; and property in the open. d. Other reasonable expenses that you incur to re-(2) Materials, equipment, and supplies used establish your records of accounts receivable.for construction, alteration or repair, provided such property is intended to be permanently in e. Accounts receivable does not include: or on the builders risk property; and (1) The amount of the accounts that you are (3) Temporary structures built or assembled able to re-establish or collect; on location, including cribbing, scaffolding and construction forms used in the course of (2) An amount to allow for probable bad construction or alterations or repair of the debts that you are normally unable to collect; builders risk property. and (4) Underground and buried pipes, flues or (3) All unearned interest and service charges. drains, but not including those that are part of the city’s general collection system. 2. Automobile means a land motor vehicle, trailer or semi-trailer designed for travel on public roads. 4. Building means the building including: 3. Builders risk property means: a. Completed additions; a. Building or property in the open in the course b. Permanently installed fixtures, machinery and of construction. equipment; LMCIT MPCBP (11/05) (Rev 11/14) Page 13 of 21 COVENANT NUMBER: CMC 38108 c. Outdoor fixtures; coverage, city includes relief associations. d. Contents owned by you that are used to Unless specifically named in the Declarations, city maintain or service the building or its premises, shall not include: including: a. Gas, electrical, or steam utilities commission; (1) Fire extinguishing equipment; b. Port authority, housing and redevelopment (2) Outdoor furniture; authority, economic development authority, area or municipal redevelopment authority, or similar (3) Floor coverings; and agency; (4) Appliances used for refrigerating, c. Municipal power agency; ventilating, cooking, dishwashing or laundering; or d. Municipal gas agency; e. Water towers; e. Hospital or nursing home board or commission; f. Lift stations, wells or pumping locations; f. Airport commission; g. Electric substations, transformers or cooling towers; g. Welfare or public relief agency; h. Tanks; h. School board; or i. Wastewater lagoons, including: plastic, i. Joint powers entity; but a joint planning board synthetic, clay or other lagoon liners, lagoon rip-created pursuant to an orderly annexation rap and soil/subsoil embankments; agreement or joint resolution between the city and a township is deemed to be a covered joint powers j. Gas reduction or odorizing stations; entity under this agreement. k. Wind Turbines; or 8. Computer equipment means programmable electronic equipment that is used to store, retrieve, l. Underground and buried pipes, flues or drains and process data; and associated peripheral that are part of a geothermal heating and cooling equipment that provides communication including system, or part of the water treatment plant, input and output functions such as printing or wastewater treatment plant, lift station or gas auxiliary functions such as data transmission. reduction station, but not including those that are part of the city’s general collection system. 9. Contents means property located in or on the building described in the Declarations or in the 5. Building/contents, as described in the Schedule of open (or in a vehicle) within 100 feet of the Covered Property, means the following: described building, consisting of the following: a. Building; or a. Furniture and fixtures; b. Contents. b. Machinery and equipment; 6. Business personal effects means personal property c. Stock; of youremployees that is used to maintain the operations of the city. d. All other contents owned by you and used in your municipal operations; 7. City means governmental body or entity first named in the Declarations. For purposes of this e. Labor, materials or services furnished or LMCIT MPCBP (11/05) (Rev 11/14) Page 14 of 21 COVENANT NUMBER: CMC 38108 arranged by you on contents of others; 13. Employee means for actions within his duties as such any former or present: f. Your use interest as tenant in improvements and betterments. Improvements and betterments a. Person whom you compensate directly by are fixtures, alterations, installations or additions: salary, wages or commissions, and who you have the right to direct or control while performing (1) Made a part of the building or structure duties for you; you occupy but do not own; and b. Member of the city council; (2) You acquired or made at your expense but cannot legally remove. c. Member of a city board, commission, or committee which is not excluded by the definition g. Contents of others that are in your care, of city; custody and control. d. Elected or appointed official of the city; However, our payment for loss or damage to contents will be for the account of the owner of the e. Volunteer person or organization while acting property. on behalf of the city and subject to the city's direction and control; h. Trees and shrubs; f. Other authorized person or agent of the city i. Accounts receivable; while acting on behalf of the city, but excludes independent contractors; j. Computer equipment data or media; g. Members, officers, and employees of a city k. Valuable papers and records; relief association. l. Personal effects; or 14. Expeditingexpense means the reasonable extra cost of temporary repair and expediting the repair m. Fine arts. of damaged covered property, overtime and express freight or other rapid means of But, contents does not mean mobile property. transportation. 10. Data security breach means actual or potential 15. Extra expense means the excess total cost unauthorized acquisition of data that: necessarily incurred to continue youroperations as reasonably as practicable during the period of a. Compromises the security, confidentiality, or recovery that is over and above the cost that would integrity of personal information; or normally have been incurred to conduct the operations during the same period had no loss or b. Contains data classified as private or damage occurred. It includes: confidential by the Minnesota Government Data Practices Act. a. Extra expense to avoid or minimize the suspension of business and to continue operations: 11. Electronic data means programmed and recorded material stored on computer equipment or (1) At the described location; or electronic media, and programming records used for electronic data processing, or electronically (2) At a replacement location or at temporary controlled equipment. Electronic data is not locations, including: tangible property. (a) Relocation expenses; and 12. Electronic media means electronic data processing or storage media such as films, tapes, discs, drums (b) Costs to equip and operate the or cells. replacement or temporary locations. LMCIT MPCBP (11/05) (Rev 11/14) Page 15 of 21 COVENANT NUMBER: CMC 38108 b. Extra expense to minimize the suspension of a. To receive and expend funds; business if you cannot continue operations. b. To enter into contracts; c. Extra expense to: c. To hire employees; (1) Repair or replace any covered property; or d. To purchase or otherwise acquire or hold real (2) Research, replace or restore the lost or personal property; or information on damaged valuable papers and e. To sue or be sued. records; 21. LMCIT means the League of Minnesota Cities to the extent it reduces the amount of loss that Insurance Trust. otherwise would have been payable under this covenant. 22. Location means: 16. Fine arts means property or articles of artistic or a. The site of any covered building/contents, historical value including paintings, etchings, property in the open, or builders risk property; or pictures, tapestries, statuary, marbles, bronzes, porcelain, rare glass, antique silver, china, books b. The site of any covered newly acquired or and manuscripts, rugs and similar articles. constructed building/contents or property in the open; 17. Golf course property means bridges, paved roadways, paved cart paths and other paved 23. Lossofrevenue means gross revenue, including surfaces, shelters, restrooms, ball washers, screens, rental value, less charges and expenses that do not flags, markers, signs, tees, irrigation systems necessarily continue. including underground components, fairways and greens. 24. Mobile property means: 18. Green means products, materials, methods and a. Machinery or equipment designed for use processes certified by a GreenAuthority that principally off public roads; conserve natural resources, reduce energy or water consumption, avoid toxic or otherwise b. Police dogs; environmental impact. c. Vehicles maintained for use solely on or next 19. GreenAuthority means an authority on green to locations owned or rented by you and not buildings, products, materials, methods or licensed for highway use; processes that is certified and accepted by Leadership in Energy and Environmental Design d. A vehicle and its equipment whether self- (LEED), Green Building Initiative Green Globes, propelled or not, maintained primarily to provide Energy Starr Rating System or any other mobility to permanently mounted equipment; recognized green rating system. e. Tools, including protective clothing and gear, 20. Joint powers entity means an operating entity and other similar property; created by two or more governmental units entering into an agreement as provided by statute f. Business personal effects; or for the joint exercise of governmental powers. An intergovernmental agreement will be deemed to g. Mobile property in your care, custody and create a joint powersentity if the agreement control. establishes a board with the effective power to do any of the following, regardless of whether the 25. Newly acquired or constructed means that the city specific consent of the constituent governmental has acquired or taken possession of the property units may also be required: during the current covenant period. LMCIT MPCBP (11/05) (Rev 11/14) Page 16 of 21 COVENANT NUMBER: CMC 38108 26. Occurrence means an accident or event that causes a. Social Security number. a direct physical loss or damage to covered b. Driver’s license number or Minnesota property. Any continuous accident or event that identification card number. causes more than one direct physical loss or damage tocovered property during a 72 hour c. Account number or credit or debit card period constitutes an accident or event as a single number, in combination with any required security occurrence. code, access code, or password that would permit access to an individual's financial account. 27. Operations means: 32. Pollutants means any solid, liquid, gaseous or a. Yourcity activities occurring at the described thermal irritant or contaminant, including smoke, location; or vapor, soot, fumes, acids, alkalis, chemicals and b. The tenantability of the described location.waste. Waste includes materials to be recycled, reconditioned or reclaimed. 28. Our means the League of Minnesota Cities Insurance Trust. 33. Property in theopen means: 29. Period of recovery means the period of time that: a. Benches, fences, light poles or outdoor lighting systems, playground equipment, sports and a. Begins immediately after the time of direct recreational apparatus, picnic tables, grills, statues, physical loss or damage to covered property. monuments, portable toilets, water fountains, garbage cans, flagpoles, and signs that are not part b. Ends on the earlier of: of the building; or (1) The date covered property is actually b. Golf course property. repaired, rebuilt or replaced and operations are resumed; and youroperations would generate Unless, if otherwise endorsed, propertyin the the loss of revenue amount that would have open does not mean basketball and tennis court existed if no direct physical or damage had surfaces, fire hydrants, street signs, street lights or occurred; or traffic signs or signals, or any property described in SECTION I, 1.b., PROPERTY NOT (2) 60 consecutive days after the date when COVERED. the covered property is actually repaired, rebuilt or replaced and operations are 34. Rental value means the sum of: resumed. a. The total anticipated gross rental income from However, the expiration date of the covenant will tenant occupancy of the covered property as not cut short the period of recovery. furnished and equipped by you; and 30. Personal effects means personal property of your b. The amount of all continuing charges that are employees, other than business personal effects. the legal obligation of the tenant and that would otherwise be your obligation; and 31. Personal information means an individual’s first name or first initial and last name in combination c. The fair rental value of any portion of the with any one or more of the following data covered property that you occupy. elements, when the data element is not secured by encryption or another method of technology that 35. Specific property limit means 150% of the makes electronic data unreadable or unusable, or estimated replacement cost of the covered property was secured and the encryption key, password, or as stated in the Schedule of Covered Property. other means necessary for reading or using the 36. Specified causes of loss means fire; lightning; data was also acquired: explosion; windstormor hail; smoke; aircraft or LMCIT MPCBP (11/05) (Rev 11/14) Page 17 of 21 COVENANT NUMBER: CMC 38108 vehicles; riot or civil commotion; vandalism; c. Utility generation plants, switching plants, arson; criminal acts other than vandalism or arson; substations, transformers, and transmission lines leakage or discharge from fire extinguishing supplying electricity, steam or gas. equipment; sinkhole collapse; volcanic action; 40. Vacant property means: falling objects; weight of snow, ice or sleet; or water damage: a. Property owned by the city is deemed to be vacant property if for a period of 60 consecutive a. Sinkhole collapse means the sudden sinking or days less than 31% of the building’s total square collapse of land into underground empty spaces footage is either used by the city for customary created by the action of water on limestone or operations or is leased out. dolomite. This cause of loss does not include: b. Property rented or leased to the city is deemed (1) The cost of filling sinkholes; or to be vacant property if for a period of 60 (2) Sinking or collapse of land into man-made consecutive days the property does not contain underground cavities. enough contents to conduct customary operations. b. Falling object does not include loss or damage However, the following are not considered vacant to: property: (1) Property in the open; or (1) Builders risk property; or (2) The interior of a building or property (2) A building which is used and occupied, inside a building unless the roof or an outside and which is designed to be used and wall of the building is first damaged by a occupied, on an occasional, intermittent, or falling object. seasonal basis. c. Water damage means accidental discharge or 41. Valuable papers and records means inscribed, leakage of water or steam from any part of a printed or written documents, manuscripts or system or appliance containing water or steam. records, including abstracts, books, deeds, drawings, films, maps and mortgages. 37. Stock means merchandise held in storage or for sale, raw materials and in process or finished But valuable papers and records does not mean goods, including supplies used in their packing or money or securities, converted data, programs or shipping. instructions used in your data processing operations, including the materials on which the 38. Us means the League of Minnesota Cities data is recorded. Insurance Trust. 42. We means the League of Minnesota Cities 39. Utility service property means any of the Insurance Trust. following types of property supplying water, communication service or power to covered 43. You means the city shown in the Declarations. property: 44. Your means the city shown in the Declarations. a. Pumping stations or water mains supplying water; b. Equipment supplying communication services; or LMCIT MPCBP (11/05) (Rev 11/14) Page 18 of 21 COVENANT NUMBER: CMC 38108 SECTION VIII - CONDITIONS The United States of America (including its 1. CONTROL OF PROPERTY territories and possessions); Any act or neglect of any person other than you (1) Puerto Rico; and beyond your direction or control will not affect this coverage. (2) Canada. The breach of any condition of this coverage part at 6. LOSS CONDITIONS any one or more locations will not affect coverage at any location where, at the time ofloss or damage, the a. Abandonment: breach of condition does not exist. You cannot abandon your property to us. 2. COVERAGE UNDER TWO OR MORE COVERAGES b. Duties in the event of loss or damage: If two or more of this covenant's coverages apply to You must see that the following are done in the the same loss or damage, we will not pay more than event of lossor damage to covered property: the actual amount of thelossor damage. (1) Notify the police if a law may have been 3. LEGAL ACTION AGAINST US broken. No one may bring legal action against us under this (2) Give us prompt notice of the loss or damage. coverage part unless: Include a description of the property involved. a. There has been full compliance with all of the terms of the coverage part; and (3) As soon as possible, give us a description of how, when and where the loss or damage b. The action is brought within 2 years after the date occurred. on which the direct physical loss or damage occurred. (4) Take all reasonable steps to protect the covered property from further damage. If feasible, 4. NO BENEFIT TO BAILEE set the damaged property aside and in the best possible order for examination. Also keep record No person or organization, other than you, having of your expenses, for consideration in the custody of covered property will benefit from this settlement of the claim. coverage. (5) At our request, give us complete inventories 5. COVERAGE PERIOD, COVERAGE of the damaged and undamaged property. Include TERRITORY quantities, costs, values, and amount claim of loss demand. Under this coverage part: (6) Permit us to inspect the property and records a. We cover loss or damage commencing: proving the loss or damage. (1) During the coverage period shown in the (7) If requested, permit us to question you under Declarations; and oath at such times as may be reasonably required about any matter relating to this covenant or your (2) Within the coverage territory. claim, including your books and records. In such event, your answers must be signed. b. The coverage territory is: LMCIT MPCBP (11/05) (Rev 11/14) Page 19 of 21 COVENANT NUMBER: CMC 38108 (8) Send us a signed, sworn statement of loss Covered Mobile Property. containing the information we request to settle the c. The initial annual premiums will be based upon claim. You must do this within 60 days after our these schedules and the appropriate replacement request. We will supply you with the necessary cost values. forms. d. You will pay us additional premium if the (9) Cooperate with us in the investigation or following property is added during the covenant settlement of the claim. period: However, LMCIT will not reimburse you for your (1) Building/contents or property in the open with payment of costs, fees, or other expenses you incur in a replacement cost value of greater than establishing either the existence or the amount of loss $5,000,000; under this covenant. (2) Mobile property with a replacement cost value c. Loss Payment: of greater than $500,000; (1) We will give notice of our intentions within 30 (3) Builders risk property with a project cost of days after we receive the sworn statement of loss. greater than $2,000,000; or (2) We may adjust losses with the owners of lost (4) Additional covered loss or damage limits, or or damaged property if other than you. If we pay property sublimits. the owners, such payments will satisfy your claims against us for the owners’ property. We will not e. We will return premium to you if the following pay the owners more than their financial interest in property is deleted during the covenant period: the covered property. (1) Building/contents or property in the open with d. Recovered Property: a replacement cost value of greater than $5,000,000; If either you or we recover any property after loss settlement, that party must give the other prompt (2) Mobile property with a replacement cost value notice. At your option, the property will be of greater than $500,000; returned to you.You must then return to us the amount we paid to you for the property. We will (3) Builders risk property with a project cost of pay recovery expenses and the expenses to repair greater than $2,000,000; or the recovered property, subject to the amount applying under this covenant. (4) Additional covered loss or damage limits, or property sublimits. 7. PREMIUMS AND PREMIUM ADJUSTMENTS 8. CANCELLATION a. You agree to furnish us with a schedule of a. You may cancel Part One of this covenant. You buildings/contents,property in the open and must mail or deliver not fewer than 30 days mobile property valued at greater than $25,000, advance written notice to us stating when the and builders risk property prior to the beginning of cancellation is to take effect. each covenant period. b. We may cancel Part One of this covenant. We must b. These schedules must include all buildings/ mail or deliver to you not fewer than 30 days contents,property in the open and mobile property advance written notice stating when the valued at greater than $25,000, and builders risk cancellation is to take effect. Mailing that notice property that was covered by your prior covenant to you at your mailing address shown in the but was not described in the prior covenant's Declarations will be sufficient to prove notice. Schedule of Covered Property or Schedule of However, we may cancel with 10 days written LMCIT MPCBP (11/05) (Rev 11/14) Page 20 of 21 COVENANT NUMBER: CMC 38108 notice for nonpayment of premium. the amount we pay; and c. The covenant period will end on the day and hour (2) The mortgage holder’s right to recover the full stated in the cancellation notice. amount of the mortgage holder’s claim will not be impaired. At our option, we may pay to the d. If Part One of this covenant is canceled, we will mortgage holder the whole principal on the send you any premium refund due. If we cancel, mortgage plus any accrued interest. In this event, the refund will be pro rata. If you cancel, the your mortgage and note will be transferred to us refund may be less than pro rata, computed in and you will pay your remaining mortgage debt to accordance with our current cancellation rules. us. The cancellation will be effective even if we have not made or offered a refund. f. If we cancel this covenant, we will give written notice to the mortgage holder at least: 9. MORTGAGE HOLDERS (1) 10 days before the effective date of cancellation if we cancel for your nonpayment of a. The term mortgage holder includes trustee. premium; or b. We will pay for covered loss of or damage to (2) 30 days before the effective date of buildings to each mortgage holder shown in the cancellation if we cancel for any other reason. Declarations in their order of precedence, as interests may appear. g. If we do not renew this covenant, we will give written notice to the mortgage holder at least 10 c. The mortgage holder has the right to receive loss days before the expiration date of this covenant. payment even if the mortgage holder has started foreclosure or similar action on the building. 10. DEDUCTIBLES d. If we deny your claim because of your acts or because you have failed to comply with the terms a. The Limits of Coverage shown in the Declarations of this coverage part, the mortgage holder will still apply to the amount of loss or damages in excess have the right to receive loss payment if theof the Municipal Property Deductible shown in the mortgageholder: Municipal Property, Crime, Bond, Petrofund and Equipment Breakdown Declarations or the (1) Pays any premium due under this coverage General Annual Aggregate Deductible, if any, part at our request if you have failed to do so; shown in the Common Coverage Declarations, and the Limits of Coverage will not be reduced by the (2) Submits a signed, sworn proof ofloss within Deductible amount. 60 days after receiving notice from us of your failure to do so; and b. LMCIT shall be liable to the city or to others on behalf of the city only to the amount of loss or (3) Has notified us of any change in ownership, damages in excess of any deductible amounts. occupancy or substantial change in risk known to the mortgage holder. We will then pay the amount of loss up to the applicable limit of coverage. All of the terms of this coverage part will then apply to themortgage holder. e. If we pay the mortgage holder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this coverage part: (1) The mortgage holder’s rights under the mortgage will be transferred to us to the extent of LMCIT MPCBP (11/05) (Rev 11/14) Page 21 of 21 COVENANT NUMBER: CMC 38108 MUNICIPAL CRIME COVERAGE PART TWO LMCIT MPCBP (11/05) (Rev.11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND ITINDEX CRIME COVERAGE - PART TWO PAGE SECTION I - COVERAGE AGREEMENT...............................................................................................1 SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED...........................................1-2 SECTION III - LIMITS OF COVERAGE.................................................................................................2 SECTION IV - DEFINITIONS..................................................................................................................2-4 SECTION V - CONDITIONS....................................................................................................................4-6 LMCIT MPCBP (11/05) (Rev.11/14) Page i COVENANT NUMBER: CMC 38108 MUNICIPAL CRIME COVERAGE PART TWO Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning, as given in SECTION IV - DEFINITIONS. duties and what is or is not covered. SECTION I - COVERAGE AGREEMENT If you are sued for refusing to pay any instrumentof 1. THEFT, DISAPPEARANCE, AND payment, we will pay any reasonable legal expenses DESTRUCTION that you incur and pay in that defense. The amount we pay will be in addition to the applicable limit of We will pay for loss of money and securities resulting coverage. directly from theft, disappearance, or destruction. 3. AUDITING AND ACCOUNTING COSTS We will pay the loss of, and loss from damage to, the property that contains the money and securities; and We will reimburse you for reasonable auditing and loss from damage to the premises resulting directly accounting costs you incur to establish the existence from the theft or attempted theft. and the amount of a covered loss, but in no case will this reimbursement exceed 25% of the amount of the 2. FORGERY OR ALTERATION covered loss. This reimbursement is in addition to the coverage limit. We will pay for loss involving instruments of payment resulting directly from the forgery or alteration of, on or in any instrumentsof payment. SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED We will not pay for loss or damages as specified 4. GOVERNMENTAL ACTION below: Loss resulting from seizure or destruction of property 1. ACCOUNTING OR ARITHMETICAL by order of governmental authority. ERRORS OR OMISSIONS 5. INDIRECT LOSS Loss resulting from accounting or arithmetical errors Loss that is an indirect result of any act or occurrence and omissions. covered by this covenant including, but not limited to, loss resulting from: 2. ACTS OF EMPLOYEES a. Your inability to realize income that you would Loss resulting from any dishonest or criminal act have realized had there been no loss of, or loss committed by any of your employees: from damage to, money and securities; or instruments of payment. a. Acting alone or in collusion with other persons; or b. Payment of damages of any type for which you are b. While performing services for you or otherwise. legally liable. 3. FIRE But, we will pay compensatory damages arising directly from a loss covered under this covenant. Loss or damage to the premises resulting from fire, however caused. LMCIT MPCBP (11/05) (Rev.11/14) Page 1 of 6 COVENANT NUMBER: CMC 38108 containers of money and securities by vandalism or c. Except as provided by SECTION I – malicious mischief. COVERAGE AGREEMENT, 3. AUDITING AND ACCOUNTING COSTS, payment of costs, 9. WAR fees, or other expenses you incur in establishing either the existence or the amount of loss under Loss resulting from: this covenant. a. War, including undeclared or civil war; 6. LEGAL EXPENSES b. Warlike action by a military force, including Expenses related to any legal action. action in hindering or defending against an actual or expected attack, by any government, sovereign 7. NUCLEAR HAZARD or other authority using military personnel or other agents; or Loss resulting from nuclear reaction or radiation, or radioactive contamination, however caused. c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in 8. VANDALISM hindering or defending against any of these. Loss from damage to the premises or its exterior or to SECTION III - LIMITS OF COVERAGE 1. The most we will pay in any one occurrence is the unless the amount of loss exceeds the Deductible applicable limit of coverage shown in the amount shown in the Declarations. We will then Declarations. pay the amount of loss in excess of the Deductible amount, up to the limit of coverage. 2. We will not pay for loss in any one occurrence SECTION IV - DEFINITIONS 1. City means the governmental body or entity first h. Airport commission; or named in the Declarations. For purposes of this i. Joint powers entity; but a joint planning board coverage, city includes relief associations. Unless created pursuant to an orderly annexation specifically named in the Declarations, city shall agreement or joint resolution between the city and not include: a township is deemed to be a covered joint powers a. Gas, electrical, or steam utilities commission; entity under this agreement. b. Port authority, housing and redevelopment 2. Employee means for actions within his duties as authority, economic development authority, area such, any present or former: or municipal redevelopment authority, or similar a. Person whom you compensate directly by agency; salary, wages or commissions and who you have c. Municipal power agency; the right to direct or control while performing duties for you; d. Municipal gas agency; b. Member of the city council; e. Hospital or nursing home board or commission; c. Member of a city board, commission, or f. Welfare or public relief agency; committee which is not excluded by the definition of city; g. School board; LMCIT MPCBP (11/05) (Rev.11/14) Page 2 of 6 COVENANT NUMBER: CMC 38108 d. Elected or appointed official of the city;b. Travelers checks, register checks and money orders held for sale to the public. e. Volunteer person or organization while acting on behalf of the city and subject to the city’s 7.Occurrence means: direction and control; a. With respect to SECTION I - COVERAGE f. Other authorized person or agent of the city AGREEMENT, 1. while acting on behalf of the city, but excludes (1) Act or series of related acts involving one independent contractors; or more persons; or g. Members, officers, and employees of a city (2) Act or event, or series of related acts or relief association. events not involving any person. 3.Instruments of payment means checks, drafts, b. With respect to SECTION I - COVERAGE promissory notes or similar written promises, AGREEMENT, 2., all loss caused by any person orders or directions to pay a sum certain in money, or in which that person is involved, whether the that are: loss involves one or more instruments of payment. a. Made or drawn by or drawn upon you; or The date of the occurrence is the date on which b. Made or drawn by one acting as your agent; or the act, event or loss is alleged to have taken place. that are purported to have been so made or drawn. If the loss or damages are alleged to have arisen from a series of acts or events, the date of 4.Joint powers entity means an operating entity occurrence is deemed to be the date when the first created by two or more governmental units such wrongful act or event took place or is alleged entering into an agreement as provided by statute to have taken place. for the joint exercise of governmental powers. An intergovernmental agreement will be deemed to 8.Our means the League of Minnesota Cities create a jointpowersentity if the agreement Insurance Trust. establishes a board with the effective power to do 9. Premises means the interior of that portion of any any of the following, regardless of whether the building you occupy in conducting your business. specific consent of the constituent governmental units may also be required: 10. Securities means negotiable and nonnegotiable instruments or contracts representing either money a. To receive and expend funds; or other property and includes: b. To enter into contracts; a. Tokens, tickets, revenue and other stamps c. To hire employees:(whether represented by actual stamps or unused value in a meter) in current use; and d. To purchase or otherwise acquire and hold real or personal property; or b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued e. To sue or be sued. by you; 5.LMCIT means the League of Minnesota Cities but does not include money. Insurance Trust. 11. Theft means any act of stealing. 6.Money means: 12. Us means the League of Minnesota Cities a. Currency, coins, and bank notes in current use Insurance Trust. and having a face value; and 13. We means the League of Minnesota Cities LMCIT MPCBP (11/05) (Rev.11/14) Page 3 of 6 COVENANT NUMBER: CMC 38108 Insurance Trust. 15. Your means the city shown in the Declarations. 14. You means the city shown in the Declarations. SECTION V - CONDITIONS a. You own or hold; or 1. COVENANT PERIOD b. For which you are legally liable. a. The covenant period is shown in the Declarations. However, this covenant is for your benefit only. It b. Subject to the loss sustained during prior insurance provides no rights or benefits to any other person or condition, we will pay only for loss that you organization. sustain through acts committed or events occurring during the covenant period. 5. LEGAL ACTION AGAINST US 2. DISCOVERY PERIOD FOR LOSS You may not bring any legal action against us involving loss: We will pay only for covered loss discovered no later than one year from the end of the covenant period. a. Unless you have complied with all the terms of this covenant; and 3. DUTIES IN THE EVENT OF LOSS b. Until 90 days after you have filed proof of loss After you discover a loss or a situation that may result with us; and in loss of, or loss from damage to, money and securities; or instruments of payment, you must: c. Unless brought within 2 years from the date you discover the loss. a. Notify us as soon as possible. 6. LOSS COVERED UNDER MORE THAN b. Submit to examination under oath at our request and give us a signed statement of your answers. ONE COVERAGE OF THIS COVENANT c. Give us a detailed, sworn proof of loss within 120 If two or more coverages of this covenant apply to the days. If the loss was due to forgery or alteration, same loss, we will pay the lesser of: you must include with your proof of loss any a. The actual amount of loss; or instrument involved in that loss; or if that is not possible, you must give us an affidavit setting b. The sum of the limits of coverage applicable to forth the amount and cause of loss. that loss. d. Cooperate with us in the investigation and 7. LOSS COVERED UNDER THIS settlement of any claim. COVENANT AND PRIOR COVENANT e. If you have reason to believe that any loss of, or ISSUED BY US loss from damage to, money or securities involves a violation of law, you must notify the police. If any loss is covered: 4. INTERESTS COVERED a. Partly by this covenant; and Coverage provided by this covenant is limited to b. Partly by the prior canceled or terminated money and securities; and instruments of payment; and covenant that we had issued to you or any damages to property or premises, as described under predecessor in interest, the most we will pay is the SECTION I - COVERAGE AGREEMENT, 1., that: larger of the amount recoverable under this covenant or the prior covenant. LMCIT MPCBP (11/05) (Rev.11/14) Page 4 of 6 COVENANT NUMBER: CMC 38108 You must keep records of all money and securities; and 8. LOSS SUSTAINED DURING PRIOR instruments of payment, so we can verify the amount INSURANCE of any loss. a. If you or any predecessor in interest sustained loss 12. TERRITORY during the period of any prior insurance that you or the predecessor in interest could have recovered a. This covenant covers theft, disappearance, or under that insurance, except that the time within destruction of money or securities only from acts which to discover loss had expired, we will pay for committed or events occurring within the United it under this covenant provided: States of America, U.S. Virgin Islands, Puerto Rico, Canal Zone, or Canada, and while (1) This covenant became effective at the time of temporarily outside this territory for a period of cancellation or termination of the prior insurance; not more than 90 days. and b. This covenant covers loss you sustain from forgery (2) The loss would have been covered by this or alteration anywhere in the world. covenant had it been in effect when the acts or events causing the loss were committed or 13. VALUATION - SETTLEMENT occurred. a. Subject to the applicable limit of coverage b. The coverage under this condition is part of, not in provision, we will pay for: addition to, the limits of coverage applying to this covenant and is limited to the lesser of the amount (1) Loss of money, but only up to and including recoverable under: its face value. We may, at our option, pay for loss of money issued by any country other than the (1) This covenant as of its effective date; or United States of America: (2) The prior insurance had it remained in effect. (a) At face value in the money issued by that country; or 9. NON-CUMULATION OF LIMIT OF COVERAGE (b) In the United States of America dollar equivalent determined by the rate of exchange Regardless of the number of years this covenant on the day the loss was discovered. remains in force or the number of premiums paid, no limit of coverage cumulates from year to year or (2) Loss of securities,but only up to and period to period. including their value at the close of business on the day the loss was discovered, we may, at our 10. OTHER INSURANCE option: This covenant does not apply to loss recoverable or (a) Pay the value of such securities or replace recovered under other insurance or indemnity. them in kind, in which event you must assign to us all your rights, title and interest in and to However, if the limit of the other insurance or those securities; indemnity is insufficient to cover the entire amount of the loss, this covenant will apply to that part of the (b) Pay the cost of any Lost Securities Bond loss, other than that falling within any Deductible required in connection with issuing duplicates amount, not recoverable or recovered under the other of the securities. However, we will be liable insurance or indemnity. However, this covenant will only for the payment of so much of the cost of not apply to the amount of loss that is more than the the bond as would be charged for a bond applicable limit of coverage shown in the having a penalty not exceeding the lesser of Declarations. the: 11. RECORDS LMCIT MPCBP (11/05) (Rev.11/14) Page 5 of 6 COVENANT NUMBER: CMC 38108 i) Value of the securities at the close of business on the day the loss was discovered; or ii) Limit of coverage. (3) Loss from damages to property or premises, as described under SECTION I - COVERAGE AGREEMENT, 1., for not more than the: (a) Actual cash value of the property on the day the loss was discovered; (b) Cost of repairing the property or premises; or (c) Cost of replacing the property with property of like kind and quality. We may, at our option, pay the actual cash value of the property or repair or replace it. If we cannot agree with you upon the actual cash value or the cost of repair or replacement, the value or cost will be determined by arbitration. b. We may, at our option, pay for loss of, or loss from damage to, property other than money: (1) In the money of the country in which the loss occurred; or (2) In the United States of America dollar equivalent of the money of the country in which the loss occurred determined by the rate of exchange on the day the loss was discovered. c. Any property that we pay for or replace becomes our property. 14. FACSIMILE SIGNATURES: We will treat mechanically reproduced facsimile signatures the same as handwritten signatures. LMCIT MPCBP (11/05) (Rev.11/14) Page 6 of 6 COVENANT NUMBER: CMC 38108 MUNICIPAL BOND COVERAGE PART THREE LMCIT MPCBP (11/05)(Rev.11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND ITINDEX BOND COVERAGE - PART THREE PAGE SECTION I – BOND COVERAGE.....................................................................................................1 SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED.......................................1-2 SECTION III - LIMITS OF COVERAGE..........................................................................................2 SECTION IV - DEFINITIONS........................................................................................................2-3 SECTION V - CONDITIONS..........................................................................................................4-5 LMCIT MPCBP (11/05)(Rev.11/14)Page i COVENANT NUMBER: CMC 38108 MUNICIPAL BOND COVERAGE PART THREE Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning, as given in SECTION IV - DEFINITIONS. duties and what is or is not covered. SECTION I – BOND COVERAGE (3) Coverage provided by another insurance company. 1.COVERAGE AGREEMENT a. We will pay for loss or damages from the failure of c. We will reimburse you for reasonable auditing and youremployee to properly perform duties or accounting costs you incur to establish the existence obligations of his or her positions as required or and the amount of a covered loss, but in no case will prescribed by law and which would constitute this reimbursement exceed 25% of the amount of the malfeasance, willful neglect of duty or bad faith, covered loss. This reimbursement is in addition to the sustained through acts committed or events occurring coverage limit. at any time and discovered by you during the covenant 2. DISCOVERY period. Discovery of loss occurs when you first become aware b. We will pay for other loss or damages required to of facts which would cause a reasonable person to be covered under Minnesota Statute §574.24 that are assume that a loss covered by this covenant has been not otherwise covered by the following: or will be incurred, even though the exact amount of (1) 1. COVERAGE AGREEMENT, a., as described details of loss may not then be known. Discovery also above; occurs when you receive notice of an actual or potential claim against you alleging facts that if true (2) Other coverage provided by LMCIT; or would constitute a covered loss under this covenant. SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED We will not pay for loss damages as specified below: a. An inventory computation; or b. A profit and loss computation. 1. GOVERNMENTAL ACTION Loss resulting from seizure or destruction of property However, where you establish wholly apart from such by order of governmental authority. computations that you have sustained a loss, then you may offer your inventory records and actual physical 2. INABILITY TO REALIZE INCOME count of inventory in support of the amount of loss claimed. Loss that is resulting from y our inability to realize income that you would have realized had there been no 4. LEGAL EXPENSES loss. Expenses related to any legal action. 3. INVENTORY SHORTAGES 5. NUCLEAR Loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: Loss resulting from nuclear reaction or radiation, or radioactive contamination, however caused. LMCIT MPCBP (11/05) (Rev. 11/14) Page 1 of 5 COVENANT NUMBER: CMC 38108 expected attack, by any government, sovereign or 6. WAR other authority using military personnel or other Loss resulting from: agents; or a. War, including undeclared or civil war; c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering b. Warlike action by a military force, including or defending against any of these. action in hindering or defending against an actual or SECTION III - LIMITS OF COVERAGE 1.The most we will pay for loss or damages in for loss or damages in any one occurrence any one occurrence, as described in SECTION unless the amount of loss or damages exceeds I – BOND COVERAGE, 1.a., is the applicable the Deductible amount shown in the limit of coverage shown in the Declarations. Declarations. 2.The most we will pay for loss or damages, as b. For third party claims, we may pay any part described in SECTION I – BOND or all of the Deductible amount shown in the COVERAGE, 1.b., is 10% of the applicable Declarations to effect settlement of any claim limit of coverage shown in the Declarations. and upon notification of the action taken, you This sublimit is per occurrence and is part of, shall promptly reimburse LMCIT for such part of and not in addition to, the applicable limit of the deductible amount as paid by us. coverage shown in the Declarations. c.In the event of a covered loss to the city 3.We will not pay more than the amount of loss relief association, port authority or economic or damages that exceeds the Deductible development authority, LMCIT will reimburse amount, as shown in the Declarations. We will the city relief association, port authority, or then pay the amount of loss or damages up to economic authority in full subject to the bond the limit of coverage shown in the coverage limit. The city shown in the Declarations. declarations will reimburse LMCIT for any deductible which applies to the loss. a. For claims that you make, we will not pay SECTION IV - DEFINITIONS 1. City means the governmental body or entity first e. Hospital or nursing home board or named in the Declarations. For purposes of this commission; coverage, city includes relief associations. f. Welfare or public relief agency; Unless specifically named in the Declarations, city shall not include: g. School board; a. Gas, electrical, or steam utilities commission; h. Airport commission; or b. Port authority, housing and redevelopment i. Joint powers entity; but a joint planning authority, economic development authority, area board created pursuant to an orderly annexation or municipal redevelopment authority, or similar agreement or joint resolution between the city and agency; a township is deemed to be a covered joint powers entity under this agreement. c. Municipal power agency; 2. Employee means for actions within his duties as d. Municipal gas agency; LMCIT MPCBP (11/05) (Rev. 11/14) Page 2 of 5 COVENANT NUMBER: CMC 38108 such, any present or former: 5. Money means: a. Person whom you compensate directly by a. Currency, coins, and bank notes in current salary, wages or commissions and who you have use and having a face value; and the right to direct or control while performing b. Travelers checks, register checks and money duties for you; orders held for sale to the public. b. Member of the city council; 6. Occurrence means all loss caused by an c. Member of a city board, commission, or employee, whether the result of a single act or committee which is not excluded by the series of acts. definition of city; The date of the occurrence is the date on which d. Elected or appointed official of the city;the single act is alleged to have taken place. If the loss or damages are alleged to have arisen e. Volunteer person or organization while from a series of acts, the date of occurrence is acting on behalf of the city and subject to the deemed to be the date when the first such city’s direction and control; wrongful act took place or is alleged to have taken place. f. Other authorized person or agent of the city while acting on behalf of the city, but excludes 7. Our means the League of Minnesota Cities independent contractors; Insurance Trust. g. Members, officers and employees of a city 8. Property other than money and securities means relief association. any tangible property that has intrinsic value. 3. Joint powers entity means an operating entity 9. Securities means negotiable and nonnegotiable created by two or more governmental units instruments or contracts representing either entering into an agreement as provided by statute money or other property and includes: for the joint exercise of governmental powers. An intergovernmental agreement will be deemed a. Tokens, tickets, revenue and other stamps to create a joint powers entity if the agreement (whether represented by actual stamps or unused establishes a board with the effective power to do value in a meter) in current use; and any of the following, regardless of whether the b. Evidences of debt issued in connection with specific consent of the constituent governmental credit or charge cards, which cards are not issued units may also be required: by you; a. To receive and expend funds; but does not include money. b. To enter into contracts; 10. Us means the League of Minnesota Cities c. To hire employees;Insurance Trust. d. To purchase or otherwise acquire and hold 11. We means the League of Minnesota Cities real or personal property; or Insurance Trust. e. To sue or be sued. 12. You means the city shown in the Declarations. 4. LMCIT means the League of Minnesota Cities 13. Your means the city shown in the Declarations. Insurance Trust. LMCIT MPCBP (11/05) (Rev. 11/14) Page 3 of 5 COVENANT NUMBER: CMC 38108 SECTION V - CONDITIONS days. 1. CANCELLATION AS TO ANY EMPLOYEE We reserve the right to cancel the covenant as to any d. Cooperate with us in the investigation and employee:settlement of any claim. a. Immediately upon discovery by you or any official Except as provided by SECTION 1-BOND or employee authorized to manage, govern or COVERAGE, 1.c., LMCIT will not reimburse you for control youremployee, of any act on the part of an your payment of costs, fees, or other expenses you employee whether before or after becoming incur in establishing the existence or the amount of employed by you which would constitute a loss loss under this covenant. covered under the terms of this covenant. 5. INDEPENDENT RIGHT OF RECOVERY b. On the date specified in a notice mailed to you. We have an independent right of recovery against any That date will be at least 30 days after the date of employee for any loss due to the employee's mailing. negligence, malfeasance, willful neglect of duty or bad The mailing of notice to you at the last mailing faith. address known to us will be sufficient proof of 6. LEGAL ACTION AGAINST US notice. Delivery of notice is the same as mailing. You may not bring any legal action against us 2. COVENANT PERIOD involving loss: The covenant period is shown in the Declarations. a. Unless you have complied with all the terms of this covenant; and 3. EXTENDED DISCOVERY PERIOD FOR LOSS b. Until 90 days after you have filed proof of loss We will pay for loss sustained prior to the effective with us; and date of termination or cancellation of this covenant, c. Unless brought within 2 years from the date you which is discovered by you no later than one year from discover the loss. the date of that termination or cancellation; but this extended period to discover loss terminates 7. LOSS COVERED UNDER MORE THAN immediately upon the effective date of any other ONE COVERAGE OF THIS COVENANT coverage or insurance obtained by you replacing in whole or in part the coverage afforded under this If two or more coverages of this covenant apply to the covenant, whether or not such other coverage or same loss, we will pay the lesser of: insurance provides coverage for loss sustained prior to its effective date. a. The actual amount of loss; or 4. DUTIES IN THE EVENT OF LOSS b. The sum of the limits of coverage applicable to that loss. After you discover a loss or a situation that may result in loss as provided by this coverage, you must: 8. NON-CUMULATION OF LIMIT OF COVERAGE a. Notify us as soon as possible. Regardless of the number of years this covenant b. Submit to examination under oath at our request remains in force or the number of premiums paid, no and give us a signed statement of your answers. limit of coverage cumulates from year to year or period to period. c. Give us a detailed, sworn proof of loss within 120 LMCIT MPCBP (11/05) (Rev. 11/14) Page 4 of 5 COVENANT NUMBER: CMC 38108 them in kind, in which event you must assign 9. OTHER INSURANCE to us all your rights, title and interest in and to This covenant does not apply to loss recoverable or those securities; recovered under other insurance or indemnity. However, if the limit of the other insurance or (b) Pay the cost of any Lost Securities Bond indemnity is insufficient to cover the entire amount of required in connection with issuing duplicates the loss, this covenant will apply to that part of the of the securities. loss, other than that falling within any Deductible However, we will be liable only for the amount, not recoverable or recovered under the other payment of so much of the cost of the bond as insurance or indemnity. However, this covenant will would be charged for a bond having a penalty not apply to the amount of loss that is more than the not exceeding the lesser of the: applicable limit of coverage shown in the Declarations. i) Value of the securities at the close of business on the day the loss was 10. RECORDS discovered; or You must keep records of all money,securities, and ii) Limit of coverage. propertyotherthanmoneyandsecurities; and provide any other reasonably obtainable information so we can (c) Loss of, or loss from damage to, property verify the amount of any loss. other than money and securities, or loss from damage to the premises for not more than the: 11. TERRITORY i) Actual cash value of the property on This covenant covers only acts committed or events the day the loss was discovered; occurring within the United States of America, U.S. Virgin Islands, Puerto Rico, Canal Zone, or Canada ii) Cost of repairing the property or and while temporarily outside this territory for a premises; or period not more than 90 days. iii) Cost of replacing the property with 12. VALUATION - SETTLEMENT property of like kind and quality. a. Subject to the applicable limit of coverage We may, at our option, pay the actual cash value provision, we will pay for: of the property or repair or replace it. (1) Loss of money, but only up to and including If we cannot agree with you upon the actual cash its face value. We may, at our option, pay for loss value or the cost of repair or replacement, the of money issued by any country other than the value or cost will be determined by arbitration. United States of America: b. We may, at our option, pay for loss of, or loss (a) At face value in the money issued by that from damage to, property other than money: country; or (1) In the money of the country in which the loss (b) In the United States of America dollar occurred; or equivalent determined by the rate of exchange on the day the loss was discovered. (2) In the United States of America dollar equivalent of the money of the country in which (2) Loss of securities, but only up to and the loss occurred determined by the rate of including their value at the close of business on exchange on the day the loss was discovered. the day the loss was discovered, we may, at our option: c. Any property that we pay for or replace becomes our property. (a) Pay the value of such securities or replace LMCIT MPCBP (11/05) (Rev. 11/14) Page 5 of 5 COVENANT NUMBER: CMC 38108 MUNICIPAL PETROFUND COVERAGE PART FOUR LMCIT MPCBP (11/05) (Rev.11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND ITINDEX PETROFUND COVERAGE - PART FOUR PAGE SECTION I – REIMBURSEMENT BENEFITS..............................................................................................1 SECTION II – LIMITS OF REIMBURSEMENT BENEFITS........................................................................1 SECTION III – DEFINITIONS.....................................................................................................................1-2 SECTION IV – CONDITIONS AND EXCLUSIONS......................................................................................3 LMCIT MPCBP (11/05) (Rev.11/14) Page i COVENANT NUMBER: CMC 38108 MUNICIPAL PETROFUND COVERAGE PART FOUR Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have Read the entire covenant carefully to determine rights, special meaning, as given in SECTION IV - duties and what is or is not covered. DEFINITIONS. SECTION I - REIMBURSEMENT BENEFITS Subject to the terms, conditions, definitions, and This Agreement is supplementary to the exclusions which appear hereafter: Minnesota Petrofund, and applies only to damages and corrective action costs for which you have 1. LMCIT agrees to reimburse you for damage you received partial reimbursement from the have been required to pay for taking corrective Minnesota Petrofund pursuant to the provisions action and for compensating third parties for and monetary limitations of the Petroleum Tank bodily injury and property damage caused by an Release Cleanup Act. accidental tank release. 2. LMCIT agrees to reimburse you for defense costs This Agreement applies to claims made against which you reasonably and necessarily incur in the you only if such claims are made during the term investigation and defense of any claim made of this Agreement. against you by a third party during the term of this Agreement resulting from a tank release covered by Paragraph 1 above. SECTION II - LIMITS OF REIMBURSEMENT BENEFITS 1. With respect to a single tank release,LMCIT's 2. LMCIT's liability to reimburse you for liability shall not exceed 10% of the total reimbursable costs and defense costs shall be reimbursable costs you have been required to pay limited to $250,000 for claims made against you for taking corrective action and for compensating during the term of this Agreement with respect to third parties for bodily injury and property a single tank release, and $250,000 in the damage. aggregate for all claims made against you during the term of this Agreement regardless of the number of tank releases. SECTION III - DEFINITIONS 1. City means the governmental body or entity first c. Municipal power agency; named in the Declarations. For purposes of this d. Municipal gas agency; coverage, city includes relief associations. Unless specifically named in the Declarations, city shall e. Hospital or nursing home board or not include: commission; a. Gas, electrical, or steam utilities commission; f. Welfare or public relief agency; b. Port authority, housing and redevelopment g. School board; authority, economic development authority, area or municipal redevelopment authority, or similar h. Airport commission; or agency; LMCIT MPCBP (11/05) (Rev.11/14) Page 1 of 3 COVENANT NUMBER: CMC 38108 i. Joint powers entity; but a joint planning board for the joint exercise of governmental powers. An created pursuant to an orderly annexation intergovernmental agreement will be deemed to agreement or joint resolution between the city and create a joint powers entity if the agreement a township is deemed to be a covered joint powers establishes a board with the effective power to do entity under this agreement. any of the following, regardless of whether the specific consent of the constituent governmental 2. Corrective action means an action taken to units may also be required: minimize, eliminate, or clean up a release to protect the public health and welfare of the a. To receive and expend funds; environment. b. To enter into contracts; 3. Defense costs means reasonable and necessary c. To hire employees; claim adjuster fees, attorney fees incurred by or on behalf of you, court costs, court reporter and d. To purchase or otherwise acquire and hold real transcript fees, general witness and expert witness or personal property; or fees and expenses, and similar defense related costs. e. To sue or be sued. 4. Employee means for actions within his duties as 6. Minnesota Petrofund means the petroleum tank such, any present or former: release cleanup fund as defined in Minn. Stat. Chapter 115C, and administered by the Petroleum a. Person whom you compensate directly by Tank Release Compensation Board. salary, wages or commissions and who you have the right to direct or control while performing 7. LMICT means the League of Minnesota Cities duties for you; Insurance Trust. b. Member of the city council; 8. Reimbursable costs means costs which are eligible costs and which are reimbursable under the c. Member of a city board, commission, or provisions of the Petroleum Tank Release Cleanup committee which is not excluded by the definition Act, and excludes all ineligible costs as defined by of city; that Act. d. Elected or appointed official of the city; 9. Responsible person means a person who is responsible for a tank release under the Petroleum e. Volunteer person or organization while acting Tank Release Cleanup Act. on behalf of the city and subject to the city’s direction and control; 10. Tank release, tank releases means an accidental spilling, leaking, emitting, discharging, escaping, f. Other authorized person or agent of the city leeching, or disposing of petroleum from a tank while acting on behalf of the city, but excludes into the environment. independent contractors; 11. You and your means the city shown in the g. Members, officers, and employees of a city Declarations. relief association. 12. Petroleum Tank Release Cleanup Act means 5. Joint powers entity means an operating entity Minn. Stat. Chapter 115C, and the rules and created by two or more governmental units regulations duly adopted thereunder. entering into an agreement as provided by statute LMCIT MPCBP (11/05) (Rev.11/14) Page 2 of 3 COVENANT NUMBER: CMC 38108 SECTION IV - CONDITIONS AND EXCLUSIONS 1. The reimbursement benefits provided by this Declarations. Subsequent renewals of this Agreement is supplementary only and shall not Agreement shall be treated as separate terms. replace or reduce the reimbursement for damages 8. In the event of a tank release covered by this and corrective action costs provided to you by the Agreement, you shall promptly give written Minnesota Petrofund and applies only to damages notice to LMCIT with full particulars of any tank and corrective action costs which would be release incident or any claim or suit brought reimbursable costs to you from the Minnesota against you with respect to such tank release. Petrofund but for the monetary limitations under the provisions of the Petroleum Tank Release 9. You shall at all times cooperate with and Cleanup Act. promptly respond to LMCIT's requests for information, investigative data, records, or any 2. The reimbursement benefits provided by this other documentation material to the Agreement are strictly limited to the corrective determination of your and LMCIT's liability action, stated damages and defense costs set forth under this Agreement. in Section I. REIMBURSEMENT BENEFITS, resulting from an accidental tank release. No 10. It is the express intent of the parties to this other liability, hazard, risk, remedy, or damage is Agreement that by your participation as a covered. beneficiary to this Agreement you do not waive immunities, defenses, or limitations on your 3. This Agreement does not apply to tank releases, liability available to you under statute or bodily injury, or property damage expected or common law. intended from the standpoint of the covered party. 11. A claim shall be deemed to be made when you 4. As a condition precedent to your receiving receive notice of a tank release. reimbursement under this Agreement, you must be a responsible person who has taken corrective 12. LMCIT will not reimburse you for your payment action and incurred reimbursable costs and of costs, fees, or other expenses you incur in complied with all requirements of the Petroleum establishing either the existence or the amount of Tank Release Cleanup Act, and you must have reimbursablecosts or defensecosts. received reimbursement from the Minnesota Petrofund of reimbursable costs without offset or reduction by reason of your participation in this Agreement. 5. LMCIT will not reimburse you for any amounts which you have not been reimbursed by the Minnesota Petrofund by reason of your failure to comply with the requirements stated in Minn. Stat. Chapter 115C.09, subd. 3, (i) and (j). 6. LMCIT shall have no duty to provide a defense to you with respect to any suit or claim made against you arising out of a tank release covered by this Agreement, however, LMCIT shall have the right to intervene at its expense in the investigation or defense of any claim or suit against you which may be covered by this Agreement. 7. The term of this Agreement shall be one year beginning with the effective date stated in the LMCIT MPCBP (11/05) (Rev.11/14) Page 3 of 3 LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant #: CMC 38108 CITY: OAK PARK HEIGHTS, CITY OF COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/CONTENTS/ PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE *SECTION IV – WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED. THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE SPECIFIC PROPERTY LIMIT. ***Section IV-Water and **Type of Supplemental Estimated Covered Flood Replacement Loc#Location Occupancy Property Coverage Cost 1 58TH & NORELL WATER TOWER B CODE C $1,619,610 2 14168 OAK PARK BLVD N WATER TOWER B CODE C $1,079,740 3 BREKKE PARK PARK B CODE C $550,000 4 13425 60TH STREET LIFT STATION B CODE C $173,942 5 14168 OAK PARK BLVD N PUMP HOUSE #1 B CODE C $207,448 6 SWAGER PARK SHELTER B CODE C $12,957 7 COVER PARK RECREATION BUILDING B CODE C $65,170 8 VALLEY VIEW PARK SHELTER B CODE C $323,922 9 SUNYSIDE MARINA LIFT STATION B CODE C $126,399 10 14200 53RD STREET LIFT STATION B CODE C $126,399 11 14168 OAK PARK BLVD N CITY HALL PIO CODE C $52,843 12 SWAGER PARK PARK PIO CODE C $86,000 13 COVER PARK PARK PIO CODE C $106,865 14 VALLEY VIEW PARK PARK PIO CODE C $96,304 15 BREKKE PARK PARK PIO CODE C $197,500 *The limit of coverage for Section IV-Water and Supplemental Coverage is $500,000 per occurrence/$500,000 Annual Aggregate **Type of Covered Property B = Building/Contents PIO = Property in the Open BR = Builders Risk Property ***Section IV-Water and Supplemental Flood Coverage Code A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions. Code B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable National Flood Insurance Program Coverage. Code C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss or any damage would be payable under a National Flood Insurance Program Coverage. PM-100(11/95)(Rev. 11/03) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant #: CMC 38108 CITY: OAK PARK HEIGHTS, CITY OF COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/CONTENTS/ PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE *SECTION IV – WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED. THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE SPECIFIC PROPERTY LIMIT. ***Section IV-Water and **Type of Supplemental Estimated Covered Flood Replacement Loc#Location Occupancy Property Coverage Cost 16 CITYWIDE VARIOUS PIO CODE C $136,509 17 14290 58TH ST N PUMPHOUSE #2 B CODE C $198,905 18 KERN CENTER, 5500 STILLWATER BLVD LIFT STATION & FORCE MAIN B CODE C $298,950 19 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $168,000 20 AUTUMN HILLS PARK PARK SHELTER B CODE C $540,249 21 OAK PARK HEIGHTS CITY HALL B CODE C $8,291,976 22 14168 OAK PARK BLVD PUBLIC WORKS B CODE C $2,290,025 23 OAK PARK CROSSINGS PARK (FORMERLY MOELTER) PIO CODE C $7,500 24 TRAILS TRAILS PIO CODE C $12,758 25 CORNER OF 58TH & NEAL VARIOUS PIO CODE C $280,000 26 CITYWIDE (5) PRESSURE REDUCING VALVES B CODE C $400,000 *The limit of coverage for Section IV-Water and Supplemental Coverage is $500,000 per occurrence/$500,000 Annual Aggregate **Type of Covered Property B = Building/Contents PIO = Property in the Open BR = Builders Risk Property ***Section IV-Water and Supplemental Flood Coverage Code A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions. Code B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable National Flood Insurance Program Coverage. Code C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss or any damage would be payable under a National Flood Insurance Program Coverage. PM-100(11/95)(Rev. 11/03) COVENANT NUMBER: CMC 38108 Terrorism Losses - Special Pool Limit Endorsement This Endorsement modifies coverage provided under the Municipal Property Coverage and the Municipal Automobile Physical Damage Coverage. 1. Shared limit. For any terrorism loss occurrence in which the LMCIT terrorism occurrence loss cost is greater than $50,000,000, the amount LMCIT will pay for the city’s covered losses is limited to an amount equal to the city’s covered loss multiplied by the terrorism loss coverage percentage for that terrorism loss occurrence. 2.Sub limits. LMCIT will not pay more than $1,000,000 for any one or any combination of the following which rise out of or are either directly or indirectly related to any terrorist activity during the annual coverage period: a.Any losses, costs or expenses that result directly or indirectly from any discharge of pollutants including any resulting fire losses, costs, or expenses; b.Any losses, costs, or expenses that result directly or indirectly from chemical or biological release or exposure of any kind including any resulting fire losses, costs or expenses; c.Any losses, costs, or expenses that result from attack by electronic means including computer hacking, or the introduction of any form or computer virus or other form of corrupting or unauthorized code or instructions; d.Any losses, costs, or expenses that result directly or indirectly from asbestos, emission, release, discharge, dispersal or escape or asbestos exposure of any kind including any resulting fire or damage; e.Any losses, costs, or expenses that result from any threat or hoax; f.Any expediting expense; or g. Any resulting fire losses, costs or expenses that result directly or indirectly from nuclear detonation, nuclear reaction, nuclear radiation or radioactive contamination. These sub limits are part of and not in addition to the shared limit provided in Paragraph 1. 3.No expansion of coverage. The terms and limitations of this terrorism endorsement, or the inapplicability of this terrorism endorsement, do not serve to create coverage which would otherwise be excluded by this covenant. 4.Termination of terrorism coverage. A. Automatic termination. If the LMCIT terrorism occurrence loss cost for any terrorism loss occurrence exceeds $15,000,000, coverage for loss resulting from any subsequent terrorism loss occurrence is excluded. B. Discretionary termination. The LMCIT Board of Trustees may terminate coverage for losses arising from terrorist activities at any time upon ten days notice to the city, if the Board determines that it is necessary to protect the interests of LMCIT or its member cities. LMCIT ME079 (11/01)(Rev.11/09) Page 1 of 3 COVENANT NUMBER: CMC 38108 5.Definitions A. Terrorist activity means any of the following, regardless of any other cause or event that in any way contributes concurrently or in any sequence to the loss, cost or expense: 1. Any deliberate, unlawful act that: a. Is declared by any authorized governmental official to be or to involve terrorism, terrorist activity or acts of terrorism; or b. Includes, involves, or is associated with the use or threatened use of force, violence or harm against any person, tangible or intangible property, the environment, or any natural resources, where the act or threatened act is intended, in whole or in part, to: (1) Promote or further any political, ideological, philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or (2) Influence, disrupt or interfere with any government related operations, activities or policies; or (3) Intimidate, coerce or frighten the general public or any segment of the general public; or (4) Disrupt or interfere with a national economy or any segment of a national economy; or c. Includes, involves, or is associated with, in whole or in part, any of the following activities, or the threat thereof: (1) Hijacking or sabotage of any form of transportation or conveyance, including but not limited to spacecraft, satellite, aircraft, train, vessel, or motor vehicle; or (2) Hostage taking or kidnapping; or (3) The use of any biological, chemical, radioactive, or nuclear agent, material, device or weapon; or (4) The use of any bomb, incendiary device, explosive or firearm; or (5) The interference with or disruption of basic public or commercial services and systems, including but not limited to the following services or systems: electricity, natural gas, power, postal, communications, telecommunications, information, public transportation, water, fuel, sewer or waste disposal; or (6) The injuring or assassination of any elected or appointed government official or any government employee; or (7) The seizure, blockage, interference with, disruption of, or damage to any government buildings, institutions, functions, events, tangible or intangible property or other assets; or (8) The seizure, blockage, interference with, disruption of, or damage to tunnels, roads, streets, highways, or other places of public transportation or conveyance. LMCIT ME079 (11/01)(Rev.11/09) Page 2 of 3 COVENANT NUMBER: CMC 38108 2. Any of the activities listed in section A.1.c. above shall be considered t errorist activity except where you can conclusively demonstrate to us that the foregoing activities or threats thereof were motivated solely by personal objectives of the perpetrator that are unrelated, in whole or in part, to any intention to: a. Promote or further any political, ideological, philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or b. Influence, disrupt or interfere with any government related operations, activities or policies; or c. Intimidate, coerce or frighten the general public or any segment of the general public; or d. Disrupt or interfere with a national economy or any segment of a national economy. B. Terrorism loss occurrence means all individual losses arising from terrorist activity, occurring during any period of 72 consecutive hours. C. LMCIT terrorism occurrence loss cost means the cost to LMCIT for covered loss, costs or expenses from a single terrorism loss occurrence, gross of any applicable deductibles. D. For any terrorism loss occurrence, the terrorism loss coverage percentage is equal to $50,000,000 divided by the LMCIT terrorism occurrence loss cost for that terrorism loss occurrence. LMCIT ME079 (11/01)(Rev.11/09) Page 3 of 3 COVENANT NUMBER: CMC 38108 DEFINITION OF CITY ENDORSEMENT It is understood and agreed that city is amended to include: ECONOMIC DEVELOPMENT AUTHORITY All other terms and conditions remain unchanged. LMCIT ME063 (11/95)(Rev. 11/01) Page 1 of 1 COVENANT NUMBER: CMC 38108 ADDITIONAL COVERAGE/ PROPERTY IN THE OPEN This endorsement modifies coverage provided under the Municipal Property Coverage by extending coverage on property in the open to the property described at the locations listed below. Loc. #Location Occupancy Additional Property To Be Covered 016 CITYWIDE VARIOUS SIRENS ONLY. NO OTHER PROPERTY IN THE OPEN IS COVERED. 024 TRAILS TRAILS SOLAR PEDESTRIAN CROSSING FLASHER ONLY. NO OTHER PROPERTY IN THE OPEN IS COVERED. 025 58TH. & NEAL VARIOUS TRAFFIC SIGNAL LIGHTS/CONTROLLER, PEDESTRIAN CONTROL SIGNALS, STREET LIGHT CONTROLLERS. NO OTHER PROPERTY IN THE OPEN IS COVERED. All other terms and conditions remain unchanged. LMCIT MPCBP-209 (11/05) COVENANT NUMBER: CMC 38108 EXCLUDED PROPERTY This endorsement modifies coverage provided under the MUNICIPAL PROPERTY COVERAGE. It is agreed that the building/contents,property in the open or builders’ risk property described in the schedule below shall not be considered covered property under this covenant: Location Occupancy Excluded Property 6180 OSGOOD AVE. N DWELLING BUILDING/CONTENTS, PROPERTY IN THE OPEN, OR BUILDERS' RISK PROPERTY All other terms and conditions remain unchanged. LMCIT MPCBP-215 (11/09) Page 1 of 1 LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED MOBILE PROPERTY Covenant #: CMC 38108 CITY: OAK PARK HEIGHTS, CITY OF COVERAGE APPLIES TO MOBILE PROPERTY VALUED AT REPLACEMENT COST VALUES OF $25,000 OR LESS PER ITEM IF IDENTIFIED AS COVERED AND TO MOBILE PROPERTY THAT HAVE REPLACEMENT COST VALUES GREATER THAN $25,000 PER ITEM THAT ARE LISTED. COVERED / NOT COVERED A. MOBILE PROPERTY VALUED AT $25,000 OR LESS COVERED B. MOBILE PROPERTY VALUED AT GREATER THAN $25,000 COVERED Description of Mobile Property Value (Make, Model and Year) Serial No. 1 2012 KUBOTA TRACTOR WATTMTS $ 56,518 LMCIT PM-109 (11/97) (Rev.11/07) COVENANT NUMBER: CMC 38108 MUNICIPAL EQUIPMENT BREAKDOWN COVERAGE COVENANT NUMBER: CMC 38108 MUNICIPAL EQUIPMENT BREAKDOWN COVERAGE WHAT IT IS AND WHERE YOU CAN FIND ITINDEX EQUIPMENT BREAKDOWN COVERAGE PAGE SECTION A - COVERAGE.......................................................................................................................1-4 SECTION B - EXCLUSIONS....................................................................................................................4-6 SECTION C - LIMITS OF INSURANCE...............................................................................................6-7 SECTION D - DEDUCTIBLE.............................................................................................................7 SECTION E - LOSS CONDITIONS........................................................................................................7-9 SECTION F - ADDITIONAL CONDITIONS................................................................................9-12 SECTION G - DEFINITIONS...............................................................................................................12-14 LMCIT BM-200(11/01)(Rev. 11/13) Page i COVENANT NUMBER: CMC 38108 EQUIPMENT BREAKDOWN COVERAGE FORM Various provisions in this covenant restrict coverage. Words and phrases that are in italics have special Read the entire covenant carefully to determine meaning. Refer to Section G - DEFINITIONS, except rights, duties, and what is or is not covered. for accident and covered equipment, which are defined in A.1.a. and b. below. A. COVERAGE (1) Any property built to operate under 1.Covered Cause of Loss vacuum or pressure, other than weight of contents; or The insurance provided by this Coverage Part applies to the direct result of an (2) Any property, other than excluded accident to covered equipment. electrical generating equipment, used for the generation, transmission, or utilization of energy. a. Accident means direct physical loss as follows: Such property must be at a location described in the Declarations and must be (1)Mechanical breakdown, including owned or leased by you or operated under rupture or bursting caused by your control, except as specifically provided centrifugal force; for under Service Interruption coverage and (2)Artificially generated electrical the Service Interruption component of other current, including electrical arcing, coverages. that disturbs electrical devices, appliances or wires; 2.Coverages Provided (3)Explosion of steam boilers, steam piping, steam engines or steam The following coverages are provided. turbines owned or leased by you, or The accident must occur during the operated under your control; Covenant Period, but expiration of the (4)Loss or damage to steam boilers, covenant does not limit our liability. steam pipes, steam engines or steam turbines caused by or resulting from a.Property Damage any condition or event inside such We will pay for direct damage to covered equipment; property. (5)Loss or damage to hot water boilers or other water heating equipment b.Business Income and Extra Expense caused by or resulting from any (1) Business Income condition or event inside such boilers (a)We will pay your actual loss of or equipment; or business income that results (6)Loss or damage to boiler feed water directly from the necessary total piping, boiler condensate return or partial interruption of your piping or piping forming a part of a business. refrigerating or air conditioning (b)We will also pay any necessary system all normally subject to expenses you incur to reduce the vacuum or internal pressure or other amount of loss under this than static pressure of contents. coverage. We will pay for such expenses to the extent that they b. Covered Equipment,unless specified do not exceed the amount of loss otherwise in the Declarations, means: that otherwise would have been payable under this coverage. (c)We will consider the actual LMCIT BM-200(11/01)(Rev. 11/13) Page 1 of 14 COVENANT NUMBER: CMC 38108 experience of your business perishable goods due to before the accident and the contamination from the release of probable experience you would refrigerant, including but not limited have had without the accident in to ammonia. determining the amount of our (4)We will also pay any necessary payment. expenses you incur to reduce the (d)This coverage ends 60 days after amount of loss under this coverage. the date the damaged property is We will pay for such expenses to the repaired or replaced. extent that they do not exceed the amount of loss that otherwise would (2) Extra Expense have been payable under this We will pay the reasonable extra coverage. expense to operate your business The most we will pay for loss or damage during a total or partial interruption under this coverage is $250,000. of business. e. Data Restoration c. Service Interruption We will pay for your cost to research, (1)Any insurance provided for Business replace and restore data, including Income and Extra Expense coverage programs and operating systems. The is extended to apply to loss as most we will pay for loss or damage qualified below. under this coverage is $100,000. (2)The covered equipment is owned by a (a) Utility, f. Demolition and ICC (Increased Cost (b) Landlord, or of Construction) (c) Other supplier If an accident to covered equipment with whom you have a contract to damages a building that is covered provide you with any of the property; and the loss is increased by following services: electrical power, enforcement of any ordinance or law in communications, waste disposal, air force at the time of the accident that conditioning, refrigeration, heating, regulates the construction or repair of gas, air, water or steam. buildings, or establishes zoning or land The most we will pay for loss or damage use requirements, we will pay for the under this coverage is $250,000. following additional costs to comply with such ordinance or law: d. Perishable Goods (1)Your actual expenditures for the cost to demolish and clear the site of (1)We will pay for your loss of undamaged parts. perishable goods due to spoilage. (2)Your actual expenditures for (2)We will also pay for such loss increased costs to repair, rebuild, or caused by an accident to covered construct the building. If the building equipment owned by a is repaired or rebuilt, it must be (a) Utility, intended for similar use or (b) Landlord, or occupancy as the current building, (c) Other supplier unless otherwise required by zoning with whom you have a contract to or land use ordinance or law. provide you with any of the (3)Your loss as described in Business following services: electrical power, Income and Extra Expense coverage communications, waste disposal, air caused by loss covered in (1) or (2) conditioning, refrigeration, heating, above. gas, air, water or steam. We will not pay for: (3)We will also pay for your loss of (4)Any fine; LMCIT BM-200(11/01)(Rev. 11/13) Page 2 of 14 COVENANT NUMBER: CMC 38108 or (5)Any liability to a third party; (6)Any increase in loss due to a (3)Replace the system with one using a pollutant; or non-CFC refrigerant. (7)Increased construction costs until the Additional costs mean those beyond what building is actually repaired or would have been required had no CFC replaced. refrigerant been involved. The most we will pay for loss or damage We will also pay for additional loss as under this coverage is $250,000. described in Business Income and Extra Expense, and Perishable Goods coverages caused by such loss. g. Expediting Expenses The most we will pay for loss or damage With respect to your damaged covered under this coverage is $250,000. property, we will pay the reasonable extra cost to: j. Ice Rink Buried Piping (1)Make temporary repairs; and We will pay for loss or damage caused (2)Expedite permanent repairs or by or resulting from an accident to permanent replacement. buried piping at an ice rink. The most The most we will pay for loss or damage we will pay under this coverage is under this coverage is $250,000. $250,000. h. Pollutants k. Newly Acquired Locations We will pay for the additional cost to All coverages provided by this Coverage repair or replace covered property Part are extended to a newly acquired because of contamination by a pollutant. location that you have purchased or This includes the additional expenses to leased. clean up or dispose of such property. Additional costs mean those beyond what l. Defense would have been required had no This coverage is automatically included pollutant been involved. and does not need to be indicated in the We will also pay for additional loss as Declarations. described in Business Income and Extra (1)If a claim or suit is brought against Expense, and Perishable Goods you alleging that you are liable for coverages caused by such contamination. damage to property of another in The most we will pay for loss or damage your care, custody or control, that under this coverage is $250,000. was directly caused by an accident to covered equipment, we will either: i. CFC Refrigerants (a)Settle the claim or suit, or We will pay for the additional cost to (b)Defend you against the claim repair or replace covered property or suit but keep for ourselves because of the use or presence of a the right to settle it at any refrigerant containing CFC point. (chlorofluorocarbon) substances. This (2)We will pay, with respect to any means the additional expense to do the claim or suit we defend: least expensive of the following: (a)All expenses we incur; (1) Repair the damaged property and replace any lost CFC refrigerant; (b)The cost of bonds to release attachments. We do not have to (2) Repair the damaged property, furnish these bonds; retrofit the system to accept a non- CFC refrigerant and charge the (c)All reasonable expenses incurred by you at our request to assist us system with a non-CFC refrigerant; LMCIT BM-200(11/01)(Rev. 11/13) Page 3 of 14 COVENANT NUMBER: CMC 38108 in the investigation or defense of (2) The most we will pay for loss or the claim or suit, including damage under this coverage is actual loss of earnings up to $1,000,000. Regardless of the $250 a day because of time off number of claims, the most we will from work; pay for the total of all loss or damage arising out of all accidents (d)All costs taxed against you in to covered equipment which take any suit we defend; place within the 12-month period (e)Prejudgment interest awarded starting with the beginning of the against you on that part of the present annual policy period is judgment we pay. If we make an $1,000,000. With respect to a offer to pay the applicable particular accident which results in limits, we will not pay any mold,we will not pay more than a prejudgment interest based on total of $1,000,000 even if the mold that period of time after the continues to be present or active or offer; and recurs in a later policy period. (f)All interest on the full amount of (3) The coverage provided under this any judgment that accrues after Mold Coverage does not increase the entry of the judgment and before Equipment Breakdown Limit on any we have paid, offered to pay, or covered property. If a particular deposited in court the part of the occurrence results in loss or damage judgment that is within the by mold, and other loss or damage, applicable limits. we will not pay more, for the total of all loss or damage, than the m. Mold Equipment Breakdown Limit on the (1) We will pay for loss, damage or affected covered property. expense caused by mold, only when If there is covered loss or damage to mold is the direct result of an covered property not caused by accident to covered equipment that mold, loss payment will not be occurs during the policy period. limited by the terms of this coverage, This includes, but is not limited to, except to the extent that mold causes costs arising from clean up, removal, an increase in the loss. Any such or abatement of such mold. increase in the loss will be subject to As used in this coverage, the term the terms of this coverage. loss or damage means: (a) Direct physical loss or damage n. Green Building Expenses to covered property caused by We will cover the following expenses: mold including the cost of (1) Reasonable and necessary extra cost removal of the mold; for the recertification of the damaged (b) The cost to tear out and replace covered property as required by a any covered property as needed Green Authority. to gain access to the mold; (2) Reasonable and necessary extra cost (c) The cost of testing performed to recycle the damaged covered after removal, repair, property as required by a Green replacement or restoration of the Authority. damaged property is completed, provided there is a reason to B. EXCLUSIONS believe that mold is present; and 1. We will not pay for loss or damage caused (d) Additional loss as described in by or resulting from: Business Income and Extra Expense coverages caused by a. Depletion, deterioration, corrosion, such loss. erosion, wear and tear, or other gradually LMCIT BM-200(11/01)(Rev. 11/13) Page 4 of 14 COVENANT NUMBER: CMC 38108 developing conditions. accident. But if loss or damage from an accident i. Any of the following tests: results, we will pay for that resulting loss (1) A hydrostatic, pneumatic or gas or damage. pressure test of any boiler or b. The enforcement of any ordinance, law, pressure vessel; or regulation, rule or ruling regulating or (2) An insulation breakdown test of any restricting repair, replacement, type of electrical equipment. alteration, use, operation, construction or j. Water or other means used to extinguish installation, except as provided under the a fire, even when such an attempt is following coverages: Demolition and unsuccessful. ICC, Pollutants or CFC Refrigerants. k. Any of the following causes of loss: c. Any earth movement, including but not (1) Lightning, Explosion (except for limited to earthquake, subsidence, steam or centrifugal explosion); sinkhole collapse, landslide, mudslide, Smoke, Aircraft or Vehicles, Riot or earth sinking, tsunami or volcanic action. Civil Commotion, Vandalism or d. Flood, surface water, waves, tides, tidal Sprinkler Leakage; waves, overflow of any body of water, or (2) Breakage of Glass, Falling Objects, their spray, all whether driven by wind or Weight of Snow, Ice or Sleet or not. Water Damage (including Water However, if electrical covered equipment Damage that is the result of an requires drying out because of the above, accident); or we will pay for the direct expenses of (3) Freezing (caused by cold weather), such drying out, subject to the applicable Collapse or Molten Material. Property Damage limit and deductible. l. The presence, growth, proliferation, e. Windstorm or hail. spread or activity of mold. This However, we will pay if: includes, but is not limited to, costs (1) Covered equipment located within a arising from clean up, removal, or building or structure suffers an abatement of such mold. However, if an accident that results from rain, accident occurs, we will pay the snow, sand or dust; and resulting loss or damage. This exclusion (2) The building or structure did not does not apply: first sustain wind or hail damage to (1) to spoilage of personal property that its roof or walls through which the is perishable goods, to the extent rain, snow, sand or dust entered. that spoilage is covered under f. Nuclear reaction or radiation, or Perishable Goods coverage; or radioactive contamination, however (2) to the extent that coverage is caused. provided under Mold coverage for g. War, including undeclared or civil war; that portion of any loss or damage Warlike action by a military force, resulting fromthe presence, growth, including action in hindering or proliferation, spread or activity of defending against an actual or expected mold as a result of an accident to attack, by any government, sovereign or covered equipment. other authority using military personnel 2. With respect to Business Income,Extra or other agents; or Expense and Service Interruption coverages, Insurrection, rebellion, revolution, we will also not pay for: usurped power or action taken by a. Loss caused by your failure to use due governmental authority in hindering or diligence and dispatch and all reasonable defending against any of these. means to resume business at the h. Fire or combustion explosion, whether or described location; not caused by or resulting from an LMCIT BM-200(11/01)(Rev. 11/13) Page 5 of 14 COVENANT NUMBER: CMC 38108 b. That part of any loss that is due solely to equipment mounted on such vehicle, the suspension, lapse or cancellation of a aircraft or floating vessel. However, any contract following an accident extending property that is stationary, permanently beyond the time business income is installed at a covered location and that applicable; or receives electrical power from an external power supplier will not be c. Delay in resuming operations due to the considered a vehicle, aircraft or floating need to reconstruct or re-input data or vessel; programs on media. f.Dragline, excavation or construction equipment; 3. With respect to Service Interruption coverage and paragraph (2) of Perishable Goods g.Equipment manufactured by you for coverage, we will also not pay for loss sale; or caused by or resulting from any of the causes h.Electronic data processing equipment, of loss named in Exclusion 1.k. above, unless used to control or operate covered whether or not coverage for such cause of equipment. Electronic Data Processing loss is provided by another coverage part or Equipment includes programmable policy of insurance you have. electronic equipment that is used to store, retrieve and process data; and associated 4. With respect to Perishable Goods coverage, peripheral equipment. we will also not pay for loss or damage as a i.Any builders riskproperty if the result of your failure to use all reasonable approved estimated total project cost means to protect the perishable goods from exceeds $2,000,000 as of the date damage following an accident. construction commenced. 5. We will also not pay for loss or damage 7. Covered property does not include: caused by or resulting from any defect, a. Live animals; or programming error, programming limitation, b. Transmission and distribution lines and virus, loss of data, loss of access, loss of use, poles and equipment that are usual to the loss of functionality or other condition within transmission of electricity and are not at or involving data or media of any kind. a location described in the Declarations. But if loss or damage from an accident This does not include substations and results, we will pay for that resulting loss or transformers. This exclusion does not damage. apply to Service Interruption coverage as provided under section A.2.c. above. 6. None of the following is covered equipment: c. Any builders riskproperty if the a. Structure, foundation, cabinet, approved estimated total project cost compartment, or air supported structure exceeds $2,000,000 as of the date or building; construction commenced. b. Insulating or refractory material; c. Sewer piping, underground vessels or C. LIMITS OF INSURANCE piping, or piping forming a part of a Any payment made under this Coverage Part will sprinkler system, except for underground not be increased if more than one city is shown in piping for geothermal heating and the Declarations. cooling systems and as provided under Ice Rink Buried Piping coverage; If two or more limits apply to the same portion of d. Water piping other than boiler feed water a loss, we will only pay the smaller limit for that piping, boiler condensate return piping or portion of the loss. water piping forming a part of a refrigerating or air conditioning 1. Equipment Breakdown Limit system; The most we will pay for loss or damage e.Vehicle, aircraft, floating vessel or any LMCIT BM-200(11/01)(Rev. 11/13) Page 6 of 14 COVENANT NUMBER: CMC 38108 arising from any one accident is the amount 2. We will not pay for loss or damage resulting shown as the Equipment Breakdown Limit in from any one accident until the amount of the Declarations. This total limit applies to loss or damage exceeds the applicable all coverages under this Coverage Part deductible or deductibles shown in the except Defense. The costs we incur under the Declarations. We will then pay the amount of Defense coverage shall not reduce the loss or damage in excess of the applicable available Equipment Breakdown Limit. deductible or deductibles, subject to the applicable limits shown in the Declarations. 2. Coverage Limits E. LOSS CONDITIONS The limit of your insurance under each of the coverages from loss or damage arising from The following conditions apply in addition to the any one accident is the amount shown for Common Covenant Conditions: that coverage. Unless otherwise shown 1. Abandonment below, these limits are a part of, and not in There can be no abandonment of any addition to, the Equipment Breakdown Limit. property to us. 3. Business Income and Extra Expense Limit 2. Appraisal The limit of your insurance for Business If we admit liability for a loss and we and Income and Extra Expense coverages is you disagree on the value of the property or $5,000,000. This limit is in addition to the business income, either may make written Equipment Breakdown Limit. demand for an appraisal of the loss. In this event, each party will select a competent and 4. Newly Acquired Locations Limit impartial appraiser. The two appraisers will The limit of your insurance for Newly select an umpire. If they cannot agree, either Acquired Locations coverage is $5,000,000. may request that selection be made by a This limit is in addition to the Equipment judge of a court having jurisdiction. The Breakdown Limit. appraisers will state separately the value of the property or business income. If they fail However, any newly acquired location that to agree, they will submit their differences to has c overed electrical generating equipment the umpire. A decision agreed to by any two must be reported to us within 90 days after will be binding. Each party will: you have purchased or leased the location and will be subject to the terms and a. Pay its chosen appraiser; and conditions as determined by us. b. Bear the other expenses of the appraisal and umpire equally. 5. Green Building Expenses Limit 3. Brands and Labels The limit of your insurance for your green building expenses is 1% of the loss cost but If branded or labeled merchandise that is not to exceed $100,000 per location. This covered property is damaged by an accident limit is in addition to the Equipment to covered equipment, but retains a salvage Breakdown Limit. value, you may, at your expense: a. Stamp the word SALVAGE on the D. DEDUCTIBLE merchandise or its containers if the stamp will not physically damage the 1. If deductibles vary by type of covered merchandise; or equipment and more than one type of covered equipment is involved in any one b. Remove the brands or labels, if doing so accident, the highest deductibles will apply. will not physically damage the Unless otherwise shown in the Declarations, merchandise. You must re-label the the Deductibles apply to all loss or damage merchandise or its containers to comply covered by this Coverage Part. with the law. Defense Coverage is not subject to a We will pay for any reduction in value of the deductible. salvage merchandise resulting from either of LMCIT BM-200(11/01)(Rev. 11/13) Page 7 of 14 COVENANT NUMBER: CMC 38108 these two actions. records. In the event of an examination, a city's answers must be signed. If a Brands and Labels Limit is shown on the Declarations, we will not pay more than the However, LMCIT will not reimburse you for indicated amount for coverage under this your payment of costs, fees or other expenses Condition. you incur in establishing either the existence or the amount of loss under this covenant. 4. Duties In the Event of Loss or Damage You must see that the following are done in 5. Reducing your Loss the event of loss or damage: You must reduce your loss, if possible, by: a. Give us prompt notice of the loss or a. Resuming business, partially or damage. Include a description of the completely; property involved; b. Making up lost business within a b. As soon as possible, give us a reasonable amount of time. This includes description of how, when and where the working extra time or overtime at the loss or damage occurred; location of loss or at another location. The c. Allow us a reasonable time and reasonable amount of time does not opportunity to examine the property and necessarily end when the operations are premises before repairs are undertaken resumed; or physical evidence of the accident is c. Using merchandise or other property removed. But you must take whatever available to you; measures are necessary for protection d. Using the property or services of others; or from further damage; e. Salvaging the damaged property. d. Permit us to inspect the property and records. Also permit us to take samples 6. Salvage and Recoveries of damaged and undamaged property for inspection, testing and analysis; When, in connection with any loss under this Coverage Part, any salvage or recovery is e. If requested, permit us to question you received subsequent to the payment of such under oath, at such times as may be loss, the loss shall be refigured on the basis reasonably required about any matter on which it would have been settled had the relating to this insurance or your claim amount of salvage or recovery been known at including your books and records. In the time the loss was originally determined. such event, your answers must be signed; Any amounts thus found to be due either f. Send us a signed, sworn proof of loss party from the other shall be paid promptly. containing the information we request to settle the claim. You must do this within 7. Valuation 60 days after our request; a.Our payment for damaged covered g. Cooperate with us in the investigation property will be the smallest of: and settlement of the claim; (1)The cost to repair the damaged h. Promptly send us any legal papers or property; notices received concerning the loss or (2)The cost to replace the damaged damage; and property on the same site; or i. Make no statement that will assume any (3)The amount you actually spend that obligation or admit any liability, for any is necessary to repair or replace the loss or damage for which we may be damaged property. liable, without our consent. b. Except as described under f. below, you We may examine any city under oath, while must pay the extra cost of replacing not in the presence of any other city and at damaged property with property of a such times as may be reasonably required, better kind or quality or of a different about any matter relating to this coverage or size or capacity. the claim, including a city's books and LMCIT BM-200(11/01)(Rev. 11/13) Page 8 of 14 COVENANT NUMBER: CMC 38108 c. If you do not repair or replace the replace with like kind and quality. This damaged property within 24 months after coverage does not increase any of the the date of the accident, then we will pay applicable limits. This coverage does only the smaller of the: not apply to any property indicated as being valued on an actual cash value (1) Cost it would have taken to repair at basis. the time of the accident; or g. In any event, we will not pay more than (2) Actual cash value; at the time of the the following, whichever is the least: accident. (1) Your financial interest in the covered d. If any of the following conditions are property; met, property held by you for sale will be valued at the sales price as if no loss or (2) 150% of the estimated replacement damage had occurred, less any discounts cost of the covered property as and expenses you otherwise would have stated in the Schedule of Covered had: Property; or (1) The property was manufactured by(3) The actual cash value of the covered you;property, if the covered property is vacant property. (2) The sales price of the property is less than the replacement cost of the However, any amounts paid for property; or coverages as provided by A. Coverages, 2.b.-2.j. are in addition to these (3) You are unable to replace the limitations. property before its anticipated sale. e. The most we will pay for loss or damage F. ADDITIONAL CONDITIONS arising from any one accident is the The following conditions apply in addition to the amount shown as the Equipment Common Conditions: Breakdown Limit in the Declarations. This total limit applies to all coverages 1. Additional Covered Party under this Coverage Part except Defense. If a person or organization is designated in The costs we incur under the Defense this Coverage Part as an additional city, we coverage shall not reduce the available will consider them to be a city under this Equipment Breakdown Limit except as Coverage Part only to the extent of their specifically provided for under Data interest. Restoration Coverage, data and media will be valued on the following basis: 2. Bankruptcy (1) For mass-produced and commercially The bankruptcy or insolvency of you or your available software, at the replacement estate will not relieve us of any obligation cost. under this Coverage Part. (2) For all other data and media, at the 3. Concealment, Misrepresentation or Fraud cost of blank material for reproducing We will not pay for any loss if you or any the records. This includes data other city at any time intentionally conceal or representing financial records. We misrepresent a material fact concerning: will not pay based on their face value. a.This Coverage Part; f. Environmental, Safety and Efficiency Improvements b.The covered property; If covered equipment requires c.Your interest in the covered property; or replacement due to an accident, we will d.A claim under this Coverage Part. pay your additional cost to replace with equipment that is better for the 4. Jurisdictional Inspections environment, safer or more efficient than If any covered equipment requires inspection the equipment being replaced. However, to comply with state or municipal boiler and we will not pay more than 125% of what pressure vessel regulations, we agree to the cost would have been to repair or LMCIT BM-200(11/01)(Rev. 11/13) Page 9 of 14 COVENANT NUMBER: CMC 38108 perform such inspection on your behalf. comply with the terms of this Coverage Part, the mortgage holder will still have 5. Legal Action Against Us the right to receive loss payment if the mortgage holder: No one may bring a legal action against us under this Covenant unless: (1) Pays any premium due under this Coverage Part at our request if you a.There has been full compliance with all have failed to do so; the terms of this Covenant; and (2) Submits a signed, sworn proof of b.The action is brought within two years loss within 60 days after receiving after the date of the accident; or notice from us of your failure to do c.We agree in writing that you have an so; and obligation to pay for damage to covered (3) Has notified us of any change in property of others or until the amount of ownership or material change in risk that obligation has been determined by known to the mortgage holder. final judgment or arbitration award. No one has the right under this Covenant to All of the terms of this Coverage Part will bring us into an action to determine your then apply directly to the mortgage holder. liability. e. If we pay the mortgage holder for any loss and deny payment to you because of your 6. Loss Payable acts or because you have failed to comply a.We will pay you and the loss payee with the terms of this Coverage Part: shown in the Declarations for loss (1)The mortgage holder's right under covered by this Coverage Part, as the mortgage will be transferred to interests may appear. The insurance us to the extent of the amount we covers the interest of the loss payee pay; and unless the loss results from conversion, (2)The mortgage holder's right to recover secretion or embezzlement on your part. the full amount of the mortgage b.We may cancel the covenant as allowed holder's claim will not be impaired. by the Cancellation Condition. At our option, we may pay to the Cancellation ends this agreement as to mortgage holder the whole principal on the loss payee’s interest. If we cancel, we the mortgage plus any accrued interest. will mail you and the loss payee the same In this event, your mortgage and note advance notice. will be transferred to us and you will pay c.If we make any payment to the loss your remaining mortgage debt to us. payee, we will obtain their rights against f. If we cancel this covenant, we will give any other party. written notice to the mortgage holder at least: 7. Mortgage Holders (1)10 days before the effective date of a. The term mortgage holder includes cancellation if we cancel for your trustee. nonpayment of premium; or b. We will pay for direct damage to covered (2)30 days before the effective date of property due to an accident to covered cancellation if we cancel for any equipment to you and each mortgage other reason. holder shown in the Declarations in their g. If we elect not to renew this covenant, we order of precedence, as interests may will give written notice to the mortgage appear. holder at least 10 days before the c. The mortgage holder has the right to expiration date of this covenant. receive loss payment even if the mortgage h. If we suspend coverage, it will also be holder has started foreclosure or similar suspended as respects the mortgage action on the covered property. holder. We will give written notice of the d. If we deny your claim because of your suspension to the mortgage holder. acts or because you have failed to LMCIT BM-200(11/01)(Rev. 11/13) Page 10 of 14 COVENANT NUMBER: CMC 38108 a.Your last known address; or 8. Other Insurance a.You may have other insurance subject to b. The address where the covered the same plan, terms, conditions and equipment is located. provisions as the insurance under this Once suspended in this way, your coverage Coverage Part. If you do, we will pay can be reinstated only by an endorsement for our share of the covered loss or damage. that covered equipment. Our share is the proportion that the If we suspend your coverage, you will get a applicable limits under this Coverage pro rata refund of premium for that covered Part bear to the Limits of Insurance of equipment. But the suspension will be all insurance covering on the same basis. effective even if we have not yet made or b. If there is other insurance covering the offered a refund. same loss or damage, other than that described in (a) above, we will pay only 12. Transfer of Rights of Recovery Against the amount of covered loss or damaged Others to Us in excess of the amount due from that If any person or organization to or for whom other insurance, whether you can collect we make payment under this Coverage Part on it or not. has rights to recover damages from another, In no case will we pay more than the those rights are transferred to us to the extent applicable limits. of our payment. That person or organization must do everything necessary to secure our 9. Coverage Period, Coverage Territory rights and must do nothing after loss to Under this Coverage Part: impair them. But you may waive your rights against another party in writing: a. The accident must occur: a. Prior to a loss to yourcovered property. (1) During the Coverage Period shown in the Declarations; and b. After a loss to yourcovered property only if, at time of loss, that party is one (2) Within the Coverage Territory. of the following: b. The Coverage Territory is: (1) Someone insured by this insurance; or (1) The United States of America (2) A business firm: (including its territories and possessions); (a) Owned or controlled by you; or (2) Puerto Rico; and (b) That owns or controls you. (3) Canada. 13. Premiums and Premium Adjustments a.You agree to furnish us with a schedule 10. Privilege to Adjust with Owner of locations prior to thebeginning of In the event of loss or damage involving each Covenant Period. property of others in your care, custody or control, we have the right to settle the loss or b. These schedules must include all damage with respect to such property with locationsthat were covered by your prior the owner of the property. A receipt for covenant but were not described in the payment from the owners of that property Schedule of Covered Property. will satisfy any claim of your s. c. The initial annual premiums will be based upon these schedules and the 11. Suspension appropriate replacement cost values. Whenever covered equipment is found to be d. You will pay us additional premium if a in, or exposed to, a dangerous condition, any new location with replacement cost of our representatives may immediately values of greater than $5,000,000 is suspend the coverage against loss from an added during the Covenant Period. accident to that covered equipment. This e. We will return premium to you if a can be done by delivering or mailing a location with replacement cost values of written notice of suspension to: greater than $5,000,000 is deleted during LMCIT BM-200(11/01)(Rev. 11/13) Page 11 of 14 COVENANT NUMBER: CMC 38108 the Covenant Period. named in the Declarations. For purposes of this coverage, city includes relief associations. Unless specifically named in G. DEFINITIONS the Declarations, city shall not include: 1. Accident is defined in A.1.a., COVERAGE - a. Gas, electrical, or steam utilities Covered Cause of Loss. commission; 2. Boilers and Vessels means: b. Port authority, housing and redevelopment authority, economic a. Any boiler, including attached steam, development authority, area or municipal condensate and feed water piping; and redevelopment authority, or similar b. Any fired or unfired pressure vessel agency: subject to vacuum or internal pressure c. Municipal power agency; other than the static pressure of its contents. d. Municipal gas agency; This term does not appear elsewhere in this e. Hospital or nursing home board or coverage form, but may appear in the commission; Declarations. f. Airport commission; g. Welfare or public relief agency; 3. Builders Risk Property means: h. School board; or a.Covered property in the course of i. Joint powers entity; but a joint planning construction; board created pursuant to an orderly b. Alterations or repair to the city’s existing annexation agreement or joint resolution covered property; between the city and a township is c. Addition to the city’s existing covered deemed to be a covered joint powers property; entity under this agreement. d. Builders risk prope rty also includes: 6. Covered Equipment is defined in A.1.b., (1) Foundation of covered property in COVERAGE - Covered Cause of Loss. the course of construction or an addition to the city’s existing 7. Covered Electrical Generating Equipment covered property; means: (2) Materials, equipment and supplies a. Engine-generators; used for construction, alteration or b. Electrical transformers, switchgear and repair, provided such property is power lines used to convey the generated intended to be permanently in or on electricity; and the builders risk property; and c. Associated equipment necessary for the (3) Temporary structures built or operation of any of the equipment listed assembled at a location described in in a. and b. above. the Declarations including cribbing, scaffolding and construction forms However, the equipment listed in a. through used in the course of construction or c. above will not be considered covered alterations or repair of the builders electrical generating equipment if you also risk property. own a steam, gas, water, or wind turbine. 4. Business Income means the sum of: 8. Covered Property means property that: a. The Net Income (net profit or loss before a.You own; or income taxes) that would have been b. Is in your care, custody or control and earned or incurred; and for which you are legally liable while at a b. Continuing normal operating expenses location described in the Declarations. incurred, including employee payroll. But, covered property does not include e xcluded electrical generating equipment. 5. City means governmental body or entity first LMCIT BM-200(11/01)(Rev. 11/13) Page 12 of 14 COVENANT NUMBER: CMC 38108 the operation of any of the 9. Data means information or instructions equipment listed in (1) and (2) stored in digital code capable of being above. processed by machinery. c. Excluded Electrical Generating 10. Employee means for actions within his duties Equipment does not mean: as such any present or former: (1) Elevator or hoist motors that a. Person whom you compensate directly generate electricity when releasing by salary, wages or commission, and cable; or who you have the right to direct or (2) Equipment intended to generate control while performing duties for you; electricity solely on an emergency, b. Member of the city council; back-up basis. c. Member of a city board, commission, or committee which is not excluded by the 12. Extra Expense means the additional cost definition of city; you incur to operate your business during the interruption over and above the cost that d.Elected or appointed official of the city; normally would have been incurred to e.Volunteer person or organization while operate the business during the same period acting on behalf of the city and subject to had no accident occurred. the city’s direction and control; f.Other authorized person or agent of the 13. Green means products, materials, methods city while acting on behalf of the city, and processes certified by a Green Authority but excludes independent contractors; that conserve natural resources, reduce g.Members, officers and employees of a energy or water consumption, avoid toxic or city relief association. otherwise environmental impact. 11. Excluded Electrical Generating Equipment 14. Green Authority means an authority on means: green buildings, products, materials, a. Equipment which converts any other methods or processes that is certified and form of energy into electricity. This accepted by Leadership in Energy and includes, but is not limited to, the Environmental Design (LEED), Green following: Building Initiative Green Globes, Energy Starr Rating System or any other recognized (1) Boilers used primarily to provide green rating system. steam for one or more turbine- generator units; 15. Joint Powers Entity means an operating (2) Turbine- generators (including entity created by two or more governmental steam, gas, water, or wind turbines); units entering into an agreement as provided (3) Fuel cells or other alternative by statute for the joint exercise of electrical generating equipment; and governmental powers. An intergovernmental (4) Associated equipment necessary for agreement will be deemed to create a joint the operation of any of the powers entity if the agreement establishes a equipment listed in (1) through (3) board with the effective power to do any of above. the following, regardless of whether the b. The following equipment will be specific consent of the constituent considered excluded electrical governmental units may also be required: generating equipment if you also own a a. To receive and expend funds; steam, gas, water or wind turbine: b. To enter into contracts; (1) Engine-generators; c. To hire employees; (2 Electrical transformers, switchgear d. To purchase or otherwise acquire or hold and power lines used to convey the real or personal property; or generated electricity; and e. To sue or be sued. (3 Associated equipment necessary for LMCIT BM-200(11/01)(Rev. 11/13) Page 13 of 14 COVENANT NUMBER: CMC 38108 b. Any other alternative dispute resolution 16. Media means all forms of electronic, proceeding in which damages are magnetic and optical tapes and discs for use claimed and to which you submit with in any electronic computer or electronic data our consent. processing equipment. 17. Mold means any mold, fungus, mildew or 25. Us means the League of Minnesota Cities yeast, including any spores or toxins Insurance Trust. produced by or emanating from such mold, fungus, mildew or yeast. 26. You means the city shown in the Declarations. 18. One Accident means: If an initial accident causes other accidents, 27. Your means the city shown in the all will be considered one accident. All Declarations. accidents that are the result of the same event will be considered one accident. 28. We means the League of Minnesota Cities Insurance Trust. 19. Our means the League of Minnesota Cities 29. Vacant property means: Insurance Trust. a.Covered property is deemed to be vacant 20. Perishable Goods means any covered property if for a period of 60 consecutive property subject to deterioration or days less than 31% of the covered impairment as a result of a change of property square footage is either used by conditions, including but not limited to the city for customary operations or is temperature, humidity or pressure. leased out. b. Covered property rented or leased to the 21. Pollutant means any substance other than city is deemed to be vacant property if ammonia that has been declared to be for a period of 60 consecutive days the hazardous to health by a governmental covered property does not contain agency. enough property to conduct customary operations. 22. Production Machinery means: However, builders risk property is not Any machine or apparatus that processes or considered vacant property. produces a product intended for eventual sale. However, production machinery does not mean any fired or unfired pressure vessel other than a cylinder containing a movable plunger or piston. This term does not appear elsewhere in this coverage form, but may appear in the Declarations. 23. Project cost means the cost of construction, materials, and architectural, legal, financial and other professional services relating to the construction, alteration or repair project. 24. Suit means a civil proceeding to which this insurance applies and includes: a. Any arbitration proceeding in which damages are claimed and to which you must submit or do submit with our consent; or LMCIT BM-200(11/01)(Rev. 11/13) Page 14 of 14 COVENANT NUMBER: CMC 38108 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES This endorsement modifies insurance provided under the following: EQUIPMENT BREAKDOWN COVERAGE FORM A. We will not pay for loss or damage caused directly or indirectly by the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage. 1. The failure, malfunction or inadequacy of: a. Any of the following, whether belonging to any insured or to others: (1) Computer hardware, including microprocessors; (2) Computer application software; (3) Computer operating systems and related software; (4) Computer networks; (5) Microprocessors(computer chips) not part of any computer system; or (6) Any other computerized or electronic equipment or components; or b. Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in paragraph A.1.a. of this endorsement; due to the ability to correctly recognize, process, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recognize the year 2000. 2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described on Paragraph A.1. of this endorsement. B If an excluded Cause of Loss described in Paragraph A. of this endorsement results in a Covered Cause of Loss, we will pay only for the loss or damage caused by such Covered Cause of Loss. C. We will not pay for repair, replacement or modification of any items in Paragraph A.1.a. and A.1.b. of this endorsement to correct any deficiencies or change any features. All other terms and conditions remain unchanged. LMCIT BM-212(11/01) Page 1 of 1 Covenant Number MUNICIPAL LIABILITY DECLARATIONS CMC 38108 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (Herein called LMCIT) Item 1.CITY: OAK PARK HEIGHTS, CITY OF Item 2.COVERAGE PERIOD: From: 07/07/2015 To: 07/07/2016 12:01 AM Standard Time at Mailing Address on Common Coverage Declarations Item 3.THE COVERED PARTY IS: CITY Item 4.COVERAGE PARTS: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING LIMITS: PER OCCURRENCE LIMIT *$ 2,000,000 PRODUCTS LIMIT $ 3,000,000 Annual Aggregate FAILURE TO SUPPLY CLAIM LIMIT $ 3,000,000 Annual Aggregate EMF CLAIM LIMIT $ 3,000,000 Annual Aggregate MOLD CLAIM LIMIT $ 3,000,000 Annual Aggregate MEDICAL AND RELATED EXPENSE LIMIT $1,000/$10,000 Any One Person/Occurrence LIMITED POLLUTION LIABILITY CLAIM LIMIT ** $ 2,000,000 Per Sudden Occurrence/ $3,000,000 Annual Aggregate OUTSIDE ORGANIZATION CLAIM LIMIT ** $ 100,000 Annual Aggregate DATA SECURITY BREACH CLAIM LIMIT $ 3,000,000 Annual Aggregate LAND USE AND SPECIAL RISK LITIGATION LIMIT *** $ 1,000,000 Annual Aggregate * LMCIT’s maximum limit of liability for COVERAGES A and C combined. ** LIMIT includes damages, loss adjustment expense, defense costs, and supplementary payments. ***LIMIT includes litigationcosts. Item 5. MUNICIPAL LIABILITY DEDUCTIBLE: (Subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations) $ 1,000 Per Occurrence Item 6.RETROACTIVE DATES: MUNICIPAL LIABILITY RETROACTIVE DATE: 07/07/1987 LIMITED POLLUTION LIABILITY CLAIM RETROACTIVE DATE: 05/24/1988 Item 7.ENDORSEMENTS ATTACHED TO THIS COVERAGE PART: CMC(11/14) MGL-1(11/12) ME014(11/01) ME066(11/11) ME073(11/01) LMCIT DEC-013(11/86) (Rev. 11/14) COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL COVERAGE Various provisions in this covenant restrict coverage. SECTION II - WHO IS COVERED. Read the entire coverage agreement carefully to Other words and phrases that appear in italics have determine rights, duties and what is and is not covered. special meaning, as given in SECTION IV - The words city and covered party are defined under DEFINITIONS. SECTION I – COVERAGES the date of the occurrence is the date on which the COVERAGE A. MUNICIPAL LIABILITY bodily injury or property damage first took place or COVERAGE (CLAIMS MADE BASIS) is alleged to have taken place. 1. COVERAGE AGREEMENT (2) For any other claim for damages, the date of the occurrence is the date on which the wrongful act a. Except as otherwise provided in this agreement, giving rise to the claim for damages took place or is LMCIT will pay on behalf of the covered party all alleged to have taken place. If the damages are sums which the covered party shall become legally alleged to have arisen from a series of wrongful acts, obligated to pay as damages as a result of an the date of the occurrence is deemed to be the date occurrence, if the following conditions are met: when the first such wrongful act took place or is alleged to have taken place. (1) The claim for such damages must be first made against the covered party during the coverage If both (1) and (2) apply to claims for damages period; and arising from a single occurrence, the date of the occurrence is the earlier of the dates defined by (1) (2) The date of the occurrence giving rise to the and (2), respectively. claim for damages must be on or after the retroactive date, if any, shown in the Declarations; and b. For any claim for damages, the date the claim is made is deemed to be as follows: (3) The occurr e nce must have taken place in the coverage territory. (1) For any employment liability claim, the claim is deemed to have been made on the earliest of: b. LMCIT will have the right and duty to defend any such claim or suit seeking damages.LMCIT may, at (a) The date the claimant files a charge with the its discretion, investigate any actual or potential Federal Equal Employment Opportunity claim; and unless the city has given notice as Commission, the Commissioner of the provided in SECTION VI - CONDITIONS, 7., Minnesota Department of Human Rights, or a LMCIT may settle any claim or suit. local Human Rights Commission as defined in Minnesota Statute §363.01, subd. 23, whichever c. The amount LMCIT will pay for damages is limited comes first; or as described in SECTION III - LIMITS OF COVERAGE. (b) The date when notice of claim for damages is received by any covered party or by LMCIT, 2. CLAIM AND OCCURRENCE DATES whichever comes first. a. For any claim for damages, the date of the (2) For any Health Insurance Portability and occurrence shall be deemed to be as follows: Accountability Act (HIPAA) claim, the claim is deemed to have been made on the earliest of: (1) For claims for bodily injury or property damage, LMCIT CMC (11/86)(Rev. 11/14) Page 1 of 23 COVENANT NUMBER: CMC 38108 (a) The date the claimant files a complaint with of the injury. the Federal Health and Human Services Office This exclusion does not apply to liability assumed for Civil Rights; or by the covered party under a covered contract. (b) The date when notice of claim for damages d. Any pollution claim. . is received by any covered party or by LMCIT, whichever comes first. e. Damages arising out of the ownership, maintenance, use or entrustment to others of any aircraft,auto or (3) For any other claim for damages, the claim is watercraft owned or operated by or rented or loaned deemed to have been made when notice of such to any covered party. Use includes operation and claim is received and recorded by any covered party loading or unloading. or by LMCIT, whichever comes first. This exclusion does not apply to: (4) All claims for damages arising from a single occurrence will be deemed to have been made at the (1) A watercraft while ashore on premises the city time the first of those claims is made against any owns or rents; covered party. (2) A watercraft that is: 3. EXCLUSIONS (a) Less than 26 feet long; and This coverage does not apply to: (b) Not being used to carry persons or property a. Damages for which the covered party is liable by for a charge; reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability (3) Parking an auto on, or on the ways next to, for damages: premises the city owns or rents, provided the auto is not owned by or rented or loaned to the covered (1) Assumed in a contract or agreement that is a party. covered contract; or f. Damages due to war, whether or not declared, or any (2) The covered party would have in the absence of act or condition incident to war. War includes civil the contract or agreement. war, insurrection, rebellion or revolution. b. Damages for which the covered party may be liable g. Property damage to: by reason of the Minnesota Civil Damages Act (M.S. §340A.801-340A.802), or any other law (1) Premises the city sells, gives away or abandons, governing liability for illegal sales of alcoholic if the propertydamage arises out of any part of those beverages. premises; c. Bodily injury to: (2) Your product arising out of it or any part of it. (1) An employee of the city arising out of and in the h. Damages claimed for any repair or replacement of course of employment by the city; or your work. (2) Damages to the spouse, child, parent, brother or i. Damages claimed for any loss, cost or expense sister of that employee as a consequence of (1) incurred by the city or others for the loss of use, above. withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: This exclusion applies: (1) Your product; (1) Whether the city may be liable as an employer or in any other capacity; and (2) Your work; or (2) To any obligation to share damages with or (3) Impaired property; repay someone else who must pay damages because LMCIT CMC (11/86)(Rev. 11/14) Page 2 of 23 COVENANT NUMBER: CMC 38108 if such product, work, or property is withdrawn or (1) Attorney, unless the attorney is an employee of recalled from the market or from use by any person the city and not an independent contractor, and the or organization because of a known or suspected professional services are within the scope of the defect, deficiency, inadequacy or dangerous attorney's duties as a city employee, including condition in it. professional services performed for any of the city’s boards, commissions, authorities or agencies, or j. Bodily injury to any volunteer while acting on behalf joint powers entities in which the city participates. of the city if the volunteer is an employee within the meaning of a workers' compensation law or similar (2) Architect. law, or is covered under a voluntary endorsement to (3) Doctor of medicine. a workers' compensation insurance policy. (4) Dentist. k. Damages for bodily injury,property damage or personal injury arising out of the city’s ownership, (5) Nurse, except that this exclusion shall not apply operation or maintenance of any airport. This to: exclusion does not apply to a heliport that is not held out for public use. (a) Claims arising from the nurse's activities in the capacity of an emergency medical l. Damages for bodily injury, property damage or technician, paramedic or first responder; or personal injury arising out of the city’s ownership, construction, operation or maintenance of any (b) Claims arising from the nurse's activities in railroad track or rolling stock. administering vaccinations or immunizations to city employees or volunteers. m. Damages for bodily injury,property damage, or personal injury arising out of the city’s ownership, (6) Pharmacist. operation or maintenance of any: (7) Psychologist. (1) Medical clinic; o. Damages arising out of the failure or bursting of (2) Licensed hospital, boarding care home, any: outpatient surgical center, or supervised living facility; (1) Class I or Class II dam as classified by the Commissioner of the Department of Natural (3) Licensed psychiatric hospital; Resources pursuant to Minnesota Rules §6115.0340; or (4) Mental health clinic; (2) Any dike, levee or similar structure. (5) Licensed nursing home or home care providers; p. Damages arising out of the city’s ownership, (6) Registered housing with services establishments; sponsorship or operation of: or (1) Motorized amusement devices, if the power (7) Licensed child care program, except that this supply motor is rated at greater than 5 horsepower; exclusion shall not apply to: (2) Any mobile equipment,automobile, snowmobile (a) A “drop-in child care program” as defined or motorcycle in any pre-arranged racing, pulling, under Minnesota Statutes, section 245A.02, pushing, speed, or demolition contest or exhibition, subd.6a; or or in any pre-arranged stunting activity; (b) A summer day camp, holiday break camp, or (3) Any pre-arranged racing, pulling, pushing, speed, similar program. or demolition contest or exhibition involving the use of mobile equipment, automobiles, snowmobiles or n. Damages arising out of the rendering of or failure to motorcycles: render professional services by any professional listed below: LMCIT CMC (11/86)(Rev. 11/14) Page 3 of 23 COVENANT NUMBER: CMC 38108 (4) Rodeos; w. Any claim for damages asserted in any land use and special risk litigation. (5) Fireworks displays or exhibitions; or x. Damages arising from or relating to the actual, (6) Any pre-arranged stunting activity. pending, or threatened bankruptcy of the city. q. Damages arising from or relating to the detention or COVERAGE B. MEDICAL AND RELATED confinement of any person(s) in any jail, holding cell EXPENSE or similar detention facility, which the city owns, operates or maintains, if the date of the occurrence 1. COVERAGE AGREEMENT causing such damages takes place after a continuous detention or confinement period of 30 days, or in a. LMCIT will pay to or for each person who sustains any detention facility which is intended and bodily injury caused by accident all reasonable regularly used for confinement of persons for medical and related expense incurred within one periods in excess of 30 days. year from the date of the accident as a result of such bodily injury, provided such bodily injury arises out r. Damages arising out of the activities of any of the of a condition in the covered premises. following city boards, commissions, or agencies: b. The amount LMCIT will pay for medical and related (1) Gas, electrical or steam utilities commission; expense is limited as described in SECTION III - LIMITS OF COVERAGE. (2) Port authority, housing and redevelopment authority, economic development authority, area or 2. EXCLUSIONS municipal redevelopment authority, or similar agency; LMCIT will not pay expenses for bodily injury: (3) Municipal power agency; or a. Arising out of the operation or use of any snowmobile or trailer designed for use therewith; (4) Municipal gas agency, b. Included within the products hazard; unless such board, commission, authority, or agency is named in the Declarations, in which case the city c. Arising out of operations performed for the city by will also be covered to the extent of coverage an independent contractor other than: provided under this covenant to the named board, commission, authority or agency for damages (1) Maintenance and repair of the covered premises; arising out of the activities of the respective named or board, commission, authority or agency. (2) Structural alterations at such premises which do s. Damages arising out of the activities of a joint not involve changing the size of or moving buildings powers entity in which the city is a member unless or other structures; the joint powers entity is named in the Declarations. d. To any tenant or other person regularly residing on t. Damages arising out of condemnation, inverse the covered premises; condemnation, adverse possession, or dedication by adverse use. This exclusion does not apply to any e. To any other tenant if the bodily injury occurs on claim for taking of property wherein the taking of that part of the covered premises rented from the property is incident to an arrest or for the purpose of city; protecting persons or property in an emergency. f. To any person while engaged in maintenance and u. Any criminal proceedings or proceedings under the repair of the covered premises or alteration, open meeting law against any covered party. demolition or new construction at such premises; v. Damages with respect to any claim(s) made by g. To any person practicing, instructing or participating LMCIT or the city against any other covered party. in any physical training, sport, athletic activity or LMCIT CMC (11/86)(Rev. 11/14) Page 4 of 23 COVENANT NUMBER: CMC 38108 contest whether on a formal or informal basis; COVERAGE C. AUTOMOBILE LIABILITY - BODILY INJURY AND PROPERTYDAMAGE h. To a member or guest of any club, tourist court or trailer park operated or owned by the city; or 1. COVERAGE AGREEMENT i. For any injury for which the injured party has LMCIT will pay on behalf of the covered party all sums received or is entitled to receive workers' which the covered party shall become legally obligated compensation benefits. to pay as damages because of bodily injury or property damage to which this coverage applies, caused by an The exclusions of the MUNICIPAL LIABILITY occurrence and arising out of the ownership, COVERAGE PART (COVERAGE A) also apply to this maintenance or use, including loading or unloading, of Coverage Part as respects bodily injury. any automobile. This coverage applies only to bodily injury or property damage which occurs during the 3. ADDITIONAL DEFINITIONS coverage period and within the coverage territory. When used herein: LMCIT will have the right and duty to defend any suit seeking those damages. However: Covered premises means all premises owned or rented to the city with respect to which the city is afforded a. The amount LMCIT will pay for damages is limited coverage for bodily injury liability under this covenant, as described in SECTION III - LIMITS OF and includes the ways immediately adjoining on land; COVERAGE. however, covered premises does not include streets, sidewalks, or boulevards that do not abut a city owned b. LMCIT may, at its discretion, investigate any building or city owned parking lot. occurrence and settle any claim or suit that may result. Medical and related expense means expenses for necessary medical, surgical, x-ray and dental services, 2. EXCLUSIONS including prosthetic devices, necessary ambulance, hospital, professional nursing and funeral services, and This coverage does not apply to: replacement or repair of damaged eye glasses or clothing. a. Any obligation for which the covered party or any carrier as his insurer may be held liable under any 4. ADDITIONAL CONDITION MEDICAL workers' compensation, unemployment compensa- REPORTS; PROOF AND PAYMENT OF tion or disability benefits law, or under any similar law. CLAIM As soon as practicable, the injured person or someone on b. Any liability the city may have for bodily injury to: his behalf shall give to LMCIT written proof of claim, (1) An employee of the city arising out of and in the under oath if required, and shall, after each request from course of employment by the city; or LMCIT, execute authorization to enable LMCIT to obtain medical reports and copies of records. The injured (2) Damages to the spouse, child, parent, brother or person shall submit to physical examination by sister of that employee as a consequence of (1) physicians selected by LMCIT when and as often as above. LMCIT may reasonably require. LMCIT may pay the injured person or any person or organization rendering This exclusion applies: the services, and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder (1) Whether the city may be liable as an employer or shall not constitute an admission of liability of any in any other capacity; and covered party or of LMCIT. (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. LMCIT CMC (11/86)(Rev. 11/14) Page 5 of 23 COVENANT NUMBER: CMC 38108 This exclusion does not apply to liability assumed $250,000 which are incurred after the litigation has by the covered party under a covered contract.been reported to LMCIT; and c. Property damage to property owned by the covered b. 50% of anynecessary legal fees for counsel to party.represent the city which the city incurs prior to reporting the litigation to LMCIT. d. Bodily injury due to war, whether or not declared, civil war, insurrection, rebellion or revolution or to This coverage shall not apply to any land use and any act or condition incident to any of the foregoing. special risk litigation which is first reported to LMCIT more than one year after the date on which the litigation e. Any pollution claim. was first filed or served by or against the city or a city officer or employee. f. Liability assumed under any contract or agreement, but this exclusion does not apply to liability assumed The amount LMCIT will pay for litigation costs for land under a covered contract. use and special risk litigation covered under this section is limited as described in SECTION III - LIMITS OF g. Liability arising from use of an owned automobile or COVERAGE. hired automobile in any pre-arranged racing, pulling, pushing, speed or demolition contest or exhibition, The amount LMCIT pays for litigation costs for land use or in any pre-arranged stunting activity. and special risk litigation is subject to the Municipal Liability Deductible shown in the Municipal Liability 3. ADDITIONAL DEFINITIONS Declarations or the General Annual Aggregate Deductible, if any, shown in the Common Coverage These additional definitions apply for purposes of Declarations. COVERAGE C: 2. LITIGATION MANAGEMENT Automobile business means the business or occupation of selling, repairing, servicing, storing or parking For any land use and special risk litigation, legal automobiles. counsel will be selected by mutual agreement of the city and LMCIT. Hired automobile means an automobile not owned by and is used under contract on behalf of, or loaned to, the If LMCIT and the city are not able to agree on selection city. of counsel, LMCIT will provide a list of five attorneys experienced in land use and special risk litigation Owned automobile means an automobile owned by the matters; and the city will select legal counsel from that city. list. Trailer includes semi-trailer but does not include mobile A land use and special risk litigation suit may not be equipment. settled without the approval of both LMCIT and the city. COVERAGE D. LAND USE AND SPECIAL 3. ADDITIONAL DEFINITIONS RISK LITIGATION This additional definition applies for the purpose of COVERAGE D. 1. COVERAGE AGREEMENT Litigation costs means: Except as provided below, for any land use and special risk litigation which is first filed or served by or against a. Legal fees for counsel appointed pursuant to 2. the city or a city officer or employee during the annual LITIGATION MANAGEMENT, above; coverage period of this agreement, LMCIT will pay the following on the city’s behalf: b. Necessary legal fees for counsel to represent the city which the city incurs prior to reporting the litigation a. 85% of the first $250,000 of litigation costs which to LMCIT; are incurred after the litigation has been reported to LMCIT; and 60% of any litigation costs in excess of LMCIT CMC (11/86)(Rev. 11/14) Page 6 of 23 COVENANT NUMBER: CMC 38108 c. Necessary litigation expenses other than legal fees; Covered motor vehicle means any motor vehicle that is owned by the city. d. Damages which the city is required to pay; and Uninsured and underinsured motorists coverage means e. Supplementary payments made or incurred as amounts due to such persons, in such amounts and for defined in SECTION V - SUPPLEMENTARY such covered motor vehicles in accordance with and as PAYMENTS. may be required, limited or excluded by the terms, definitions, limitations, conditions and exclusions of the 4. SPECIAL PROVISIONS - INTER-CITY Minnesota No-Fault Act, Minnesota Statutes §65B.41 to §65B.71 in no greater amount or scope than required by LITIGATION said Statute unless a contrary intent is clearly and The following special provisions shall apply only to unequivocally stated herein. coverage for any land use and special risk litigation in But uninsured and underinsured motorists coverage which: 1) An opposing litigant is also a member of the does not include punitive or exemplary damages. LMCIT property/casualty program; and 2) The litigation is also a covered claim for the opposing litigant under Uninsured motor vehicle and underinsured motor COVERAGE D of the opposing litigant's LMCIT vehicle have the meaning given them in the Minnesota municipal liability coverage: No-Fault Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71. a. Legal counsel will be selected as provided above, but LMCIT will not otherwise participate in the Motor vehicle has the meaning given it in the Minnesota management of the litigation. No-Fault Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71 but for the purposes of this b. Any settlement of the litigation involving a payment coverage, motor vehicle also includes motorcycles, as of damages must be approved by LMCIT. defined under the Act, and vehicles not required to be c. The percentage LMCIT will pay of any litigation registered pursuant to Chapter 168, but which otherwise meets the definition of a motor vehicle under the Act. costs will be one-half of the percentages specified in COVERAGE D. 1. COVERAGE AGREEMENT. When necessary to determine the application of this policy under Minnesota Statute §65B.49 Subd.(3a) d. LMCIT's total liability to the city for litigation costs occupying means in, or upon a motor vehicle. for the litigation shall not exceed $500,000. This does not increase the annual aggregate limit as described in SECTION III - LIMITS OF 3. ADDITIONAL CONDITIONS COVERAGE, 9. These additional conditions apply for purposes of COVERAGE E: COVERAGE E. UNINSURED AND UNDERINSURED MOTORISTS COVERAGE Any amount payable under this coverage will be reduced by: 1. COVERAGE AGREEMENT a. All sums paid or payable under any workers a. LMCIT agrees to provide uninsured and compensation, disability benefits or similar law; and underinsured motorists coverage. b. All sums paid by or for anyone who is legally b. The amount LMCIT will pay for uninsured and responsible, including all sums paid under underinsured motorists coverage is limited as Comprehensive Municipal Coverage, Coverage C.- described in SECTION III-LIMITS OF Automobile Liability-Bodily Injury and Property COVERAGE. Damage. 2. ADDITIONAL DEFINITIONS The COMMON CONDITIONS also apply unless they are in conflict with the Minnesota No-Fault Automobile These additional definitions apply for purposes of Insurance Act, Minnesota Statutes §65B.41 to §65B.71. COVERAGE E: LMCIT CMC (11/86)(Rev. 11/14) Page 7 of 23 COVENANT NUMBER: CMC 38108 limited or excluded by the terms, definitions, conditions COVERAGE F. BASIC ECONOMIC LOSS limitations and exclusions of the Minnesota No-Fault BENEFITS COVERAGE Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71 in no greater amount and scope than required 1. COVERAGE AGREEMENT by said statute unless a contrary intent is clearly and unequivocally stated herein. a. LMCIT agrees to provide basic economic loss benefits. Motor vehicle has the meaning given it in the Minnesota No-Fault Automobile Insurance Act, Minnesota Statutes b. The amount LMCIT will pay for basic economic loss §65B.41 to §65B.71 but for the purposes of this benefits is limited as described in SECTION III- coverage, motor vehicle also includes motorcycles, as LIMITS OF COVERAGE. defined under the Act, and vehicles not required to be registered pursuant to Chapter 168, but which otherwise 2. ADDITIONAL DEFINITIONS meets the definition of a motor vehicle under the Act. These additional definitions apply for purposes of 3. ADDITIONAL CONDITIONS COVERAGE F. This additional condition applies for purposes of Covered motor vehicle means any motor vehicle that is COVERAGE F. owned by the city. The COMMON CONDITIONS also apply unless they Basic economic loss benefits means benefits to such are in conflict with the Minnesota No-Fault Automobile persons, in such amounts and for such covered motor Insurance Act, Minnesota Statutes §65B.41 to §65B.71. vehicles in accordance with and as may be required, SECTION II - WHO IS COVERED resolution between the city and a township; or 1.City means the city or other governmental body or entity first named in the Declarations. Unless (2) A joint airport zoning board created pursuant to specifically named in the Declarations, city shall not Minnesota Statute 360.063. include any of the following: 2. For purposes of COVERAGE A and COVERAGE a. Gas, electrical or steam utilities commission; D, covered party means: b. Port authority, housing and redevelopment a. The city, and any other entity named in the authority, economic development authority, area or Declarations; municipal redevelopment authority or similar agency; b. For actions within his duties as such, any present or former: c. Municipal power agency; (1) Member of the city council; d. Municipal gas agency; (2) Member of a city board, commission, or e. Welfare or public relief agency; committee which is not excluded by the definition of city; f. School board; or (3) Elected or appointed official of the city; g. Joint powers entity; but the following are deemed to be a covered joint powers entity under (4) Employee of the city; this agreement: (5) Volunteer person or organization while (1) A joint planning board created pursuant to an acting on behalf of the city and subject to the orderly annexation agreement, pursuant to city’s direction and control; Minnesota Statute 462.3585, or pursuant to a joint LMCIT CMC (11/86)(Rev. 11/14) Page 8 of 23 COVENANT NUMBER: CMC 38108 (6) Other authorized person or agent of the city Any person or organization from whom the City while acting on behalf of the city;leases premises or equipment that is not an automobile and to whom the City is contractually (7) City relief association and its members, obligated to have named as an additional covered officers, and employees; or party under this agreement, but: (8) Person while acting in the administrative a.Only with respect to, and to the extent of capacity of medical director or medical advisor claims made against the additional covered party by to the city ambulance service, whether that reason of act or omission of the City or its agents or person is a volunteer, an employee, or an employees and not by reason of act or omission of independent contractor. the additional covered party or its agents or employees; Notwithstanding any other provision of subdivision b, (1) through (8), an independent b.Only with respect to bodily injury, property contractor is not a covered party for purposes of damage, and personal injury; and COVERAGE A and COVERAGE D, except c.Only with respect to acts and omissions of i.When acting in the administrative the City occurring during the terms of the lease. capacity of medical director or medical advisor to the city ambulance service, or 4. For purposes of COVERAGE C, covered party means: ii.When serving as a member of a committee, subcommittee, board, or a. The city, and any other entity named in the commission of the city, or when Declarations with respect to any automobile; representing the city as a member of a committee, subcommittee, board, or b. Any present or former elected or appointed commission. official, employee or volunteer of the city with respect to any automobile while such automobile is c. With respect to a joint powers entity named in or was being used in the business of the city; the Declarations: c. Any person or organization from whom a (1) The joint powers entity; covered party hires or borrows a trailer which is connected to an ownedautomobile; (2) While acting on behalf of the joint powers entity, or with respect to liability arising out of d. Any person while using an owned automobile or the activities of the joint powers entity, any hired automobile only while such automobile is or present or former: was used with the city’s permission. (a) Governmental member of the joint e. Any other person or organization but only with powers entity; respect to his or its liability because of acts or omissions of a covered party under a., b., c. or d. (b) Elected or appointed official of the above. governmental member; For purposes of COVERAGE C, none of the (c) Employee of the governmental member; following is a covered party: or a. Any person or organization from whom a (d) Other authorized person or agent of the covered party hires or borrows an automobile that is governmental member, but excluding not a trailer. independent contractors. b. Any person while employed in or otherwise 3. For purposes of COVERAGE A, covered party also means: LMCIT CMC (11/86)(Rev. 11/14) Page 9 of 23 COVENANT NUMBER: CMC 38108 engaged in duties in connection with an automobile Anyone using a covered motor vehicle while business, other than an automobile business operated such covered motor vehicle was used without the by the city.city’s permission. c. Any person while loading or unloading an 6. For purposes of COVERAGE F, covered party automobile, other than: means: (1) A city officer, employee, or volunteer; or Anyone entitled to benefits as may be required, limited or excluded by the terms, definitions, (2) A lessee or borrower of an owned conditions and exclusions of the Minnesota No- automobile or their employees. Fault Automobile Insurance Act, Minnesota Fault Automobile Insurance Act, Minnesota 5. For purposes of this COVERAGE E, covered party Statutes §65B.41 to §65B.71. means: For purposes of COVERAGE F, none of the Anyone occupying a covered motor vehicle. following is a covered party: For purposes of COVERAGE E, none of the Anyone using a covered motor vehicle while following is a covered party: such covered motor vehicle was used without the city’s permission. SECTION III - LIMITS OF COVERAGE 1. The Limits of Coverage shown in the Declarations LMCIT will pay under COVERAGE A for damages and the rules below, except as otherwise described, included in the products hazard. fix the most LMCIT will pay as damages under each 5. The Medical and Related Expense Limit is the most coverage part regardless of the number of: LMCIT will pay under COVERAGE B for all a. Covered parties;medical expenses because of bodily injury sustained by any one person, and the occurrence limit is the b. Claims made or suits brought; or most LMCIT will pay under COVERAGE B for all medical expenses because of bodily injury to two or c. Persons or organizations making claims or more persons resulting from one occurrence. bringing suits. 6. The Limited Pollution Liability Claim Annual 2. LMCIT's maximum limit of liability for Aggregate Limit is the most LMCIT will pay for COVERAGES A and C combined shall be the per limited pollution liability claims during the annual occurrence or sudden occurrence limit shown in the coverage period. The Limited Pollution Liability Declarations whether the claim or claims fall under Claim Annual Aggregate Limit applies to the sum of COVERAGE A, COVERAGE C, or both. damages and loss adjustment expense, including defense costs and supplementary payments as 3. The Limits of Coverage shown in the Declarations, defined in SECTION V - SUPPLEMENTARY except as otherwise described, apply only to the PAYMENTS. damages under each Coverage Part in excess of the Municipal Liability Deductible shown in the As part of and not in addition to the Limited Municipal Liability Declarations or the General Pollution Liability Claim Annual Aggregate Limit, Annual Aggregate Deductible, if any, shown in the the most LMCIT will pay for Excavation and Common Coverage Declarations, and the Limits of Dredging claims is $250,000 during the annual Coverage will be reduced by the Deductible amount. coverage period. This sublimit applies to the sum of damages and loss adjustment expense, including 4. The Products Annual Aggregate Limit is the most defense costs and supplementary payments as LMCIT CMC (11/86)(Rev. 11/14) Page 10 of 23 COVENANT NUMBER: CMC 38108 defined in SECTION V – SUPPLEMENTARY accident regardless the number of: PAYMENTS. a. Covered motor vehicles; 7. The Failure to Supply Claim Annual Aggregate b. Covered parties; Limit is the most LMCIT will pay for damages for failure to supply claims during the annual coverage c. Claims made; or period. d. Motor vehicles involved in the accident. 8. The EMF Claim Annual Aggregate Limit is the most LMCIT will pay for damages for EMF claims during 14. The Basic Economic Loss Benefits Limit as stated in the annual coverage period. the Declarations is the most LMCIT will pay under COVERAGE F to one person for basic economic 9. LMCIT’s total liability for litigation costs, as defined loss benefits and the party to whom this policy is in SECTION I - COVERAGE D, LAND USE AND issued specifically rejects its right, if any it may SPECIAL RISK LITIGATION, for all land use and have, to elect to add two or more policies or limits special risk litigation which is first filed or served together unless otherwise clearly and unequivocally against the city during the annual coverage period of stated herein. this agreement shall not exceed $1,000,000, regardless of the number of suit s, defendants, or 15. LMCIT shall not be obligated under this covenant to claimants. pay any claim or judgment or to defend any suit after the applicable limit of LMCIT's coverage has been 10. The Mold Claim Annual Aggregate Limit is the exhausted. However, to the extent that LMCIT most LMCIT will pay for damages for mold claims provides excess liability coverage, subject to the during the annual coverage period. terms of the excess coverage, LMCIT shall continue to defend suits jointly under this covenant and the 11. The Outside Organization Claim Annual Aggregate excess covenant until the applicable excess limits Limit is the most LMCIT will pay for outside have been exhausted by payment of judgment or organization claims during the annual coverage settlements. period. The Outside Organization Claim Limit applies to the sum of damages and loss adjustment 16. For any Annual Aggregate Limit shown in the expense, including defense costs and supplementary Declarations, the limit shall apply separately to each payments as defined in SECTION V- consecutive annual period and to any remaining SUPPLEMENTARY PAYMENTS. period of less than 12 months, starting with the beginning of the coverage period shown in the 12. The Data Security Breach Claim Annual Aggregate Declarations, unless the coverage period is extended Limit is the most LMCIT will pay for damages for after issuance for an additional period of less than 12 data security breach claims during the annual months. In that case, the additional period will be coverage period. deemed part of the last preceding period for 13. The Uninsured and Underinsured Motorists Limit as purposes of determining the limits of coverage. stated in the Declarations is the most LMCIT will pay under COVERAGE E for uninsured and underinsured motorists coverages in any one SECTION IV - DEFINITIONS 1. Advertisement means a notice that is broadcast or 2. Aircraft means a vehicle designed for the transport published to the general public or specific market of persons or property principally in the air, segments about the city’s goods, products or services including airplanes, helicopters, blimps, hot air for the purpose of attracting customers or supporters. balloons, and gliders. LMCIT CMC (11/86)(Rev. 11/14) Page 11 of 23 COVENANT NUMBER: CMC 38108 3. Asbestos claim means any claim for damages arising (a) Goods or products made or sold by the directly or indirectly out of, resulting from, caused city in the territory described in a. above; or by or contributed to by: (b) The activities of a person whose home is a. The use of, sale of, installation of, removal of, in the territory described in a. above, but is abatement of, distribution of, containment of, or away for a short time on the city’s business; exposure to asbestos, asbestos products, asbestos-and containing material, asbestos fibers, or asbestos dust; (2) The covered party's responsibility to pay b. The actual or threatened abatement, mitigation, damages is determined in a suit on the merits, in removal or disposal of asbestos, asbestos products, the territory described in a. above or in a asbestos-containing material, asbestos fibers, or settlement LMCIT agrees to. asbestos dust; 8. Covered contract means an indemnification of a c. Any supervision, instructions, recommendations, municipality as required by ordinance, or that part of warnings or advice given or which should have been any contract or agreement pertaining to the city’s given in connection with subparagraphs a. and b. business under which the city assumes the tort above; or liability of another to pay damages to a third person or organization, if the contract or agreement is made d. Any obligation of the covered party to prior to the date of the occurrence giving rise to the indemnify any party in connection with damages. Tort liability means a liability that would subparagraphs a., b. or c. above. be imposed by law in the absence of any contract or agreement. 4. Automobile (auto) means a land motor vehicle, trailer or semi-trailer designed for travel on public Covered contract does not include that part of any roads, including any attached machinery or contract or agreement: equipment. But automobile does not include mobile equipment.a. That indemnifies an architect, engineer or surveyor for injury or damages arising out of: 5. Bodily injury means bodilyinjury, sickness or disease sustained by a person, including death (1) Preparing, approving or failing to prepare or resulting from any of these at any time. approve maps, drawings, opinions, reports, surveys, change orders, designs or 6. City debt obligations means bonds, notes, financing specifications; or certificates, lease-purchase agreements, or other similar debt instruments or financial obligations (2) Giving directions or instructions, or failing proposed, guaranteed, approved, issued, or entered to give the same, if that is the primary cause of into by the city. the injury or damages; 7. Coverage territory means: b. Under which the city’s architect, engineer or surveyor assumes liability for injury or damages a. The United States of America (including its arising out of the city’s rendering or failing to render territories and possessions), Puerto Rico and professional services, including those listed in a. Canada; above, and supervisory, inspection or engineering services; b. International waters or airspace, provided the injury or damages do not occur in the course of c. That indemnifies any person or organization for travel or transportation to or from any place not damages by fire to premises rented or loaned to the included in a. above; or city; or c. All parts of the world if: d. That indemnifies any person or organization for a pollution claim. (1) The injury or damage arises out of: LMCIT CMC (11/86)(Rev. 11/14) Page 12 of 23 COVENANT NUMBER: CMC 38108 9. Damages means money damages, and includes (2) Assumed in an employment contract awards for attorneys’ fees with respect to suit sbetween the city and its employees. alleging violations under federal civil rights laws, h. With respect to any litigation relating to citydebt state human rights laws or the federal or state obligations, any profit, advantage or remuneration to constitution. which the covered party was not legally entitled. With respect to any land use and special risk i. Any back wages or employment benefits for litigation,damages also includes amounts the city is work that has been performed by the employee obligated to pay for loss of use of property during making the claim, except for any of the following: the time prior to a final determination by the court that enforcement of a land use, zoning, subdivision, (1) Back wages or benefits owed because of a or similar ordinance or regulation constitutes a violation of the wage and hour provisions of the taking of private property. federal or state Fair Labor Standards Acts; or Damages does not include any of the following: (2) Back wages or benefits owed because of a violation of any state or federal statute a. Any obligation of a covered party under a prohibiting discrimination in employment based workers' compensation, disability benefits, or on race, color, creed, religion, national unemployment compensation law or any similar law. origin, sex, marital status, status with regard to b. Exemplary damages or punitive damages except public assistance, disability, sexual orientation, punitive damages claimed or levied against an or age. officer, employee or volunteer of the city, provided j. Any claimed increases in wages and that the officer, employee or volunteer: employment benefits for work to be performed in the (1) Was acting in the performance of the duties future by the employee making the claim. of the position; and k. Any loss cost, or expense arising out of a (2) Was not guilty of malfeasance in office, pollution claim. willful neglect of duty, or bad faith. 10. Data security breach claim means any claim for c. Fines or penalties imposed by law. damages arising out of actual or potential unauthorized acquisition of data that: d. Injunctive or equitable relief, or quasi- judicial or administrative orders. a. Compromises the security, confidentiality, or integrity of personal information; or e. Repayment of any tax, assessment, fee, or other charge that was wrongfully obtained, or any interest b. Contains data classified as private or on, or any other amount claimed for loss of use of, confidential by the Minnesota Government Data such tax, assessment, fee, or other charge. Practices Act. f. Amounts paid or payable for the purchase or For purposes of this section, “Personal information” permanent acquisition of property or property rights, means: or for the right to permanently enforce an ordinance, regulation, or restriction on the use of property. a. An individual's first name or first initial and last name in combination with any one or more of the g. Amounts owed pursuant to the explicit terms of following data elements, when the data element is any contractual obligation, including but not limited not secured by encryption or another method of to amounts due under the terms of any city debt technology that makes electronic data unreadable or obligations, except for liability: unusable, or was secured and the encryption key, password, or other means necessary for reading or (1) Assumed in a coveredcontract; or using the data was also acquired: LMCIT CMC (11/86)(Rev. 11/14) Page 13 of 23 COVENANT NUMBER: CMC 38108 (1) Social Security number; created by two or more governmental units entering into an agreement as provided by statute for the joint (2) Driver’s license number or Minnesota exercise of governmental powers. An identification card number; or intergovernmental agreement will be deemed to create a joint powers entity if the agreement (3) Account number or credit or debit card establishes a board with the effective power to do number, in combination with any required any of the following, regardless of whether the security codes, access code, or password that specific consent of the constituent governmental would permit access to an individual’s financial units may also be required: account. a. To receive and expend funds; 11. EMF claim means any claim for damages arising out of the actual or alleged exposure to electromagnetic b. To enter contracts; fields, electromagnetic radiation or stray voltage. c. To hire employees; 12. Excavation and dredging claim means any claim for damages arising out of the deposit of excavated or d. To purchase or otherwise acquire and hold real dredged pollutants when the excavation or dredging or personal property; or was undertaken to construct, maintain, repair, or e. To sue or be sued. reconstruct the city’s streets, ditches, sanitary sewer, storm sewer, drainage, or water supply systems, or 17. Land use and special risk litigation means: electric, gas, cable communication, or other public utilities. a. Any litigation relating to the city’s regulation of the use of land or real property or the application or 13. Failure to supply claim means any claim for interpretation of a land use, zoning, subdivision, or damages arising out of the complete or partial failure similar ordinance or regulation; or to supply water, electricity, gas, steam, telecommunications, or electronic data transmission b. Any litigation relating to the city’s participation service. in or financing of any housing, development, or redevelopment project. 14. Fungus(es) includes, but is not limited to, any form or type of mold, mushroom or mildew. c. Any litigation relating to the granting, refusal, interpretation, or enforcement of any franchise, 15. Impaired property means tangible property, other ordinance, permit, license, or other mechanism than your product or your work, that cannot be used through which the city authorizes or regulates parties or is less useful because: other than the city, with regard to the provision of telecommunications, electricity, gas, heat, sewage a. It incorporates your product or your work that is treatment or refuse collection within the city. known or thought to be defective, deficient, inadequate or dangerous; or d. Any litigation relating to the city’s authority to engage in enterprise operations. “Enterprise b. The city has failed to fulfill the terms of a operations” means any arrangement under which the contract or agreement; city offers goods or services for a fee, including but if such property can be restored to use by: not limited to sales of utilities, telecommunications services, refuse collection, and liquor. (1) The repair, replacement, adjustment or removal of your product or your work; or e. Any litigation relating to city debt obligations. (2) The city’s fulfilling the terms of the contract Any litigation meeting the criteria listed above will or agreement. be considered to be land use and special risk litigation in its entirety, regardless of whether the 16. Joint powers entity means an operating entity litigation may assert other claims as well. LMCIT CMC (11/86)(Rev. 11/14) Page 14 of 23 COVENANT NUMBER: CMC 38108 But land use and special risklitigation does not d. Any obligation of the covered party to include litigation: indemnify any party in connection with subparagraphs a., b. or c. above. a. That seeks only compensation or other relief for an actual or alleged physical occupation, invasion, or 19. Limited pollution liability claim means: use of property by the city; a. Any claim for damages arising out of pesticide b. That seeks only a reduction or invalidation of a or herbicide application operations; or special assessment; b. Any claim for damages which resulted from a c. That seeks only compensation for damagessudden occurrence which took place on or after the based on the city’s actual or alleged negligent retroactive date shown in the Declarations and prior inspection or enforcement of the state building, to the expiration date of this covenant, and which: plumbing, electrical, fire, or similar codes; (1) Was caused by an actual, alleged, or d. That seeks only amounts owed pursuant to the threatened discharge, dispersal, release, or explicit terms of any contractual obligation, escape of pollutants; or including but not limited to any city debt (2) Arises from the accidental rupture, backup, obligations; or overflow of the city’s sanitary sewer, storm e. That was initiated by the city to enforce a sewer, or water supply systems. building, zoning, subdivision, or similar ordinance c. Any lead claim or asbestos claim, unless the or regulation related to the use of property, unless actual, alleged, or threatened discharge, dispersal, that litigation also involves a challenge to the release, escape, use, distribution, or handling of lead constitutionality or interpretation of the ordinance or or asbestos took place at or from any landfill, dump, regulation or to the legal authority of the city to or other site or location presently or formerly used enact it; by or for the city or others for the handling, storage, f. That is a criminal prosecution by the city;disposal, processing or treatment of pollutants. g. That is brought by LMCIT or the city against any d. Any excavation and dredging claim. other covered party; 20. LMCIT means the League of Minnesota Cities h. That arises from or is related to the actual, Insurance Trust. pending or threatened bankruptcy of the city; or 21. Loading or unloading means the handling of i. That makes only a pollution claim.property: 18. Lead claim means any claim for damages arising a. After it is moved from the place where it is directly or indirectly out of, resulting from, caused accepted for movement into or onto an aircraft, by or contributed to by: watercraft or auto; a. The toxic or pathological properties of lead, lead b. While it is in or on an aircraft, watercraft or compounds or lead contained in any materials; auto; or b. The actual or threatened abatement, mitigation, c. While it is being moved from an aircraft, removal or disposal of lead, lead compounds or watercraft or auto to the place where it is finally materials containing lead; delivered; but loading or unloading does not include the movement of property by means of a mechanical c. Any supervision, instructions, recommendations, device, other than a hand truck, that is not attached warnings or advice given or which should have been to the aircraft, watercraft or auto. given in connection with subparagraphs a. or b. above; or 22. Mobile equipment means any of the following types LMCIT CMC (11/86)(Rev. 11/14) Page 15 of 23 COVENANT NUMBER: CMC 38108 of land vehicles, including any attached machinery e. The actual or threatened abatement, mitigation, or equipment: removal or disposal of fungus(es) or spore(s) or any material, product, building component, or building a. Bulldozers, farm machinery, forklifts and other structure that contains, harbors, nurtures or acts as a vehicles designed for use principally off public medium for any fungus(es) or spore(s); roads; f. Any supervision, instructions, recommendations, b. Vehicles that travel on crawler treads; warnings or advice given or which should have been given in connection with subparagraphs a., b., c., d., c. Vehicles, whether self-propelled or not, or e. above; or maintained primarily to provide mobility to permanently mounted: g. Any obligation of the covered party to indemnify any party in connection with (1) Power cranes, shovels, loaders, diggers or subparagraphs a., b., c., d., e., or f. above. drills; or 24. Occurrence means: (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; a. With respect to COVERAGE A, a wrongful act or a series of related wrongful acts. d. Vehicles not described in a., b., or c. above that are not self-propelled and are maintained primarily b. With respect to COVERAGE C, an accident, to provide mobility to permanently attached including continuous or repeated exposure to equipment of the following types: substantially the same general harmful condition. (1) Air compressors, pumps and generators, Provided that for purposes of SECTION III - including spraying, welding, building cleaning, LIMITS OF COVERAGE, occurrence shall be geophysical exploration, lighting and given the same meaning as given in the applicable well-servicing equipment; statute establishing monetary limits on the city’s tort liability. (2) Cherry pickers and similar devices used to raise or lower workers; or 25. Outside organization claim means any claim for damages against a city officer, employee, or e. Vehicles not described in a., b., or c. above volunteer, arising from his or her activities as a maintained primarily for purposes other than the member or officer of any formally organized transportation of persons or cargo. membership association, any professional organization, or any private non-profit or for-profit 23. Mold claim means any claim for damages arising corporation, if the city determines that the directly or indirectly out of, resulting from, caused individual’s membership and participation in that by, or contributed to by: association, organization, or corporation are within the scope of the individual’s duties as a city officer, a. Any fungus(es) or spore(s); employee, or volunteer. But outside organization claim does not include any claim arising from the b. Any solid, liquid, vapor, or gas produced by or activities of any entity listed in SECTION II-WHO arising out of any fungus(es) or spore(s); IS COVERED, 1., a-g., or any entity that is a covered party under this covenant. c. Any material, product, building component, or building structure that contains, harbors, nurtures or 26. Personal injury means injury other than bodily acts as a medium for any fungus(es) or spore(s); injury, arising out of one or more of the following offenses: d. Any intrusion, leakage, or accumulation of water or any other liquid that contains, harbors, nurtures or a. False arrest, detention, or imprisonment, or acts as a medium for fungus(es) or spore(s); malicious prosecution. LMCIT CMC (11/86)(Rev. 11/14) Page 16 of 23 COVENANT NUMBER: CMC 38108 b. The publication or utterance of a libel or slander have been performing operations: or other defamatory or disparaging material, or a (a) If the pollutants are brought on or to the publication or utterance in violation of an site or location in connection with such individual’s right of privacy. operations; or c. Wrongful entry or eviction, or other invasion of (b) If the operations are to test for, monitor, the right of private occupancy. clean up, remove, contain, treat, detoxify or d. Assault or battery committed for the purpose of neutralize the pollutants. protecting persons or property or incident to an Pollution claim does not include any of the arrest. following: e. The use of another's advertising idea in your a. Any limited pollution liability claim. advertisement. b. Any claim arising out of the discharge or f. Infringing upon another's copyright, trade dress dispersal of mace, tear gas or similar agent, if such or slogan in your advertisement. discharge was for the purpose of protecting persons 27. Pollutants means any solid, liquid, gaseous or or property or incident to an arrest. thermal irritant or contaminant, including smoke, c. Any claim for damages arising out of heat, vapor, soot, fumes, acids, alkalis, chemicals and smoke, or fumes from a hostile fire. A hostile fire is waste. Waste includes materials to be recycled, a fire which becomes uncontrollable or breaks out reconditioned or reclaimed. from where it was intended to be. 28. Pollution claim means: d. Any claim for damages included in the products a. Any direction, demand, or request by the hazard. government or any other entity that the city or any 29. Products hazard includes all damages arising out of other entity test for, monitor, clean up, remove, your product except that the products hazard does contain, treat, detoxify or neutralize pollutants; or not include any of the following: b. Any claim for damages arising out of the actual, a. Damages which arise from products that are still alleged, or threatened existence, discharge, dispersal, in the city’s physical possession; seepage, migration, release or escape of pollutants: b. Damages which arise out of the actual, alleged, (1) At or from premises the city owns, rents, or threatened discharge, dispersal, seepage, leases, uses, or occupies, and premises the city no migration, release or escape of pollutants at or from longer owns, rents, leases, uses, or occupies; any landfill, dump, or other site or location presently (2) At or from any landfill, dump, or other site or or formerly used by or for the city or others for the location presently or formerly used by or for the handling, storage, disposal, processing, or treatment city or others for the handling, storage, disposal, of pollutants; processing or treatment of pollutants; c. Damages which arise out of the actual, alleged, (3) Which are or were at any time transported, or threatened discharge, dispersal, seepage, handled, stored, treated, disposed of, or processed migration, release or escape of pollutants which are as waste by or for the city or any person or or were at any time transported, handled, stored, organization for whom the city may be legally treated, disposed of, or processed as waste by or for responsible; or the city or any person or organization for whom the city may be legally responsible; (4) At or from any site or location on which the city or any contractors or subcontractors working d. Damages which arise out of the actual, alleged, directly or indirectly on the city’s behalf are or or threatened discharge, dispersal, seepage, LMCIT CMC (11/86)(Rev. 11/14) Page 17 of 23 COVENANT NUMBER: CMC 38108 migration, release or escape of pollutants at or from includes an arbitration proceeding alleging such any site or location on which the city or any damages to which the city must submit or submit contractor or subcontractors working directly or with LMCIT’s consent. Suit does not mean any indirectly on the city’s behalf are or have been criminal proceeding against any covered party or performing operations if the operations are to test any open meeting law proceeding, unless damages for, monitor, clean up, remove, treat, detoxify or are also claimed in that proceeding. neutralize the pollutants; or The following are also deemed a suit for damages: e. Damages which arise out of pesticide or a. A charge of employment discrimination filed herbicide application operations. with the Federal Equal Employment Opportunity 30. Property damage means: Commission, the Commissioner of the Minnesota Department of Human Rights, or a local human a. Physical injury to tangible property, including all rights commission as defined in Minnesota Statute resulting loss of use of that property; or §363.01, subd 23; or b. Loss of use of tangible property that is not b. A complaint filed with the Federal Health and physically injured. Human Services Office for Civil Rights alleging any breach of the responsibilities, obligations or duties 31. Rolling stock means any railroad locomotive, cars or imposed by the Health Insurance Portability and other equipment designed to be used on railroad Accountability Act (HIPPA) and any rules or tracks. regulations promulgated thereunder. 32. Spore(s) include any reproductive body produced by 36. Wrongful act means any actual or alleged error, or arising out of any fungus(es). statement, act, omission, offense, neglect, accident, or violation. Violation includes violation of any 33. Stunting activity means any pre-arranged, organized rights, immunities, or privileges secured by the or publicized event, feat or performance which Constitution and Laws of the United States of America. (1) Involves a demonstration or display of notable strength, skill, speed, or endurance; and which 37. Your product means: (2) Involves a significant risk of serious injury to the a. Any goods or products, other than real property, participant, performer, or others. manufactured, sold, handled, distributed or disposed of by: But stunting activity does not include common traditional athletic events such as hockey, baseball, (1) The city; softball, football, basketball, wrestling, soccer, gymnastics, or track and field events. (2) Others trading under the city’s name; or 34. Sudden occurrence means an accident or a related (3) A person or organization whose business or series of accidents and the release of pollutants assets the city has acquired; and resulting there from, all of which begin and end within 72 hours; except that each incident in which b. Containers (other than vehicles), materials, parts the city’s sanitary sewer backs up into a building is or equipment furnished in connection with such deemed to be a separate sudden occurrence. In the goods or products. case of a related series of accidents, the sudden occurrence will be deemed to have taken place when Your product includes warranties or representations the first accident in the related series of such made at any time with respect to the fitness, quality, accidents took place. durability or performance of any of the items included in a. and b. above. 35. Suit means a civil proceeding in which damages to which this coverage applies are alleged. SuitYour product does not include vending machines or LMCIT CMC (11/86)(Rev. 11/14) Page 18 of 23 COVENANT NUMBER: CMC 38108 other property rented to or located for the use of performs on the property of others. others but not sold. b. Your work includes warranties or representations 38. Your work means: made any time with respect to the fitness, quality, durability; or performance of any items included in a. Improvements, alterations or other work the city a. above. SECTION V - SUPPLEMENTARY PAYMENTS With respect to any claim or suitLMCIT defends under 5. All costs taxed against the covered party in the suit. COVERAGES A, C, AND D,LMCIT will pay 6. Prejudgment interest awarded against the covered supplementary payments. party on that part of the judgment LMCIT pays. If Supplementary payments means: LMCIT makes an offer to pay the applicable limit of coverage, LMCIT will not pay any prejudgment 1. All expenses LMCIT incurs. interest based on that period of time after the offer. 2. Up to $250 for cost of bail bonds required because 7. All interest on the full amount of any judgment that of accidents or traffic law violations arising out of accrues after entry of the judgment and before the use of any vehicle to which the coverage applies. LMCIT has paid, offered to pay, or deposited in LMCIT does not have to furnish these bonds. court the part of the judgment that is within the applicable limits of coverage. 3. The cost of bonds to release attachments, but only for bond amount within the applicable limit of 8. Up to $200,000 for all awards for attorneys’ fees coverage. LMCIT does not have to furnish these pursuant to a statute, but this supplementary bonds. payment does not include: 4. All reasonable expenses incurred by the covered a. Awards for attorney fees with respect to suits party at LMCIT's request, to assist it in the: alleging violations under federal civil rights laws, state human rights laws or the federal or state a. Investigation or defense of the claim or suit, or constitution; or b. Litigation of any land use and special risk b. Attorneys’ fees awarded for an act, error, litigation which is filed or served. omission or violation which LMCIT does not have a duty to indemnify pursuant to SECTION VI - Reasonable expenses include the actual loss of CONDITIONS, 1. earnings up to $200 a day because of time off from work. SECTION VI - CONDITIONS b. Which constitutes willful neglect of duty; or 1. LIMITATIONS ON LMCIT'S DUTY TO INDEMNIFY c. Which constitutes bad faith; or LMCIT's duty to pay on behalf of or to indemnify a d. For which the city is not authorized to indemnify any covered party other than the city shall not apply to any person by statute; or act, error, omission, or violation: e. Which constitutes dishonesty on the part of a a. Which constitutes malfeasance in office; or covered party; or LMCIT CMC (11/86)(Rev. 11/14) Page 19 of 23 COVENANT NUMBER: CMC 38108 f. Which constitutes the willful violation of a statute or no claim for damages has been made but that might ordinance by any official, employee, or agent of the result in a covered claim for damages under this city.covenant, LMCIT shall have the right, at its discretion and at its expense, to associate with the The terms "malfeasance", "willful neglect of duty", and covered party in the investigation, handling and "bad faith" shall be given the same meaning in this defense of such matter, in which event LMCIT and covenant as given in the applicable statute with respect the covered party shall mutually cooperate. to the city’s duty to defend or indemnify its officers, employees or agents. 4. EXTENDED REPORTING PERIOD a. LMCIT will provide one or more extended reporting 2. FINANCIAL RESPONSIBILITY LAW periods, as described below, if: When this covenant is certified as proof of financial responsibility for the future under the provisions of any (1) COVERAGE A is canceled or not renewed; or motor vehicle financial responsibility law, such coverage (2) LMCIT renews or replaces COVERAGE A with as is afforded by this covenant shall comply with the coverage that: provisions of such law to the extent of the coverage and limits of liability required by such law. (a) Has a retroactive date later than the date shown on the Declarations page; or 3. COVERED PARTY'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT (b) Does not apply on a claims made basis. a. In the event of a claim or suit, notice containing b. A basic extended reporting period of 60 days from particulars sufficient to identify the covered party the end of the coverage period is automatically and also reasonably obtainable information with provided without additional charge. respect to the time, place and circumstances thereof, and the names and addresses of the injured and of c. A supplemental extended reporting period of available witnesses, shall be given by or for the unlimited duration is available, but only by an covered party to LMCIT or any of its authorized endorsement and for an extra charge. The agents as soon as practicable. supplemental extended reporting period starts 60 days after the end of the coverage period. The city shall promptly take, at its own expense, all reasonable steps to prevent damages from arising The city must give LMCIT a written request for the out of the same or similar conditions; provided that: endorsement within 60 days after the end of the coverage period. The supplemental extended (1) A failure to take such preventative measures shall reporting period will not go into effect unless the not constitute a breach of this condition unless city pays the additional premium promptly when LMCIT has requested the city in writing to undertake due. such preventative measures; and The additional premium for the supplemental (2) Such expense shall not be recoverable under this extended reporting period will be a percentage of the covenant. annual expiring premium for COVERAGE PART A. Notice of damages or injury is not notice of a claim. Number of Years Since Retroactive Date Shown b. If claim is made or suit is brought against the on Declarations Page Additional Cost covered party, the covered party shall immediately forward to LMCIT every demand, notice, summons 1 55.0% or other process received by him or his 2 57.0% representative. 3 60.3% 4 65.9% c. With respect to any incident or occurrence for which 5, 5+ 70.8% LMCIT CMC (11/86)(Rev. 11/14) Page 20 of 23 COVENANT NUMBER: CMC 38108 d. An extended reporting period does not extend the 6. WAIVER OF STATUTORY LIABILITY coverage period or change the scope of coverage LIMITATIONS provided. It applies only if the date of the occurrence giving rise to the claim for damages is a. It is the express intent of the city and of LMCIT that after the retroactive date and before the end of the the procurement of this covenant shall not waive any coverage period. monetary limits of liability provided by Minnesota Statute §466.04 by any comparable or successor Claims for damages which are first received and statute, or by common law, which may be applicable recorded during the basic extended reporting period to any covered party; and that any previous waiver (or during the supplemental extended reporting of liability limits is revoked to the extent that it may period, if it is in effect) will be deemed to have been apply to claims covered under this covenant. made on the last day of the coverage period. b. It is the express intent of the city and of LMCIT that Once in effect, extended reporting periods may not the procurement of this covenant shall not waive any be canceled. other immunities, limitations, or defenses imposed by or available under any statute or common law e. Extended reporting periods do not reinstate or which is applicable to any covered party. increase the limits of coverage applicable to any claim to which this coverage part applies. 7. CONSENT TO SETTLE f. Neither the basic extended reporting period nor the The city may prohibit LMCIT from settling any claim or supplemental extended reporting period is applicable suit against a covered party without the city’s consent, as to, and no extended reporting period is provided for, provided below: the following: a. At any time before LMCIT has offered or made a (1) Any limited pollution liability claim; or settlement of a claim or suit, the city may notify LMCIT that LMCIT may not settle the claim or suit (2) Any land use and special risk litigation. without the city’s consent. The city must give a separate notice for each claim or suit which the city 5. ACTION AGAINST LMCIT intends to prohibit LMCIT from settling without the city’s consent. No action shall lie against LMCIT unless, as a condition precedent thereto, there shall have been full compliance b. If the city notifies LMCIT that the claim or suit may with all of the terms of this covenant, nor until the not be settled without the city’s consent, the city amount of the covered party's obligation to pay shall must designate an individual authorized to give or have been fully determined either by judgment against refuse consent on the city’s behalf. The city’s notice the covered party after actual trial or by written must include the name, address, and telephone agreement of the covered party, the claimant and number of the individual authorized to give or refuse LMCIT. consent on the city’s behalf. Any person or organization or the legal representative c. If the city has notified LMCIT that the claim or suit thereof who has secured such judgment or written may not be settled without the city’s consent, LMCIT agreement shall thereafter be entitled to recover under will notify the city of the terms and conditions of this covenant to the extent of the coverage afforded by any proposed settlement. If the city does not consent this covenant. No person or organization shall have any to the proposed settlement, the city must notify right under this covenant to join LMCIT as a party to any LMCIT within 14 days of the date the city receives action against the covered party to determine the notice of the proposed settlement, unless the city and covered party's liability, nor shall LMCIT be impleaded LMCIT have mutually agreed to a longer or shorter by the covered party or his legal representative. period. If within that time the city does not notify LMCIT that the city does not consent to the Bankruptcy or insolvency of the covered party or of the settlement, the city will be deemed to have covered party's estate shall not relieve LMCIT of any of consented to the settlement. its obligations hereunder. LMCIT CMC (11/86)(Rev. 11/14) Page 21 of 23 COVENANT NUMBER: CMC 38108 d. If the city refuses to consent to a settlement 8. RETROACTIVE JOINT POWERS recommended by LMCIT,LMCIT will not be liable COVERAGE for any excess amount. Excess amount means the sum of all damages and legal defense costs for the LMCIT will, upon the city’s request, issue retroactive claim or suit minus the sum of: comprehensive municipal coverage to any joint powers entity in which the city is a member and which is not (1) The amount of the settlement proposed by named as a covered party under any other LMCIT LMCIT; and coverage. (2) Any costs of defense incurred before the date of Pursuant to this section, LMCIT will issue its standard the city’s refusal. Any excess amount shall not be Comprehensive Municipal Coverage document to the included in the calculation of damages for purposes joint powers entity, but coverage shall be subject to an of any applicable Municipal Liability Deductible or annual aggregate limit of $200,000. This limit shall General Annual Aggregate Deductible. apply to the sum of damages and loss adjustment expenses, including defense costs, for all claims to e. If the city refuses to consent to a settlement which the coverage applies. recommended by LMCIT,LMCIT may, at its sole discretion, exercise either of the following options: Coverage issued pursuant to this section will be issued with the same inception date and the same retroactive (1) LMCIT may pay to the city an amount equal to date as this covenant. the amount of the recommended settlement, minus any applicable deductible. If LMCIT makes such The premium must be paid to LMCIT before the payment, LMCIT has no further duty to defend or to coverage goes into effect. The premium for coverage indemnify the city or any other covered party for this issued pursuant to this section shall be equal to the claim or suit, and the city assumes any duty which greater of $5,000 or the premium the joint powers entity LMCIT would otherwise have had to defend and to would otherwise pay for coverage at LMCIT's current indemnify any other covered party. rates. (2) LMCIT may continue to defend the claim or suit. 9. NO DUPLICATION OF COVERAGE If LMCIT elects to continue to defend the claim or suit, the city must reimburse LMCIT for any excess This covenant shall not apply to any claim or claims amount. arising out of an occurrence, if any claim or claims arising out of that occurrence were covered under any f. If the city refuses to consent to a settlement prior covenant issued by LMCIT to the city. recommended by LMCIT, the city must defend and indemnify LMCIT for any claim or suit arising out of 10. OTHER COVERAGE the failure to settle the original claim or suit, including amounts the city may owe as a Medicare If, pursuant to the COMMON CONDITIONS, 11.a., a Secondary Payer under federal law. covered party has primary liability coverage as an additional insured or additional named insured on g. If the city refuses to consent to a settlement another party's coverage, and that insurer fails to defend recommended by LMCIT, and regardless of which of or indemnify the covered party,LMCIT will do so under the options LMCIT chooses to exercise under this covenant. subparagraph e. above, LMCIT as an agent of the city, will continue to fulfill the mandatory Medicare In any case in which LMCIT incurs costs for a claim Secondary Payer reporting obligation under Section which is also covered under any other liability coverage 111 of the Medicare, Medicaid, and SCHIP or insurance, LMCIT shall be entitled to the covered Extension Act of 2007, if any, associated with the party's rights to recover those costs from that insurer. claim; but shall have no payment obligation beyond The covered party shall cooperate with and assist the amount of the recommended settlement amount. LMCIT as requested in enforcing any rights against that The city must cooperate with LMCIT in providing insurer. LMCIT the necessary information to allow LMCIT to fulfill the reporting responsibility. LMCIT CMC (11/86)(Rev. 11/14) Page 22 of 23 COVENANT NUMBER: CMC 38108 b. The terms of the covenant, including those with 11. SEPARATION OF COVERED PARTIES respect to: As respects the particulars and statements contained in (1) The LMCIT's rights and duties with respect to the the application for this coverage and the exclusion set defense of suit s; and forth herein, this coverage shall be construed as a separate agreement with each covered party. Nothing in (2) The covered party's duties, in the event of an this paragraph shall be construed to increase LMCIT's occurrence, apply irrespective of the application of maximum liability set forth in the Declarations and as the deductible amount. described in SECTION III - LIMITS OF COVERAGE. c. LMCIT may pay any part or all of the deductible 12. DEDUCTIBLES amount to effect settlement of any claim or suit, and upon notification of the action taken, the city shall a. For purposes of deductibles under this coverage, the promptly reimburse LMCIT for such part of the deductible applies to the sum of the damages, loss deductible amount as has been paid by LMCIT. adjustment expense, defense costs and supplementary payments as defined in SECTION V -SUPPLEMENTARY PAYMENTS. LMCIT CMC (11/86)(Rev. 11/14) Page 23 of 23 MUNICIPAL LIABILITY CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 38108 HAZARD PREMIUM BASIS ADVANCED PREMIUM Premises Operations Code Basis EXPENDITURES E 8,040,846.00 PREMIUM INCLUDED FOR ALL HAZARDS LAND USE A 2,096.00 WHERE A PREMIUM BASIS IS SHOWN SEWER DEPARTMENT D 1,288.00 EMPLOYMENT B 21.00 POLICE DEPARTMENT C 10.00 LMCIT MGL-1 (01/95) (Rev. 11/12) Page 1 of 2 COVENANT NUMBER: CMC 38108 MUNICIPAL LIABILITY Cont’d.) Municipal Liability Hazard Codes When used as a premium basis: Code (A)Number of Households Definition: A household is a single housing unit (e.g., an apartment complex with 10 units consists of 10 households). Rate is per household. (B)Number of Full Time Equivalent’s (FTE’s) Definition: FTE’s are defined as employees who are eligible for the Public Employees Retirement Association (PERA) of MN as defined in Minn. Stat. 353.01. Rate is per FTE. (C)Number of Police Officers FTE’S Definition: For purposes of police liability, please provide the number of police officer FTE’s separately here. Rate is per Police Officer FTE. (D) Number of Sewer Connections Definition: For the purposes of LMCIT liability rating is the number of actual Sewer connections by type of connection (e.g., residential, business, industrial, etc.) Rate is per sewer connection. (E)Expenditures Definition: Ratable expenditures are defined as total expenditures net of transfers and depreciation. Rate is per $1,000 (F) Each means per unit. LMCIT MGL-1 (01/95) (Rev. 11/12) Page 2 of 2 COVENANT NUMBER: CMC 38108 ADDITIONAL COVERED PARTY – MUNICIPAL LIABILITY It is agreed that with respect to coverage afforded only for bodily injury,property damage and personal injury under Coverage A - Municipal Liability Coverage, the Covered Party provision is amended to include the person or organization named below, but only with respect to, and to the extent of, claims made upon the additional covered party by reason of the acts or omissions of the City or its agents or employees and not by reason of any act or omission of the additional covered party or its agents or employees. NAME OF PERSON OR ORGANIZATION LOCATION OF PREMISES OR CONTRACT OR OPERATIONS DR. PEPPER SNAPPLE GROUP RE: SWAGER PARK PLAYGROUND BUILD 5301 LEGACY DRIVE PLANO, TX 75024 KABOOM RE: SWAGER PARK PLAYGROUND BUILD SUITE ML-1 4301 CONNECTICUT AVE NW WASHINGTON, DC 20008 All other terms and conditions remain unchanged. LMCIT ME014 (11/96) (Rev.11/01) Page 1 of 1 COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE X Coverage A Municipal Liability Coverage A Municipal Liability, but only for Bodily Injury,Property Damage or Personal Injury Coverage A Municipal Liability, except for Bodily Injury,Property Damage or Personal Injury X Coverage B Medical and Related Expense X Coverage C Automobile Liability – Bodily Injury and Property Damage X Coverage D Land Use and Special Risk Litigation X Coverage E, F Uninsured and Underinsured Motorists Coverage and Basic Economic Loss Benefits Coverage In consideration of the premium charged, it is understood and agreed that the Declarations and Section II - Who Is Covered are amended to include: ECONOMIC DEVELOPMENT AUTHORITY SUBJECT TO A RETROACTIVE DATE OF JULY 7, 1998. for all coverage where is X'd above. All other terms and conditions remain unchanged. LMCIT ME066 (11/96) (Rev. 11/11) Page 1 of 1 COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL COVERAGE WAIVER OF STATUTORY LIABILITY LIMITATIONS ENDORSEMENT In consideration of the additional premium paid by the city, Section VI-Conditions, paragraph 6, is deleted and is replaced by the following: 6. STATUTORY LIABILITY LIMITATIONS AND IMMUNITIES a. It is the express intent of the city and of LMCIT that for any claim to which this covenant applies, the monetary limits of liability provided by Minnesota Statute 466.04 are waived to the extent of the limits of coverage shown in the declarations and further described in Section III - Limits of Coverage. This waiver shall not apply to any claim not covered under this covenant, and shall not affect any limitations which may apply by virtue of any other statute or common law. b. It is the express intent of the city and of LMCIT that the procurement of this covenant shall not waive any other immunities, limitations, or defenses imposed by or available under any statute or common law which is applicable to any covered party. All other terms and conditions remain unchanged. LMCIT ME073 (11/97)(Rev. 11/01) Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS CMC 38108 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (Herein called LMCIT) Item 1.CITY:OAK PARK HEIGHTS, CITY OF Item 2. COVERAGE PERIOD: From: 07/07/2015 To: 07/07/2016 12:01 AM Standard Time at Mailing Address Indicated on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4. COVERAGE: IN RETURN FOR THE PAYMENT OF PREMIUM AND SUBJECT TO ALL OF THE TERMS OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING LIMITS: COVERAGE: LIMIT: AUTOMOBILE LIABILITY *2,000,000 Per Occurrence BASIC ECONOMIC LOSS BENEFITS Basic Minnesota Statutory Coverage UNINSURED AND UNDERINSURED MOTORISTS $ 200,000 Per Occurrence AUTOMOBILE PHYSICAL DAMAGE Actual Cash Value, Unless Endorsed * LMCIT’smaximum limit of liability for COVERAGES A and C combined. Item 5.DEDUCTIBLE (SUBJECT TO GENERAL ANNUAL AGGREGATE DEDUCTIBLE, IF ANY, SHOWN ON COMMON COVERAGE DECLARATIONS). $ 1,000 per o ccurrence Item 6.FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART: A0010(11/09) CMC(11/14) ME063(11/01) ME066(11/11) ME073(11/01) ME079(11/09) LMCIT DEC-016(11/86) (Rev. 11/14) COVENANT NUMBER: CMC 38108 MUNICIPAL AUTOMOBILE PHYSICAL DAMAGE COVERAGE Various provisions in this covenant restrict coverage. Read The word you and your refer to the city shown in the the entire covenant carefully to determine rights, duties and Declarations. The words we,us and our refer to LMCIT what is or is not covered. Throughout this covenant, the providing this covenant. word city refers to the first city shown in the Declarations. The word LMCIT refers to the League of Minnesota Cities Other words and phrases that appear in italics have special Insurance Trust. meaning, as given in SECTION IV – DEFINITIONS. SECTION I – COVERAGE AGREEMENT We will pay for direct and accidental damage or loss to a not covered as described under SECTION II – CAUSES covered automobile unless the cause of loss or damage is OF LOSS AND DAMAGES NOT COVERED. SECTION II – CAUSES OF LOSS AND DAMAGES NOT COVERED 1. CAUSES OF LOSS NOT COVERED 2. DAMAGES NOT COVERED We will not pay for loss or damage caused directly or We will not pay for the following damages: indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that a. Damages caused by; contributes concurrently or in any sequence to the loss. (1) Wear and tear; a. War. (2) Freezing; except freezing of the pumping apparatus (1) War, including undeclared or civil war; of a fire truck or similar emergency or other utility truck; or (2) Warlike action by a military force, including action in hindering or defending against an actual or (3) Mechanical or electrical breakdowns. expected attack by any government, sovereign or other authority using military personnel or other agents; or This exclusion does not apply if the above damage results from other loss or damage covered by this Coverage Part. (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering b. Blowouts, punctures, or other road damage to tires. or defending against any of these. This exclusion does not apply if the above damage results from other loss or damage covered by this Coverage Part. SECTION III – LIMITS OF COVERAGE AND VALUATION property at the time of the loss or damage; or 1. LIMITS OF COVERAGE (2) The cost of repairing or replacing the damaged or a. The most we will pay for loss or damage is the smaller stolen property with other like kind and quality. of the following amounts: b. We will not pay for loss or damage in any one (1) The actual cash value of the damaged or stolen LMCIT A0010(11/89)(Rev. 11/09) Page 1 of 4 COVENANT NUMBER: CMC 38108 occurrence until the amount of loss or damage exceeds b. If you and we fail to agree as to the amount of loss or the Deductible in Item 5 of the Declarations, and the damage, either may demand an appraisal of the loss or amount of loss will be reduced by the deductible damage. In such event, you and we shall each select a amount. competent appraiser. The two appraisers will select a competent and disinterested umpire. If they cannot The deductible applies against the total loss incurred by agree, either may request that selection be made by a you from any one occurrence, regardless of the number judge of court having jurisdiction. The appraisers will of covered automobiles involved. state separately the actual cash value and the amount of the loss or damage. If the appraisers fail to agree, they will submit their differences to the umpire. An award 2. LOSS VALUATION agreed to by any two will be binding. a. At our option we may: Each party will: (1) Pay for, repair, or replace damaged or stolen (1) Pay its chosen appraiser and; property; (2) Bear the other expenses of the appraisal and (2) Return the stolen property at our expense. We will umpire equally. pay for any damage that results to the covered automobile from the theft;or We shall not be held to have waived any of our rights by any act relating to appraisal. (3) Take all or any part of the damaged or stolen property at an agreed or appraised value. SECTION IV – DEFINITIONS 1. Automobile means a land motor vehicle, trailer or semi-However, the following automobiles are not a covered trailer designed for travel on public roads. automobile while used in the business of the city: 2. Covered automobile means: a. Any automobile which is owned or leased by a city employee; or a. Any automobile that you own; b. Any automobile which is owned or leased by a b. Any automobile that you rent or lease for a period of member of the cityemployee’s household. more than 30 days; 3. City means governmental body or entity first named in c. Any automobile that you borrow; the Declarations. For purposes of this coverage, city includes relief associations. Unless specifically named d. Any automobile that you rent or lease from a person or in the Declarations, city shall not include: organization that is not in the business of renting or leasing automobiles; or a. Gas, electrical or steam utilities commission; e. Any automobile that you or an employee rents for city b. Port authority, housing and redevelopment authority, business for less than 30 days from a person or economic development authority, area or municipal organization in the business of renting automobiles if redevelopment authority or similar agency; the rental agreement requires you or the individual renting the automobile to pay for loss or damage to the c. Municipal power agency; automobile. d. Municipal gas agency; LMCIT A0010(11/89)(Rev. 11/09) Page 2 of 4 COVENANT NUMBER: CMC 38108 e. Hospital or nursing home board or commission; control; f. Airport commission; f. Other authorized person or agent of the city while acting on behalf of the city but excludes independent g. Welfare or public relief agency; contractors; or h. School board; g. Members, officers and e mployees of a city relief association. i. Joint powers entity; but a joint planning board created pursuant to an orderly annexation agreement or joint 5. Joint powers entity means an operating entity created resolution between the city and a township is deemed by two or more governmental units entering into an to be a covered joint powers entity under this agreement as provided by statute for the joint exercise agreement.of governmental powers. An intergovernmental agreement will be deemed to create a joint powers 4. Employee means for actions within his duties as such entity if the agreement establishes a board with the any present or former: effective power to do any of the following, regardless of whether the specific consent of the constituent a. Person whom you compensate directly by salary, governmental units may be required: wages, or commissions, and who you have the right to direct or control while performing duties for you a. To receive and expend funds; b. Member of the city council; b. To enter into contacts; c. Member of a city board, commission, or committee c. To hire employees; which is not excluded by the definition of city; d. To purchase or otherwise acquire or hold real or d. Elected or appointed official of the city;personal property; or e. Volunteer person or organization while acting on e.To sue or be sued. behalf of the city and subject to the city’s direction and SECTION V – CONDITIONS (2) Within the coverage territory. 1. COVERAGE UNDER TWO OR MORE COVERAGES b. The coverage territory is: If two or more of this covenant’s coverages apply to the (1) The United States of America (including its same loss or damage, we will not pay more than the actual territories and possessions); amount of the loss or damage. (2) Puerto Rico; and 2. COVERAGE PERIOD, COVERAGE TERRITORY (3) Canada Under this Coverage Part: 3. LOSS CONDITIONS a. We cover loss or damage commencing: Duties in the event of loss: (1) During the coverage period shown in the a. You must promptly notify us ofany loss. Declarations; and LMCIT A0010(11/89)(Rev. 11/09) Page 3 of 4 COVENANT NUMBER: CMC 38108 b. You must tell us how, when, and where the loss happened. You must assist in obtaining the names and addresses of any witnesses. c. You must do what is reasonably necessary after the loss at our expense to protect the coveredautomobile from further loss. You must submit a proof of loss when required by us. d. You must promptly notify the police if the covered automobile or any of its equipment is stolen. However, LMCIT will not reimburse you for your payment of costs, fees, or other expenses you incur in establishing either the existence or the amount of loss under this covenant. LMCIT A0010(11/89)(Rev. 11/09) Page 4 of 4 COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL COVERAGE Various provisions in this covenant restrict coverage. SECTION II - WHO IS COVERED. Read the entire coverage agreement carefully to Other words and phrases that appear in italics have determine rights, duties and what is and is not covered. special meaning, as given in SECTION IV - The words city and covered party are defined under DEFINITIONS. SECTION I – COVERAGES the date of the occurrence is the date on which the COVERAGE A. MUNICIPAL LIABILITY bodily injury or property damage first took place or COVERAGE (CLAIMS MADE BASIS) is alleged to have taken place. 1. COVERAGE AGREEMENT (2) For any other claim for damages, the date of the occurrence is the date on which the wrongful act a. Except as otherwise provided in this agreement, giving rise to the claim for damages took place or is LMCIT will pay on behalf of the covered party all alleged to have taken place. If the damages are sums which the covered party shall become legally alleged to have arisen from a series of wrongful acts, obligated to pay as damages as a result of an the date of the occurrence is deemed to be the date occurrence, if the following conditions are met: when the first such wrongful act took place or is alleged to have taken place. (1) The claim for such damages must be first made against the covered party during the coverage If both (1) and (2) apply to claims for damages period; and arising from a single occurrence, the date of the occurrence is the earlier of the dates defined by (1) (2) The date of the occurrence giving rise to the and (2), respectively. claim for damages must be on or after the retroactive date, if any, shown in the Declarations; and b. For any claim for damages, the date the claim is made is deemed to be as follows: (3) The occurr e nce must have taken place in the coverage territory. (1) For any employment liability claim, the claim is deemed to have been made on the earliest of: b. LMCIT will have the right and duty to defend any such claim or suit seeking damages.LMCIT may, at (a) The date the claimant files a charge with the its discretion, investigate any actual or potential Federal Equal Employment Opportunity claim; and unless the city has given notice as Commission, the Commissioner of the provided in SECTION VI - CONDITIONS, 7., Minnesota Department of Human Rights, or a LMCIT may settle any claim or suit. local Human Rights Commission as defined in Minnesota Statute §363.01, subd. 23, whichever c. The amount LMCIT will pay for damages is limited comes first; or as described in SECTION III - LIMITS OF COVERAGE. (b) The date when notice of claim for damages is received by any covered party or by LMCIT, 2. CLAIM AND OCCURRENCE DATES whichever comes first. a. For any claim for damages, the date of the (2) For any Health Insurance Portability and occurrence shall be deemed to be as follows: Accountability Act (HIPAA) claim, the claim is deemed to have been made on the earliest of: (1) For claims for bodily injury or property damage, LMCIT CMC (11/86)(Rev. 11/14) Page 1 of 23 COVENANT NUMBER: CMC 38108 (a) The date the claimant files a complaint with of the injury. the Federal Health and Human Services Office This exclusion does not apply to liability assumed for Civil Rights; or by the covered party under a covered contract. (b) The date when notice of claim for damages d. Any pollution claim. . is received by any covered party or by LMCIT, whichever comes first. e. Damages arising out of the ownership, maintenance, use or entrustment to others of any aircraft,auto or (3) For any other claim for damages, the claim is watercraft owned or operated by or rented or loaned deemed to have been made when notice of such to any covered party. Use includes operation and claim is received and recorded by any covered party loading or unloading. or by LMCIT, whichever comes first. This exclusion does not apply to: (4) All claims for damages arising from a single occurrence will be deemed to have been made at the (1) A watercraft while ashore on premises the city time the first of those claims is made against any owns or rents; covered party. (2) A watercraft that is: 3. EXCLUSIONS (a) Less than 26 feet long; and This coverage does not apply to: (b) Not being used to carry persons or property a. Damages for which the covered party is liable by for a charge; reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability (3) Parking an auto on, or on the ways next to, for damages: premises the city owns or rents, provided the auto is not owned by or rented or loaned to the covered (1) Assumed in a contract or agreement that is a party. covered contract; or f. Damages due to war, whether or not declared, or any (2) The covered party would have in the absence of act or condition incident to war. War includes civil the contract or agreement. war, insurrection, rebellion or revolution. b. Damages for which the covered party may be liable g. Property damage to: by reason of the Minnesota Civil Damages Act (M.S. §340A.801-340A.802), or any other law (1) Premises the city sells, gives away or abandons, governing liability for illegal sales of alcoholic if the propertydamage arises out of any part of those beverages. premises; c. Bodily injury to: (2) Your product arising out of it or any part of it. (1) An employee of the city arising out of and in the h. Damages claimed for any repair or replacement of course of employment by the city; or your work. (2) Damages to the spouse, child, parent, brother or i. Damages claimed for any loss, cost or expense sister of that employee as a consequence of (1) incurred by the city or others for the loss of use, above. withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: This exclusion applies: (1) Your product; (1) Whether the city may be liable as an employer or in any other capacity; and (2) Your work; or (2) To any obligation to share damages with or (3) Impaired property; repay someone else who must pay damages because LMCIT CMC (11/86)(Rev. 11/14) Page 2 of 23 COVENANT NUMBER: CMC 38108 if such product, work, or property is withdrawn or (1) Attorney, unless the attorney is an employee of recalled from the market or from use by any person the city and not an independent contractor, and the or organization because of a known or suspected professional services are within the scope of the defect, deficiency, inadequacy or dangerous attorney's duties as a city employee, including condition in it. professional services performed for any of the city’s boards, commissions, authorities or agencies, or j. Bodily injury to any volunteer while acting on behalf joint powers entities in which the city participates. of the city if the volunteer is an employee within the meaning of a workers' compensation law or similar (2) Architect. law, or is covered under a voluntary endorsement to (3) Doctor of medicine. a workers' compensation insurance policy. (4) Dentist. k. Damages for bodily injury,property damage or personal injury arising out of the city’s ownership, (5) Nurse, except that this exclusion shall not apply operation or maintenance of any airport. This to: exclusion does not apply to a heliport that is not held out for public use. (a) Claims arising from the nurse's activities in the capacity of an emergency medical l. Damages for bodily injury, property damage or technician, paramedic or first responder; or personal injury arising out of the city’s ownership, construction, operation or maintenance of any (b) Claims arising from the nurse's activities in railroad track or rolling stock. administering vaccinations or immunizations to city employees or volunteers. m. Damages for bodily injury,property damage, or personal injury arising out of the city’s ownership, (6) Pharmacist. operation or maintenance of any: (7) Psychologist. (1) Medical clinic; o. Damages arising out of the failure or bursting of (2) Licensed hospital, boarding care home, any: outpatient surgical center, or supervised living facility; (1) Class I or Class II dam as classified by the Commissioner of the Department of Natural (3) Licensed psychiatric hospital; Resources pursuant to Minnesota Rules §6115.0340; or (4) Mental health clinic; (2) Any dike, levee or similar structure. (5) Licensed nursing home or home care providers; p. Damages arising out of the city’s ownership, (6) Registered housing with services establishments; sponsorship or operation of: or (1) Motorized amusement devices, if the power (7) Licensed child care program, except that this supply motor is rated at greater than 5 horsepower; exclusion shall not apply to: (2) Any mobile equipment,automobile, snowmobile (a) A “drop-in child care program” as defined or motorcycle in any pre-arranged racing, pulling, under Minnesota Statutes, section 245A.02, pushing, speed, or demolition contest or exhibition, subd.6a; or or in any pre-arranged stunting activity; (b) A summer day camp, holiday break camp, or (3) Any pre-arranged racing, pulling, pushing, speed, similar program. or demolition contest or exhibition involving the use of mobile equipment, automobiles, snowmobiles or n. Damages arising out of the rendering of or failure to motorcycles: render professional services by any professional listed below: LMCIT CMC (11/86)(Rev. 11/14) Page 3 of 23 COVENANT NUMBER: CMC 38108 (4) Rodeos; w. Any claim for damages asserted in any land use and special risk litigation. (5) Fireworks displays or exhibitions; or x. Damages arising from or relating to the actual, (6) Any pre-arranged stunting activity. pending, or threatened bankruptcy of the city. q. Damages arising from or relating to the detention or COVERAGE B. MEDICAL AND RELATED confinement of any person(s) in any jail, holding cell EXPENSE or similar detention facility, which the city owns, operates or maintains, if the date of the occurrence 1. COVERAGE AGREEMENT causing such damages takes place after a continuous detention or confinement period of 30 days, or in a. LMCIT will pay to or for each person who sustains any detention facility which is intended and bodily injury caused by accident all reasonable regularly used for confinement of persons for medical and related expense incurred within one periods in excess of 30 days. year from the date of the accident as a result of such bodily injury, provided such bodily injury arises out r. Damages arising out of the activities of any of the of a condition in the covered premises. following city boards, commissions, or agencies: b. The amount LMCIT will pay for medical and related (1) Gas, electrical or steam utilities commission; expense is limited as described in SECTION III - LIMITS OF COVERAGE. (2) Port authority, housing and redevelopment authority, economic development authority, area or 2. EXCLUSIONS municipal redevelopment authority, or similar agency; LMCIT will not pay expenses for bodily injury: (3) Municipal power agency; or a. Arising out of the operation or use of any snowmobile or trailer designed for use therewith; (4) Municipal gas agency, b. Included within the products hazard; unless such board, commission, authority, or agency is named in the Declarations, in which case the city c. Arising out of operations performed for the city by will also be covered to the extent of coverage an independent contractor other than: provided under this covenant to the named board, commission, authority or agency for damages (1) Maintenance and repair of the covered premises; arising out of the activities of the respective named or board, commission, authority or agency. (2) Structural alterations at such premises which do s. Damages arising out of the activities of a joint not involve changing the size of or moving buildings powers entity in which the city is a member unless or other structures; the joint powers entity is named in the Declarations. d. To any tenant or other person regularly residing on t. Damages arising out of condemnation, inverse the covered premises; condemnation, adverse possession, or dedication by adverse use. This exclusion does not apply to any e. To any other tenant if the bodily injury occurs on claim for taking of property wherein the taking of that part of the covered premises rented from the property is incident to an arrest or for the purpose of city; protecting persons or property in an emergency. f. To any person while engaged in maintenance and u. Any criminal proceedings or proceedings under the repair of the covered premises or alteration, open meeting law against any covered party. demolition or new construction at such premises; v. Damages with respect to any claim(s) made by g. To any person practicing, instructing or participating LMCIT or the city against any other covered party. in any physical training, sport, athletic activity or LMCIT CMC (11/86)(Rev. 11/14) Page 4 of 23 COVENANT NUMBER: CMC 38108 contest whether on a formal or informal basis; COVERAGE C. AUTOMOBILE LIABILITY - BODILY INJURY AND PROPERTYDAMAGE h. To a member or guest of any club, tourist court or trailer park operated or owned by the city; or 1. COVERAGE AGREEMENT i. For any injury for which the injured party has LMCIT will pay on behalf of the covered party all sums received or is entitled to receive workers' which the covered party shall become legally obligated compensation benefits. to pay as damages because of bodily injury or property damage to which this coverage applies, caused by an The exclusions of the MUNICIPAL LIABILITY occurrence and arising out of the ownership, COVERAGE PART (COVERAGE A) also apply to this maintenance or use, including loading or unloading, of Coverage Part as respects bodily injury. any automobile. This coverage applies only to bodily injury or property damage which occurs during the 3. ADDITIONAL DEFINITIONS coverage period and within the coverage territory. When used herein: LMCIT will have the right and duty to defend any suit seeking those damages. However: Covered premises means all premises owned or rented to the city with respect to which the city is afforded a. The amount LMCIT will pay for damages is limited coverage for bodily injury liability under this covenant, as described in SECTION III - LIMITS OF and includes the ways immediately adjoining on land; COVERAGE. however, covered premises does not include streets, sidewalks, or boulevards that do not abut a city owned b. LMCIT may, at its discretion, investigate any building or city owned parking lot. occurrence and settle any claim or suit that may result. Medical and related expense means expenses for necessary medical, surgical, x-ray and dental services, 2. EXCLUSIONS including prosthetic devices, necessary ambulance, hospital, professional nursing and funeral services, and This coverage does not apply to: replacement or repair of damaged eye glasses or clothing. a. Any obligation for which the covered party or any carrier as his insurer may be held liable under any 4. ADDITIONAL CONDITION MEDICAL workers' compensation, unemployment compensa- REPORTS; PROOF AND PAYMENT OF tion or disability benefits law, or under any similar law. CLAIM As soon as practicable, the injured person or someone on b. Any liability the city may have for bodily injury to: his behalf shall give to LMCIT written proof of claim, (1) An employee of the city arising out of and in the under oath if required, and shall, after each request from course of employment by the city; or LMCIT, execute authorization to enable LMCIT to obtain medical reports and copies of records. The injured (2) Damages to the spouse, child, parent, brother or person shall submit to physical examination by sister of that employee as a consequence of (1) physicians selected by LMCIT when and as often as above. LMCIT may reasonably require. LMCIT may pay the injured person or any person or organization rendering This exclusion applies: the services, and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder (1) Whether the city may be liable as an employer or shall not constitute an admission of liability of any in any other capacity; and covered party or of LMCIT. (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. LMCIT CMC (11/86)(Rev. 11/14) Page 5 of 23 COVENANT NUMBER: CMC 38108 This exclusion does not apply to liability assumed $250,000 which are incurred after the litigation has by the covered party under a covered contract.been reported to LMCIT; and c. Property damage to property owned by the covered b. 50% of anynecessary legal fees for counsel to party.represent the city which the city incurs prior to reporting the litigation to LMCIT. d. Bodily injury due to war, whether or not declared, civil war, insurrection, rebellion or revolution or to This coverage shall not apply to any land use and any act or condition incident to any of the foregoing. special risk litigation which is first reported to LMCIT more than one year after the date on which the litigation e. Any pollution claim. was first filed or served by or against the city or a city officer or employee. f. Liability assumed under any contract or agreement, but this exclusion does not apply to liability assumed The amount LMCIT will pay for litigation costs for land under a covered contract. use and special risk litigation covered under this section is limited as described in SECTION III - LIMITS OF g. Liability arising from use of an owned automobile or COVERAGE. hired automobile in any pre-arranged racing, pulling, pushing, speed or demolition contest or exhibition, The amount LMCIT pays for litigation costs for land use or in any pre-arranged stunting activity. and special risk litigation is subject to the Municipal Liability Deductible shown in the Municipal Liability 3. ADDITIONAL DEFINITIONS Declarations or the General Annual Aggregate Deductible, if any, shown in the Common Coverage These additional definitions apply for purposes of Declarations. COVERAGE C: 2. LITIGATION MANAGEMENT Automobile business means the business or occupation of selling, repairing, servicing, storing or parking For any land use and special risk litigation, legal automobiles. counsel will be selected by mutual agreement of the city and LMCIT. Hired automobile means an automobile not owned by and is used under contract on behalf of, or loaned to, the If LMCIT and the city are not able to agree on selection city. of counsel, LMCIT will provide a list of five attorneys experienced in land use and special risk litigation Owned automobile means an automobile owned by the matters; and the city will select legal counsel from that city. list. Trailer includes semi-trailer but does not include mobile A land use and special risk litigation suit may not be equipment. settled without the approval of both LMCIT and the city. COVERAGE D. LAND USE AND SPECIAL 3. ADDITIONAL DEFINITIONS RISK LITIGATION This additional definition applies for the purpose of COVERAGE D. 1. COVERAGE AGREEMENT Litigation costs means: Except as provided below, for any land use and special risk litigation which is first filed or served by or against a. Legal fees for counsel appointed pursuant to 2. the city or a city officer or employee during the annual LITIGATION MANAGEMENT, above; coverage period of this agreement, LMCIT will pay the following on the city’s behalf: b. Necessary legal fees for counsel to represent the city which the city incurs prior to reporting the litigation a. 85% of the first $250,000 of litigation costs which to LMCIT; are incurred after the litigation has been reported to LMCIT; and 60% of any litigation costs in excess of LMCIT CMC (11/86)(Rev. 11/14) Page 6 of 23 COVENANT NUMBER: CMC 38108 c. Necessary litigation expenses other than legal fees; Covered motor vehicle means any motor vehicle that is owned by the city. d. Damages which the city is required to pay; and Uninsured and underinsured motorists coverage means e. Supplementary payments made or incurred as amounts due to such persons, in such amounts and for defined in SECTION V - SUPPLEMENTARY such covered motor vehicles in accordance with and as PAYMENTS. may be required, limited or excluded by the terms, definitions, limitations, conditions and exclusions of the 4. SPECIAL PROVISIONS - INTER-CITY Minnesota No-Fault Act, Minnesota Statutes §65B.41 to §65B.71 in no greater amount or scope than required by LITIGATION said Statute unless a contrary intent is clearly and The following special provisions shall apply only to unequivocally stated herein. coverage for any land use and special risk litigation in But uninsured and underinsured motorists coverage which: 1) An opposing litigant is also a member of the does not include punitive or exemplary damages. LMCIT property/casualty program; and 2) The litigation is also a covered claim for the opposing litigant under Uninsured motor vehicle and underinsured motor COVERAGE D of the opposing litigant's LMCIT vehicle have the meaning given them in the Minnesota municipal liability coverage: No-Fault Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71. a. Legal counsel will be selected as provided above, but LMCIT will not otherwise participate in the Motor vehicle has the meaning given it in the Minnesota management of the litigation. No-Fault Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71 but for the purposes of this b. Any settlement of the litigation involving a payment coverage, motor vehicle also includes motorcycles, as of damages must be approved by LMCIT. defined under the Act, and vehicles not required to be c. The percentage LMCIT will pay of any litigation registered pursuant to Chapter 168, but which otherwise meets the definition of a motor vehicle under the Act. costs will be one-half of the percentages specified in COVERAGE D. 1. COVERAGE AGREEMENT. When necessary to determine the application of this policy under Minnesota Statute §65B.49 Subd.(3a) d. LMCIT's total liability to the city for litigation costs occupying means in, or upon a motor vehicle. for the litigation shall not exceed $500,000. This does not increase the annual aggregate limit as described in SECTION III - LIMITS OF 3. ADDITIONAL CONDITIONS COVERAGE, 9. These additional conditions apply for purposes of COVERAGE E: COVERAGE E. UNINSURED AND UNDERINSURED MOTORISTS COVERAGE Any amount payable under this coverage will be reduced by: 1. COVERAGE AGREEMENT a. All sums paid or payable under any workers a. LMCIT agrees to provide uninsured and compensation, disability benefits or similar law; and underinsured motorists coverage. b. All sums paid by or for anyone who is legally b. The amount LMCIT will pay for uninsured and responsible, including all sums paid under underinsured motorists coverage is limited as Comprehensive Municipal Coverage, Coverage C.- described in SECTION III-LIMITS OF Automobile Liability-Bodily Injury and Property COVERAGE. Damage. 2. ADDITIONAL DEFINITIONS The COMMON CONDITIONS also apply unless they are in conflict with the Minnesota No-Fault Automobile These additional definitions apply for purposes of Insurance Act, Minnesota Statutes §65B.41 to §65B.71. COVERAGE E: LMCIT CMC (11/86)(Rev. 11/14) Page 7 of 23 COVENANT NUMBER: CMC 38108 limited or excluded by the terms, definitions, conditions COVERAGE F. BASIC ECONOMIC LOSS limitations and exclusions of the Minnesota No-Fault BENEFITS COVERAGE Automobile Insurance Act, Minnesota Statutes §65B.41 to §65B.71 in no greater amount and scope than required 1. COVERAGE AGREEMENT by said statute unless a contrary intent is clearly and unequivocally stated herein. a. LMCIT agrees to provide basic economic loss benefits. Motor vehicle has the meaning given it in the Minnesota No-Fault Automobile Insurance Act, Minnesota Statutes b. The amount LMCIT will pay for basic economic loss §65B.41 to §65B.71 but for the purposes of this benefits is limited as described in SECTION III- coverage, motor vehicle also includes motorcycles, as LIMITS OF COVERAGE. defined under the Act, and vehicles not required to be registered pursuant to Chapter 168, but which otherwise 2. ADDITIONAL DEFINITIONS meets the definition of a motor vehicle under the Act. These additional definitions apply for purposes of 3. ADDITIONAL CONDITIONS COVERAGE F. This additional condition applies for purposes of Covered motor vehicle means any motor vehicle that is COVERAGE F. owned by the city. The COMMON CONDITIONS also apply unless they Basic economic loss benefits means benefits to such are in conflict with the Minnesota No-Fault Automobile persons, in such amounts and for such covered motor Insurance Act, Minnesota Statutes §65B.41 to §65B.71. vehicles in accordance with and as may be required, SECTION II - WHO IS COVERED resolution between the city and a township; or 1.City means the city or other governmental body or entity first named in the Declarations. Unless (2) A joint airport zoning board created pursuant to specifically named in the Declarations, city shall not Minnesota Statute 360.063. include any of the following: 2. For purposes of COVERAGE A and COVERAGE a. Gas, electrical or steam utilities commission; D, covered party means: b. Port authority, housing and redevelopment a. The city, and any other entity named in the authority, economic development authority, area or Declarations; municipal redevelopment authority or similar agency; b. For actions within his duties as such, any present or former: c. Municipal power agency; (1) Member of the city council; d. Municipal gas agency; (2) Member of a city board, commission, or e. Welfare or public relief agency; committee which is not excluded by the definition of city; f. School board; or (3) Elected or appointed official of the city; g. Joint powers entity; but the following are deemed to be a covered joint powers entity under (4) Employee of the city; this agreement: (5) Volunteer person or organization while (1) A joint planning board created pursuant to an acting on behalf of the city and subject to the orderly annexation agreement, pursuant to city’s direction and control; Minnesota Statute 462.3585, or pursuant to a joint LMCIT CMC (11/86)(Rev. 11/14) Page 8 of 23 COVENANT NUMBER: CMC 38108 (6) Other authorized person or agent of the city Any person or organization from whom the City while acting on behalf of the city;leases premises or equipment that is not an automobile and to whom the City is contractually (7) City relief association and its members, obligated to have named as an additional covered officers, and employees; or party under this agreement, but: (8) Person while acting in the administrative a.Only with respect to, and to the extent of capacity of medical director or medical advisor claims made against the additional covered party by to the city ambulance service, whether that reason of act or omission of the City or its agents or person is a volunteer, an employee, or an employees and not by reason of act or omission of independent contractor. the additional covered party or its agents or employees; Notwithstanding any other provision of subdivision b, (1) through (8), an independent b.Only with respect to bodily injury, property contractor is not a covered party for purposes of damage, and personal injury; and COVERAGE A and COVERAGE D, except c.Only with respect to acts and omissions of i.When acting in the administrative the City occurring during the terms of the lease. capacity of medical director or medical advisor to the city ambulance service, or 4. For purposes of COVERAGE C, covered party means: ii.When serving as a member of a committee, subcommittee, board, or a. The city, and any other entity named in the commission of the city, or when Declarations with respect to any automobile; representing the city as a member of a committee, subcommittee, board, or b. Any present or former elected or appointed commission. official, employee or volunteer of the city with respect to any automobile while such automobile is c. With respect to a joint powers entity named in or was being used in the business of the city; the Declarations: c. Any person or organization from whom a (1) The joint powers entity; covered party hires or borrows a trailer which is connected to an ownedautomobile; (2) While acting on behalf of the joint powers entity, or with respect to liability arising out of d. Any person while using an owned automobile or the activities of the joint powers entity, any hired automobile only while such automobile is or present or former: was used with the city’s permission. (a) Governmental member of the joint e. Any other person or organization but only with powers entity; respect to his or its liability because of acts or omissions of a covered party under a., b., c. or d. (b) Elected or appointed official of the above. governmental member; For purposes of COVERAGE C, none of the (c) Employee of the governmental member; following is a covered party: or a. Any person or organization from whom a (d) Other authorized person or agent of the covered party hires or borrows an automobile that is governmental member, but excluding not a trailer. independent contractors. b. Any person while employed in or otherwise 3. For purposes of COVERAGE A, covered party also means: LMCIT CMC (11/86)(Rev. 11/14) Page 9 of 23 COVENANT NUMBER: CMC 38108 engaged in duties in connection with an automobile Anyone using a covered motor vehicle while business, other than an automobile business operated such covered motor vehicle was used without the by the city.city’s permission. c. Any person while loading or unloading an 6. For purposes of COVERAGE F, covered party automobile, other than: means: (1) A city officer, employee, or volunteer; or Anyone entitled to benefits as may be required, limited or excluded by the terms, definitions, (2) A lessee or borrower of an owned conditions and exclusions of the Minnesota No- automobile or their employees. Fault Automobile Insurance Act, Minnesota Fault Automobile Insurance Act, Minnesota 5. For purposes of this COVERAGE E, covered party Statutes §65B.41 to §65B.71. means: For purposes of COVERAGE F, none of the Anyone occupying a covered motor vehicle. following is a covered party: For purposes of COVERAGE E, none of the Anyone using a covered motor vehicle while following is a covered party: such covered motor vehicle was used without the city’s permission. SECTION III - LIMITS OF COVERAGE 1. The Limits of Coverage shown in the Declarations LMCIT will pay under COVERAGE A for damages and the rules below, except as otherwise described, included in the products hazard. fix the most LMCIT will pay as damages under each 5. The Medical and Related Expense Limit is the most coverage part regardless of the number of: LMCIT will pay under COVERAGE B for all a. Covered parties;medical expenses because of bodily injury sustained by any one person, and the occurrence limit is the b. Claims made or suits brought; or most LMCIT will pay under COVERAGE B for all medical expenses because of bodily injury to two or c. Persons or organizations making claims or more persons resulting from one occurrence. bringing suits. 6. The Limited Pollution Liability Claim Annual 2. LMCIT's maximum limit of liability for Aggregate Limit is the most LMCIT will pay for COVERAGES A and C combined shall be the per limited pollution liability claims during the annual occurrence or sudden occurrence limit shown in the coverage period. The Limited Pollution Liability Declarations whether the claim or claims fall under Claim Annual Aggregate Limit applies to the sum of COVERAGE A, COVERAGE C, or both. damages and loss adjustment expense, including defense costs and supplementary payments as 3. The Limits of Coverage shown in the Declarations, defined in SECTION V - SUPPLEMENTARY except as otherwise described, apply only to the PAYMENTS. damages under each Coverage Part in excess of the Municipal Liability Deductible shown in the As part of and not in addition to the Limited Municipal Liability Declarations or the General Pollution Liability Claim Annual Aggregate Limit, Annual Aggregate Deductible, if any, shown in the the most LMCIT will pay for Excavation and Common Coverage Declarations, and the Limits of Dredging claims is $250,000 during the annual Coverage will be reduced by the Deductible amount. coverage period. This sublimit applies to the sum of damages and loss adjustment expense, including 4. The Products Annual Aggregate Limit is the most defense costs and supplementary payments as LMCIT CMC (11/86)(Rev. 11/14) Page 10 of 23 COVENANT NUMBER: CMC 38108 defined in SECTION V – SUPPLEMENTARY accident regardless the number of: PAYMENTS. a. Covered motor vehicles; 7. The Failure to Supply Claim Annual Aggregate b. Covered parties; Limit is the most LMCIT will pay for damages for failure to supply claims during the annual coverage c. Claims made; or period. d. Motor vehicles involved in the accident. 8. The EMF Claim Annual Aggregate Limit is the most LMCIT will pay for damages for EMF claims during 14. The Basic Economic Loss Benefits Limit as stated in the annual coverage period. the Declarations is the most LMCIT will pay under COVERAGE F to one person for basic economic 9. LMCIT’s total liability for litigation costs, as defined loss benefits and the party to whom this policy is in SECTION I - COVERAGE D, LAND USE AND issued specifically rejects its right, if any it may SPECIAL RISK LITIGATION, for all land use and have, to elect to add two or more policies or limits special risk litigation which is first filed or served together unless otherwise clearly and unequivocally against the city during the annual coverage period of stated herein. this agreement shall not exceed $1,000,000, regardless of the number of suit s, defendants, or 15. LMCIT shall not be obligated under this covenant to claimants. pay any claim or judgment or to defend any suit after the applicable limit of LMCIT's coverage has been 10. The Mold Claim Annual Aggregate Limit is the exhausted. However, to the extent that LMCIT most LMCIT will pay for damages for mold claims provides excess liability coverage, subject to the during the annual coverage period. terms of the excess coverage, LMCIT shall continue to defend suits jointly under this covenant and the 11. The Outside Organization Claim Annual Aggregate excess covenant until the applicable excess limits Limit is the most LMCIT will pay for outside have been exhausted by payment of judgment or organization claims during the annual coverage settlements. period. The Outside Organization Claim Limit applies to the sum of damages and loss adjustment 16. For any Annual Aggregate Limit shown in the expense, including defense costs and supplementary Declarations, the limit shall apply separately to each payments as defined in SECTION V- consecutive annual period and to any remaining SUPPLEMENTARY PAYMENTS. period of less than 12 months, starting with the beginning of the coverage period shown in the 12. The Data Security Breach Claim Annual Aggregate Declarations, unless the coverage period is extended Limit is the most LMCIT will pay for damages for after issuance for an additional period of less than 12 data security breach claims during the annual months. In that case, the additional period will be coverage period. deemed part of the last preceding period for 13. The Uninsured and Underinsured Motorists Limit as purposes of determining the limits of coverage. stated in the Declarations is the most LMCIT will pay under COVERAGE E for uninsured and underinsured motorists coverages in any one SECTION IV - DEFINITIONS 1. Advertisement means a notice that is broadcast or 2. Aircraft means a vehicle designed for the transport published to the general public or specific market of persons or property principally in the air, segments about the city’s goods, products or services including airplanes, helicopters, blimps, hot air for the purpose of attracting customers or supporters. balloons, and gliders. LMCIT CMC (11/86)(Rev. 11/14) Page 11 of 23 COVENANT NUMBER: CMC 38108 3. Asbestos claim means any claim for damages arising (a) Goods or products made or sold by the directly or indirectly out of, resulting from, caused city in the territory described in a. above; or by or contributed to by: (b) The activities of a person whose home is a. The use of, sale of, installation of, removal of, in the territory described in a. above, but is abatement of, distribution of, containment of, or away for a short time on the city’s business; exposure to asbestos, asbestos products, asbestos-and containing material, asbestos fibers, or asbestos dust; (2) The covered party's responsibility to pay b. The actual or threatened abatement, mitigation, damages is determined in a suit on the merits, in removal or disposal of asbestos, asbestos products, the territory described in a. above or in a asbestos-containing material, asbestos fibers, or settlement LMCIT agrees to. asbestos dust; 8. Covered contract means an indemnification of a c. Any supervision, instructions, recommendations, municipality as required by ordinance, or that part of warnings or advice given or which should have been any contract or agreement pertaining to the city’s given in connection with subparagraphs a. and b. business under which the city assumes the tort above; or liability of another to pay damages to a third person or organization, if the contract or agreement is made d. Any obligation of the covered party to prior to the date of the occurrence giving rise to the indemnify any party in connection with damages. Tort liability means a liability that would subparagraphs a., b. or c. above. be imposed by law in the absence of any contract or agreement. 4. Automobile (auto) means a land motor vehicle, trailer or semi-trailer designed for travel on public Covered contract does not include that part of any roads, including any attached machinery or contract or agreement: equipment. But automobile does not include mobile equipment.a. That indemnifies an architect, engineer or surveyor for injury or damages arising out of: 5. Bodily injury means bodilyinjury, sickness or disease sustained by a person, including death (1) Preparing, approving or failing to prepare or resulting from any of these at any time. approve maps, drawings, opinions, reports, surveys, change orders, designs or 6. City debt obligations means bonds, notes, financing specifications; or certificates, lease-purchase agreements, or other similar debt instruments or financial obligations (2) Giving directions or instructions, or failing proposed, guaranteed, approved, issued, or entered to give the same, if that is the primary cause of into by the city. the injury or damages; 7. Coverage territory means: b. Under which the city’s architect, engineer or surveyor assumes liability for injury or damages a. The United States of America (including its arising out of the city’s rendering or failing to render territories and possessions), Puerto Rico and professional services, including those listed in a. Canada; above, and supervisory, inspection or engineering services; b. International waters or airspace, provided the injury or damages do not occur in the course of c. That indemnifies any person or organization for travel or transportation to or from any place not damages by fire to premises rented or loaned to the included in a. above; or city; or c. All parts of the world if: d. That indemnifies any person or organization for a pollution claim. (1) The injury or damage arises out of: LMCIT CMC (11/86)(Rev. 11/14) Page 12 of 23 COVENANT NUMBER: CMC 38108 9. Damages means money damages, and includes (2) Assumed in an employment contract awards for attorneys’ fees with respect to suit sbetween the city and its employees. alleging violations under federal civil rights laws, h. With respect to any litigation relating to citydebt state human rights laws or the federal or state obligations, any profit, advantage or remuneration to constitution. which the covered party was not legally entitled. With respect to any land use and special risk i. Any back wages or employment benefits for litigation,damages also includes amounts the city is work that has been performed by the employee obligated to pay for loss of use of property during making the claim, except for any of the following: the time prior to a final determination by the court that enforcement of a land use, zoning, subdivision, (1) Back wages or benefits owed because of a or similar ordinance or regulation constitutes a violation of the wage and hour provisions of the taking of private property. federal or state Fair Labor Standards Acts; or Damages does not include any of the following: (2) Back wages or benefits owed because of a violation of any state or federal statute a. Any obligation of a covered party under a prohibiting discrimination in employment based workers' compensation, disability benefits, or on race, color, creed, religion, national unemployment compensation law or any similar law. origin, sex, marital status, status with regard to b. Exemplary damages or punitive damages except public assistance, disability, sexual orientation, punitive damages claimed or levied against an or age. officer, employee or volunteer of the city, provided j. Any claimed increases in wages and that the officer, employee or volunteer: employment benefits for work to be performed in the (1) Was acting in the performance of the duties future by the employee making the claim. of the position; and k. Any loss cost, or expense arising out of a (2) Was not guilty of malfeasance in office, pollution claim. willful neglect of duty, or bad faith. 10. Data security breach claim means any claim for c. Fines or penalties imposed by law. damages arising out of actual or potential unauthorized acquisition of data that: d. Injunctive or equitable relief, or quasi- judicial or administrative orders. a. Compromises the security, confidentiality, or integrity of personal information; or e. Repayment of any tax, assessment, fee, or other charge that was wrongfully obtained, or any interest b. Contains data classified as private or on, or any other amount claimed for loss of use of, confidential by the Minnesota Government Data such tax, assessment, fee, or other charge. Practices Act. f. Amounts paid or payable for the purchase or For purposes of this section, “Personal information” permanent acquisition of property or property rights, means: or for the right to permanently enforce an ordinance, regulation, or restriction on the use of property. a. An individual's first name or first initial and last name in combination with any one or more of the g. Amounts owed pursuant to the explicit terms of following data elements, when the data element is any contractual obligation, including but not limited not secured by encryption or another method of to amounts due under the terms of any city debt technology that makes electronic data unreadable or obligations, except for liability: unusable, or was secured and the encryption key, password, or other means necessary for reading or (1) Assumed in a coveredcontract; or using the data was also acquired: LMCIT CMC (11/86)(Rev. 11/14) Page 13 of 23 COVENANT NUMBER: CMC 38108 (1) Social Security number; created by two or more governmental units entering into an agreement as provided by statute for the joint (2) Driver’s license number or Minnesota exercise of governmental powers. An identification card number; or intergovernmental agreement will be deemed to create a joint powers entity if the agreement (3) Account number or credit or debit card establishes a board with the effective power to do number, in combination with any required any of the following, regardless of whether the security codes, access code, or password that specific consent of the constituent governmental would permit access to an individual’s financial units may also be required: account. a. To receive and expend funds; 11. EMF claim means any claim for damages arising out of the actual or alleged exposure to electromagnetic b. To enter contracts; fields, electromagnetic radiation or stray voltage. c. To hire employees; 12. Excavation and dredging claim means any claim for damages arising out of the deposit of excavated or d. To purchase or otherwise acquire and hold real dredged pollutants when the excavation or dredging or personal property; or was undertaken to construct, maintain, repair, or e. To sue or be sued. reconstruct the city’s streets, ditches, sanitary sewer, storm sewer, drainage, or water supply systems, or 17. Land use and special risk litigation means: electric, gas, cable communication, or other public utilities. a. Any litigation relating to the city’s regulation of the use of land or real property or the application or 13. Failure to supply claim means any claim for interpretation of a land use, zoning, subdivision, or damages arising out of the complete or partial failure similar ordinance or regulation; or to supply water, electricity, gas, steam, telecommunications, or electronic data transmission b. Any litigation relating to the city’s participation service. in or financing of any housing, development, or redevelopment project. 14. Fungus(es) includes, but is not limited to, any form or type of mold, mushroom or mildew. c. Any litigation relating to the granting, refusal, interpretation, or enforcement of any franchise, 15. Impaired property means tangible property, other ordinance, permit, license, or other mechanism than your product or your work, that cannot be used through which the city authorizes or regulates parties or is less useful because: other than the city, with regard to the provision of telecommunications, electricity, gas, heat, sewage a. It incorporates your product or your work that is treatment or refuse collection within the city. known or thought to be defective, deficient, inadequate or dangerous; or d. Any litigation relating to the city’s authority to engage in enterprise operations. “Enterprise b. The city has failed to fulfill the terms of a operations” means any arrangement under which the contract or agreement; city offers goods or services for a fee, including but if such property can be restored to use by: not limited to sales of utilities, telecommunications services, refuse collection, and liquor. (1) The repair, replacement, adjustment or removal of your product or your work; or e. Any litigation relating to city debt obligations. (2) The city’s fulfilling the terms of the contract Any litigation meeting the criteria listed above will or agreement. be considered to be land use and special risk litigation in its entirety, regardless of whether the 16. Joint powers entity means an operating entity litigation may assert other claims as well. LMCIT CMC (11/86)(Rev. 11/14) Page 14 of 23 COVENANT NUMBER: CMC 38108 But land use and special risklitigation does not d. Any obligation of the covered party to include litigation: indemnify any party in connection with subparagraphs a., b. or c. above. a. That seeks only compensation or other relief for an actual or alleged physical occupation, invasion, or 19. Limited pollution liability claim means: use of property by the city; a. Any claim for damages arising out of pesticide b. That seeks only a reduction or invalidation of a or herbicide application operations; or special assessment; b. Any claim for damages which resulted from a c. That seeks only compensation for damagessudden occurrence which took place on or after the based on the city’s actual or alleged negligent retroactive date shown in the Declarations and prior inspection or enforcement of the state building, to the expiration date of this covenant, and which: plumbing, electrical, fire, or similar codes; (1) Was caused by an actual, alleged, or d. That seeks only amounts owed pursuant to the threatened discharge, dispersal, release, or explicit terms of any contractual obligation, escape of pollutants; or including but not limited to any city debt (2) Arises from the accidental rupture, backup, obligations; or overflow of the city’s sanitary sewer, storm e. That was initiated by the city to enforce a sewer, or water supply systems. building, zoning, subdivision, or similar ordinance c. Any lead claim or asbestos claim, unless the or regulation related to the use of property, unless actual, alleged, or threatened discharge, dispersal, that litigation also involves a challenge to the release, escape, use, distribution, or handling of lead constitutionality or interpretation of the ordinance or or asbestos took place at or from any landfill, dump, regulation or to the legal authority of the city to or other site or location presently or formerly used enact it; by or for the city or others for the handling, storage, f. That is a criminal prosecution by the city;disposal, processing or treatment of pollutants. g. That is brought by LMCIT or the city against any d. Any excavation and dredging claim. other covered party; 20. LMCIT means the League of Minnesota Cities h. That arises from or is related to the actual, Insurance Trust. pending or threatened bankruptcy of the city; or 21. Loading or unloading means the handling of i. That makes only a pollution claim.property: 18. Lead claim means any claim for damages arising a. After it is moved from the place where it is directly or indirectly out of, resulting from, caused accepted for movement into or onto an aircraft, by or contributed to by: watercraft or auto; a. The toxic or pathological properties of lead, lead b. While it is in or on an aircraft, watercraft or compounds or lead contained in any materials; auto; or b. The actual or threatened abatement, mitigation, c. While it is being moved from an aircraft, removal or disposal of lead, lead compounds or watercraft or auto to the place where it is finally materials containing lead; delivered; but loading or unloading does not include the movement of property by means of a mechanical c. Any supervision, instructions, recommendations, device, other than a hand truck, that is not attached warnings or advice given or which should have been to the aircraft, watercraft or auto. given in connection with subparagraphs a. or b. above; or 22. Mobile equipment means any of the following types LMCIT CMC (11/86)(Rev. 11/14) Page 15 of 23 COVENANT NUMBER: CMC 38108 of land vehicles, including any attached machinery e. The actual or threatened abatement, mitigation, or equipment: removal or disposal of fungus(es) or spore(s) or any material, product, building component, or building a. Bulldozers, farm machinery, forklifts and other structure that contains, harbors, nurtures or acts as a vehicles designed for use principally off public medium for any fungus(es) or spore(s); roads; f. Any supervision, instructions, recommendations, b. Vehicles that travel on crawler treads; warnings or advice given or which should have been given in connection with subparagraphs a., b., c., d., c. Vehicles, whether self-propelled or not, or e. above; or maintained primarily to provide mobility to permanently mounted: g. Any obligation of the covered party to indemnify any party in connection with (1) Power cranes, shovels, loaders, diggers or subparagraphs a., b., c., d., e., or f. above. drills; or 24. Occurrence means: (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; a. With respect to COVERAGE A, a wrongful act or a series of related wrongful acts. d. Vehicles not described in a., b., or c. above that are not self-propelled and are maintained primarily b. With respect to COVERAGE C, an accident, to provide mobility to permanently attached including continuous or repeated exposure to equipment of the following types: substantially the same general harmful condition. (1) Air compressors, pumps and generators, Provided that for purposes of SECTION III - including spraying, welding, building cleaning, LIMITS OF COVERAGE, occurrence shall be geophysical exploration, lighting and given the same meaning as given in the applicable well-servicing equipment; statute establishing monetary limits on the city’s tort liability. (2) Cherry pickers and similar devices used to raise or lower workers; or 25. Outside organization claim means any claim for damages against a city officer, employee, or e. Vehicles not described in a., b., or c. above volunteer, arising from his or her activities as a maintained primarily for purposes other than the member or officer of any formally organized transportation of persons or cargo. membership association, any professional organization, or any private non-profit or for-profit 23. Mold claim means any claim for damages arising corporation, if the city determines that the directly or indirectly out of, resulting from, caused individual’s membership and participation in that by, or contributed to by: association, organization, or corporation are within the scope of the individual’s duties as a city officer, a. Any fungus(es) or spore(s); employee, or volunteer. But outside organization claim does not include any claim arising from the b. Any solid, liquid, vapor, or gas produced by or activities of any entity listed in SECTION II-WHO arising out of any fungus(es) or spore(s); IS COVERED, 1., a-g., or any entity that is a covered party under this covenant. c. Any material, product, building component, or building structure that contains, harbors, nurtures or 26. Personal injury means injury other than bodily acts as a medium for any fungus(es) or spore(s); injury, arising out of one or more of the following offenses: d. Any intrusion, leakage, or accumulation of water or any other liquid that contains, harbors, nurtures or a. False arrest, detention, or imprisonment, or acts as a medium for fungus(es) or spore(s); malicious prosecution. LMCIT CMC (11/86)(Rev. 11/14) Page 16 of 23 COVENANT NUMBER: CMC 38108 b. The publication or utterance of a libel or slander have been performing operations: or other defamatory or disparaging material, or a (a) If the pollutants are brought on or to the publication or utterance in violation of an site or location in connection with such individual’s right of privacy. operations; or c. Wrongful entry or eviction, or other invasion of (b) If the operations are to test for, monitor, the right of private occupancy. clean up, remove, contain, treat, detoxify or d. Assault or battery committed for the purpose of neutralize the pollutants. protecting persons or property or incident to an Pollution claim does not include any of the arrest. following: e. The use of another's advertising idea in your a. Any limited pollution liability claim. advertisement. b. Any claim arising out of the discharge or f. Infringing upon another's copyright, trade dress dispersal of mace, tear gas or similar agent, if such or slogan in your advertisement. discharge was for the purpose of protecting persons 27. Pollutants means any solid, liquid, gaseous or or property or incident to an arrest. thermal irritant or contaminant, including smoke, c. Any claim for damages arising out of heat, vapor, soot, fumes, acids, alkalis, chemicals and smoke, or fumes from a hostile fire. A hostile fire is waste. Waste includes materials to be recycled, a fire which becomes uncontrollable or breaks out reconditioned or reclaimed. from where it was intended to be. 28. Pollution claim means: d. Any claim for damages included in the products a. Any direction, demand, or request by the hazard. government or any other entity that the city or any 29. Products hazard includes all damages arising out of other entity test for, monitor, clean up, remove, your product except that the products hazard does contain, treat, detoxify or neutralize pollutants; or not include any of the following: b. Any claim for damages arising out of the actual, a. Damages which arise from products that are still alleged, or threatened existence, discharge, dispersal, in the city’s physical possession; seepage, migration, release or escape of pollutants: b. Damages which arise out of the actual, alleged, (1) At or from premises the city owns, rents, or threatened discharge, dispersal, seepage, leases, uses, or occupies, and premises the city no migration, release or escape of pollutants at or from longer owns, rents, leases, uses, or occupies; any landfill, dump, or other site or location presently (2) At or from any landfill, dump, or other site or or formerly used by or for the city or others for the location presently or formerly used by or for the handling, storage, disposal, processing, or treatment city or others for the handling, storage, disposal, of pollutants; processing or treatment of pollutants; c. Damages which arise out of the actual, alleged, (3) Which are or were at any time transported, or threatened discharge, dispersal, seepage, handled, stored, treated, disposed of, or processed migration, release or escape of pollutants which are as waste by or for the city or any person or or were at any time transported, handled, stored, organization for whom the city may be legally treated, disposed of, or processed as waste by or for responsible; or the city or any person or organization for whom the city may be legally responsible; (4) At or from any site or location on which the city or any contractors or subcontractors working d. Damages which arise out of the actual, alleged, directly or indirectly on the city’s behalf are or or threatened discharge, dispersal, seepage, LMCIT CMC (11/86)(Rev. 11/14) Page 17 of 23 COVENANT NUMBER: CMC 38108 migration, release or escape of pollutants at or from includes an arbitration proceeding alleging such any site or location on which the city or any damages to which the city must submit or submit contractor or subcontractors working directly or with LMCIT’s consent. Suit does not mean any indirectly on the city’s behalf are or have been criminal proceeding against any covered party or performing operations if the operations are to test any open meeting law proceeding, unless damages for, monitor, clean up, remove, treat, detoxify or are also claimed in that proceeding. neutralize the pollutants; or The following are also deemed a suit for damages: e. Damages which arise out of pesticide or a. A charge of employment discrimination filed herbicide application operations. with the Federal Equal Employment Opportunity 30. Property damage means: Commission, the Commissioner of the Minnesota Department of Human Rights, or a local human a. Physical injury to tangible property, including all rights commission as defined in Minnesota Statute resulting loss of use of that property; or §363.01, subd 23; or b. Loss of use of tangible property that is not b. A complaint filed with the Federal Health and physically injured. Human Services Office for Civil Rights alleging any breach of the responsibilities, obligations or duties 31. Rolling stock means any railroad locomotive, cars or imposed by the Health Insurance Portability and other equipment designed to be used on railroad Accountability Act (HIPPA) and any rules or tracks. regulations promulgated thereunder. 32. Spore(s) include any reproductive body produced by 36. Wrongful act means any actual or alleged error, or arising out of any fungus(es). statement, act, omission, offense, neglect, accident, or violation. Violation includes violation of any 33. Stunting activity means any pre-arranged, organized rights, immunities, or privileges secured by the or publicized event, feat or performance which Constitution and Laws of the United States of America. (1) Involves a demonstration or display of notable strength, skill, speed, or endurance; and which 37. Your product means: (2) Involves a significant risk of serious injury to the a. Any goods or products, other than real property, participant, performer, or others. manufactured, sold, handled, distributed or disposed of by: But stunting activity does not include common traditional athletic events such as hockey, baseball, (1) The city; softball, football, basketball, wrestling, soccer, gymnastics, or track and field events. (2) Others trading under the city’s name; or 34. Sudden occurrence means an accident or a related (3) A person or organization whose business or series of accidents and the release of pollutants assets the city has acquired; and resulting there from, all of which begin and end within 72 hours; except that each incident in which b. Containers (other than vehicles), materials, parts the city’s sanitary sewer backs up into a building is or equipment furnished in connection with such deemed to be a separate sudden occurrence. In the goods or products. case of a related series of accidents, the sudden occurrence will be deemed to have taken place when Your product includes warranties or representations the first accident in the related series of such made at any time with respect to the fitness, quality, accidents took place. durability or performance of any of the items included in a. and b. above. 35. Suit means a civil proceeding in which damages to which this coverage applies are alleged. SuitYour product does not include vending machines or LMCIT CMC (11/86)(Rev. 11/14) Page 18 of 23 COVENANT NUMBER: CMC 38108 other property rented to or located for the use of performs on the property of others. others but not sold. b. Your work includes warranties or representations 38. Your work means: made any time with respect to the fitness, quality, durability; or performance of any items included in a. Improvements, alterations or other work the city a. above. SECTION V - SUPPLEMENTARY PAYMENTS With respect to any claim or suitLMCIT defends under 5. All costs taxed against the covered party in the suit. COVERAGES A, C, AND D,LMCIT will pay 6. Prejudgment interest awarded against the covered supplementary payments. party on that part of the judgment LMCIT pays. If Supplementary payments means: LMCIT makes an offer to pay the applicable limit of coverage, LMCIT will not pay any prejudgment 1. All expenses LMCIT incurs. interest based on that period of time after the offer. 2. Up to $250 for cost of bail bonds required because 7. All interest on the full amount of any judgment that of accidents or traffic law violations arising out of accrues after entry of the judgment and before the use of any vehicle to which the coverage applies. LMCIT has paid, offered to pay, or deposited in LMCIT does not have to furnish these bonds. court the part of the judgment that is within the applicable limits of coverage. 3. The cost of bonds to release attachments, but only for bond amount within the applicable limit of 8. Up to $200,000 for all awards for attorneys’ fees coverage. LMCIT does not have to furnish these pursuant to a statute, but this supplementary bonds. payment does not include: 4. All reasonable expenses incurred by the covered a. Awards for attorney fees with respect to suits party at LMCIT's request, to assist it in the: alleging violations under federal civil rights laws, state human rights laws or the federal or state a. Investigation or defense of the claim or suit, or constitution; or b. Litigation of any land use and special risk b. Attorneys’ fees awarded for an act, error, litigation which is filed or served. omission or violation which LMCIT does not have a duty to indemnify pursuant to SECTION VI - Reasonable expenses include the actual loss of CONDITIONS, 1. earnings up to $200 a day because of time off from work. SECTION VI - CONDITIONS b. Which constitutes willful neglect of duty; or 1. LIMITATIONS ON LMCIT'S DUTY TO INDEMNIFY c. Which constitutes bad faith; or LMCIT's duty to pay on behalf of or to indemnify a d. For which the city is not authorized to indemnify any covered party other than the city shall not apply to any person by statute; or act, error, omission, or violation: e. Which constitutes dishonesty on the part of a a. Which constitutes malfeasance in office; or covered party; or LMCIT CMC (11/86)(Rev. 11/14) Page 19 of 23 COVENANT NUMBER: CMC 38108 f. Which constitutes the willful violation of a statute or no claim for damages has been made but that might ordinance by any official, employee, or agent of the result in a covered claim for damages under this city.covenant, LMCIT shall have the right, at its discretion and at its expense, to associate with the The terms "malfeasance", "willful neglect of duty", and covered party in the investigation, handling and "bad faith" shall be given the same meaning in this defense of such matter, in which event LMCIT and covenant as given in the applicable statute with respect the covered party shall mutually cooperate. to the city’s duty to defend or indemnify its officers, employees or agents. 4. EXTENDED REPORTING PERIOD a. LMCIT will provide one or more extended reporting 2. FINANCIAL RESPONSIBILITY LAW periods, as described below, if: When this covenant is certified as proof of financial responsibility for the future under the provisions of any (1) COVERAGE A is canceled or not renewed; or motor vehicle financial responsibility law, such coverage (2) LMCIT renews or replaces COVERAGE A with as is afforded by this covenant shall comply with the coverage that: provisions of such law to the extent of the coverage and limits of liability required by such law. (a) Has a retroactive date later than the date shown on the Declarations page; or 3. COVERED PARTY'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT (b) Does not apply on a claims made basis. a. In the event of a claim or suit, notice containing b. A basic extended reporting period of 60 days from particulars sufficient to identify the covered party the end of the coverage period is automatically and also reasonably obtainable information with provided without additional charge. respect to the time, place and circumstances thereof, and the names and addresses of the injured and of c. A supplemental extended reporting period of available witnesses, shall be given by or for the unlimited duration is available, but only by an covered party to LMCIT or any of its authorized endorsement and for an extra charge. The agents as soon as practicable. supplemental extended reporting period starts 60 days after the end of the coverage period. The city shall promptly take, at its own expense, all reasonable steps to prevent damages from arising The city must give LMCIT a written request for the out of the same or similar conditions; provided that: endorsement within 60 days after the end of the coverage period. The supplemental extended (1) A failure to take such preventative measures shall reporting period will not go into effect unless the not constitute a breach of this condition unless city pays the additional premium promptly when LMCIT has requested the city in writing to undertake due. such preventative measures; and The additional premium for the supplemental (2) Such expense shall not be recoverable under this extended reporting period will be a percentage of the covenant. annual expiring premium for COVERAGE PART A. Notice of damages or injury is not notice of a claim. Number of Years Since Retroactive Date Shown b. If claim is made or suit is brought against the on Declarations Page Additional Cost covered party, the covered party shall immediately forward to LMCIT every demand, notice, summons 1 55.0% or other process received by him or his 2 57.0% representative. 3 60.3% 4 65.9% c. With respect to any incident or occurrence for which 5, 5+ 70.8% LMCIT CMC (11/86)(Rev. 11/14) Page 20 of 23 COVENANT NUMBER: CMC 38108 d. An extended reporting period does not extend the 6. WAIVER OF STATUTORY LIABILITY coverage period or change the scope of coverage LIMITATIONS provided. It applies only if the date of the occurrence giving rise to the claim for damages is a. It is the express intent of the city and of LMCIT that after the retroactive date and before the end of the the procurement of this covenant shall not waive any coverage period. monetary limits of liability provided by Minnesota Statute §466.04 by any comparable or successor Claims for damages which are first received and statute, or by common law, which may be applicable recorded during the basic extended reporting period to any covered party; and that any previous waiver (or during the supplemental extended reporting of liability limits is revoked to the extent that it may period, if it is in effect) will be deemed to have been apply to claims covered under this covenant. made on the last day of the coverage period. b. It is the express intent of the city and of LMCIT that Once in effect, extended reporting periods may not the procurement of this covenant shall not waive any be canceled. other immunities, limitations, or defenses imposed by or available under any statute or common law e. Extended reporting periods do not reinstate or which is applicable to any covered party. increase the limits of coverage applicable to any claim to which this coverage part applies. 7. CONSENT TO SETTLE f. Neither the basic extended reporting period nor the The city may prohibit LMCIT from settling any claim or supplemental extended reporting period is applicable suit against a covered party without the city’s consent, as to, and no extended reporting period is provided for, provided below: the following: a. At any time before LMCIT has offered or made a (1) Any limited pollution liability claim; or settlement of a claim or suit, the city may notify LMCIT that LMCIT may not settle the claim or suit (2) Any land use and special risk litigation. without the city’s consent. The city must give a separate notice for each claim or suit which the city 5. ACTION AGAINST LMCIT intends to prohibit LMCIT from settling without the city’s consent. No action shall lie against LMCIT unless, as a condition precedent thereto, there shall have been full compliance b. If the city notifies LMCIT that the claim or suit may with all of the terms of this covenant, nor until the not be settled without the city’s consent, the city amount of the covered party's obligation to pay shall must designate an individual authorized to give or have been fully determined either by judgment against refuse consent on the city’s behalf. The city’s notice the covered party after actual trial or by written must include the name, address, and telephone agreement of the covered party, the claimant and number of the individual authorized to give or refuse LMCIT. consent on the city’s behalf. Any person or organization or the legal representative c. If the city has notified LMCIT that the claim or suit thereof who has secured such judgment or written may not be settled without the city’s consent, LMCIT agreement shall thereafter be entitled to recover under will notify the city of the terms and conditions of this covenant to the extent of the coverage afforded by any proposed settlement. If the city does not consent this covenant. No person or organization shall have any to the proposed settlement, the city must notify right under this covenant to join LMCIT as a party to any LMCIT within 14 days of the date the city receives action against the covered party to determine the notice of the proposed settlement, unless the city and covered party's liability, nor shall LMCIT be impleaded LMCIT have mutually agreed to a longer or shorter by the covered party or his legal representative. period. If within that time the city does not notify LMCIT that the city does not consent to the Bankruptcy or insolvency of the covered party or of the settlement, the city will be deemed to have covered party's estate shall not relieve LMCIT of any of consented to the settlement. its obligations hereunder. LMCIT CMC (11/86)(Rev. 11/14) Page 21 of 23 COVENANT NUMBER: CMC 38108 d. If the city refuses to consent to a settlement 8. RETROACTIVE JOINT POWERS recommended by LMCIT,LMCIT will not be liable COVERAGE for any excess amount. Excess amount means the sum of all damages and legal defense costs for the LMCIT will, upon the city’s request, issue retroactive claim or suit minus the sum of: comprehensive municipal coverage to any joint powers entity in which the city is a member and which is not (1) The amount of the settlement proposed by named as a covered party under any other LMCIT LMCIT; and coverage. (2) Any costs of defense incurred before the date of Pursuant to this section, LMCIT will issue its standard the city’s refusal. Any excess amount shall not be Comprehensive Municipal Coverage document to the included in the calculation of damages for purposes joint powers entity, but coverage shall be subject to an of any applicable Municipal Liability Deductible or annual aggregate limit of $200,000. This limit shall General Annual Aggregate Deductible. apply to the sum of damages and loss adjustment expenses, including defense costs, for all claims to e. If the city refuses to consent to a settlement which the coverage applies. recommended by LMCIT,LMCIT may, at its sole discretion, exercise either of the following options: Coverage issued pursuant to this section will be issued with the same inception date and the same retroactive (1) LMCIT may pay to the city an amount equal to date as this covenant. the amount of the recommended settlement, minus any applicable deductible. If LMCIT makes such The premium must be paid to LMCIT before the payment, LMCIT has no further duty to defend or to coverage goes into effect. The premium for coverage indemnify the city or any other covered party for this issued pursuant to this section shall be equal to the claim or suit, and the city assumes any duty which greater of $5,000 or the premium the joint powers entity LMCIT would otherwise have had to defend and to would otherwise pay for coverage at LMCIT's current indemnify any other covered party. rates. (2) LMCIT may continue to defend the claim or suit. 9. NO DUPLICATION OF COVERAGE If LMCIT elects to continue to defend the claim or suit, the city must reimburse LMCIT for any excess This covenant shall not apply to any claim or claims amount. arising out of an occurrence, if any claim or claims arising out of that occurrence were covered under any f. If the city refuses to consent to a settlement prior covenant issued by LMCIT to the city. recommended by LMCIT, the city must defend and indemnify LMCIT for any claim or suit arising out of 10. OTHER COVERAGE the failure to settle the original claim or suit, including amounts the city may owe as a Medicare If, pursuant to the COMMON CONDITIONS, 11.a., a Secondary Payer under federal law. covered party has primary liability coverage as an additional insured or additional named insured on g. If the city refuses to consent to a settlement another party's coverage, and that insurer fails to defend recommended by LMCIT, and regardless of which of or indemnify the covered party,LMCIT will do so under the options LMCIT chooses to exercise under this covenant. subparagraph e. above, LMCIT as an agent of the city, will continue to fulfill the mandatory Medicare In any case in which LMCIT incurs costs for a claim Secondary Payer reporting obligation under Section which is also covered under any other liability coverage 111 of the Medicare, Medicaid, and SCHIP or insurance, LMCIT shall be entitled to the covered Extension Act of 2007, if any, associated with the party's rights to recover those costs from that insurer. claim; but shall have no payment obligation beyond The covered party shall cooperate with and assist the amount of the recommended settlement amount. LMCIT as requested in enforcing any rights against that The city must cooperate with LMCIT in providing insurer. LMCIT the necessary information to allow LMCIT to fulfill the reporting responsibility. LMCIT CMC (11/86)(Rev. 11/14) Page 22 of 23 COVENANT NUMBER: CMC 38108 b. The terms of the covenant, including those with 11. SEPARATION OF COVERED PARTIES respect to: As respects the particulars and statements contained in (1) The LMCIT's rights and duties with respect to the the application for this coverage and the exclusion set defense of suit s; and forth herein, this coverage shall be construed as a separate agreement with each covered party. Nothing in (2) The covered party's duties, in the event of an this paragraph shall be construed to increase LMCIT's occurrence, apply irrespective of the application of maximum liability set forth in the Declarations and as the deductible amount. described in SECTION III - LIMITS OF COVERAGE. c. LMCIT may pay any part or all of the deductible 12. DEDUCTIBLES amount to effect settlement of any claim or suit, and upon notification of the action taken, the city shall a. For purposes of deductibles under this coverage, the promptly reimburse LMCIT for such part of the deductible applies to the sum of the damages, loss deductible amount as has been paid by LMCIT. adjustment expense, defense costs and supplementary payments as defined in SECTION V -SUPPLEMENTARY PAYMENTS. LMCIT CMC (11/86)(Rev. 11/14) Page 23 of 23 COVENANT NUMBER: CMC 38108 DEFINITION OF CITY ENDORSEMENT It is understood and agreed that city is amended to include: ECONOMIC DEVELOPMENT AUTHORITY All other terms and conditions remain unchanged. LMCIT ME063 (11/95)(Rev. 11/01) Page 1 of 1 COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE X Coverage A Municipal Liability Coverage A Municipal Liability, but only for Bodily Injury,Property Damage or Personal Injury Coverage A Municipal Liability, except for Bodily Injury,Property Damage or Personal Injury X Coverage B Medical and Related Expense X Coverage C Automobile Liability – Bodily Injury and Property Damage X Coverage D Land Use and Special Risk Litigation X Coverage E, F Uninsured and Underinsured Motorists Coverage and Basic Economic Loss Benefits Coverage In consideration of the premium charged, it is understood and agreed that the Declarations and Section II - Who Is Covered are amended to include: ECONOMIC DEVELOPMENT AUTHORITY SUBJECT TO A RETROACTIVE DATE OF JULY 7, 1998. for all coverage where is X'd above. All other terms and conditions remain unchanged. LMCIT ME066 (11/96) (Rev. 11/11) Page 1 of 1 COVENANT NUMBER: CMC 38108 COMPREHENSIVE MUNICIPAL COVERAGE WAIVER OF STATUTORY LIABILITY LIMITATIONS ENDORSEMENT In consideration of the additional premium paid by the city, Section VI-Conditions, paragraph 6, is deleted and is replaced by the following: 6. STATUTORY LIABILITY LIMITATIONS AND IMMUNITIES a. It is the express intent of the city and of LMCIT that for any claim to which this covenant applies, the monetary limits of liability provided by Minnesota Statute 466.04 are waived to the extent of the limits of coverage shown in the declarations and further described in Section III - Limits of Coverage. This waiver shall not apply to any claim not covered under this covenant, and shall not affect any limitations which may apply by virtue of any other statute or common law. b. It is the express intent of the city and of LMCIT that the procurement of this covenant shall not waive any other immunities, limitations, or defenses imposed by or available under any statute or common law which is applicable to any covered party. All other terms and conditions remain unchanged. LMCIT ME073 (11/97)(Rev. 11/01) COVENANT NUMBER: CMC 38108 Terrorism Losses - Special Pool Limit Endorsement This Endorsement modifies coverage provided under the Municipal Property Coverage and the Municipal Automobile Physical Damage Coverage. 1. Shared limit. For any terrorism loss occurrence in which the LMCIT terrorism occurrence loss cost is greater than $50,000,000, the amount LMCIT will pay for the city’s covered losses is limited to an amount equal to the city’s covered loss multiplied by the terrorism loss coverage percentage for that terrorism loss occurrence. 2.Sub limits. LMCIT will not pay more than $1,000,000 for any one or any combination of the following which rise out of or are either directly or indirectly related to any terrorist activity during the annual coverage period: a.Any losses, costs or expenses that result directly or indirectly from any discharge of pollutants including any resulting fire losses, costs, or expenses; b.Any losses, costs, or expenses that result directly or indirectly from chemical or biological release or exposure of any kind including any resulting fire losses, costs or expenses; c.Any losses, costs, or expenses that result from attack by electronic means including computer hacking, or the introduction of any form or computer virus or other form of corrupting or unauthorized code or instructions; d.Any losses, costs, or expenses that result directly or indirectly from asbestos, emission, release, discharge, dispersal or escape or asbestos exposure of any kind including any resulting fire or damage; e.Any losses, costs, or expenses that result from any threat or hoax; f.Any expediting expense; or g. Any resulting fire losses, costs or expenses that result directly or indirectly from nuclear detonation, nuclear reaction, nuclear radiation or radioactive contamination. These sub limits are part of and not in addition to the shared limit provided in Paragraph 1. 3.No expansion of coverage. The terms and limitations of this terrorism endorsement, or the inapplicability of this terrorism endorsement, do not serve to create coverage which would otherwise be excluded by this covenant. 4.Termination of terrorism coverage. A. Automatic termination. If the LMCIT terrorism occurrence loss cost for any terrorism loss occurrence exceeds $15,000,000, coverage for loss resulting from any subsequent terrorism loss occurrence is excluded. B. Discretionary termination. The LMCIT Board of Trustees may terminate coverage for losses arising from terrorist activities at any time upon ten days notice to the city, if the Board determines that it is necessary to protect the interests of LMCIT or its member cities. LMCIT ME079 (11/01)(Rev.11/09) Page 1 of 3 COVENANT NUMBER: CMC 38108 5.Definitions A. Terrorist activity means any of the following, regardless of any other cause or event that in any way contributes concurrently or in any sequence to the loss, cost or expense: 1. Any deliberate, unlawful act that: a. Is declared by any authorized governmental official to be or to involve terrorism, terrorist activity or acts of terrorism; or b. Includes, involves, or is associated with the use or threatened use of force, violence or harm against any person, tangible or intangible property, the environment, or any natural resources, where the act or threatened act is intended, in whole or in part, to: (1) Promote or further any political, ideological, philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or (2) Influence, disrupt or interfere with any government related operations, activities or policies; or (3) Intimidate, coerce or frighten the general public or any segment of the general public; or (4) Disrupt or interfere with a national economy or any segment of a national economy; or c. Includes, involves, or is associated with, in whole or in part, any of the following activities, or the threat thereof: (1) Hijacking or sabotage of any form of transportation or conveyance, including but not limited to spacecraft, satellite, aircraft, train, vessel, or motor vehicle; or (2) Hostage taking or kidnapping; or (3) The use of any biological, chemical, radioactive, or nuclear agent, material, device or weapon; or (4) The use of any bomb, incendiary device, explosive or firearm; or (5) The interference with or disruption of basic public or commercial services and systems, including but not limited to the following services or systems: electricity, natural gas, power, postal, communications, telecommunications, information, public transportation, water, fuel, sewer or waste disposal; or (6) The injuring or assassination of any elected or appointed government official or any government employee; or (7) The seizure, blockage, interference with, disruption of, or damage to any government buildings, institutions, functions, events, tangible or intangible property or other assets; or (8) The seizure, blockage, interference with, disruption of, or damage to tunnels, roads, streets, highways, or other places of public transportation or conveyance. LMCIT ME079 (11/01)(Rev.11/09) Page 2 of 3 COVENANT NUMBER: CMC 38108 2. Any of the activities listed in section A.1.c. above shall be considered t errorist activity except where you can conclusively demonstrate to us that the foregoing activities or threats thereof were motivated solely by personal objectives of the perpetrator that are unrelated, in whole or in part, to any intention to: a. Promote or further any political, ideological, philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or b. Influence, disrupt or interfere with any government related operations, activities or policies; or c. Intimidate, coerce or frighten the general public or any segment of the general public; or d. Disrupt or interfere with a national economy or any segment of a national economy. B. Terrorism loss occurrence means all individual losses arising from terrorist activity, occurring during any period of 72 consecutive hours. C. LMCIT terrorism occurrence loss cost means the cost to LMCIT for covered loss, costs or expenses from a single terrorism loss occurrence, gross of any applicable deductibles. D. For any terrorism loss occurrence, the terrorism loss coverage percentage is equal to $50,000,000 divided by the LMCIT terrorism occurrence loss cost for that terrorism loss occurrence. LMCIT ME079 (11/01)(Rev.11/09) Page 3 of 3