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Covenant Number: COMMON COVERAGE DECLARATIONS
CMC 39313 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
Previous Covenant Number: INSURANCE TRUST
CMC 38108 (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: 07/07/2016 To: 07/07/2017 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$ 31,619
Additional Covered Loss or Damages INCLUDED
Water and Supplemental Flood Coverage INCLUDED
Crime INCLUDED
Bond $ 432
Petrofund INCLUDED
EQUIPMENT BREAKDOWN $ 2,616
MUNICIPAL LIABILITY $ 36,773
Medical and Related Expense INCLUDED
AUTOMOBILE LIABILITY $ 3,544
AUTOMOBILE PHYSICAL DAMAGE $ 869
TOTAL$ 75,853
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(11/15) DEC-013(11/15) DEC-016(11/15)
Executive Director, LMCIT
LMCIT DEC-011 (11/86) (Rev. 11/09)
COVENANT NUMBER: CMC 39313
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 CITYS 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 citys request,
premium; or
examine and audit the citys 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 LMCITs 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 39313
coverage is primary, excess, contingent, or any other
6. TRANSFER OF THE CITYS RIGHTS AND
basis, unless that policy or coverage is specifically
DUTIES UNDER THIS COVENANT
written to be excess over this covenant.
The citys 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
employees 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 citys 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 citys
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 citys
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 citys 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 39313
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
LMCITs 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 citys 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 citys 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
LMCITs 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 LMCITs 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 39313 a nd 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: 07/07/2016 To: 07/07/2017 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 $ 17,933,055
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
15. Organic Pathogen Cleanup and Removal $ 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.11/15) Page 1 of 3
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(11/15) PM-100(11/03) ME079(11/09) ME063(11/01)
MPCBP-209(11/05) 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(11/15)
LMCIT DEC-012(11/86)(Rev.11/15) Page 2 of 3
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(11/15) 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(11/15) ME063(11/01)
Item 17. EQUIPMENT BREAKDOWN COVERAGE
EQUIPMENT BREAKDOWN LIMIT: $ 17,768,518
DEDUCTIBLE: $ 1,000 ANY ONE ACCIDENT
Item 18.COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE.
BM-200(11/15) BM-212(11/01) PM-100(11/03) ME063(11/01)
LMCIT DEC-012(11/86)(Rev.11/15) Page 3 of 3
MUNICIPAL PROPERTY, CRIME, BOND,
AND PETROFUND COVERAGE
LMCIT MPCBP (11/05) (Rev. 11/15)
MUNICIPAL PROPERTY COVERAGE
PART ONE
LMCIT MPCBP (11/05) (Rev. 11/15)
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
h. ORGANIC PATHOGEN CLEANUP AND REMOVAL
5
SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED..........................................6-7
SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE.......................................7-8
SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION,
ALTERATION OR REPAIR COVERAGE.....................................................................................8-9
SECTION VI - LIMITS OF COVERAGE AND VALUATION.........................................................9-13
SECTION VII - DEFINITIONS.............................................................................................................13-19
SECTION VIII - CONDITIONS............................................................................................................19-22
LMCIT MPCBP (11/05) (Rev.11/15) Page i
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 citys 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. 11/15) Page 1 of 22
a) Part of the water treatment plant, wastewater (13) Retaining walls that are not part of the covered
treatment plant, lift station or gas reduction property;
station; or
(14) Transmission and distribution lines and poles and
b) Part of a geothermal heating and cooling equipment that are usual to the transmission of
system. electricity. This does not include substations and
transformers.
(12) Foundations of buildings, structures, machinery or
boilers if their foundations are below: (15) Trees and shrubs that are not within 100 feet of a
building.
(a) The lowest basement floor; or (b) The surface
of the ground, if there is no basement;
SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE
covered property.
1. COVERAGE AGREEMENT
(2) Leasehold interest means:
We will provide coverage for the following loss or
damage unless the cause of loss or damage is not
(a) The excess of the fair rental value of similar
covered, as described under SECTION III - CAUSES
premises over the actual rent payable by you as
OF LOSS AND DAMAGES NOT COVERED. The
lessee (including any maintenance or operating
amount we will pay for loss or damage is limited as
charges paid by the lessee) during the unexpired
described in SECTION VI - LIMITS OF COVERAGE
term of the lease; and
AND VALUATION.
(b) The rental income that would have been
a. LOSS OF REVENUE, EXTRA EXPENSE AND
earned by you from sublease agreements, over and
EXPEDITING EXPENSE
above the rental expense specified in the lease
between you and the lessor.
We will pay for the actual loss of revenue,extra
expense or expediting expense sustained by you due to
(3) When covered property is rendered wholly or
the necessary suspension of youroperations during the
partially untenantable by a direct physical loss or
period of recovery caused by direct physical loss or
damage and the lease is canceled by the lessor in
damage to any covered property.
accordance with the conditions of the lease or by
statutory requirements of the state in which the
b. DEMOLITION AND DEBRIS REMOVAL
damaged or destroyed covered property is located,
we will cover the pro rata proportion from the date
We will cover the following expenses:
of loss to expiration date of the lease (to be paid
(1) The cost of necessary demolition and removal of without discount) on your interest in:
debris of covered property and non-covered
(a) Improvements and betterments to covered
property from a covered location resulting from
property during the unexpired term of the lease
direct physical loss or damage to covered
that is not covered under any other section of Part
property; or
One of the covenant; or
(2) The cost of removal of debris of non-covered
(b) The amount of advance rental paid by you and
property from your covered location which results
not recoverable under the terms of the lease for the
from a specified cause of loss.
unexpired term of the lease.
c. LEASEHOLD INTEREST
(4) We will cover your leasehold interest when your
(1) We will provide coverage for leasehold interest
covered property is rendered wholly or partially
resulting from direct physical loss or damage tountenantable and the lease is canceled by the lease
LMCIT MPCBP (11/05) (Rev. 11/15) Page 2 of 22
or by statutory requirements of the state in which
2. COVERAGE AGREEMENT
the damaged or destroyed covered property is
located.
We will provide coverage for the following loss or
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,
or by the exercising of any option to cancel the We will pay for your expense to clean up, abate or
remove from covered property asbestos particles that
lease.
are discharged, dispersed, or released, subject to the
d. ACCOUNTS RECEIVABLE
following conditions:
We will pay for loss or damage to your accounts
(1) The discharge, dispersal or release must have
receivable caused by direct physical loss or damage to
occurred accidentally and must begin and end
your accountsreceivable.
within 72 hours;
e. VALUABLE PAPERS AND RECORDS
(2) The discharge, dispersal or release must not be the
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
your valuable papers and records.
(3) The expenses must be incurred within 90 days of
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
(2) We will pay for the actual loss of revenue,extra
covered property, pollutants other than asbestos,
expense or expediting expense sustained by you
that are discharged, dispersed, or released; or
due to the necessary suspension of youroperations
during the period of recovery caused by an (2) Except for damage caused by a specified cause of
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
We will cover the following expenses:
within 72 hours;
(1) Reasonable and necessary extra cost for the
(2) The discharge, dispersal or release must not be the
recertification of the damaged covered property as
result of planned building renovation, remodeling
required by a Green Authority.
or demolition activities; and
(2) Reasonable and necessary extra cost to recycle the
(3) The expenses must be incurred within 90 days of
damaged covered property as required by a Green
the discharge, dispersal or release.
Authority.
LMCIT MPCBP (11/05) (Rev. 11/15) Page 3 of 22
c. ERRORS f. EXTRAORDINARY EXPENSE
We will pay for loss to any covered propertyif the loss (1) Extraordinary expense payment:
is not covered solely because of:
As a benefit associated with being a member of
(1) Any inadvertent error in the description or LMCIT's property/casualty program, upon
location of the building/contents, property in the submission of a claim LMCIT will pay for any
open, mobile property, or builders risk property extraordinary and unanticipated cost or expense
covered by the covenant, which inadvertent error the city incurs which:
existed at the inception date of the covenant; or
(a) Is necessary for the purpose of protecting the
(2) Any inadvertent error in the description or public health and safety, protecting city property,
location of the building/contents, property in the or meeting the city's legal obligations; and
open, mobile property, or builders risk property in
(b) Is not covered by any other provision of this
endorsements to the covenant; or
covenant, any other LMCIT coverage covenant, or
(3) Failing through an inadvertent error to schedule any insurance policy.
(a) any building/contents, property in the open,
The city must provide to LMCIT any information
mobile property, or builders risk property owned
or documentation needed or requested in order to
by the city at the inception of the covenant, or (b)
determine if these conditions are met. The
any newly acquired or constructed building/
determination of whether these conditions are met
contents, property in the open, mobile property or
will be at LMCIT's sole discretion.
builders risk property during the term of the
coverage document.
(2) The city at its discretion may elect to pursue
recovery from third parties of any cost or expense
(4) It is a condition of this coverage that such
paid under SECTION II, 2. F. The city is solely
inadvertent error shall be reported and corrected
responsible for any costs incurred in pursuing
when discovered.
recovery. The city may include such costs as part
This coverage does not apply to a loss to any item that of its extraordinary expense claim, subject to the
is listed under Section I, 1, b. limit established in SECTION II, 2. f. (3). The
provisions of Common Conditions 12 and 13 do
d. RENTAL REIMBURSEMENT
not apply to claims paid under SECTION II, 2, f.
We will pay for rental reimbursement expenses
(3) Limit:
incurred by you for the rental of mobile property that
was a result of a covered loss to yourmobileproperty.LMCIT will not pay more than $250,000 for
claims under SECTION II, 2. f., during the
(1) No deductibles apply to this coverage.
coverage year, regardless of the number of claims,
occurrences or incidents.
(2) This coverage does not apply while there is spare
or reserve equipment available to you for your
(4) Reimbursement of extraordinary expense
operations.
payment:
e. ARSON REWARD
For any claims for extraordinary expense which
are paid under SECTION II, 2. f., the city must
In the event that a covered fire loss was theresult of an
reimburse LMCIT as provided in this paragraph.
act of arson, we will reimburse you for rewards you
The amount to be paid to LMCIT will equal the
pay for information leading to convictions for that act
amount needed to reimburse LMCIT for the full
of arson.
amount of any claims that LMCIT pays under
SECTION II, 2. f. The city may, at its discretion,
reimburse LMCIT through payment of equal
annual installments over a period of up to five
LMCIT MPCBP (11/05) (Rev. 11/15) Page 4 of 22
years from the date the claim is paid. Each permitted by law:
installment will be billed and payable at the same
time as the city's annual renewal premium for (a)Written notice to the most recent available
LMCIT property/casualty coverage. If the city address in your records;
ceases to be a member of the LMCIT
property/casualty program, the full amount, (b) Electronic notice; or
together with any accrued interest, will be
(c) Substitute notice, consisting of e-mail notice,
immediately due and payable on the date that the
posting notice on your Web site, and notification of
city ceases to be a member.
media.
No interest will apply if reimbursement is made
within one year of the date the cost or expense was
(4) The cost of notifying consumer reporting agencies
incurred. If the city elects to pay the
that compile and maintain files on consumers on a
reimbursement in more than one annual
nationwide basis, as defined by United States
installment, interest at the rate of 3% annually
Code, title 15, section 1681a, of the timing,
shall be included in the amount owed beginning
distribution, and content of the notices.
one year from the date the cost or expense was
incurred.
(5) The cost of providing a credit report and up to one
years credit monitoring service notice to any
(5) Termination of benefits:
person whose personal information was acquired
by an unauthorized person.
The LMCIT Board of Trustees may terminate the
benefit provided under SECTION II, 2. f. at any
(6) The expense of using a professional service to
time upon 10 days written notice to the city, if the
reasonably restore the affected persons identity.
Board determines that it is necessary to protect the
interests of LMCIT or its member cities.
(7) Any other reasonable expenses incurred by you to
respond to a data security breach.
Termination of this coverage shall not affect any
claims that the city has submitted to LMCIT before
h. ORGANIC PATHOGEN CLEANUP AND
the effective date of termination of coverage.
REMOVAL
g. DATA SECURITY BREACH EXPENSES
We will pay for your expenses to cleanup, abate or
remove contagious organic pathogens from your
We will pay for the following expenses if you have
covered property that are necessary to prevent the
had, or reasonably believe to have had, a data security
spread of an outbreak, epidemic, or pandemic.
breach:
This coverage only applies for organic pathogens that
(1) Outside legal expenses to review the data security
are on the list of communicable diseases for which
breach and how you should respond to it.
federal isolation and quarantine are authorized by
Executive Order of the President or Communicable
(2) The expense of professional information
Diseases of Public Health Significance as defined by
technologies if needed to determine the extent of
the US Department of Health and Human Services.
the data security breach.
This coverage does not apply for cleanup expenses at
(3) The cost of providing notice to any person whose
any medical facilities, hospitals or clinics.
personal information has been acquired by an
unauthorized person. You may elect any of the
following forms of notice, to the extent
LMCIT MPCBP (11/05) (Rev. 11/15) Page 5 of 22
SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED
(2) Warlike action by a military force, including
1. CAUSES OF LOSS NOT COVERED
action in hindering or defending against an actual
or expected attack, by any government, sovereign
We will not pay for loss or damage caused directly or
or other authority using military personnel or other
indirectly by any of the following. Such loss or
agents; or
damage is excluded regardless of any other cause or
event that contributes concurrently or in any sequence
(3) Insurrection, rebellion, revolution, usurped power,
to the loss.
or action taken by governmental authority in
hindering or defending against any of these.
a. WATER
(1) Flood, surface water, waves, tides, tidal waves,
2. DAMAGES NOT COVERED
overflow of any body of water, or their spray, all
whether driven by wind or not; We will not pay for the following damages:
(2) Mudslide or mudflow; a. Damage to your electrical devices, appliances or
wires caused by artificially generated electric
(3) Water that backs up or overflows from a sewer,
current including electric arcing.
drain or sump; or
This exclusion does not apply to computer
(4) Water under the ground surface pressing on, or
equipment, electronic data and electronic media.
flowing or seeping through:
b. Damage caused by the discharge, dispersal,
(a) Foundations, walls, floors or paved surfaces;
seepage, migration, release or escape of pollutants.
(b) Basements, whether paved or not; or
This exclusion does not apply if the discharge,
dispersal, seepage, migration, release or escape of
(c) Door, windows or other openings;
pollutants is itself caused by a specified cause of
loss.
except for coverage that is provided by water and
supplemental flood coverage as described in
This exclusion does not apply to pollutant cleanup
SECTION IV - WATER AND SUPPLEMENTAL
and removal as provided in SECTION II, 2.b.
FLOOD COVERAGE.
c. Damages caused by dishonest or criminal acts by
But if loss or damage by fire, explosion or
you, or your employees:
sprinkler leakage results, we will pay for that
resulting loss or damage.
(1) Acting alone or in collusion with others; or
This exclusion does not apply to mobile property.
(2) Whether or not occurring during the hours of
employment.
b. NUCLEAR HAZARD
This exclusion does not apply to acts of
Nuclear reaction or radiation, or radioactive
destruction by your employees; but theft by
contamination, however caused.
employees is not covered.
But if loss or damage by fire results, we will pay for
d. Damages caused by explosion of steam boilers,
that resulting loss or damage.
steam pipes, steam engines or steam turbines
owned or leased by you, or operated under your
c. WAR
control.
(1) War, including undeclared or civil war;
But if loss or damage by fire or combustion
LMCIT MPCBP (11/05) (Rev. 11/15) Page 6 of 22
explosion results, we will pay for that resulting (3) Settling, shrinking or expanding; or
loss or damage.
(4) Wear and tear.
We will also pay for loss or damage caused by or
This exclusion does not apply if the above damage
resulting from the explosion of gases or fuel
results from a specified cause of loss.
within the flues or passages through which the
gases of combustion pass.
The exclusion for damages caused by disease does
not apply to policedogs.
e. The cost to repair or replace faulty workmanship,
materials, construction or design.
The exclusion for damages caused by disease or
organic pathogen does not apply to organic
This exclusion does not apply to c omputer
pathogen cleanup and removal as provided in
equipment, electronic data and electronic media.
SECTION II, 2. h.
f. The cost to repair or replace mechanical
h. Unexplained loss, mysterious disappearance, or
breakdown, including rupture or bursting caused
shortage disclosed upon taking inventory.
by centrifugal force.
This exclusion does not apply to computer i. Seizure or destruction of property by order of
equipment, electronic data and electronic media.governmental authority.
g. Damages caused by: But we also will pay for acts of destruction
ordered by governmental authority and taken at
(1) Rust, corrosion, decay, deterioration, disease
the time of a fire to prevent its spread, if the fire
or organic pathogen, hidden or latent defect, or
would be covered under this coverage part.
any quality in property that causes it to damage or
destroy itself; j. The cost of fire department service charges that
the city is legally obligated to pay.
(2) Mold or other fungus or fungi, fungal spores,
or fungal fragments or metabolites, such as
mycotoxins or volatile organic components;
SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE
(a) Flood, surface water, waves, tides, tidal
1. COVERAGE AGREEMENT
waves, overflow of any body of water, or their
spray, all whether driven by wind or not;
a. For your building/contents, property in the open,
or builders risk property subject to the exclusions
(b) Mudslide or mudflow;
and limitations in paragraph b. below, we will pay
for:
(c) Water that backs up or overflows from a
sewer, drain or sump; or
(1) Direct physical loss of or damage to your
building/contents, property in the open, or builders
(d) Water under the ground surface pressing
risk property described in the Schedule of Covered
on, or flowing or seeping through:
Property; and
i) Foundations, walls, floors or paved
(2) Any additional covered losses or damages as
surfaces;
described in SECTION II - ADDITIONAL
COVERED LOSS OR DAMAGE as a result of
ii) Basements, whether paved or not; or
direct physical loss of or damage to your building/
contents, property in the open, or builders risk
iii) Doors, windows or other openings.
property which are caused by:
LMCIT MPCBP (11/05) (Rev. 11/15) Page 7 of 22
But if loss or damage by fire, explosion or Insurance Program.
sprinkler leakage results, we will not pay for that
(4) For any newly acquired or constructed
resulting loss or damage under this SECTION IV.
covered property, covered property in transit, or
b. (1) For any building/contents, property in the covered property that is temporarily at an
open, or builders risk property for which Code A unscheduled location, as provided by SECTION I,
is shown on the Schedule of Covered Property, no 1.a., COVERED PROPERTY; or builders risk
additional exclusions apply to the coverage property as provided by SECTION V, 1.,
provided under this section. BUILDINGS IN THE COURSE OF
CONSTRUCTION, ALTERATION, OR REPAIR
(2) For any building/contents, property in the
COVERAGE, that are not shown on the Schedule
open, or builders risk property for which Code B
of Covered Property, we will pay any loss or any
is shown on the Schedule of Covered Property, the
damage as if the water and supplemental flood
coverage provided by this section is specifically in
coverage was shown as Code C on the Schedule of
addition to and in excess of the applicable
Covered Property.
National Flood Insurance Program coverage.
2. LIMITS OF COVERAGE
(3) For any building/contents, property in the
open, or builders risk property for which Code C The maximum amount we will pay for all losses or
is shown on the Schedule of Covered Property, we damages covered under this SECTION IV is limited as
will not pay for any loss or damage resulting from described in SECTION VI - LIMITS OF COVERAGE
any occurrence which would be considered a AND VALUATION.
flood for the purpose of the National Flood
SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION,
ALTERATION, OR REPAIR COVERAGE
covered property as specified in the applicable
1. COVERAGE AGREEMENT
contract. Such interest of contractors and
subcontractors is limited to the property for which
a. We will pay for direct physical loss of or damage
they have been hired to perform such work and
to yourbuilders risk property unless the cause of
such interest will not extend to any loss of
loss or damage is not covered, as described under
revenue,extra expense, or expediting expense
SECTION III - CAUSES OF LOSS AND
sustained by the contractor and subcontractors as
DAMAGES NOT COVERED. The amount we
provided by this covenant.
will pay for loss or damage is limited as described
in SECTION VI - LIMITS OF COVERAGE AND
VALUATION. 2. PROPERTY NOT COVERED
b. We will pay for loss to builders risk property in We will not cover the following types of property:
transit as described in SECTION VI - LIMITS OF
a. Any builders risk property if the approved
COVERAGE AND VALUATION.
estimated total project cost exceeds $2,000,000 as
c. We will pay for loss to builders risk property that of the date construction commenced.
is at a temporary location other than the
b. Land, subsoil, crops or lawns except golf course
construction location as described in SECTION VI
property ormaterials necessary for a green
- LIMITS OF COVERAGE AND VALUATION.
building.
d. We will also cover the interest of contractors and
subcontractors in builders risk property during
3. ADDITIONAL COVERED LOSS OR
construction to the extent of the city's obligation
DAMAGE COVERAGE
for a covered physical loss or damage to such
LMCIT MPCBP (11/05) (Rev. 11/15) Page 8 of 22
We will pay for covered losses and damages as
5. ADDITIONAL DEFINITIONS
described in SECTION II - ADDITIONAL
COVERED LOSS OR DAMAGE as a result of direct
Project cost means the cost of construction, materials,
physical damage to yourbuilders risk property.
and architectural, legal, financial and other
professional services relating to the construction,
4. WATER AND SUPPLEMENTAL FLOOD alteration or repair project.
We will pay for loss or damage to yourbuilders risk
property as described in SECTION IV - WATER
AND SUPPLEMENTAL FLOOD COVERAGE.
SECTION VI - LIMITS OF COVERAGE AND VALUATION
employee.
1. LIMITS OF COVERAGE
e. The sublimits stated below are per occurrence and
a.We will not pay for more than the general limit per
are part of and not in addition to the general limit
occurrence specified in Item 5 of the Declarations.
per occurrence:
b. We will not pay for more than the specific
(1) Covered property in transit: $250,000
property limit for loss or damage to any
buildings/contents,property in the open or
(2) Unscheduled location: $500,000
builders risk property in any one occurrence.
(3) Golf course property: $100,000 per
c. We will not pay for loss or damage in any one
occurrence for direct damage to golf course
occurrence until the amount of loss or damage
property and debris removal of covered property
exceeds the Deductible in Item 7 of the
and non-covered property.
Declarations. We will then pay the amount of loss
or damage in excess of the Deductible, up to the
f. The sublimits stated below are in addition to the
applicable limits of coverage:
general limit per occurrence:
(1) The Deductible applies against the total loss
(1) Newly acquired or constructed building/
incurred by you from any one occurrence,
contents or property in the open at any one
regardless of the number of locations involved.
location: $5,000,000
(2) If two or more deductibles in Item 7 of the
(2) Newly acquired or constructed mobile
Declarations for property coverage apply to one
property: $500,000 per unit
occurrence for you, the total to be deducted will
not exceed the largest deductible applicable.
g. Except as provided in paragraph h. the limits for
the additional covered loss or damage are
d. The sublimits stated below are per occurrence and
specified in Item 5 of the Declarations and are
are part of and not in addition to the specific
listed below. The limits are in addition to the
property limit:
general limit per occurrence and the specific
property limit:
(1) The cost to reproduce or restore electronic
data: $1,000,000
(1) Loss of revenue, extra expense and expediting
expense: $5,000,000 per occurrence but not to
(2) Fine arts: $500,000
exceed a sublimit of $500,000 per occurrence for
claims arising from unauthorized intrusive codes
(3) Personal effects: $25,000 per occurrence, but
or programming, such as computer viruses or
not to exceed $2,500 per employee.
hacking that are entered into your computer
equipment, electronic data, or electronic media.
(4) Business personal effects: $25,000 per
occurrence, but not to exceed $5,000 per
LMCIT MPCBP (11/05) (Rev. 11/15) Page 9 of 22
(2)Demolition and debris removal: For eachi. The limits for water and supplemental flood
occurrence, an amount equal to 25% of the coverage are specified in Item 5 of the
estimated replacement cost of the covered property Declarations and are stated below:
as stated in the Schedule of Covered Property.
(1) $500,000 per occurrence.
However, if there is no direct physical loss or
damage to covered property, the most we will pay
(2) The water and supplemental flood coverage
is $50,000 per occurrence.
annual aggregate is the most we will pay for water
and supplemental flood coverage loss during the
These limits do not apply to golf course property.
annual coverage period.
(3) Leasehold interest: $500,000 per location
(3) The sublimits stated below are per occurrence
(4) Accounts receivable: $500,000 per location and are part of and not in addition to the per
occurrence limit:
(5) Valuable papers and records: $500,000 per
location (a) Golf course property: $100,000
(6) Utility Services: $100,000 per occurrence (b) Property in transit: $250,000
(7) Green Building Expenses: 1% of the contract j. The limits for Building s in the Course of
cost but not to exceed $100,000 per location.Construction, Alteration, or Repair Coverage are:
(8) Asbestos clean-up, abatement and removal: (1) Any one location: $2,000,000
$250,000 per location
(2) The limits stated below are part of and not in
(9) Pollutant cleanup and removal: $250,000 per addition to the any one location limit:
location
(a) Property in transit: $250,000
(10) Errors: 90% of the loss, subject to $500,000
(b) Temporary location: $500,000
per occurrence
k. The limit for vacant property is the fair market
(11) Rental reimbursement: $250,000 per annual
value of the damaged property. This limit applies
aggregate
to any direct physical loss or damages as provided
(12) Arson reward: $5,000 per fire loss in Section I and to any additional covered loss or
damages as provided in Section II. This limit is
(13) Extraordinary expense: $250,000 per annual
part of and not in addition to the general limit per
aggregate
occurrence and the specific property limit.
(14) Data security breach expenses: $250,000 per
2. LOSS VALUATION
annual aggregate.
a. GENERAL PROVISIONS
(15) Organic pathogen cleanup and removal:
$250,000 per annual aggregate.
(1) Definitions:
h. The limit for damage caused by criminal acts other
(a) Covered property is deemed to be destroyed if
than vandalism or arson is $1,000,000 per
the replacement cost to rebuild or replace the
occurrence. This limit applies to any direct
property is less than the sum of the replacement
physical loss or damages as provided in Section I
cost to repair the property plus the reduction, if
and to any additional covered loss or damages as
any, in the fair market value of the repaired
provided in Section II. This limit is part of and not
property.
in addition to the general limit per occurrence and
the specific property limit.
(b) Replacement cost means the cost to repair or
LMCIT MPCBP (11/05) (Rev. 11/15) Page 10 of 22
replace covered property that is damaged or destroyed and remains in service without being
destroyed, using new materials of equivalent size, repaired, LMCIT will pay the amount of the
kind and quality. Replacement cost includes any reduction, if any, in the fair market value of the
additional costs necessary to comply with damaged property.
applicable building codes or other county, state, or
(e) If the covered property is damaged but not
federal requirements. But replacement cost does
destroyed and the city elects not to repair it but to
not include:
raze or otherwise dispose of the property, LMCIT
i) Costs necessary solely to comply with the will pay to the city the estimated replacement cost
citys own zoning or other requirements or: to repair the property.
ii) The cost to correct violations of law which (3) Limitation:
existed prior to the loss.
In any event, LMCIT will not pay you more than
(2) Adjustment: your financial interest in the covered property.
Except as provided in b. below, in the event of
b. SPECIAL PROVISIONS
direct physical loss of or damage to your covered
(1) Valuable papers and records:
property, the basis of adjustment will be as
follows:
For valuable papers and records,LMCIT will pay
the cost of blank materials for reproducing the
(a) If the covered property is destroyed and is
records, plus the cost of labor to transcribe or copy
replaced or rebuilt, LMCIT will pay the following:
the records when there is a duplicate, or to
i) If the covered property is replaced or reproduce the data of records.
rebuilt at the same location, the replacement
(2) Computer equipment, electronic data and
cost of the covered property with similar size
electronic media:
and construction;
For computer equipment, electronic data, and
ii) If the covered property is replaced or
electronic media,LMCIT will pay the cost to
rebuilt at a different location, the replacement
replace destroyed computer equipment with
cost cannot be greater than if you would have
equipment of equal or greater processing ability;
rebuilt at the same location with similar size
the cost to reproduce or restore electronicdata;
and construction; or
and the cost to repair or replace electronic media
iii) If the covered property is replaced or with the same kind and quality of material. Any
rebuilt at the same location with different size replacement equipment must be able to perform
or construction, the replacement cost cannot the same function as the destroyed equipment.
be greater than if you would have rebuilt at the
Unauthorized intrusive codes or programming,
same location with similar size and
such as computer viruses or hacking that are
construction.
entered into yourcomputer equipment, electronic
(b) If the covered property is destroyed and is not data, or electronic media are considered direct
replaced or rebuilt, LMCIT will pay the fair market physical loss of or damage to your covered
value of the property at the time of the loss. property.
(c) If the covered property is damaged but not (3) Accounts receivable:
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
(d) If the covered property is damaged but not collect pending our payment of these amounts;
LMCIT MPCBP (11/05) (Rev. 11/15) Page 11 of 22
collection expenses in excess of your normal (a) For a tree or shrub which is destroyed, LMCIT
collection expenses that are made necessary by the will pay the actual cost to replace it with a tree or
loss; and other reasonable expenses you incur to shrub of similar type and of a size that is normally
re-establish youraccounts receivable. If you are considered to be reasonable and practical to
unable to establish the amount of accounts transplant, regardless of whether the tree or shrub
receivable outstanding at the time of the loss, we is replaced or not.
will use the average monthly amounts of accounts
(b) For a tree or shrub that is damaged but not
receivable for the 12 months immediately
destroyed, LMCIT will pay the actual cost of any
preceding the month in which the loss occurs,
service, treatment, or repair that is actually
adjusting to reflect the normal business during the
performed.
loss month.
But, we will not pay more than the actual cost to
(4) Fine arts:
replace it with a tree or shrub of similar type and
For fine arts which are destroyed, LMCIT will pay of a size that is normally considered to be
the fair market value, regardless of whether the reasonable and practical to transplant.
covered property is replaced or not.
(8) Business personal effects:
(5) Mobile property:
Notwithstanding the provisions of paragraph 11.
For mobile property that is damaged or destroyed, of the Common Conditions, LMCIT coverage for
LMCIT will not pay for more than the amount youbusiness personal effects is primary with respect to
actually spent to repair or replace the damaged any coverage provided under the employee's
mobile property; or 200% of the fair market value homeowner's insurance or similar coverage.
of the damaged property, whichever is less.
c. LOSS OF REVENUE, EXTRA EXPENSE AND
(6) Policedogs:
EXPEDITING EXPENSE PROVISIONS
A policedog is considered to be destroyed if (1) The amount of loss of revenue loss LMCIT will
because of injury or disease the dog is not able to pay, will be determined based on:
perform the dog's normal functions and there is no
(a) The gross revenue of the city before the direct
reasonable prospect that the dog will be able to do
physical loss or damage occurred;
so.
(b) The likely gross revenue of the city if no
(a) For police dogs that are destroyed, LMCIT
physical loss or damage had occurred;
will pay for the cost to replace the dog and the cost
of any necessary training.
(c) The operating expenses, including payroll
expenses, necessary to resume operations with the
(b) If a police dog is injured as a result of an
same quality of service that existed just before the
accident or an intentional act, LMCIT will pay the
direct physical loss or damage; and
cost of necessary treatment and care to enable the
dog to resume performing the dog's normal
(d) Other relevant sources of information,
functions. But LMCIT will not pay the cost of
including:
treatment and care to treat or prevent disease.
i) Your financial records and accounting
For any single occurrence,LMCIT will not pay
procedures;
more than the amount you actually spend to
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
LMCIT MPCBP (11/05) (Rev. 11/15) Page 12 of 22
will be determined based on: will pay based on the length of time it would have
taken to resume operations as quickly as possible.
(a) All expenses that exceed the normal operating
expenses that would have been incurred by
d. APPRAISAL AND ARBITRATION
operations during the period of recovery if no
Either party may make a written demand for
direct physical loss or damage had occurred. We
arbitration if the city and LMCIT disagree on any of
will deduct from the total of such expenses:
the following:
i) The salvage value that remains of any
(1) The fair market value of covered property prior to
property bought for temporary use during the
the loss or damage;
period of recovery once operations are
resumed;
(2) The fair market value of covered property after the
loss or damage;
ii) Any extraexpense that is paid for by other
insurance, except for insurance that is written
(3) The fair market value of covered property after
subject to the same plan, terms and conditions
repair; or
and provisions as this insurance; and
(4) The estimated cost to repair the covered property.
(b) All necessary expenses that reduce the
In this event, each party will select a competent
business income loss that otherwise would have
and impartial person. Each appointee shall be a
been incurred.
professional appraiser or other person with
appropriate professional expertise. The two
(3) We will reduce the amount of your:
appointees will select an umpire. If they cannot
(a) Loss of revenue loss, other than extra expense agree, either may request that selection be made
or expediting expense to the extent you can resume by a judge of a court having jurisdiction. The two
youroperations, in whole or in part, by using appointees will each separately state their
damaged or undamaged property (including respective estimates of the value or cost which is
merchandise or stock) at the described location or in question. If they fail to agree, they will submit
elsewhere. their differences to the umpire. A decision agreed
to by any two will be binding.
(b) Extra expense or expediting expense loss to
the extent you can return youroperations to Each party will:
normal and discontinue such extra expense or
(a) Pay the cost of its own appointee; and
expediting expense.
(b) Share equally the expense of the umpire and
However, if you do not resume operations, or do
any other expenses related to the arbitration
not resume operations as quickly as possible, we
process.
SECTION VII DEFINITIONS
1. Accounts receivable means: collection expenses that are made necessary by the
loss; and
a. All amounts due from your customers that you
are unable to collect and there is a loss; d. Other reasonable expenses that you incur to re-
establish your records of accounts receivable.
b. Interest charges on any loan required to offset
amounts you are unable to collect pending our e. Accounts receivable does not include:
payment of these accounts;
(1) The amount of the accounts that you are
c. Collection expenses in excess of your normal able to re-establish or collect;
LMCIT MPCBP (11/05) (Rev. 11/15) Page 13 of 22
(2) An amount to allow for probable bad c. Outdoor fixtures;
debts that you are normally unable to collect;
d. Contents owned by you that are used to
and
maintain or service the building or its premises,
(3) All unearned interest and service charges. including:
2. Aircraft means a vehicle designed for the transport (1) Fire extinguishing equipment;
of persons or property principally in the air,
(2) Outdoor furniture;
including airplanes, helicopters, blimps, hot air
balloons, and gliders.
(3) Floor coverings; and
3. Automobile means a land motor vehicle, trailer or
(4) Appliances used for refrigerating,
semi-trailer designed for travel on public roads.
ventilating, cooking, dishwashing or
laundering; or
4. Builders risk property means:
e. Water towers;
a. Building or property in the open in the course
of construction.
f. Lift stations, wells or pumping locations;
b. Alterations or repair of the city's existing
g. Electric substations, transformers or cooling
buildingor property in the open.
towers;
c. Addition to the city's existing building or
h. Tanks;
property in the open.
i. Wastewater lagoons, including: plastic,
d. Builders risk property also includes:
synthetic, clay or other lagoon liners, lagoon rip-
rap and soil/subsoil embankments;
(1) Foundation of the building or property in
the open in the course of construction or an
j. Gas reduction or odorizing stations;
addition to the city's existing building or
property in the open.
k. Wind Turbines; or
(2) Materials, equipment, and supplies used
l. Underground and buried pipes, flues or drains
for construction, alteration or repair, provided
that are part of a geothermal heating and cooling
such property is intended to be permanently in
system, or part of the water treatment plant,
or on the builders risk property; and
wastewater treatment plant, lift station or gas
reduction station, but not including those that are
(3) Temporary structures built or assembled
part of the citys general collection system.
on location, including cribbing, scaffolding
and construction forms used in the course of
6. Building/contents, as described in the Schedule of
construction or alterations or repair of the
Covered Property, means the following:
builders risk property.
a. Building; or
(4) Underground and buried pipes, flues or
drains, but not including those that are part of
b. Contents.
the citys general collection system.
7. Business personal effects means personal property
5. Building means the building including:
of youremployees that is used to maintain the
operations of the city.
a. Completed additions;
8. City means governmental body or entity first
b. Permanently installed fixtures, machinery and
named in the Declarations. For purposes of this
equipment;
LMCIT MPCBP (11/05) (Rev. 11/15) Page 14 of 22
coverage, city includes relief associations of the e. Labor, materials or services furnished or
city.arranged by you on contents of others;
Unless specifically named in the Declarations, city f. Your use interest as tenant in improvements
shall not include: and betterments. Improvements and betterments
are fixtures, alterations, installations or additions:
a. Gas, electrical, or steam utilities commission;
(1) Made a part of the building or structure
b. Port authority, housing and redevelopment
you occupy but do not own; and
authority, economic development authority, area
or municipal redevelopment authority, or similar (2) You acquired or made at your expense but
agency; cannot legally remove.
c. Municipal power agency; g. Contents of others that are in your care,
custody and control.
d. Municipal gas agency;
However, our payment for loss or damage to
e. Hospital or nursing home board or
contents will be for the account of the owner of the
commission;
property.
f. Airport commission;
h. Trees and shrubs;
g. Welfare or public relief agency;
i. Accounts receivable;
h. School board; or
j. Computer equipment, electronic data or
electronic media;
i. Joint powers entity; but a joint planning board
created pursuant to an orderly annexation
k. Valuable papers and records;
agreement or joint resolution between the city and
a township is deemed to be a covered joint powers l. Personal effects; or
entity under this agreement.
m. Fine arts.
9. Computer equipment means programmable
But, contents does not mean mobile property.
electronic equipment that is used to store, retrieve,
and process data; and associated peripheral
11. Data security breach means actual or potential
equipment that provides communication including
unauthorized acquisition of data that:
input and output functions such as printing or
auxiliary functions such as data transmission.
a. Compromises the security, confidentiality, or
integrity of personal information; or
10. Contents means property located in or on the
building described in the Declarations or in the
b. Contains data classified as private or
open (or in a vehicle) within 100 feet of the
confidential by the Minnesota Government
described building, consisting of the following:
Data Practices Act.
a. Furniture and fixtures;
12. Electronic data means programmed and recorded
material stored on computer equipment or
b. Machinery and equipment;
electronic media, and programming records used
for electronic data processing, or electronically
c. Stock;
controlled equipment. Electronic data is not
d. All other contents owned by you and used intangible property.
your municipal operations;
13. Electronic media means electronic data processing
LMCIT MPCBP (11/05) (Rev. 11/15) Page 15 of 22
or storage media such as films, tapes, discs, drums (b) Costs to equip and operate the
or cells. replacement or temporary locations.
14. Employee means for actions within his duties as b. Extra expense to minimize the suspension of
such any former or present: business if you cannot continue operations.
a. Person whom you compensate directly by c. Extra expense to:
salary, wages or commissions, and who you have
(1) Repair or replace any covered property; or
the right to direct or control while performing
duties for you;
(2) Research, replace or restore the lost
information on damaged valuable papers and
b. Member of the city council;
records;
c. Member of a city board, commission, or
to the extent it reduces the amount of loss that
committee which is not excluded by the definition
otherwise would have been payable under this
of city;
covenant.
d. Elected or appointed official of the city;
17. Fine arts means property or articles of artistic or
e. Volunteer person or organization while acting historical value including paintings, etchings,
on behalf of the city and subject to the city's pictures, tapestries, statuary, marbles, bronzes,
direction and control; porcelain, rare glass, antique silver, china, books
and manuscripts, rugs and similar articles.
f. Other authorized person or agent of the city
while acting on behalf of the city, but excludes 18. Golf course property means bridges, paved
independent contractors; roadways, paved cart paths and other paved
surfaces, shelters, restrooms, ball washers, screens,
g. Members, officers, and employees of a relief
flags, markers, signs, tees, irrigation systems
association of the city.
including underground components, fairways and
greens.
15. Expeditingexpense means the reasonable extra
cost of temporary repair and expediting the repair
19. Green means products, materials, methods and
of damaged covered property, overtime and
processes certified by a GreenAuthority that
express freight or other rapid means of
conserve natural resources, reduce energy or water
transportation.
consumption, avoid toxic or otherwise
environmental impact.
16. Extra expense means the excess total cost
necessarily incurred to continue youroperations as
20. GreenAuthority means an authority on green
reasonably as practicable during the period of
buildings, products, materials, methods or
recovery that is over and above the cost that would
processes that is certified and accepted by
normally have been incurred to conduct the
Leadership in Energy and Environmental Design
operations during the same period had no loss or
(LEED), Green Building Initiative Green Globes,
damage occurred. It includes:
Energy Starr Rating System or any other
recognized green rating system.
a. Extra expense to avoid or minimize the
suspension of business and to continue operations:
21. Joint powers entity means an operating entity
created by two or more governmental units
(1) At the described location; or
entering into an agreement as provided by statute
for the joint exercise of governmental powers. An
(2) At a replacement location or at temporary
intergovernmental agreement will be deemed to
locations, including:
create a joint powersentity if the agreement
establishes a board with the effective power to do
(a) Relocation expenses; and
any of the following, regardless of whether the
LMCIT MPCBP (11/05) (Rev. 11/15) Page 16 of 22
specific consent of the constituent governmental 26. Newly acquired or constructed means that the city
units may also be required: has acquired or taken possession of the property
during the current covenant period.
a. To receive and expend funds;
27. Occurrence means an accident or event that causes
b. To enter into contracts;
a direct physical loss or damage to covered
property. Any continuous accident or event that
c. To hire employees;
causes more than one direct physical loss or
damage tocovered property during a 72 hour
d. To purchase or otherwise acquire or hold real
period constitutes an accident or event as a single
or personal property; or
occurrence.
e. To sue or be sued.
28. Operations means:
22. LMCIT means the League of Minnesota Cities
a. Yourcity activities occurring at the described
Insurance Trust.
location; or
23. Location means:
b. The tenantability of the described location.
a. The site of any covered building/contents,
29. Organic pathogen means any disease-producing
property in the open, or builders risk property; or
organic agent, including but not limited to a virus,
bacterium, or other microorganism.
b. The site of any covered newly acquired or
constructed building/contents or property in the
30. Organic pathogen claim means any claim for
open;
damages arising directly or indirectly out of, or
resulting from, caused by, or contributed to by any
24. Lossofrevenue means gross revenue, including
organic pathogen.
rental value, less charges and expenses that do not
necessarily continue.
31. Our means the League of Minnesota Cities
Insurance Trust.
25. Mobile property means:
32. Period of recovery means the period of time that:
a. Machinery or equipment designed for use
principally off public roads;
a. Begins immediately after the time of direct
physical loss or damage to covered property.
b. Police dogs;
b. Ends on the earlier of:
c. Vehicles maintained for use solely on or next
to locations owned or rented by you and not
(1) The date covered property is actually
licensed for highway use;
repaired, rebuilt or replaced and operations are
resumed; and youroperations would generate
d. A vehicle and its equipment whether self-
the loss of revenue amount that would have
propelled or not, maintained primarily to provide
existed if no direct physical or damage had
mobility to permanently mounted equipment;
occurred; or
e. Tools, including protective clothing and gear,
(2) 60 consecutive days after the date when
and other similar property;
the covered property is actually repaired,
rebuilt or replaced and operations are
f. Business personal effects; or
resumed.
g. Mobile property in your care, custody and
However, the expiration date of the covenant will
control.
not cut short the period of recovery.
LMCIT MPCBP (11/05) (Rev. 11/15) Page 17 of 22
33. Personal effects means personal property of your continue to be in existence under the provisions of
employees, other than business personal effects.Minnesota Statute §353G.06.
34. Personal information means an individuals first 38. Rental value means the sum of:
name or first initial and last name in combination
a. The total anticipated gross rental income from
with any one or more of the following data
tenant occupancy of the covered property as
elements, when the data element is not secured by
furnished and equipped by you; and
encryption or another method of technology that
makes electronic data unreadable or unusable, or
b. The amount of all continuing charges that are
was secured and the encryption key, password, or
the legal obligation of the tenant and that would
other means necessary for reading or using the
otherwise be your obligation; and
data was also acquired:
c. The fair rental value of any portion of the
a. Social Security number.
covered property that you occupy.
b. Drivers license number or Minnesota
39. Specific property limit means 150% of the
identification card number.
estimated replacement cost of the covered property
as stated in the Schedule of Covered Property.
c. Account number or credit or debit card
number, in combination with any required security
40. Specified causes of loss means fire; lightning;
code, access code, or password that would permit
explosion; windstormor hail; smoke; aircraft or
access to an individual's financial account.
vehicles; riot or civil commotion; vandalism;
arson; criminal acts other than vandalism or arson;
35. Pollutants means any solid, liquid, gaseous or
leakage or discharge from fire extinguishing
thermal irritant or contaminant, including smoke,
equipment; sinkhole collapse; volcanic action;
vapor, soot, fumes, acids, alkalis, chemicals and
falling objects; weight of snow, ice or sleet; or
waste. Waste includes materials to be recycled,
water damage:
reconditioned or reclaimed.
a. Sinkhole collapse means the sudden sinking or
36. Property in theopen means:
collapse of land into underground empty spaces
a. Benches, fences, light poles or outdoor lighting created by the action of water on limestone or
systems, playground equipment, sports and dolomite. This cause of loss does not include:
recreational apparatus, picnic tables, grills, statues,
(1) The cost of filling sinkholes; or
monuments, portable toilets, water fountains,
garbage cans, flagpoles, and signs that are not part
(2) Sinking or collapse of land into man-made
of the building; or
underground cavities.
b. Golf course property.
b. Falling object does not include loss or damage
to:
Unless, if otherwise endorsed, propertyin the
open does not mean basketball and tennis court
(1) Property in the open; or
surfaces, fire hydrants, street signs, street lights or
traffic signs or signals, or any property described
(2) The interior of a building or property
in SECTION I, 1.b., PROPERTY NOT
inside a building unless the roof or an outside
COVERED.
wall of the building is first damaged by a
falling object.
37. Relief association means the following:
c. Water damage means accidental discharge or
a. A relief association as defined under
leakage of water or steam from any part of a
Minnesota Statute §424A.001, subd. 4; or
system or appliance containing water or steam.
b. A relief association that has elected to
LMCIT MPCBP (11/05) (Rev. 11/15) Page 18 of 22
41. Stock means merchandise held in storage or for consecutive days the property does not contain
sale, raw materials and in process or finished enough contents to conduct customary operations.
goods, including supplies used in their packing or
However, the following are not considered vacant
shipping.
property:
42. Us means the League of Minnesota Cities
(1) Builders risk property; or
Insurance Trust.
(2) A building which is used and occupied,
43. Utility service property means any of the
and which is designed to be used and
following types of property supplying water,
occupied, on an occasional, intermittent, or
communication service or power to covered
seasonal basis.
property:
45. Valuable papers and records means inscribed,
a. Pumping stations or water mains supplying
printed or written documents, manuscripts or
water;
records, including abstracts, books, deeds,
b. Equipment supplying communication services; drawings, films, maps and mortgages.
or
But valuable papers and records does not mean
c. Utility generation plants, switching plants, money or securities, converted data, programs or
substations, transformers, and transmission lines instructions used in your data processing
supplying electricity, steam or gas. operations, including the materials on which the
data is recorded.
44. Vacant property means:
46. We means the League of Minnesota Cities
a. Property owned by the city is deemed to be
Insurance Trust.
vacant property if for a period of 60 consecutive
days less than 31% of the buildings total square 47. You means the city shown in the Declarations.
footage is either used by the city for customary
48. Your means the city shown in the Declarations.
operations or is leased out.
b. Property rented or leased to the city is deemed
to be vacant property if for a period of 60
SECTION VIII - CONDITIONS
the same loss or damage, we will not pay more than
1. CONTROL OF PROPERTY
the actual amount of thelossor damage.
Any act or neglect of any person other than you
beyond your direction or control will not affect this 3. LEGAL ACTION AGAINST US
coverage.
No one may bring legal action against us under this
The breach of any condition of this coverage part at coverage part unless:
any one or more locations will not affect coverage at
a. There has been full compliance with all of the
any location where, at the time ofloss or damage, the
terms of the coverage part; and
breach of condition does not exist.
b. The action is brought within 2 years after the date
2. COVERAGE UNDER TWO OR MORE
on which the direct physical loss or damage
COVERAGES
occurred.
If two or more of this covenant's coverages apply to
LMCIT MPCBP (11/05) (Rev. 11/15) Page 19 of 22
of your expenses, for consideration in the
4. NO BENEFIT TO BAILEE
settlement of the claim.
No person or organization, other than you, having
(5) At our request, give us complete inventories
custody of covered property will benefit from this
of the damaged and undamaged property. Include
coverage.
quantities, costs, values, and amount claim of loss
demand.
5. COVERAGE PERIOD, COVERAGE
TERRITORY
(6) Permit us to inspect the property and records
proving the loss or damage.
Under this coverage part:
(7) If requested, permit us to question you under
a. We cover loss or damage commencing:
oath at such times as may be reasonably required
about any matter relating to this covenant or your
(1) During the coverage period shown in the
claim, including your books and records. In such
Declarations; and
event, your answers must be signed.
(2) Within the coverage territory.
(8) Send us a signed, sworn statement of loss
containing the information we request to settle the
b. The coverage territory is:
claim. You must do this within 60 days after our
request. We will supply you with the necessary
The United States of America (including its
forms.
territories and possessions);
(9) Cooperate with us in the investigation or
(1) Puerto Rico; and
settlement of the claim.
(2) Canada.
However, LMCIT will not reimburse you for your
payment of costs, fees, or other expenses you incur in
6. LOSS CONDITIONS
establishing either the existence or the amount of loss
under this covenant.
a. Abandonment:
c. Loss Payment:
You cannot abandon your property to us.
(1) We will give notice of our intentions within 30
b. Duties in the event of loss or damage:
days after we receive the sworn statement of loss.
You must see that the following are done in the
(2) We may adjust losses with the owners of lost
event of lossor damage to covered property:
or damaged property if other than you. If we pay
the owners, such payments will satisfy your claims
(1) Notify the police if a law may have been
broken. against us for the owners property. We will not
pay the owners more than their financial interest in
(2) Give us prompt notice of the loss or damage.
the covered property.
Include a description of the property involved.
d. Recovered Property:
(3) As soon as possible, give us a description of
If either you or we recover any property after loss
how, when and where the loss or damage
settlement, that party must give the other prompt
occurred.
notice. At your option, the property will be
returned to you.You must then return to us the
(4) Take all reasonable steps to protect the
amount we paid to you for the property. We will
covered property from further damage. If feasible,
pay recovery expenses and the expenses to repair
set the damaged property aside and in the best
the recovered property, subject to the amount
possible order for examination. Also keep record
applying under this covenant.
LMCIT MPCBP (11/05) (Rev. 11/15) Page 20 of 22
7. PREMIUMS AND PREMIUM 8. CANCELLATION
ADJUSTMENTS
a. You may cancel Part One of this covenant. You
must mail or deliver not fewer than 30 days
a. You agree to furnish us with a schedule of
advance written notice to us stating when the
buildings/contents,property in the open and
cancellation is to take effect.
mobile property valued at greater than $25,000,
and builders risk property prior to the beginning of
b. We may cancel Part One of this covenant. We must
each covenant period.
mail or deliver to you not fewer than 30 days
advance written notice stating when the
b. These schedules must include all buildings/
cancellation is to take effect. Mailing that notice
contents,property in the open and mobile property
to you at your mailing address shown in the
valued at greater than $25,000, and builders risk
Declarations will be sufficient to prove notice.
property that was covered by your prior covenant
However, we may cancel with 10 days written
but was not described in the prior covenant's
notice for nonpayment of premium.
Schedule of Covered Property or Schedule of
Covered Mobile Property.
c. The covenant period will end on the day and hour
stated in the cancellation notice.
c. The initial annual premiums will be based upon
these schedules and the appropriate replacement
d. If Part One of this covenant is canceled, we will
cost values.
send you any premium refund due. If we cancel,
the refund will be pro rata. If you cancel, the
d. You will pay us additional premium if the
refund may be less than pro rata, computed in
following property is added during the covenant
accordance with our current cancellation rules.
period:
The cancellation will be effective even if we have
not made or offered a refund.
(1) Building/contents or property in the open with
a replacement cost value of greater than
$5,000,000; 9. MORTGAGE HOLDERS
(2) Mobile property with a replacement cost value a. The term mortgage holder includes trustee.
of greater than $500,000;
b. We will pay for covered loss of or damage to
(3) Builders risk property with a project cost of buildings to each mortgage holder shown in the
greater than $2,000,000; or Declarations in their order of precedence, as
interests may appear.
(4) Additional covered loss or damage limits, or
property sublimits. c. The mortgage holder has the right to receive loss
payment even if the mortgage holder has started
e. We will return premium to you if the following
foreclosure or similar action on the building.
property is deleted during the covenant period:
d. If we deny your claim because of your acts or
(1) Building/contents or property in the open with
because you have failed to comply with the terms
a replacement cost value of greater than
of this coverage part, the mortgage holder will still
$5,000,000;
have the right to receive loss payment if the
mortgageholder:
(2) Mobile property with a replacement cost value
of greater than $500,000;
(1) Pays any premium due under this coverage
part at our request if you have failed to do so;
(3) Builders risk property with a project cost of
greater than $2,000,000; or
(2) Submits a signed, sworn proof ofloss within
60 days after receiving notice from us of your
(4) Additional covered loss or damage limits, or
failure to do so; and
property sublimits.
LMCIT MPCBP (11/05) (Rev. 11/15) Page 21 of 22
(3) Has notified us of any change in ownership, damages in excess of any deductible amounts.
occupancy or substantial change in risk known to
We will then pay the amount of loss up to the
the mortgage holder.
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 holders rights under the
mortgage will be transferred to us to the extent of
the amount we pay; and
(2) The mortgage holders right to recover the full
amount of the mortgage holders claim will not be
impaired. At our option, we may pay to the
mortgage holder the whole principal on the
mortgage plus any accrued interest. In this event,
your mortgage and note will be transferred to us
and you will pay your remaining mortgage debt to
us.
f. If we cancel this covenant, we will give written
notice to the mortgage holder at least:
(1) 10 days before the effective date of
cancellation if we cancel for your nonpayment of
premium; or
(2) 30 days before the effective date of
cancellation if we cancel for any other reason.
g. If we do not renew this covenant, we will give
written notice to the mortgage holder at least 10
days before the expiration date of this covenant.
10. DEDUCTIBLES
a. The Limits of Coverage shown in the Declarations
apply to the amount of loss or damages in excess
of the Municipal Property Deductible shown in the
Municipal Property, Crime, Bond, Petrofund and
Equipment Breakdown Declarations or the
General Annual Aggregate Deductible, if any,
shown in the Common Coverage Declarations, and
the Limits of Coverage will not be reduced by the
Deductible amount.
b. LMCIT shall be liable to the city or to others on
behalf of the city only to the amount of loss or
LMCIT MPCBP (11/05) (Rev. 11/15) Page 22 of 22
MUNICIPAL CRIME COVERAGE
PART TWO
LMCIT MPCBP (11/05) (Rev.11/15)
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.11/15) Page i
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.11/15) Page 1 of 6
c. Except as provided by SECTION I COVERAGE containers of money and securities by vandalism or
AGREEMENT, 3. AUDITING AND malicious mischief.
ACCOUNTING COSTS, payment of costs, fees,
or other expenses you incur in establishing either
9. WAR
the existence or the amount of loss under this
Loss resulting from:
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 of the
created pursuant to an orderly annexation
city. Unless specifically named in the
agreement or joint resolution between the city and
Declarations, city shall 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, such, any present or former:
area or municipal redevelopment authority, or
a. Person whom you compensate directly by
similar 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.11/15) Page 2 of 6
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 citys 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 relief
(2) Act or event, or series of related acts or
association of the city.
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. Relief association means the following:
a. To receive and expend funds;
a. A relief association as defined under
Minnesota Statute §424A.001, subd. 4; or
b. To enter into contracts;
b. A relief association that has elected to
c. To hire employees:
continue to be in existence under the
d. To purchase or otherwise acquire and hold real provisions of Minnesota Statute §353G.06.
or personal property; or
11. Securities means negotiable and nonnegotiable
e. To sue or be sued. instruments or contracts representing either money
or other property and includes:
5.LMCIT means the League of Minnesota Cities
Insurance Trust. a. Tokens, tickets, revenue and other stamps
(whether represented by actual stamps or unused
6.Money means:
value in a meter) in current use; and
a. Currency, coins, and bank notes in current use
b. Evidences of debt issued in connection with
and having a face value; and
credit or charge cards, which cards are not issued
by you;
LMCIT MPCBP (11/05) (Rev.11/15) Page 3 of 6
but does not include money.14. We means the League of Minnesota Cities
Insurance Trust.
12. Theft means any act of stealing.
15. You means the city shown in the Declarations.
13. Us means the League of Minnesota Cities
Insurance Trust. 16. Your means the city shown in the Declarations.
SECTION V - CONDITIONS
damages to property or premises, as described under
1. COVENANT PERIOD
SECTION I - COVERAGE AGREEMENT, 1., that:
a. The covenant period is shown in the Declarations.
a. You own or hold; or
b. Subject to the loss sustained during prior insurance
b. For which you are legally liable.
condition, we will pay only for loss that you
sustain through acts committed or events occurring
However, this covenant is for your benefit only. It
during the covenant period.
provides no rights or benefits to any other person or
organization.
2. DISCOVERY PERIOD FOR LOSS
5. LEGAL ACTION AGAINST US
We will pay only for covered loss discovered no later
than one year from the end of the covenant period.
You may not bring any legal action against us
involving loss:
3. DUTIES IN THE EVENT OF LOSS
a. Unless you have complied with all the terms of
After you discover a loss or a situation that may result
this covenant; and
in loss of, or loss from damage to, money and
securities; or instruments of payment, you must:
b. Until 90 days after you have filed proof of loss
with us; and
a. Notify us as soon as possible.
c. Unless brought within 2 years from the date you
b. Submit to examination under oath at our request
discover the loss.
and give us a signed statement of your answers.
6. LOSS COVERED UNDER MORE THAN
c. Give us a detailed, sworn proof of loss within 120
days. If the loss was due to forgery or alteration, ONE COVERAGE OF THIS COVENANT
you must include with your proof of loss any
If two or more coverages of this covenant apply to the
instrument involved in that loss; or if that is not
same loss, we will pay the lesser of:
possible, you must give us an affidavit setting
forth the amount and cause of loss.
a. The actual amount of loss; or
d. Cooperate with us in the investigation and
b. The sum of the limits of coverage applicable to
settlement of any claim.
that loss.
e. If you have reason to believe that any loss of, or
loss from damage to, money or securities involves 7. LOSS COVERED UNDER THIS
a violation of law, you must notify the police.
COVENANT AND PRIOR COVENANT
ISSUED BY US
4. INTERESTS COVERED
If any loss is covered:
Coverage provided by this covenant is limited to
money and securities; and instruments of payment; and
a. Partly by this covenant; and
LMCIT MPCBP (11/05) (Rev.11/15) Page 4 of 6
b. Partly by the prior canceled or terminated insurance or indemnity. However, this covenant will
covenant that we had issued to you or any not apply to the amount of loss that is more than the
predecessor in interest, the most we will pay is the applicable limit of coverage shown in the
larger of the amount recoverable under this Declarations.
covenant or the prior covenant.
11. RECORDS
8. LOSS SUSTAINED DURING PRIOR
You must keep records of all money and securities; and
INSURANCE
instruments of payment, so we can verify the amount
of any loss.
a. If you or any predecessor in interest sustained loss
during the period of any prior insurance that you
12. TERRITORY
or the predecessor in interest could have recovered
under that insurance, except that the time within
a. This covenant covers theft, disappearance, or
which to discover loss had expired, we will pay for
destruction of money or securities only from acts
it under this covenant provided:
committed or events occurring within the United
States of America, U.S. Virgin Islands, Puerto
(1) This covenant became effective at the time of
Rico, Canal Zone, or Canada, and while
cancellation or termination of the prior insurance;
temporarily outside this territory for a period of
and
not more than 90 days.
(2) The loss would have been covered by this
b. This covenant covers loss you sustain from forgery
covenant had it been in effect when the acts or
or alteration anywhere in the world.
events causing the loss were committed or
occurred.
13. VALUATION - SETTLEMENT
b. The coverage under this condition is part of, not in
addition to, the limits of coverage applying to this a. Subject to the applicable limit of coverage
provision, we will pay for:
covenant and is limited to the lesser of the amount
recoverable under:
(1) Loss of money, but only up to and including
(1) This covenant as of its effective date; or its face value. We may, at our option, pay for loss
of money issued by any country other than the
(2) The prior insurance had it remained in effect.
United States of America:
(a) At face value in the money issued by that
9. NON-CUMULATION OF LIMIT OF
country; or
COVERAGE
(b) In the United States of America dollar
Regardless of the number of years this covenant
equivalent determined by the rate of exchange
remains in force or the number of premiums paid, no
on the day the loss was discovered.
limit of coverage cumulates from year to year or
period to period.
(2) Loss of securities,but only up to and
including their value at the close of business on
10. OTHER INSURANCE
the day the loss was discovered, we may, at our
option:
This covenant does not apply to loss recoverable or
recovered under other insurance or indemnity.
(a) Pay the value of such securities or replace
them in kind, in which event you must assign
However, if the limit of the other insurance or
to us all your rights, title and interest in and to
indemnity is insufficient to cover the entire amount of
those securities;
the loss, this covenant will apply to that part of the
loss, other than that falling within any Deductible
(b) Pay the cost of any Lost Securities Bond
amount, not recoverable or recovered under the other
required in connection with issuing duplicates
LMCIT MPCBP (11/05) (Rev.11/15) Page 5 of 6
of the securities. However, we will be liable
only for the payment of so much of the cost of
the bond as would be charged for a bond
having a penalty not exceeding the lesser of
the:
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.11/15) Page 6 of 6
MUNICIPAL BOND COVERAGE
PART THREE
LMCIT MPCBP (11/05)(Rev.11/15)
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..................................................................................................................2-4
SECTION V - CONDITIONS....................................................................................................................4-6
LMCIT MPCBP (11/05)(Rev.11/15)Page i
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. 11/15)
Page 1 of 6
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 of the
f. Welfare or public relief agency;
city. 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. 11/15)
Page 2 of 6
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
citys 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 relief
8. Property other than money and securities means
association of the city.
any tangible property that has intrinsic value.
3. Joint powers entity means an operating entity
9. Relief association means the following:
created by two or more governmental units
entering into an agreement as provided by statute a. A relief association as defined under
for the joint exercise of governmental powers. Minnesota Statute §424A.001, subd. 4; or
An intergovernmental agreement will be deemed
b. A relief association that has elected to
to create a joint powers entity if the agreement
continue to be in existence under the
establishes a board with the effective power to do
provisions of Minnesota Statute §353G.06.
any of the following, regardless of whether the
specific consent of the constituent governmental
10. Securities means negotiable and nonnegotiable
units may also be required:
instruments or contracts representing either
money or other property and includes:
a. To receive and expend funds;
a. Tokens, tickets, revenue and other stamps
b. To enter into contracts;
(whether represented by actual stamps or unused
c. To hire employees;value in a meter) in current use; and
d. To purchase or otherwise acquire and hold b. Evidences of debt issued in connection with
real or personal property; or credit or charge cards, which cards are not issued
by you;
e. To sue or be sued.
but does not include money.
4. LMCIT means the League of Minnesota Cities
Insurance Trust.
LMCIT MPCBP (11/05) (Rev. 11/15)
Page 3 of 6
11. Us means the League of Minnesota Cities Insurance Trust.
Insurance Trust.
13. You means the city shown in the Declarations.
12. We means the League of Minnesota Cities
14. Your means the city shown in the Declarations.
SECTION V - CONDITIONS
b. Submit to examination under oath at our request
1. CANCELLATION AS TO ANY EMPLOYEE
and give us a signed statement of your answers.
We reserve the right to cancel the covenant as to any
employee:c. Give us a detailed, sworn proof of loss within 120
days.
a. Immediately upon discovery by you or any official
or employee authorized to manage, govern or
d. Cooperate with us in the investigation and
control youremployee, of any act on the part of an
settlement of any claim.
employee whether before or after becoming
employed by you which would constitute a loss Except as provided by SECTION 1-BOND
covered under the terms of this covenant. COVERAGE, 1.c., LMCIT will not reimburse you for
your payment of costs, fees, or other expenses you
b. On the date specified in a notice mailed to you.
incur in establishing the existence or the amount of
That date will be at least 30 days after the date of
loss under this covenant.
mailing.
5. INDEPENDENT RIGHT OF RECOVERY
The mailing of notice to you at the last mailing
address known to us will be sufficient proof of We have an independent right of recovery against any
notice. Delivery of notice is the same as mailing. employee for any loss due to the employee's
negligence, malfeasance, willful neglect of duty or bad
2. COVENANT PERIOD
faith.
The covenant period is shown in the Declarations.
6. LEGAL ACTION AGAINST US
3. EXTENDED DISCOVERY PERIOD FOR
You may not bring any legal action against us
LOSS
involving loss:
We will pay for loss sustained prior to the effective
a. Unless you have complied with all the terms of
date of termination or cancellation of this covenant,
this covenant; and
which is discovered by you no later than one year from
the date of that termination or cancellation; but this b. Until 90 days after you have filed proof of loss
extended period to discover loss terminates with us; and
immediately upon the effective date of any other
c. Unless brought within 2 years from the date you
coverage or insurance obtained by you replacing in
discover the loss.
whole or in part the coverage afforded under this
covenant, whether or not such other coverage or
7. LOSS COVERED UNDER MORE THAN
insurance provides coverage for loss sustained prior to
ONE COVERAGE OF THIS COVENANT
its effective date.
If two or more coverages of this covenant apply to the
4. DUTIES IN THE EVENT OF LOSS
same loss, we will pay the lesser of:
After you discover a loss or a situation that may result
a. The actual amount of loss; or
in loss as provided by this coverage, you must:
b. The sum of the limits of coverage applicable to
a. Notify us as soon as possible.
LMCIT MPCBP (11/05) (Rev. 11/15)
Page 4 of 6
that loss. on the day the loss was discovered.
(2) Loss of securities, but only up to and
8. NON-CUMULATION OF LIMIT OF
including their value at the close of business on
COVERAGE
the day the loss was discovered, we may, at our
Regardless of the number of years this covenant
option:
remains in force or the number of premiums paid, no
limit of coverage cumulates from year to year or (a) Pay the value of such securities or replace
period to period. them in kind, in which event you must assign
to us all your rights, title and interest in and to
9. OTHER INSURANCE
those securities;
This covenant does not apply to loss recoverable or
(b) Pay the cost of any Lost Securities Bond
recovered under other insurance or indemnity.
required in connection with issuing duplicates
However, if the limit of the other insurance or
of the securities.
indemnity is insufficient to cover the entire amount of
the loss, this covenant will apply to that part of the However, we will be liable only for the
loss, other than that falling within any Deductible payment of so much of the cost of the bond as
amount, not recoverable or recovered under the other would be charged for a bond having a penalty
insurance or indemnity. However, this covenant will not exceeding the lesser of the:
not apply to the amount of loss that is more than the
i) Value of the securities at the close of
applicable limit of coverage shown in the
business on the day the loss was
Declarations.
discovered; or
10. RECORDS
ii) Limit of coverage.
You must keep records of all money,securities, and
(c) Loss of, or loss from damage to, property
propertyotherthanmoneyandsecurities; and provide
other than money and securities, or loss from
any other reasonably obtainable information so we can
damage to the premises for not more than the:
verify the amount of any loss.
i) Actual cash value of the property on
11. TERRITORY
the day the loss was discovered;
This covenant covers only acts committed or events
ii) Cost of repairing the property or
occurring within the United States of America, U.S.
premises; or
Virgin Islands, Puerto Rico, Canal Zone, or Canada
and while temporarily outside this territory for a
iii) Cost of replacing the property with
period not more than 90 days.
property of like kind and quality.
12. VALUATION - SETTLEMENT
We may, at our option, pay the actual cash value
of the property or repair or replace it.
a. Subject to the applicable limit of coverage
provision, we will pay for:
If we cannot agree with you upon the actual cash
value or the cost of repair or replacement, the
(1) Loss of money, but only up to and including
value or cost will be determined by arbitration.
its face value. We may, at our option, pay for loss
of money issued by any country other than the
b. We may, at our option, pay for loss of, or loss
United States of America:
from damage to, property other than money:
(a) At face value in the money issued by that
(1) In the money of the country in which the loss
country; or
occurred; or
(b) In the United States of America dollar
(2) In the United States of America dollar
equivalent determined by the rate of exchange
LMCIT MPCBP (11/05) (Rev. 11/15)
Page 5 of 6
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.
LMCIT MPCBP (11/05) (Rev. 11/15)
Page 6 of 6
MUNICIPAL PETROFUND COVERAGE
PART FOUR
LMCIT MPCBP (11/05) (Rev.11/15)
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.11/15) Page i
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 of the
city. Unless specifically named in the
e. Hospital or nursing home board or
Declarations, city shall 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.11/15) Page 1 of 3
i. Joint powers entity; but a joint planning board specific consent of the constituent governmental
created pursuant to an orderly annexation units may also be required:
agreement or joint resolution between the city and
a. To receive and expend funds;
a township is deemed to be a covered joint powers
entity under this agreement.
b. To enter into contracts;
2. Corrective action means an action taken to
c. To hire employees;
minimize, eliminate, or clean up a release to
protect the public health and welfare of the
d. To purchase or otherwise acquire and hold real
environment.
or personal property; or
3. Defense costs means reasonable and necessary
e. To sue or be sued.
claim adjuster fees, attorney fees incurred by or on
behalf of you, court costs, court reporter and
6. Minnesota Petrofund means the petroleum tank
transcript fees, general witness and expert witness
release cleanup fund as defined in Minn. Stat.
fees and expenses, and similar defense related
Chapter 115C, and administered by the Petroleum
costs.
Tank Release Compensation Board.
4. Employee means for actions within his duties as
7. LMICT means the League of Minnesota Cities
such, any present or former:
Insurance Trust.
a. Person whom you compensate directly by
8. Reimbursable costs means costs which are eligible
salary, wages or commissions and who you have
costs and which are reimbursable under the
the right to direct or control while performing
provisions of the Petroleum Tank Release Cleanup
duties for you;
Act, and excludes all ineligible costs as defined by
that Act.
b. Member of the city council;
9. Relief association means the following:
c. Member of a city board, commission, or
committee which is not excluded by the definition
a. A relief association as defined under
of city;
Minnesota Statute §424A.001, subd. 4; or
d. Elected or appointed official of the city;
b. A relief association that has elected to
continue to be in existence under the
e. Volunteer person or organization while acting
provisions of Minnesota Statute §353G.06.
on behalf of the city and subject to the citys
direction and control;
10. Responsible person means a person who is
responsible for a tank release under the Petroleum
f. Other authorized person or agent of the city
Tank Release Cleanup Act.
while acting on behalf of the city, but excludes
independent contractors;
11. Tank release, tank releases means an accidental
spilling, leaking, emitting, discharging, escaping,
g. Members, officers, and employees of a relief
leeching, or disposing of petroleum from a tank
association of the city.
into the environment.
5. Joint powers entity means an operating entity
12. You and your means the city shown in the
created by two or more governmental units
Declarations.
entering into an agreement as provided by statute
for the joint exercise of governmental powers. An
13. Petroleum Tank Release Cleanup Act means
intergovernmental agreement will be deemed to
Minn. Stat. Chapter 115C, and the rules and
create a joint powers entity if the agreement
regulations duly adopted thereunder.
establishes a board with the effective power to do
any of the following, regardless of whether the
LMCIT MPCBP (11/05) (Rev.11/15) Page 2 of 3
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.11/15) Page 3 of 3
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED PROPERTY
Covenant #: CMC 39313
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 $1,643,904
2 14168 OAK PARK BLVD N WATER TOWER B CODE C $1,095,936
3 BREKKE PARK PARK B CODE C $558,250
4 13425 60TH STREET LIFT STATION B CODE C $176,551
5 14168 OAK PARK BLVD N PUMP HOUSE #1 B CODE C $210,560
6 SWAGER PARK SHELTER B CODE C $13,151
7 COVER PARK RECREATION BUILDING B CODE C $66,148
8 VALLEY VIEW PARK SHELTER B CODE C $328,781
9 SUNYSIDE MARINA LIFT STATION B CODE C $128,295
10 14200 53RD STREET LIFT STATION B CODE C $128,295
11 14168 OAK PARK BLVD N CITY HALL PIO CODE C $53,636
12 SWAGER PARK PARK PIO CODE C $87,290
13 COVER PARK PARK PIO CODE C $108,468
14 VALLEY VIEW PARK PARK PIO CODE C $97,749
15 BREKKE PARK PARK PIO CODE C $200,463
*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 39313
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 $148,557
17 14290 58TH ST N PUMPHOUSE #2 B CODE C $201,889
18 KERN CENTER, 5500 STILLWATER BLVD LIFT STATION & FORCE MAIN B CODE C $303,434
19 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $170,520
20 AUTUMN HILLS PARK PARK SHELTER B CODE C $548,353
21 OAK PARK HEIGHTS CITY HALL B CODE C $8,413,631
22 14168 OAK PARK BLVD PUBLIC WORKS B CODE C $2,323,895
23 OAK PARK CROSSINGS PARK (FORMERLY MOELTER) PIO CODE C $57,613
24 TRAILS TRAILS PIO CODE C $12,949
25 CORNER OF 58TH & NEAL VARIOUS PIO CODE C $284,200
26 CITYWIDE (5) PRESSURE REDUCING VALVES B CODE C $406,000
*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 39313
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 citys covered losses is limited to an
amount equal to the citys 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 39313
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 39313
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 39313
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 39313
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)
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED MOBILE PROPERTY
Covenant #: CMC 39313
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 $ 90,000
LMCIT PM-109 (11/97) (Rev.11/07)
MUNICIPAL EQUIPMENT BREAKDOWN
COVERAGE
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. 11/15) Page i
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,
rights, duties, and what is or is not covered. except for accident and covered equipment, which
are defined in A.1.a. and b. below.
(1) Any property built to operate under
A. COVERAGE
vacuum or pressure, other than weight of
1.Covered Cause of Loss
contents; or
The insurance provided by this Coverage
(2) Any property, other than excluded
Part applies to the direct result of an
electrical generating equipment, used
accident to covered equipment.
for the generation, transmission, or
utilization of energy.
a. Accident means direct physical loss as
Such property must be at a location
follows:
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
The following coverages are provided.
piping, steam engines or steam
turbines owned or leased by you, or The accident must occur during the
operated under your control; Covenant Period, but expiration of the
covenant does not limit our liability.
(4)Loss or damage to steam boilers,
steam pipes, steam engines or steam
a.Property Damage
turbines caused by or resulting from
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. 11/15) Page 1 of 14
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 $250,000.
(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. 11/15) Page 2 of 14
(5)Any liability to a third party; (3)Replace the system with one using a
non-CFC refrigerant.
(6)Any increase in loss due to a
pollutant; or Additional costs mean those beyond what
would have been required had no CFC
(7)Increased construction costs until the
refrigerant been involved.
building is actually repaired or
replaced. We will also pay for additional loss as
described in Business Income and Extra
The most we will pay for loss or damage
Expense, and Perishable Goods
under this coverage is $250,000.
coverages caused by such loss.
The most we will pay for loss or damage
g. Expediting Expenses
under this coverage is $250,000.
With respect to your damaged covered
property, we will pay the reasonable
j. Ice Rink Buried Piping
extra cost to:
We will pay for loss or damage caused
(1)Make temporary repairs; and
by or resulting from an accident to
(2)Expedite permanent repairs or
buried piping at an ice rink. The most
permanent replacement.
we will pay under this coverage is
The most we will pay for loss or damage
$250,000.
under this coverage is $250,000.
k. Newly Acquired Locations
h. Pollutants
All coverages provided by this Coverage
We will pay for the additional cost to
Part are extended to a newly acquired
repair or replace covered property
location that you have purchased or
because of contamination by a pollutant.
leased.
This includes the additional expenses to
clean up or dispose of such property.
l. Defense
Additional costs mean those beyond what
This coverage is automatically included
would have been required had no
and does not need to be indicated in the
pollutant been involved.
Declarations.
We will also pay for additional loss as
(1)If a claim or suit is brought against
described in Business Income and Extra
you alleging that you are liable for
Expense, and Perishable Goods
damage to property of another in
coverages caused by such contamination.
your care, custody or control, that
The most we will pay for loss or damage
was directly caused by an accident
under this coverage is $250,000.
to covered equipment, we will either:
(a)Settle the claim or suit, or
i. CFC Refrigerants
(b)Defend you against the claim
We will pay for the additional cost to
or suit but keep for ourselves
repair or replace covered property
the right to settle it at any
because of the use or presence of a
point.
refrigerant containing CFC
(2)We will pay, with respect to any
(chlorofluorocarbon) substances. This
claim or suit we defend:
means the additional expense to do the
(a)All expenses we incur;
least expensive of the following:
(b)The cost of bonds to release
(1) Repair the damaged property and
attachments. We do not have to
replace any lost CFC refrigerant;
furnish these bonds;
(2) Repair the damaged property,
(c)All reasonable expenses
retrofit the system to accept a non-
CFC refrigerant and charge the incurred by you at our request
system with a non-CFC refrigerant; to assist us in the investigation
or or defense of the claim or suit,
LMCIT BM-200(11/01)(Rev. 11/15) Page 3 of 14
including actual loss of earnings damage under this coverage is
up to $250 a day because of $1,000,000. Regardless of the
time off from work; number of claims, the most we will
pay for the total of all loss or
(d)All costs taxed against you in
damage arising out of all accidents
any suit we defend;
to covered equipment which take
(e)Prejudgment interest awarded
place within the 12-month period
against you on that part of the
starting with the beginning of the
judgment we pay. If we make an
present annual policy period is
offer to pay the applicable
$1,000,000. With respect to a
limits, we will not pay any
particular accident which results in
prejudgment interest based on
mold,we will not pay more than a
that period of time after the
total of $1,000,000 even if the mold
offer; and
continues to be present or active or
(f)All interest on the full amount of
recurs in a later policy period.
any judgment that accrues after
(3) The coverage provided under this
entry of the judgment and before
Mold Coverage does not increase the
we have paid, offered to pay, or
Equipment Breakdown Limit on any
deposited in court the part of the
covered property. If a particular
judgment that is within the
occurrence results in loss or damage
applicable limits.
by mold, and other loss or damage,
we will not pay more, for the total of
m. Mold
all loss or damage, than the
(1) We will pay for loss, damage or
Equipment Breakdown Limit on the
expense caused by mold, only when
affected covered property.
mold is the direct result of an
If there is covered loss or damage to
accident to covered equipment that
covered property not caused by
occurs during the policy period.
mold, loss payment will not be
This includes, but is not limited to,
limited by the terms of this coverage,
costs arising from clean up, removal,
except to the extent that mold causes
or abatement of such mold.
an increase in the loss. Any such
As used in this coverage, the term
increase in the loss will be subject to
loss or damage means:
the terms of this coverage.
(a) Direct physical loss or damage
to covered property caused by
n. Green Building Expenses
mold including the cost of
We will cover the following expenses:
removal of the mold;
(1) Reasonable and necessary extra cost
(b) The cost to tear out and replace
for the recertification of the damaged
any covered property as needed
covered property as required by a
to gain access to the mold;
Green Authority.
(c) The cost of testing performed
(2) Reasonable and necessary extra cost
after removal, repair,
to recycle the damaged covered
replacement or restoration of the
property as required by a Green
damaged property is completed,
Authority.
provided there is a reason to
believe that mold is present; and
B. EXCLUSIONS
(d) Additional loss as described in
1. We will not pay for loss or damage caused
Business Income and Extra
by or resulting from:
Expense coverages caused by
a. Depletion, deterioration, corrosion,
such loss.
erosion, wear and tear, or other gradually
(2) The most we will pay for loss or
developing conditions.
LMCIT BM-200(11/01)(Rev. 11/15) Page 4 of 14
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
b. That part of any loss that is due solely to
accident.
LMCIT BM-200(11/01)(Rev. 11/15) Page 5 of 14
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
arising from any one accident is the amount
equipment mounted on such vehicle,
LMCIT BM-200(11/01)(Rev. 11/15) Page 6 of 14
shown as the Equipment Breakdown Limit in 2. We will not pay for loss or damage resulting
the Declarations. This total limit applies to from any one accident until the amount of
all coverages under this Coverage Part loss or damage exceeds the applicable
except Defense. The costs we incur under the deductible or deductibles shown in the
Defense coverage shall not reduce the Declarations. We will then pay the amount of
available Equipment Breakdown Limit. loss or damage in excess of the applicable
deductible or deductibles, subject to the
applicable limits shown in the Declarations.
2. Coverage Limits
The limit of your insurance under each of the
E. LOSS CONDITIONS
coverages from loss or damage arising from
any one accident is the amount shown for
The following conditions apply in addition to the
that coverage. Unless otherwise shown
Common Covenant Conditions:
below, these limits are a part of, and not in
1. Abandonment
addition to, the Equipment Breakdown Limit.
There can be no abandonment of any
property to us.
3. Business Income and Extra Expense Limit
The limit of your insurance for Business
2. Appraisal
Income and Extra Expense coverages is
If we admit liability for a loss and we and
$5,000,000. This limit is in addition to the
you disagree on the value of the property or
Equipment Breakdown Limit.
business income, either may make written
demand for an appraisal of the loss. In this
4. Newly Acquired Locations Limit
event, each party will select a competent and
The limit of your insurance for Newly
impartial appraiser. The two appraisers will
Acquired Locations coverage is $5,000,000.
select an umpire. If they cannot agree, either
This limit is in addition to the Equipment
may request that selection be made by a
Breakdown Limit.
judge of a court having jurisdiction. The
appraisers will state separately the value of
However, any newly acquired location that
the property or business income. If they fail
has c overed electrical generating equipment
to agree, they will submit their differences to
must be reported to us within 90 days after
the umpire. A decision agreed to by any two
you have purchased or leased the location
will be binding. Each party will:
and will be subject to the terms and
conditions as determined by us.
a. Pay its chosen appraiser; and
b. Bear the other expenses of the appraisal
and umpire equally.
5. Green Building Expenses Limit
The limit of your insurance for your green
3. Brands and Labels
building expenses is 1% of the loss cost but
not to exceed $100,000 per location. This
If branded or labeled merchandise that is
limit is in addition to the Equipment
covered property is damaged by an accident
Breakdown Limit.
to covered equipment, but retains a salvage
value, you may, at your expense:
D. DEDUCTIBLE
a. Stamp the word SALVAGE on the
merchandise or its containers if the
1. If deductibles vary by type of covered
stamp will not physically damage the
equipment and more than one type of
merchandise; or
covered equipment is involved in any one
accident, the highest deductibles will apply.
b. Remove the brands or labels, if doing so
Unless otherwise shown in the Declarations,
will not physically damage the
the Deductibles apply to all loss or damage
merchandise. You must re-label the
covered by this Coverage Part.
merchandise or its containers to comply
with the law.
Defense Coverage is not subject to a
deductible.
We will pay for any reduction in value of the
salvage merchandise resulting from either of
LMCIT BM-200(11/01)(Rev. 11/15) Page 7 of 14
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. 11/15) Page 8 of 14
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 financialrecords. 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. 11/15) Page 9 of 14
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
6. Loss Payable
your acts or because you have failed to
a.We will pay you and the loss payee comply with the terms of this Coverage
shown in the Declarations for loss Part:
covered by this Coverage Part, as
(1)The mortgage holder's right under
interests may appear. The insurance
the mortgage will be transferred to
covers the interest of the loss payee
us to the extent of the amount we
unless the loss results from conversion,
pay; and
secretion or embezzlement on your part.
(2)The mortgage holder's right to
b.We may cancel the covenant as allowed
recover the full amount of the
by the Cancellation Condition.
mortgage holder's claim will not be
Cancellation ends this agreement as to
impaired.
the loss payees interest. If we cancel, we
At our option, we may pay to the
will mail you and the loss payee the same
mortgage holder the whole principal on
advance notice.
the mortgage plus any accrued interest.
c.If we make any payment to the loss
In this event, your mortgage and note
payee, we will obtain their rights against
will be transferred to us and you will pay
any other party.
your remaining mortgage debt to us.
f. If we cancel this covenant, we will give
7. Mortgage Holders
written notice to the mortgage holder at
a. The term mortgage holder includes
least:
trustee.
(1)10 days before the effective date of
b. We will pay for direct damage to covered
cancellation if we cancel for your
property due to an accident to covered
nonpayment of premium; or
equipment to you and each mortgage
(2)30 days before the effective date of
holder shown in the Declarations in their
cancellation if we cancel for any
order of precedence, as interests may
other reason.
appear.
g. If we elect not to renew this covenant, we
c. The mortgage holder has the right to
will give written notice to the mortgage
receive loss payment even if the mortgage
holder at least 10 days before the
holder has started foreclosure or similar
expiration date of this covenant.
action on the covered property.
h. If we suspend coverage, it will also be
d. If we deny your claim because of your
suspended as respects the mortgage
acts or because you have failed to
LMCIT BM-200(11/01)(Rev. 11/15) Page 10 of 14
holder. We will give written notice of the accident to that covered equipment. This
suspension to the mortgage holder. can be done by delivering or mailing a
written notice of suspension to:
8. Other Insurance
a.Your last known address; or
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
10. Privilege to Adjust with Owner
a.You agree to furnish us with a schedule
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.
LMCIT BM-200(11/01)(Rev. 11/15) Page 11 of 14
e. We will return premium to you if a incurred, including employee payroll.
location with replacement cost values of
greater than $5,000,000 is deleted during
5. City means governmental body or entity first
the Covenant Period.
named in the Declarations. For purposes of
this coverage, city includes relief
associations of the city. Unless specifically
G. DEFINITIONS
named in the Declarations, city shall not
1. Accident is defined in A.1.a., COVERAGE -
include:
Covered Cause of Loss.
a. Gas, electrical, or steam utilities
2. Boilers and Vessels means: commission;
a. Any boiler, including attached steam, b. Port authority, housing and
condensate and feed water piping; and redevelopment authority, economic
development authority, area or municipal
b. Any fired or unfired pressure vessel
redevelopment authority, or similar
subject to vacuum or internal pressure
agency:
other than the static pressure of its
contents. c. Municipal power agency;
This term does not appear elsewhere in this d. Municipal gas agency;
coverage form, but may appear in the
e. Hospital or nursing home board or
Declarations.
commission;
f. Airport commission;
3. Builders Risk Property means:
g. Welfare or public relief agency;
a.Covered property in the course of
h. School board; or
construction;
i. Joint powers entity; but a joint planning
b. Alterations or repair to the citys existing
board created pursuant to an orderly
covered property;
annexation agreement or joint resolution
c. Addition to the citys existing covered
between the city and a township is
property;
deemed to be a covered joint powers
d. Builders risk prope rty also includes:
entity under this agreement.
(1) Foundation of covered property in
the course of construction or an 6. Covered Equipment is defined in A.1.b.,
addition to the citys existing COVERAGE - Covered Cause of Loss.
covered property;
7. Covered Electrical Generating Equipment
(2) Materials, equipment and supplies
means:
used for construction, alteration or
a. Engine-generators;
repair, provided such property is
intended to be permanently in or on
b. Electrical transformers, switchgear and
the builders risk property; and
power lines used to convey the generated
electricity; and
(3) Temporary structures built or
assembled at a location described in
c. Associated equipment necessary for the
the Declarations including cribbing,
operation of any of the equipment listed
scaffolding and construction forms
in a. and b. above.
used in the course of construction or
However, the equipment listed in a. through
alterations or repair of the builders
c. above will not be considered covered
risk property.
electrical generating equipment if you also
own a steam, gas, water, or wind turbine.
4. Business Income means the sum of:
a. The Net Income (net profit or loss before
8. Covered Property means property that:
income taxes) that would have been
a.You own; or
earned or incurred; and
b. Is in your care, custody or control and
b. Continuing normal operating expenses
for which you are legally liable while at a
LMCIT BM-200(11/01)(Rev. 11/15) Page 12 of 14
location described in the Declarations. (2 Electrical transformers, switchgear
and power lines used to convey the
But, covered property does not include
generated electricity; and
e xcluded electrical generating equipment.
(3 Associated equipment necessary for
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 citys 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
relief association of the city.
otherwise environmental impact.
11. Excluded Electrical Generating Equipment
14. Green Authority means an authority on
means:
green buildings, products, materials,
methods or processes that is certified and
a. Equipment which converts any other
accepted by Leadership in Energy and
form of energy into electricity. This
Environmental Design (LEED), Green
includes, but is not limited to, the
Building Initiative Green Globes, Energy
following:
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
specific consent of the constituent
b. The following equipment will be
governmental units may also be required:
considered excluded electrical
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;
LMCIT BM-200(11/01)(Rev. 11/15) Page 13 of 14
d. To purchase or otherwise acquire or hold b. A relief association that has elected to
real or personal property; or continue to be in existence under the
provisions of Minnesota Statute
e. To sue or be sued.
§353G.06.
16. Media means all forms of electronic,
25. Suit means a civil proceeding to which this
magnetic and optical tapes and discs for use
insurance applies and includes:
in any electronic computer or electronic data
a. Any arbitration proceeding in which
processing equipment.
damages are claimed and to which you
must submit or do submit with our
17. Mold means any mold, fungus, mildew or
consent; or
yeast, including any spores or toxins
produced by or emanating from such mold,
b. Any other alternative dispute resolution
fungus, mildew or yeast.
proceeding in which damages are
claimed and to which you submit with
18. One Accident means:
our consent.
If an initial accident causes other accidents,
all will be considered one accident. All
26. Us means the League of Minnesota Cities
accidents that are the result of the same
Insurance Trust.
event will be considered one accident.
27. You means the city shown in the
19. Our means the League of Minnesota Cities
Declarations.
Insurance Trust.
28. Your means the city shown in the
20. Perishable Goods means any covered
Declarations.
property subject to deterioration or
impairment as a result of a change of 29. We means the League of Minnesota Cities
conditions, including but not limited to Insurance Trust.
temperature, humidity or pressure.
30. Vacant property means:
21. Pollutant means any substance other than
a.Covered property is deemed to be vacant
ammonia that has been declared to be
property if for a period of 60 consecutive
hazardous to health by a governmental
days less than 31% of the covered
agency.
property square footage is either used by
the city for customary operations or is
22. Production Machinery means:
leased out.
Any machine or apparatus that processes or
b. Covered property rented or leased to the
produces a product intended for eventual
city is deemed to be vacant property if
sale. However, production machinery does
for a period of 60 consecutive days the
not mean any fired or unfired pressure vessel
covered property does not contain
other than a cylinder containing a movable
enough property to conduct customary
plunger or piston.
operations.
This term does not appear elsewhere in this
However, builders risk property is not
coverage form, but may appear in the
considered vacant property.
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.Relief association means the following:
a. A relief association as defined under
Minnesota Statute §424.001, subd. 4; or
LMCIT BM-200(11/01)(Rev. 11/15) Page 14 of 14
COVENANT NUMBER: CMC 39313
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 39313 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: 07/07/2016 To: 07/07/2017 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
MEDICAL AND RELATED EXPENSE LIMIT $2,500/$10,000 Any One Person/Occurrence
LIMITED CONTAMINATION 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
* LMCITs 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 CONTAMINATION LIABILITY CLAIM RETROACTIVE DATE: 05/24/1988
Item 7.ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
CMC(11/15) MGL-1(11/12) ME014(11/15) ME066(11/11)
ME073(11/01)
LMCIT DEC-013(11/86) (Rev. 11/15)
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. 11/15) Page 1 of 23
(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. 11/15) Page 2 of 23
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 citys
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 citys 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 citys 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 citys 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 citys ownership,
(6) Registered housing with services establishments;
sponsorship or operation of:
or
(1) Motorized amusement rides, if the power supply
(7) Licensed child care program, except that this
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. 11/15) Page 3 of 23
(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. 11/15) Page 4 of 23
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. 11/15) Page 5 of 23
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. Costs for legal 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 citys 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. 11/15) Page 6 of 23
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. 11/15) Page 7 of 23
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
citys direction and control;
Minnesota Statute 462.3585, or pursuant to a joint
LMCIT CMC (11/86)(Rev. 11/15) Page 8 of 23
(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) Relief associations of the city and its
obligated to have named as an additional covered
members, 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 citys 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. 11/15) Page 9 of 23
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.citys 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 citys 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 Contamination 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 contamination liability claims during the
occurrence or sudden occurrence limit shown in the
annual coverage period. The Limited Contamination
Declarations whether the claim or claims fall under
Liability Claim Annual Aggregate Limit applies to
COVERAGE A, COVERAGE C, or both.
the sum of damages and loss adjustment expense,
including defense costs and supplementary payments
3. The Limits of Coverage shown in the Declarations,
as 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
Contamination Liability Claim Annual Aggregate
Annual Aggregate Deductible, if any, shown in the
Limit, 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. 11/15) Page 10 of 23
defined in SECTION V SUPPLEMENTARY a. Covered motor vehicles;
PAYMENTS.
b. Covered parties;
7. The Failure to Supply Claim Annual Aggregate
c. Claims made; or
Limit is the most LMCIT will pay for damages for
failure to supply claims during the annual coverage
d. Motor vehicles involved in the accident.
period.
13. The Basic Economic Loss Benefits Limit as stated in
8. The EMF Claim Annual Aggregate Limit is the most
the Declarations is the most LMCIT will pay under
LMCIT will pay for damages for EMF claims during
COVERAGE F to one person for basic economic
the annual coverage period.
loss benefits and the party to whom this policy is
issued specifically rejects its right, if any it may
9. LMCITs total liability for litigation costs, as defined
have, to elect to add two or more policies or limits
in SECTION I - COVERAGE D, LAND USE AND
together unless otherwise clearly and unequivocally
SPECIAL RISK LITIGATION, for all land use and
stated herein.
special risk litigation which is first filed or served
against the city during the annual coverage period of
14. LMCIT shall not be obligated under this covenant to
this agreement shall not exceed $1,000,000,
pay any claim or judgment or to defend any suit after
regardless of the number of suit s, defendants, or
the applicable limit of LMCIT's coverage has been
claimants.
exhausted. However, to the extent that LMCIT
provides excess liability coverage, subject to the
10. The Outside Organization Claim Annual Aggregate
terms of the excess coverage, LMCIT shall continue
Limit is the most LMCIT will pay for outside
to defend suits jointly under this covenant and the
organization claims during the annual coverage
excess covenant until the applicable excess limits
period. The Outside Organization Claim Limit
have been exhausted by payment of judgment or
applies to the sum of damages and loss adjustment
settlements.
expense, including defense costs and supplementary
payments as defined in SECTION V-
15. For any Annual Aggregate Limit shown in the
SUPPLEMENTARY PAYMENTS.
Declarations, the limit shall apply separately to each
consecutive annual period and to any remaining
11. The Data Security Breach Claim Annual Aggregate
period of less than 12 months, starting with the
Limit is the most LMCIT will pay for damages for
beginning of the coverage period shown in the
data security breach claims during the annual
Declarations, unless the coverage period is extended
coverage period.
after issuance for an additional period of less than 12
12. The Uninsured and Underinsured Motorists Limit as months. In that case, the additional period will be
stated in the Declarations is the most LMCIT will deemed part of the last preceding period for
pay under COVERAGE E for uninsured and purposes of determining the limits of coverage.
underinsured motorists coverages in any one
accident regardless the number of:
SECTION IV - DEFINITIONS
1. Advertisement means a notice that is broadcast or balloons, and gliders.
published to the general public or specific market
3. Asbestos claim means any claim for damages arising
segments about the citys goods, products or services
directly or indirectly out of, resulting from, caused
for the purpose of attracting customers or supporters.
by or contributed to by:
2. Aircraft means a vehicle designed for the transport
a. The use of, sale of, installation of, removal of,
of persons or property principally in the air,
abatement of, distribution of, containment of, or
including airplanes, helicopters, blimps, hot air
LMCIT CMC (11/86)(Rev. 11/15) Page 11 of 23
exposure to asbestos, asbestos products, asbestos-away for a short time on the citys business;
containing material, asbestos fibers, or asbestos dust; and
b. The actual or threatened abatement, mitigation, (2) The covered party's responsibility to pay
removal or disposal of asbestos, asbestos products, damages is determined in a suit on the merits, in
asbestos-containing material, asbestos fibers, or the territory described in a. above or in a
asbestos dust; settlement LMCIT agrees to.
c. Any supervision, instructions, recommendations, 8. Covered contract means an indemnification of a
warnings or advice given or which should have been municipality as required by ordinance, or that part of
given in connection with subparagraphs a. and b. any contract or agreement pertaining to the citys
above; or business under which the city assumes the tort
liability of another to pay damages to a third person
d. Any obligation of the covered party to
or organization, if the contract or agreement is made
indemnify any party in connection with
prior to the date of the occurrence giving rise to the
subparagraphs a., b. or c. above.
damages. Tort liability means a liability that would
be imposed by law in the absence of any contract or
4. Automobile (auto) means a land motor vehicle,
agreement.
trailer or semi-trailer designed for travel on public
roads, including any attached machinery or
Covered contract does not include that part of any
equipment. But automobile does not include mobile
contract or agreement:
equipment.
a. That indemnifies an architect, engineer or
5. Bodily injury means bodilyinjury, sickness or
surveyor for injury or damages arising out of:
disease sustained by a person, including death
resulting from any of these at any time. (1) Preparing, approving or failing to prepare or
approve maps, drawings, opinions, reports,
6. City debt obligations means bonds, notes, financing
surveys, change orders, designs or
certificates, lease-purchase agreements, or other
specifications; or
similar debt instruments or financial obligations
proposed, guaranteed, approved, issued, or entered (2) Giving directions or instructions, or failing
into by the city. to give the same, if that is the primary cause of
the injury or damages;
7. Coverage territory means:
b. Under which the citys architect, engineer or
a. The United States of America (including its
surveyor assumes liability for injury or damages
territories and possessions), Puerto Rico and
arising out of the citys rendering or failing to render
Canada;
professional services, including those listed in a.
above, and supervisory, inspection or engineering
b. International waters or airspace, provided the
services;
injury or damages do not occur in the course of
travel or transportation to or from any place not
c. That indemnifies any person or organization for
included in a. above; or
damages by fire to premises rented or loaned to the
city; or
c. All parts of the world if:
d. That indemnifies any person or organization for
(1) The injury or damage arises out of:
a pollution claim.
(a) Goods or products made or sold by the
9. Damages means money damages, and includes
city in the territory described in a. above; or
awards for attorneys fees with respect to suit s
alleging violations under federal civil rights laws,
(b) The activities of a person whose home is
state human rights laws or the federal or state
in the territory described in a. above, but is
constitution.
LMCIT CMC (11/86)(Rev. 11/15) Page 12 of 23
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
(1) Back wages or benefits owed because of a
that enforcement of a land use, zoning, subdivision,
violation of the wage and hour provisions of the
or similar ordinance or regulation constitutes a
federal or state Fair Labor Standards Acts; or
taking of private property.
(2) Back wages or benefits owed because of a
Damages does not include any of the following:
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
public assistance, disability, sexual orientation,
b. Exemplary damages or punitive damages except
or age.
punitive damages claimed or levied against an
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
future by the employee making the claim.
(1) Was acting in the performance of the duties
of the position; and k. Any loss cost, or expense arising out of a
pollution claim.
(2) Was not guilty of malfeasance in office,
willful neglect of duty, or bad faith. 10. Data security breach claim means any claim for
damages arising out of actual or potential
c. Fines or penalties imposed by law.
unauthorized acquisition of data that:
d. Injunctive or equitable relief, or quasi- judicial
a. Compromises the security, confidentiality, or
or administrative orders.
integrity of personal information; or
e. Repayment of any tax, assessment, fee, or other
b. Contains data classified as private or
charge that was wrongfully obtained, or any interest
confidential by the Minnesota Government Data
on, or any other amount claimed for loss of use of,
Practices Act.
such tax, assessment, fee, or other charge.
For purposes of this section, Personal information
f. Amounts paid or payable for the purchase or
means:
permanent acquisition of property or property rights,
or for the right to permanently enforce an ordinance,
a. An individual's first name or first initial and last
regulation, or restriction on the use of property.
name in combination with any one or more of the
following data elements, when the data element is
g. Amounts owed pursuant to the explicit terms of
not secured by encryption or another method of
any contractual obligation, including but not limited
technology that makes electronic data unreadable or
to amounts due under the terms of any city debt
unusable, or was secured and the encryption key,
obligations, except for liability:
password, or other means necessary for reading or
using the data was also acquired:
(1) Assumed in a coveredcontract; or
(1) Social Security number;
(2) Assumed in an employment contract
between the city and its employees.
(2) Drivers license number or Minnesota
identification card number; or
h. With respect to any litigation relating to citydebt
obligations, any profit, advantage or remuneration to
(3) Account number or credit or debit card
which the covered party was not legally entitled.
LMCIT CMC (11/86)(Rev. 11/15) Page 13 of 23
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 individuals financial units may also be required:
account.
a. To receive and expend funds;
11. EMF claim means any claim for damages arising out
b. To enter contracts;
of the actual or alleged exposure to electromagnetic
fields, electromagnetic radiation or stray voltage.
c. To hire employees;
12. Excavation and dredging claim means any claim for
d. To purchase or otherwise acquire and hold real
damages arising out of the deposit of excavated or
or personal property; or
dredged pollutants when the excavation or dredging
was undertaken to construct, maintain, repair, or
e. To sue or be sued.
reconstruct the citys 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 citys 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 citys 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 citys 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
not limited to sales of utilities, telecommunications
if such property can be restored to use by:
services, refuse collection, and liquor.
(1) The repair, replacement, adjustment or
e. Any litigation relating to city debt obligations.
removal of your product or your work; or
Any litigation meeting the criteria listed above will
(2) The citys fulfilling the terms of the contract
be considered to be land use and special risk
or agreement.
litigation in its entirety, regardless of whether the
litigation may assert other claims as well.
16. Joint powers entity means an operating entity
created by two or more governmental units entering
But land use and special risklitigation does not
into an agreement as provided by statute for the joint
include litigation:
exercise of governmental powers. An
intergovernmental agreement will be deemed to
a. That seeks only compensation or other relief for
create a joint powers entity if the agreement
an actual or alleged physical occupation, invasion, or
establishes a board with the effective power to do
LMCIT CMC (11/86)(Rev. 11/15) Page 14 of 23
use of property by the city;19. Limited contamination liability claim means:
b. That seeks only a reduction or invalidation of a a. Any claim for damages arising out of pesticide
special assessment; or herbicide application operations; or
c. That seeks only compensation for damages b. Any claim for damages which resulted from a
based on the citys actual or alleged negligent sudden occurrence which took place on or after the
inspection or enforcement of the state building, retroactive date shown in the Declarations and prior
plumbing, electrical, fire, or similar state codes; to the expiration date of this covenant, and which:
d. That seeks only amounts owed pursuant to the (1) Was caused by an actual, alleged, or
explicit terms of any contractual obligation, threatened discharge, dispersal, release, or
including but not limited to any city debt escape of pollutants; or
obligations;
(2) Arises from the accidental rupture, backup,
e. That was initiated by the city to enforce a or overflow of the citys sanitary sewer, storm
building, zoning, subdivision, or similar ordinance sewer, or water supply systems.
or regulation related to the use of property, unless
c. Any lead claim or asbestos claim, unless the
that litigation also involves a challenge to the
actual, alleged, or threatened discharge, dispersal,
constitutionality or interpretation of the ordinance or
release, escape, use, distribution, or handling of lead
regulation or to the legal authority of the city to
or asbestos took place at or from any landfill, dump,
enact it;
or other site or location presently or formerly used
f. That is a criminal prosecution by the city;by or for the city or others for the handling, storage,
disposal, processing or treatment of pollutants;
g. That is brought by LMCIT or the city against any
other covered party;d. Any excavation and dredging claim;
h. That arises from or is related to the actual, e. Any moldclaim;
pending or threatened bankruptcy of the city; or
f. Any organic pathogen claim; or
i. That makes only a pollution claim.
g. Any claim for damages arising out of heat,
18. Lead claim means any claim for damages arising smoke, or fumes from a hostile fire or controlled
directly or indirectly out of, resulting from, caused burn. A hostile fire is a fire which becomes
by or contributed to by: uncontrollable or breaks out from where it was
intended to be.
a. The toxic or pathological properties of lead, lead
compounds or lead contained in any materials; 20. LMCIT means the League of Minnesota Cities
Insurance Trust.
b. The actual or threatened abatement, mitigation,
removal or disposal of lead, lead compounds or 21. Loading or unloading means the handling of
materials containing lead; property:
c. Any supervision, instructions, recommendations, a. After it is moved from the place where it is
warnings or advice given or which should have been accepted for movement into or onto an aircraft,
given in connection with subparagraphs a. or b. watercraft or auto;
above; or
b. While it is in or on an aircraft, watercraft or
d. Any obligation of the covered party to auto; or
indemnify any party in connection with
c. While it is being moved from an aircraft,
subparagraphs a., b. or c. above.
watercraft or auto to the place where it is finally
LMCIT CMC (11/86)(Rev. 11/15) Page 15 of 23
delivered; but loading or unloading does not include acts as a medium for any fungus(es) or spore(s);
the movement of property by means of a mechanical
d. Any intrusion, leakage, or accumulation of water
device, other than a hand truck, that is not attached
or any other liquid that contains, harbors, nurtures or
to the aircraft, watercraft or auto.
acts as a medium for fungus(es) or spore(s);
22. Mobile equipment means any of the following types
e. The actual or threatened abatement, mitigation,
of land vehicles, including any attached machinery
removal or disposal of fungus(es) or spore(s) or any
or equipment:
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. Motorized amusement ride means a mechanical bull
(2) Road construction or resurfacing equipment
or similar device, motorized carnival ride, or other
such as graders, scrapers or rollers;
motorized device that carries or conveys passengers
along, around, or over a fixed or restricted route or
d. Vehicles not described in a., b., or c. above that
course for the primary purpose of giving its
are not self-propelled and are maintained primarily
passengers amusement, pleasure, thrills, or
to provide mobility to permanently attached
excitement.
equipment of the following types:
25. Occurrence means:
(1) Air compressors, pumps and generators,
including spraying, welding, building cleaning,
a. With respect to COVERAGE A, a wrongful act
geophysical exploration, lighting and
or a series of related wrongful acts.
well-servicing equipment;
b. With respect to COVERAGE C, an accident,
(2) Cherry pickers and similar devices used to
including continuous or repeated exposure to
raise or lower workers; or
substantially the same general harmful condition.
e. Vehicles not described in a., b., or c. above
Provided that for purposes of SECTION III -
maintained primarily for purposes other than the
LIMITS OF COVERAGE, occurrence has the same
transportation of persons or cargo.
meaning as it does for purposes of the applicable
statute establishing monetary limits on the citys tort
23. Mold claim means any claim for damages arising
liability.
directly or indirectly out of, resulting from, caused
by, or contributed to by:
26. Organic pathogen means any disease-producing
organic agent, including but not limited to a virus,
a. Any fungus(es) or spore(s);
bacterium, or other microorganism.
b. Any solid, liquid, vapor, or gas produced by or
27. Organic pathogen claim means any claim for
arising out of any fungus(es) or spore(s);
damages arising directly or indirectly out of, or
resulting from, caused by, or contributed to by any
c. Any material, product, building component, or
organic pathogen.
building structure that contains, harbors, nurtures or
LMCIT CMC (11/86)(Rev. 11/15) Page 16 of 23
28. Outside organization claim means any claim for b. Any claim for damages arising out of the actual,
damages against a city officer, employee, or alleged, or threatened existence, discharge, dispersal,
volunteer, arising from his or her activities as a seepage, migration, release or escape of pollutants:
member or officer of any formally organized
(1) At or from premises the city owns, rents,
membership association, any professional
leases, uses, or occupies, and premises the city no
organization, or any private non-profit or for-profit
longer owns, rents, leases, uses, or occupies;
corporation, if the city determines that the
individuals membership and participation in that
(2) At or from any landfill, dump, or other site or
association, organization, or corporation are within
location presently or formerly used by or for the
the scope of the individuals duties as a city officer,
city or others for the handling, storage, disposal,
employee, or volunteer. But outside organization
processing or treatment of pollutants;
claim does not include any claim arising from the
activities of any entity listed in SECTION II-WHO
(3) Which are or were at any time transported,
IS COVERED, 1., a-g., or any entity that is a
handled, stored, treated, disposed of, or processed
covered party under this covenant.
as waste by or for the city or any person or
organization for whom the city may be legally
29. Personal injury means injury other than bodily
responsible; or
injury, arising out of one or more of the following
offenses:
(4) At or from any site or location on which the
city or any contractors or subcontractors working
a. False arrest, detention, or imprisonment, or
directly or indirectly on the citys behalf are or
malicious prosecution.
have been performing operations:
b. The publication or utterance of a libel or slander
(a) If the pollutants are brought on or to the
or other defamatory or disparaging material, or a
site or location in connection with such
publication or utterance in violation of an
operations; or
individuals right of privacy.
(b) If the operations are to test for, monitor,
c. Wrongful entry or eviction, or other invasion of
clean up, remove, contain, treat, detoxify or
the right of private occupancy.
neutralize the pollutants.
d. Assault or battery committed for the purpose of
Pollution claim does not include any of the
protecting persons or property or incident to an
following:
arrest.
a. Any limited contamination liability claim.
e. The use of another's advertising idea in your
advertisement.
b. Any claim arising out of the discharge or
dispersal of mace, tear gas or similar agent, if such
f. Infringing upon another's copyright, trade dress
discharge was for the purpose of protecting persons
or slogan in your advertisement.
or property or incident to an arrest.
30. Pollutants means any solid, liquid, gaseous or
c. Any claim for damages included in the products
thermal irritant or contaminant, including smoke,
hazard.
vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
32. Products hazard includes all damages arising out of
reconditioned or reclaimed.
your product except that the products hazard does
not include any of the following:
31. Pollution claim means:
a. Damages which arise from products that are still
a. Any direction, demand, or request by the
in the citys physical possession;
government or any other entity that the city or any
other entity test for, monitor, clean up, remove,
b. Damages which arise out of the actual, alleged,
contain, treat, detoxify or neutralize pollutants; or
LMCIT CMC (11/86)(Rev. 11/15) Page 17 of 23
or threatened discharge, dispersal, seepage, or publicized event, feat or performance which
migration, release or escape of pollutants at or from
(1) Involves a demonstration or display of notable
any landfill, dump, or other site or location presently
strength, skill, speed, or endurance; and which
or formerly used by or for the city or others for the
handling, storage, disposal, processing, or treatment
(2) Involves a significant risk of serious injury to the
of pollutants;
participant, performer, or others.
c. Damages which arise out of the actual, alleged,
But stunting activity does not include common
or threatened discharge, dispersal, seepage,
traditional athletic events such as hockey, baseball,
migration, release or escape of pollutants which are
softball, football, basketball, wrestling, soccer,
or were at any time transported, handled, stored,
gymnastics, track and field events or bicycle racing.
treated, disposed of, or processed as waste by or for
the city or any person or organization for whom the
38. Sudden occurrence means an accident or a related
city may be legally responsible;
series of accidents and the release of pollutants
resulting there from, all of which begin and end
d. Damages which arise out of the actual, alleged,
within 72 hours; except that each incident in which
or threatened discharge, dispersal, seepage,
the citys sanitary sewer backs up into a building is
migration, release or escape of pollutants at or from
deemed to be a separate sudden occurrence. In the
any site or location on which the city or any
case of a related series of accidents, the sudden
contractor or subcontractors working directly or
occurrence will be deemed to have taken place when
indirectly on the citys behalf are or have been
the first accident in the related series of such
performing operations if the operations are to test
accidents took place.
for, monitor, clean up, remove, treat, detoxify or
neutralize the pollutants; or
39. Suit means a civil proceeding in which damages to
which this coverage applies are alleged. Suit
e. Damages which arise out of pesticide or
includes an arbitration proceeding alleging such
herbicide application operations.
damages to which the city must submit or submit
with LMCITs consent. Suit does not mean any
33. Property damage means:
criminal proceeding against any covered party or
a. Physical injury to tangible property, including all any open meeting law proceeding, unless damages
resulting loss of use of that property; or are also claimed in that proceeding.
b. Loss of use of tangible property that is not The following are also deemed a suit for damages:
physically injured.
a. A charge of employment discrimination filed
34. Relief association means the following: with the Federal Equal Employment Opportunity
Commission, the Commissioner of the Minnesota
a. A relief association as defined under Minnesota
Department of Human Rights, or a local human
Statute §424A.001, subd. 4; or
rights commission as defined in Minnesota Statute
§363.01, subd 23; or
b. A relief association that has elected to continue
to be in existence under the provisions of Minnesota
b. A complaint filed with the Federal Health and
Statute §353G.06.
Human Services Office for Civil Rights alleging any
breach of the responsibilities, obligations or duties
35. 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.
36. Spore(s) include any reproductive body produced by
40. 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
37. Stunting activity means any pre-arranged, organized
rights, immunities, or privileges secured by the
LMCIT CMC (11/86)(Rev. 11/15) Page 18 of 23
Constitution and Laws of the United States of Your product includes warranties or representations
America. made at any time with respect to the fitness, quality,
durability or performance of any of the items
41. Your product means:
included in a. and b. above.
a. Any goods or products, other than real property,
Your product does not include vending machines or
manufactured, sold, handled, distributed or disposed
other property rented to or located for the use of
of by:
others but not sold.
(1) The city;
42. Your work means:
(2) Others trading under the citys name; or
a. Improvements, alterations or other work the city
performs on the property of others.
(3) A person or organization whose business or
assets the city has acquired; and
b. Your work includes warranties or representations
made any time with respect to the fitness, quality,
b. Containers (other than vehicles), materials, parts
durability; or performance of any items included in
or equipment furnished in connection with such
a. above.
goods or products.
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.
LMCIT CMC (11/86)(Rev. 11/15) Page 19 of 23
SECTION VI - CONDITIONS
agents as soon as practicable.
1. LIMITATIONS ON LMCIT'S DUTY TO
INDEMNIFY
The city shall promptly take, at its own expense, all
reasonable steps to prevent damages from arising
LMCIT's duty to pay on behalf of or to indemnify a
out of the same or similar conditions; provided that:
covered party other than the city shall not apply to any
act, error, omission, or violation:
(1) A failure to take such preventative measures shall
not constitute a breach of this condition unless
a. Which constitutes malfeasance in office; or
LMCIT has requested the city in writing to undertake
such preventative measures; and
b. Which constitutes willful neglect of duty; or
(2) Such expense shall not be recoverable under this
c. Which constitutes bad faith; or
covenant.
d. For which the city is not authorized to indemnify any
Notice of damages or injury is not notice of a claim.
person by statute; or
b. If claim is made or suit is brought against the
e. Which constitutes dishonesty on the part of a
covered party, the covered party shall immediately
covered party; or
forward to LMCIT every demand, notice, summons
or other process received by him or his
f. Which constitutes the willful violation of a statute or
representative.
ordinance by any official, employee, or agent of the
city.
c. With respect to any incident or occurrence for which
no claim for damages has been made but that might
The terms "malfeasance", "willful neglect of duty", and
result in a covered claim for damages under this
"bad faith" shall be given the same meaning in this
covenant, LMCIT shall have the right, at its
covenant as given in the applicable statute with respect
discretion and at its expense, to associate with the
to the citys duty to defend or indemnify its officers,
covered party in the investigation, handling and
employees or agents.
defense of such matter, in which event LMCIT and
the covered party shall mutually cooperate.
2. FINANCIAL RESPONSIBILITY LAW
4. EXTENDED REPORTING PERIOD
When this covenant is certified as proof of financial
responsibility for the future under the provisions of any
a. LMCIT will provide one or more extended reporting
motor vehicle financial responsibility law, such coverage
periods, as described below, if:
as is afforded by this covenant shall comply with the
provisions of such law to the extent of the coverage and
(1) COVERAGE A is canceled or not renewed; or
limits of liability required by such law.
(2) LMCIT renews or replaces COVERAGE A with
3. COVERED PARTY'S DUTIES IN THE
coverage that:
EVENT OF OCCURRENCE, CLAIM OR SUIT
(a) Has a retroactive date later than the date
a. In the event of a claim or suit, notice containing
shown on the Declarations page; or
particulars sufficient to identify the covered party
and also reasonably obtainable information with
(b) Does not apply on a claims made basis.
respect to the time, place and circumstances thereof,
and the names and addresses of the injured and of
b. A basic extended reporting period of 60 days from
available witnesses, shall be given by or for the
the end of the coverage period is automatically
covered party to LMCIT or any of its authorized
provided without additional charge.
LMCIT CMC (11/86)(Rev. 11/15) Page 20 of 23
c. A supplemental extended reporting period of (2) Any land use and special risk litigation.
unlimited duration is available, but only by an
endorsement and for an extra charge. The
5. ACTION AGAINST LMCIT
supplemental extended reporting period starts 60
No action shall lie against LMCIT unless, as a condition
days after the end of the coverage period.
precedent thereto, there shall have been full compliance
The city must give LMCIT a written request for the
with all of the terms of this covenant, nor until the
endorsement within 60 days after the end of the
amount of the covered party's obligation to pay shall
coverage period. The supplemental extended
have been fully determined either by judgment against
reporting period will not go into effect unless the
the covered party after actual trial or by written
city pays the additional premium promptly when
agreement of the covered party, the claimant and
due.
LMCIT.
The additional premium for the supplemental
Any person or organization or the legal representative
extended reporting period will be a percentage of the
thereof who has secured such judgment or written
annual expiring premium for COVERAGE PART A.
agreement shall thereafter be entitled to recover under
this covenant to the extent of the coverage afforded by
Number of Years Since
this covenant. No person or organization shall have any
Retroactive Date Shown
right under this covenant to join LMCIT as a party to any
on Declarations Page Additional Cost
action against the covered party to determine the
covered party's liability, nor shall LMCIT be impleaded
1 55.0%
by the covered party or his legal representative.
2 57.0%
3 60.3%
Bankruptcy or insolvency of the covered party or of the
4 65.9%
covered party's estate shall not relieve LMCIT of any of
5, 5+ 70.8%
its obligations hereunder.
d. An extended reporting period does not extend the
coverage period or change the scope of coverage
6. WAIVER OF STATUTORY LIABILITY
provided. It applies only if the date of the
LIMITATIONS
occurrence giving rise to the claim for damages is
after the retroactive date and before the end of the
a. It is the express intent of the city and of LMCIT that
coverage period.
the procurement of this covenant shall not waive any
monetary limits of liability provided by Minnesota
Claims for damages which are first received and
Statute §466.04 by any comparable or successor
recorded during the basic extended reporting period
statute, or by common law, which may be applicable
(or during the supplemental extended reporting
to any covered party; and that any previous waiver
period, if it is in effect) will be deemed to have been
of liability limits is revoked to the extent that it may
made on the last day of the coverage period.
apply to claims covered under this covenant.
Once in effect, extended reporting periods may not
b. It is the express intent of the city and of LMCIT that
be canceled.
the procurement of this covenant shall not waive any
other immunities, limitations, or defenses imposed
e. Extended reporting periods do not reinstate or
by or available under any statute or common law
increase the limits of coverage applicable to any
which is applicable to any covered party.
claim to which this coverage part applies.
7. CONSENT TO SETTLE
f. Neither the basic extended reporting period nor the
supplemental extended reporting period is applicable
The city may prohibit LMCIT from settling any claim or
to, and no extended reporting period is provided for,
suit against a covered party without the citys consent, as
the following:
provided below:
(1) Any limited contamination liability claim; or
a. At any time before LMCIT has offered or made a
LMCIT CMC (11/86)(Rev. 11/15) Page 21 of 23
settlement of a claim or suit, the city may notify LMCIT would otherwise have had to defend and to
LMCIT that LMCIT may not settle the claim or suit indemnify any other covered party.
without the citys consent. The city must give a
(2) LMCIT may continue to defend the claim or suit.
separate notice for each claim or suit which the city
If LMCIT elects to continue to defend the claim or
intends to prohibit LMCIT from settling without the
suit, the city must reimburse LMCIT for any excess
citys consent.
amount.
b. If the city notifies LMCIT that the claim or suit may
f. If the city refuses to consent to a settlement
not be settled without the citys consent, the city
recommended by LMCIT, the city must defend and
must designate an individual authorized to give or
indemnify LMCIT for any claim or suit arising out of
refuse consent on the citys behalf. The citys notice
the failure to settle the original claim or suit,
must include the name, address, and telephone
including amounts the city may owe as a Medicare
number of the individual authorized to give or refuse
Secondary Payer under federal law.
consent on the citys behalf.
g. If the city refuses to consent to a settlement
c. If the city has notified LMCIT that the claim or suit
recommended by LMCIT, and regardless of which of
may not be settled without the citys consent, LMCIT
the options LMCIT chooses to exercise under
will notify the city of the terms and conditions of
subparagraph e. above, LMCIT as an agent of the
any proposed settlement. If the city does not consent
city, will continue to fulfill the mandatory Medicare
to the proposed settlement, the city must notify
Secondary Payer reporting obligation under Section
LMCIT within 14 days of the date the city receives
111 of the Medicare, Medicaid, and SCHIP
notice of the proposed settlement, unless the city and
Extension Act of 2007, if any, associated with the
LMCIT have mutually agreed to a longer or shorter
claim; but shall have no payment obligation beyond
period. If within that time the city does not notify
the amount of the recommended settlement amount.
LMCIT that the city does not consent to the
The city must cooperate with LMCIT in providing
settlement, the city will be deemed to have
LMCIT the necessary information to allow LMCIT to
consented to the settlement.
fulfill the reporting responsibility.
d. If the city refuses to consent to a settlement
recommended by LMCIT,LMCIT will not be liable
8. RETROACTIVE JOINT POWERS
for any excess amount. Excess amount means the
COVERAGE
sum of all damages and legal defense costs for the
claim or suit minus the sum of:
LMCIT will, upon the citys request, issue retroactive
comprehensive municipal coverage to any joint powers
(1) The amount of the settlement proposed by
entity in which the city is a member and which is not
LMCIT; and
named as a covered party under any other LMCIT
coverage.
(2) Any costs of defense incurred before the date of
the citys refusal. Any excess amount shall not be
Pursuant to this section, LMCIT will issue its standard
included in the calculation of damages for purposes
Comprehensive Municipal Coverage document to the
of any applicable Municipal Liability Deductible or
joint powers entity, but coverage shall be subject to an
General Annual Aggregate Deductible.
annual aggregate limit of $200,000. This limit shall
apply to the sum of damages and loss adjustment
e. If the city refuses to consent to a settlement
expenses, including defense costs, for all claims to
recommended by LMCIT,LMCIT may, at its sole
which the coverage applies.
discretion, exercise either of the following options:
Coverage issued pursuant to this section will be issued
(1) LMCIT may pay to the city an amount equal to
with the same inception date and the same retroactive
the amount of the recommended settlement, minus
date as this covenant.
any applicable deductible. If LMCIT makes such
payment, LMCIT has no further duty to defend or to
The premium must be paid to LMCIT before the
indemnify the city or any other covered party for this
coverage goes into effect. The premium for coverage
claim or suit, and the city assumes any duty which
LMCIT CMC (11/86)(Rev. 11/15) Page 22 of 23
issued pursuant to this section shall be equal to the forth herein, this coverage shall be construed as a
greater of $5,000 or the premium the joint powers entity separate agreement with each covered party. Nothing in
would otherwise pay for coverage at LMCIT's current this paragraph shall be construed to increase LMCIT's
rates. maximum liability set forth in the Declarations and as
described in SECTION III - LIMITS OF COVERAGE.
9. NO DUPLICATION OF COVERAGE
12. DEDUCTIBLES
This covenant shall not apply to any claim or claims
arising out of an occurrence, if any claim or claims a. For purposes of deductibles under this coverage, the
arising out of that occurrence were covered under any deductible applies to the sum of the damages, loss
prior covenant issued by LMCIT to the city.adjustment expense, defense costs and
supplementary payments as defined in SECTION V
-SUPPLEMENTARY PAYMENTS.
10. OTHER COVERAGE
b. The terms of the covenant, including those with
If, pursuant to the COMMON CONDITIONS, 11.a., a
respect to:
covered party has primary liability coverage as an
additional insured or additional named insured on
(1) The LMCIT's rights and duties with respect to the
another party's coverage, and that insurer fails to defend
defense of suit s; and
or indemnify the covered party,LMCIT will do so under
this covenant.
(2) The covered party's duties, in the event of an
occurrence, apply irrespective of the application of
In any case in which LMCIT incurs costs for a claim
the deductible amount.
which is also covered under any other liability coverage
or insurance, LMCIT shall be entitled to the covered
c. LMCIT may pay any part or all of the deductible
party's rights to recover those costs from that insurer.
amount to effect settlement of any claim or suit, and
The covered party shall cooperate with and assist
upon notification of the action taken, the city shall
LMCIT as requested in enforcing any rights against that
promptly reimburse LMCIT for such part of the
insurer.
deductible amount as has been paid by LMCIT.
11. SEPARATION OF COVERED PARTIES
As respects the particulars and statements contained in
the application for this coverage and the exclusion set
LMCIT CMC (11/86)(Rev. 11/15) Page 23 of 23
MUNICIPAL LIABILITY
CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 39313
HAZARD PREMIUM BASIS ADVANCED
PREMIUM
Premises Operations Code Basis
EXPENDITURES E 7,645,841.00
PREMIUM INCLUDED
FOR ALL HAZARDS
LAND USE A 2,178.00
WHERE A PREMIUM
BASIS IS SHOWN
SEWER DEPARTMENT D 1,295.00
EMPLOYMENT B 20.00
POLICE DEPARTMENT C 10.00
LMCIT MGL-1 (01/95) (Rev. 11/12) Page 1 of 2
COVENANT NUMBER: CMC 39313
MUNICIPAL LIABILITY
Contd.)
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 Equivalents (FTEs)
Definition: FTEs 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 FTES
Definition: For purposes of police liability, please provide the number of police
officer FTEs 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
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
For the persons or organizations listed above, coverage afforded by this endorsement is further limited in the following respects:
1.Coverage afforded to the additional covered party only applies to the extent permitted by law;
2.If coverage or additional covered party status is required by contract:
A.Coverage afforded to the additional covered party will not be broader than that which the city is contractually required to provide;and
B.The most LMCIT will pay on behalf of the additional covered party is the lesser of either: 1) the limit of coverage required by the contract;
or 2) the Limits of Coverage otherwise available as specified in Section III Limits of Coverage. This endorsement shall not increase the
applicable Limits of Coverage shown in the Declarations or as specified in Section III Limits of Coverage.
All other terms and conditions remain unchanged.
LMCIT ME014 (11/96) (Rev.11/15) Page 1 of 1
COVENANT NUMBER: CMC 39313
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 39313
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 39313 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: 07/07/2016 To: 07/07/2017 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
* LMCITs maximum 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(11/15) CMC(11/15) ME063(11/01) ME066(11/11)
ME073(11/01) ME079(11/09)
LMCIT DEC-016(11/86) (Rev. 11/15)
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 covered as described under SECTION II CAUSES OF
covered automobile unless the cause of loss or damage is not 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 expected (3) Mechanical or electrical breakdowns.
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 occurrence
(1) The actual cash value of the damaged or stolen
LMCIT A0010(11/89)(Rev. 11/15) Page 1 of 4
until the amount of loss or damage exceeds the b. If you and we fail to agree as to the amount of loss or
Deductible in Item 5 of the Declarations, and the amount damage, either may demand an appraisal of the loss or
of loss will be reduced by the deductible amount. damage. In such event, you and we shall each select a
competent appraiser. The two appraisers will select a
The deductible applies against the total loss incurred by competent and disinterested umpire. If they cannot agree,
you from any one occurrence, regardless of the number either may request that selection be made by a judge of
of covered automobiles involved. court having jurisdiction. The appraisers will state
separately the actual cash value and the amount of the
loss or damage. If the appraisers fail to agree, they will
2. LOSS VALUATION
submit their differences to the umpire. An award 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
property;
(1) Pay its chosen appraiser and;
(2) Return the stolen property at our expense. We will
(2) Bear the other expenses of the appraisal and umpire
pay for any damage that results to the covered
equally.
automobile from the theft;or
We shall not be held to have waived any of our rights by
(3) Take all or any part of the damaged or stolen
any act relating to appraisal.
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 cityemployees 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 of the city. Unless
d. Any automobile that you rent or lease from a person or specifically named in the Declarations, city shall not
organization that is not in the business of renting or include:
leasing automobiles; or
a. Gas, electrical or steam utilities commission;
e. Any automobile that you or an employee rents for city
business for less than 30 days from a person or b. Port authority, housing and redevelopment authority,
organization in the business of renting automobiles if economic development authority, area or municipal
the rental agreement requires you or the individual redevelopment authority or similar agency;
renting the automobile to pay for loss or damage to the
automobile.c. Municipal power agency;
d. Municipal gas agency;
LMCIT A0010(11/89)(Rev. 11/15) Page 2 of 4
e. Hospital or nursing home board or commission; g. Members, officers and e mployees of a relief association
of the city.
f. Airport commission;
5. Joint powers entity means an operating entity created by
g. Welfare or public relief agency; two or more governmental units entering into an
agreement as provided by statute for the joint exercise of
h. School board; governmental powers. An intergovernmental agreement
will be deemed to create a joint powers entity if the
i. Joint powers entity; but a joint planning board created agreement establishes a board with the effective power
pursuant to an orderly annexation agreement or joint to do any of the following, regardless of whether the
resolution between the city and a township is deemed to specific consent of the constituent governmental units
be a covered joint powers entity under this agreement.may be required:
4. Employee means for actions within his duties as such a. To receive and expend funds;
any present or former:
b. To enter into contacts;
a. Person whom you compensate directly by salary, wages,
or commissions, and who you have the right to direct or c. To hire employees;
control while performing duties for you
d. To purchase or otherwise acquire or hold real or
b. Member of the city council; personal property; or
c. Member of a city board, commission, or committee e.To sue or be sued.
which is not excluded by the definition of city;
6. Relief association means the following:
d. Elected or appointed official of the city;
a. A relief association as defined under Minnesota Statute
§424.001, subd. 4; or
e. Volunteer person or organization while acting on behalf
of the city and subject to the citys direction and control;
b. A relief association that has elected to continue to be in
existence under the provisions of Minnesota Statute
f. Other authorized person or agent of the city while acting
§353G.06.
on behalf of the city but excludes independent
contractors; or
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 covenants 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:
a. We cover loss or damage commencing:
(1)During the coverage period shown in the
Declarations; and
LMCIT A0010(11/89)(Rev. 11/15) Page 3 of 4
3. LOSS CONDITIONS
Duties in the event of loss:
a. You must promptly notify us ofany loss.
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. 11/15) Page 4 of 4
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. 11/15) Page 1 of 23
(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. 11/15) Page 2 of 23
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 citys
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 citys 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 citys 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 citys 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 citys ownership,
(6) Registered housing with services establishments;
sponsorship or operation of:
or
(1) Motorized amusement rides, if the power supply
(7) Licensed child care program, except that this
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. 11/15) Page 3 of 23
(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. 11/15) Page 4 of 23
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. 11/15) Page 5 of 23
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. Costs for legal 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 citys 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. 11/15) Page 6 of 23
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. 11/15) Page 7 of 23
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
citys direction and control;
Minnesota Statute 462.3585, or pursuant to a joint
LMCIT CMC (11/86)(Rev. 11/15) Page 8 of 23
(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) Relief associations of the city and its
obligated to have named as an additional covered
members, 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 citys 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. 11/15) Page 9 of 23
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.citys 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 citys 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 Contamination 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 contamination liability claims during the
occurrence or sudden occurrence limit shown in the
annual coverage period. The Limited Contamination
Declarations whether the claim or claims fall under
Liability Claim Annual Aggregate Limit applies to
COVERAGE A, COVERAGE C, or both.
the sum of damages and loss adjustment expense,
including defense costs and supplementary payments
3. The Limits of Coverage shown in the Declarations,
as 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
Contamination Liability Claim Annual Aggregate
Annual Aggregate Deductible, if any, shown in the
Limit, 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. 11/15) Page 10 of 23
defined in SECTION V SUPPLEMENTARY a. Covered motor vehicles;
PAYMENTS.
b. Covered parties;
7. The Failure to Supply Claim Annual Aggregate
c. Claims made; or
Limit is the most LMCIT will pay for damages for
failure to supply claims during the annual coverage
d. Motor vehicles involved in the accident.
period.
13. The Basic Economic Loss Benefits Limit as stated in
8. The EMF Claim Annual Aggregate Limit is the most
the Declarations is the most LMCIT will pay under
LMCIT will pay for damages for EMF claims during
COVERAGE F to one person for basic economic
the annual coverage period.
loss benefits and the party to whom this policy is
issued specifically rejects its right, if any it may
9. LMCITs total liability for litigation costs, as defined
have, to elect to add two or more policies or limits
in SECTION I - COVERAGE D, LAND USE AND
together unless otherwise clearly and unequivocally
SPECIAL RISK LITIGATION, for all land use and
stated herein.
special risk litigation which is first filed or served
against the city during the annual coverage period of
14. LMCIT shall not be obligated under this covenant to
this agreement shall not exceed $1,000,000,
pay any claim or judgment or to defend any suit after
regardless of the number of suit s, defendants, or
the applicable limit of LMCIT's coverage has been
claimants.
exhausted. However, to the extent that LMCIT
provides excess liability coverage, subject to the
10. The Outside Organization Claim Annual Aggregate
terms of the excess coverage, LMCIT shall continue
Limit is the most LMCIT will pay for outside
to defend suits jointly under this covenant and the
organization claims during the annual coverage
excess covenant until the applicable excess limits
period. The Outside Organization Claim Limit
have been exhausted by payment of judgment or
applies to the sum of damages and loss adjustment
settlements.
expense, including defense costs and supplementary
payments as defined in SECTION V-
15. For any Annual Aggregate Limit shown in the
SUPPLEMENTARY PAYMENTS.
Declarations, the limit shall apply separately to each
consecutive annual period and to any remaining
11. The Data Security Breach Claim Annual Aggregate
period of less than 12 months, starting with the
Limit is the most LMCIT will pay for damages for
beginning of the coverage period shown in the
data security breach claims during the annual
Declarations, unless the coverage period is extended
coverage period.
after issuance for an additional period of less than 12
12. The Uninsured and Underinsured Motorists Limit as months. In that case, the additional period will be
stated in the Declarations is the most LMCIT will deemed part of the last preceding period for
pay under COVERAGE E for uninsured and purposes of determining the limits of coverage.
underinsured motorists coverages in any one
accident regardless the number of:
SECTION IV - DEFINITIONS
1. Advertisement means a notice that is broadcast or balloons, and gliders.
published to the general public or specific market
3. Asbestos claim means any claim for damages arising
segments about the citys goods, products or services
directly or indirectly out of, resulting from, caused
for the purpose of attracting customers or supporters.
by or contributed to by:
2. Aircraft means a vehicle designed for the transport
a. The use of, sale of, installation of, removal of,
of persons or property principally in the air,
abatement of, distribution of, containment of, or
including airplanes, helicopters, blimps, hot air
LMCIT CMC (11/86)(Rev. 11/15) Page 11 of 23
exposure to asbestos, asbestos products, asbestos-away for a short time on the citys business;
containing material, asbestos fibers, or asbestos dust; and
b. The actual or threatened abatement, mitigation, (2) The covered party's responsibility to pay
removal or disposal of asbestos, asbestos products, damages is determined in a suit on the merits, in
asbestos-containing material, asbestos fibers, or the territory described in a. above or in a
asbestos dust; settlement LMCIT agrees to.
c. Any supervision, instructions, recommendations, 8. Covered contract means an indemnification of a
warnings or advice given or which should have been municipality as required by ordinance, or that part of
given in connection with subparagraphs a. and b. any contract or agreement pertaining to the citys
above; or business under which the city assumes the tort
liability of another to pay damages to a third person
d. Any obligation of the covered party to
or organization, if the contract or agreement is made
indemnify any party in connection with
prior to the date of the occurrence giving rise to the
subparagraphs a., b. or c. above.
damages. Tort liability means a liability that would
be imposed by law in the absence of any contract or
4. Automobile (auto) means a land motor vehicle,
agreement.
trailer or semi-trailer designed for travel on public
roads, including any attached machinery or
Covered contract does not include that part of any
equipment. But automobile does not include mobile
contract or agreement:
equipment.
a. That indemnifies an architect, engineer or
5. Bodily injury means bodilyinjury, sickness or
surveyor for injury or damages arising out of:
disease sustained by a person, including death
resulting from any of these at any time. (1) Preparing, approving or failing to prepare or
approve maps, drawings, opinions, reports,
6. City debt obligations means bonds, notes, financing
surveys, change orders, designs or
certificates, lease-purchase agreements, or other
specifications; or
similar debt instruments or financial obligations
proposed, guaranteed, approved, issued, or entered (2) Giving directions or instructions, or failing
into by the city. to give the same, if that is the primary cause of
the injury or damages;
7. Coverage territory means:
b. Under which the citys architect, engineer or
a. The United States of America (including its
surveyor assumes liability for injury or damages
territories and possessions), Puerto Rico and
arising out of the citys rendering or failing to render
Canada;
professional services, including those listed in a.
above, and supervisory, inspection or engineering
b. International waters or airspace, provided the
services;
injury or damages do not occur in the course of
travel or transportation to or from any place not
c. That indemnifies any person or organization for
included in a. above; or
damages by fire to premises rented or loaned to the
city; or
c. All parts of the world if:
d. That indemnifies any person or organization for
(1) The injury or damage arises out of:
a pollution claim.
(a) Goods or products made or sold by the
9. Damages means money damages, and includes
city in the territory described in a. above; or
awards for attorneys fees with respect to suit s
alleging violations under federal civil rights laws,
(b) The activities of a person whose home is
state human rights laws or the federal or state
in the territory described in a. above, but is
constitution.
LMCIT CMC (11/86)(Rev. 11/15) Page 12 of 23
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
(1) Back wages or benefits owed because of a
that enforcement of a land use, zoning, subdivision,
violation of the wage and hour provisions of the
or similar ordinance or regulation constitutes a
federal or state Fair Labor Standards Acts; or
taking of private property.
(2) Back wages or benefits owed because of a
Damages does not include any of the following:
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
public assistance, disability, sexual orientation,
b. Exemplary damages or punitive damages except
or age.
punitive damages claimed or levied against an
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
future by the employee making the claim.
(1) Was acting in the performance of the duties
of the position; and k. Any loss cost, or expense arising out of a
pollution claim.
(2) Was not guilty of malfeasance in office,
willful neglect of duty, or bad faith. 10. Data security breach claim means any claim for
damages arising out of actual or potential
c. Fines or penalties imposed by law.
unauthorized acquisition of data that:
d. Injunctive or equitable relief, or quasi- judicial
a. Compromises the security, confidentiality, or
or administrative orders.
integrity of personal information; or
e. Repayment of any tax, assessment, fee, or other
b. Contains data classified as private or
charge that was wrongfully obtained, or any interest
confidential by the Minnesota Government Data
on, or any other amount claimed for loss of use of,
Practices Act.
such tax, assessment, fee, or other charge.
For purposes of this section, Personal information
f. Amounts paid or payable for the purchase or
means:
permanent acquisition of property or property rights,
or for the right to permanently enforce an ordinance,
a. An individual's first name or first initial and last
regulation, or restriction on the use of property.
name in combination with any one or more of the
following data elements, when the data element is
g. Amounts owed pursuant to the explicit terms of
not secured by encryption or another method of
any contractual obligation, including but not limited
technology that makes electronic data unreadable or
to amounts due under the terms of any city debt
unusable, or was secured and the encryption key,
obligations, except for liability:
password, or other means necessary for reading or
using the data was also acquired:
(1) Assumed in a coveredcontract; or
(1) Social Security number;
(2) Assumed in an employment contract
between the city and its employees.
(2) Drivers license number or Minnesota
identification card number; or
h. With respect to any litigation relating to citydebt
obligations, any profit, advantage or remuneration to
(3) Account number or credit or debit card
which the covered party was not legally entitled.
LMCIT CMC (11/86)(Rev. 11/15) Page 13 of 23
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 individuals financial units may also be required:
account.
a. To receive and expend funds;
11. EMF claim means any claim for damages arising out
b. To enter contracts;
of the actual or alleged exposure to electromagnetic
fields, electromagnetic radiation or stray voltage.
c. To hire employees;
12. Excavation and dredging claim means any claim for
d. To purchase or otherwise acquire and hold real
damages arising out of the deposit of excavated or
or personal property; or
dredged pollutants when the excavation or dredging
was undertaken to construct, maintain, repair, or
e. To sue or be sued.
reconstruct the citys 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 citys 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 citys 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 citys 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
not limited to sales of utilities, telecommunications
if such property can be restored to use by:
services, refuse collection, and liquor.
(1) The repair, replacement, adjustment or
e. Any litigation relating to city debt obligations.
removal of your product or your work; or
Any litigation meeting the criteria listed above will
(2) The citys fulfilling the terms of the contract
be considered to be land use and special risk
or agreement.
litigation in its entirety, regardless of whether the
litigation may assert other claims as well.
16. Joint powers entity means an operating entity
created by two or more governmental units entering
But land use and special risklitigation does not
into an agreement as provided by statute for the joint
include litigation:
exercise of governmental powers. An
intergovernmental agreement will be deemed to
a. That seeks only compensation or other relief for
create a joint powers entity if the agreement
an actual or alleged physical occupation, invasion, or
establishes a board with the effective power to do
LMCIT CMC (11/86)(Rev. 11/15) Page 14 of 23
use of property by the city;19. Limited contamination liability claim means:
b. That seeks only a reduction or invalidation of a a. Any claim for damages arising out of pesticide
special assessment; or herbicide application operations; or
c. That seeks only compensation for damages b. Any claim for damages which resulted from a
based on the citys actual or alleged negligent sudden occurrence which took place on or after the
inspection or enforcement of the state building, retroactive date shown in the Declarations and prior
plumbing, electrical, fire, or similar state codes; to the expiration date of this covenant, and which:
d. That seeks only amounts owed pursuant to the (1) Was caused by an actual, alleged, or
explicit terms of any contractual obligation, threatened discharge, dispersal, release, or
including but not limited to any city debt escape of pollutants; or
obligations;
(2) Arises from the accidental rupture, backup,
e. That was initiated by the city to enforce a or overflow of the citys sanitary sewer, storm
building, zoning, subdivision, or similar ordinance sewer, or water supply systems.
or regulation related to the use of property, unless
c. Any lead claim or asbestos claim, unless the
that litigation also involves a challenge to the
actual, alleged, or threatened discharge, dispersal,
constitutionality or interpretation of the ordinance or
release, escape, use, distribution, or handling of lead
regulation or to the legal authority of the city to
or asbestos took place at or from any landfill, dump,
enact it;
or other site or location presently or formerly used
f. That is a criminal prosecution by the city;by or for the city or others for the handling, storage,
disposal, processing or treatment of pollutants;
g. That is brought by LMCIT or the city against any
other covered party;d. Any excavation and dredging claim;
h. That arises from or is related to the actual, e. Any moldclaim;
pending or threatened bankruptcy of the city; or
f. Any organic pathogen claim; or
i. That makes only a pollution claim.
g. Any claim for damages arising out of heat,
18. Lead claim means any claim for damages arising smoke, or fumes from a hostile fire or controlled
directly or indirectly out of, resulting from, caused burn. A hostile fire is a fire which becomes
by or contributed to by: uncontrollable or breaks out from where it was
intended to be.
a. The toxic or pathological properties of lead, lead
compounds or lead contained in any materials; 20. LMCIT means the League of Minnesota Cities
Insurance Trust.
b. The actual or threatened abatement, mitigation,
removal or disposal of lead, lead compounds or 21. Loading or unloading means the handling of
materials containing lead; property:
c. Any supervision, instructions, recommendations, a. After it is moved from the place where it is
warnings or advice given or which should have been accepted for movement into or onto an aircraft,
given in connection with subparagraphs a. or b. watercraft or auto;
above; or
b. While it is in or on an aircraft, watercraft or
d. Any obligation of the covered party to auto; or
indemnify any party in connection with
c. While it is being moved from an aircraft,
subparagraphs a., b. or c. above.
watercraft or auto to the place where it is finally
LMCIT CMC (11/86)(Rev. 11/15) Page 15 of 23
delivered; but loading or unloading does not include acts as a medium for any fungus(es) or spore(s);
the movement of property by means of a mechanical
d. Any intrusion, leakage, or accumulation of water
device, other than a hand truck, that is not attached
or any other liquid that contains, harbors, nurtures or
to the aircraft, watercraft or auto.
acts as a medium for fungus(es) or spore(s);
22. Mobile equipment means any of the following types
e. The actual or threatened abatement, mitigation,
of land vehicles, including any attached machinery
removal or disposal of fungus(es) or spore(s) or any
or equipment:
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. Motorized amusement ride means a mechanical bull
(2) Road construction or resurfacing equipment
or similar device, motorized carnival ride, or other
such as graders, scrapers or rollers;
motorized device that carries or conveys passengers
along, around, or over a fixed or restricted route or
d. Vehicles not described in a., b., or c. above that
course for the primary purpose of giving its
are not self-propelled and are maintained primarily
passengers amusement, pleasure, thrills, or
to provide mobility to permanently attached
excitement.
equipment of the following types:
25. Occurrence means:
(1) Air compressors, pumps and generators,
including spraying, welding, building cleaning,
a. With respect to COVERAGE A, a wrongful act
geophysical exploration, lighting and
or a series of related wrongful acts.
well-servicing equipment;
b. With respect to COVERAGE C, an accident,
(2) Cherry pickers and similar devices used to
including continuous or repeated exposure to
raise or lower workers; or
substantially the same general harmful condition.
e. Vehicles not described in a., b., or c. above
Provided that for purposes of SECTION III -
maintained primarily for purposes other than the
LIMITS OF COVERAGE, occurrence has the same
transportation of persons or cargo.
meaning as it does for purposes of the applicable
statute establishing monetary limits on the citys tort
23. Mold claim means any claim for damages arising
liability.
directly or indirectly out of, resulting from, caused
by, or contributed to by:
26. Organic pathogen means any disease-producing
organic agent, including but not limited to a virus,
a. Any fungus(es) or spore(s);
bacterium, or other microorganism.
b. Any solid, liquid, vapor, or gas produced by or
27. Organic pathogen claim means any claim for
arising out of any fungus(es) or spore(s);
damages arising directly or indirectly out of, or
resulting from, caused by, or contributed to by any
c. Any material, product, building component, or
organic pathogen.
building structure that contains, harbors, nurtures or
LMCIT CMC (11/86)(Rev. 11/15) Page 16 of 23
28. Outside organization claim means any claim for b. Any claim for damages arising out of the actual,
damages against a city officer, employee, or alleged, or threatened existence, discharge, dispersal,
volunteer, arising from his or her activities as a seepage, migration, release or escape of pollutants:
member or officer of any formally organized
(1) At or from premises the city owns, rents,
membership association, any professional
leases, uses, or occupies, and premises the city no
organization, or any private non-profit or for-profit
longer owns, rents, leases, uses, or occupies;
corporation, if the city determines that the
individuals membership and participation in that
(2) At or from any landfill, dump, or other site or
association, organization, or corporation are within
location presently or formerly used by or for the
the scope of the individuals duties as a city officer,
city or others for the handling, storage, disposal,
employee, or volunteer. But outside organization
processing or treatment of pollutants;
claim does not include any claim arising from the
activities of any entity listed in SECTION II-WHO
(3) Which are or were at any time transported,
IS COVERED, 1., a-g., or any entity that is a
handled, stored, treated, disposed of, or processed
covered party under this covenant.
as waste by or for the city or any person or
organization for whom the city may be legally
29. Personal injury means injury other than bodily
responsible; or
injury, arising out of one or more of the following
offenses:
(4) At or from any site or location on which the
city or any contractors or subcontractors working
a. False arrest, detention, or imprisonment, or
directly or indirectly on the citys behalf are or
malicious prosecution.
have been performing operations:
b. The publication or utterance of a libel or slander
(a) If the pollutants are brought on or to the
or other defamatory or disparaging material, or a
site or location in connection with such
publication or utterance in violation of an
operations; or
individuals right of privacy.
(b) If the operations are to test for, monitor,
c. Wrongful entry or eviction, or other invasion of
clean up, remove, contain, treat, detoxify or
the right of private occupancy.
neutralize the pollutants.
d. Assault or battery committed for the purpose of
Pollution claim does not include any of the
protecting persons or property or incident to an
following:
arrest.
a. Any limited contamination liability claim.
e. The use of another's advertising idea in your
advertisement.
b. Any claim arising out of the discharge or
dispersal of mace, tear gas or similar agent, if such
f. Infringing upon another's copyright, trade dress
discharge was for the purpose of protecting persons
or slogan in your advertisement.
or property or incident to an arrest.
30. Pollutants means any solid, liquid, gaseous or
c. Any claim for damages included in the products
thermal irritant or contaminant, including smoke,
hazard.
vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
32. Products hazard includes all damages arising out of
reconditioned or reclaimed.
your product except that the products hazard does
not include any of the following:
31. Pollution claim means:
a. Damages which arise from products that are still
a. Any direction, demand, or request by the
in the citys physical possession;
government or any other entity that the city or any
other entity test for, monitor, clean up, remove,
b. Damages which arise out of the actual, alleged,
contain, treat, detoxify or neutralize pollutants; or
LMCIT CMC (11/86)(Rev. 11/15) Page 17 of 23
or threatened discharge, dispersal, seepage, or publicized event, feat or performance which
migration, release or escape of pollutants at or from
(1) Involves a demonstration or display of notable
any landfill, dump, or other site or location presently
strength, skill, speed, or endurance; and which
or formerly used by or for the city or others for the
handling, storage, disposal, processing, or treatment
(2) Involves a significant risk of serious injury to the
of pollutants;
participant, performer, or others.
c. Damages which arise out of the actual, alleged,
But stunting activity does not include common
or threatened discharge, dispersal, seepage,
traditional athletic events such as hockey, baseball,
migration, release or escape of pollutants which are
softball, football, basketball, wrestling, soccer,
or were at any time transported, handled, stored,
gymnastics, track and field events or bicycle racing.
treated, disposed of, or processed as waste by or for
the city or any person or organization for whom the
38. Sudden occurrence means an accident or a related
city may be legally responsible;
series of accidents and the release of pollutants
resulting there from, all of which begin and end
d. Damages which arise out of the actual, alleged,
within 72 hours; except that each incident in which
or threatened discharge, dispersal, seepage,
the citys sanitary sewer backs up into a building is
migration, release or escape of pollutants at or from
deemed to be a separate sudden occurrence. In the
any site or location on which the city or any
case of a related series of accidents, the sudden
contractor or subcontractors working directly or
occurrence will be deemed to have taken place when
indirectly on the citys behalf are or have been
the first accident in the related series of such
performing operations if the operations are to test
accidents took place.
for, monitor, clean up, remove, treat, detoxify or
neutralize the pollutants; or
39. Suit means a civil proceeding in which damages to
which this coverage applies are alleged. Suit
e. Damages which arise out of pesticide or
includes an arbitration proceeding alleging such
herbicide application operations.
damages to which the city must submit or submit
with LMCITs consent. Suit does not mean any
33. Property damage means:
criminal proceeding against any covered party or
a. Physical injury to tangible property, including all any open meeting law proceeding, unless damages
resulting loss of use of that property; or are also claimed in that proceeding.
b. Loss of use of tangible property that is not The following are also deemed a suit for damages:
physically injured.
a. A charge of employment discrimination filed
34. Relief association means the following: with the Federal Equal Employment Opportunity
Commission, the Commissioner of the Minnesota
a. A relief association as defined under Minnesota
Department of Human Rights, or a local human
Statute §424A.001, subd. 4; or
rights commission as defined in Minnesota Statute
§363.01, subd 23; or
b. A relief association that has elected to continue
to be in existence under the provisions of Minnesota
b. A complaint filed with the Federal Health and
Statute §353G.06.
Human Services Office for Civil Rights alleging any
breach of the responsibilities, obligations or duties
35. 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.
36. Spore(s) include any reproductive body produced by
40. 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
37. Stunting activity means any pre-arranged, organized
rights, immunities, or privileges secured by the
LMCIT CMC (11/86)(Rev. 11/15) Page 18 of 23
Constitution and Laws of the United States of Your product includes warranties or representations
America. made at any time with respect to the fitness, quality,
durability or performance of any of the items
41. Your product means:
included in a. and b. above.
a. Any goods or products, other than real property,
Your product does not include vending machines or
manufactured, sold, handled, distributed or disposed
other property rented to or located for the use of
of by:
others but not sold.
(1) The city;
42. Your work means:
(2) Others trading under the citys name; or
a. Improvements, alterations or other work the city
performs on the property of others.
(3) A person or organization whose business or
assets the city has acquired; and
b. Your work includes warranties or representations
made any time with respect to the fitness, quality,
b. Containers (other than vehicles), materials, parts
durability; or performance of any items included in
or equipment furnished in connection with such
a. above.
goods or products.
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.
LMCIT CMC (11/86)(Rev. 11/15) Page 19 of 23
SECTION VI - CONDITIONS
agents as soon as practicable.
1. LIMITATIONS ON LMCIT'S DUTY TO
INDEMNIFY
The city shall promptly take, at its own expense, all
reasonable steps to prevent damages from arising
LMCIT's duty to pay on behalf of or to indemnify a
out of the same or similar conditions; provided that:
covered party other than the city shall not apply to any
act, error, omission, or violation:
(1) A failure to take such preventative measures shall
not constitute a breach of this condition unless
a. Which constitutes malfeasance in office; or
LMCIT has requested the city in writing to undertake
such preventative measures; and
b. Which constitutes willful neglect of duty; or
(2) Such expense shall not be recoverable under this
c. Which constitutes bad faith; or
covenant.
d. For which the city is not authorized to indemnify any
Notice of damages or injury is not notice of a claim.
person by statute; or
b. If claim is made or suit is brought against the
e. Which constitutes dishonesty on the part of a
covered party, the covered party shall immediately
covered party; or
forward to LMCIT every demand, notice, summons
or other process received by him or his
f. Which constitutes the willful violation of a statute or
representative.
ordinance by any official, employee, or agent of the
city.
c. With respect to any incident or occurrence for which
no claim for damages has been made but that might
The terms "malfeasance", "willful neglect of duty", and
result in a covered claim for damages under this
"bad faith" shall be given the same meaning in this
covenant, LMCIT shall have the right, at its
covenant as given in the applicable statute with respect
discretion and at its expense, to associate with the
to the citys duty to defend or indemnify its officers,
covered party in the investigation, handling and
employees or agents.
defense of such matter, in which event LMCIT and
the covered party shall mutually cooperate.
2. FINANCIAL RESPONSIBILITY LAW
4. EXTENDED REPORTING PERIOD
When this covenant is certified as proof of financial
responsibility for the future under the provisions of any
a. LMCIT will provide one or more extended reporting
motor vehicle financial responsibility law, such coverage
periods, as described below, if:
as is afforded by this covenant shall comply with the
provisions of such law to the extent of the coverage and
(1) COVERAGE A is canceled or not renewed; or
limits of liability required by such law.
(2) LMCIT renews or replaces COVERAGE A with
3. COVERED PARTY'S DUTIES IN THE
coverage that:
EVENT OF OCCURRENCE, CLAIM OR SUIT
(a) Has a retroactive date later than the date
a. In the event of a claim or suit, notice containing
shown on the Declarations page; or
particulars sufficient to identify the covered party
and also reasonably obtainable information with
(b) Does not apply on a claims made basis.
respect to the time, place and circumstances thereof,
and the names and addresses of the injured and of
b. A basic extended reporting period of 60 days from
available witnesses, shall be given by or for the
the end of the coverage period is automatically
covered party to LMCIT or any of its authorized
provided without additional charge.
LMCIT CMC (11/86)(Rev. 11/15) Page 20 of 23
c. A supplemental extended reporting period of (2) Any land use and special risk litigation.
unlimited duration is available, but only by an
endorsement and for an extra charge. The
5. ACTION AGAINST LMCIT
supplemental extended reporting period starts 60
No action shall lie against LMCIT unless, as a condition
days after the end of the coverage period.
precedent thereto, there shall have been full compliance
The city must give LMCIT a written request for the
with all of the terms of this covenant, nor until the
endorsement within 60 days after the end of the
amount of the covered party's obligation to pay shall
coverage period. The supplemental extended
have been fully determined either by judgment against
reporting period will not go into effect unless the
the covered party after actual trial or by written
city pays the additional premium promptly when
agreement of the covered party, the claimant and
due.
LMCIT.
The additional premium for the supplemental
Any person or organization or the legal representative
extended reporting period will be a percentage of the
thereof who has secured such judgment or written
annual expiring premium for COVERAGE PART A.
agreement shall thereafter be entitled to recover under
this covenant to the extent of the coverage afforded by
Number of Years Since
this covenant. No person or organization shall have any
Retroactive Date Shown
right under this covenant to join LMCIT as a party to any
on Declarations Page Additional Cost
action against the covered party to determine the
covered party's liability, nor shall LMCIT be impleaded
1 55.0%
by the covered party or his legal representative.
2 57.0%
3 60.3%
Bankruptcy or insolvency of the covered party or of the
4 65.9%
covered party's estate shall not relieve LMCIT of any of
5, 5+ 70.8%
its obligations hereunder.
d. An extended reporting period does not extend the
coverage period or change the scope of coverage
6. WAIVER OF STATUTORY LIABILITY
provided. It applies only if the date of the
LIMITATIONS
occurrence giving rise to the claim for damages is
after the retroactive date and before the end of the
a. It is the express intent of the city and of LMCIT that
coverage period.
the procurement of this covenant shall not waive any
monetary limits of liability provided by Minnesota
Claims for damages which are first received and
Statute §466.04 by any comparable or successor
recorded during the basic extended reporting period
statute, or by common law, which may be applicable
(or during the supplemental extended reporting
to any covered party; and that any previous waiver
period, if it is in effect) will be deemed to have been
of liability limits is revoked to the extent that it may
made on the last day of the coverage period.
apply to claims covered under this covenant.
Once in effect, extended reporting periods may not
b. It is the express intent of the city and of LMCIT that
be canceled.
the procurement of this covenant shall not waive any
other immunities, limitations, or defenses imposed
e. Extended reporting periods do not reinstate or
by or available under any statute or common law
increase the limits of coverage applicable to any
which is applicable to any covered party.
claim to which this coverage part applies.
7. CONSENT TO SETTLE
f. Neither the basic extended reporting period nor the
supplemental extended reporting period is applicable
The city may prohibit LMCIT from settling any claim or
to, and no extended reporting period is provided for,
suit against a covered party without the citys consent, as
the following:
provided below:
(1) Any limited contamination liability claim; or
a. At any time before LMCIT has offered or made a
LMCIT CMC (11/86)(Rev. 11/15) Page 21 of 23
settlement of a claim or suit, the city may notify LMCIT would otherwise have had to defend and to
LMCIT that LMCIT may not settle the claim or suit indemnify any other covered party.
without the citys consent. The city must give a
(2) LMCIT may continue to defend the claim or suit.
separate notice for each claim or suit which the city
If LMCIT elects to continue to defend the claim or
intends to prohibit LMCIT from settling without the
suit, the city must reimburse LMCIT for any excess
citys consent.
amount.
b. If the city notifies LMCIT that the claim or suit may
f. If the city refuses to consent to a settlement
not be settled without the citys consent, the city
recommended by LMCIT, the city must defend and
must designate an individual authorized to give or
indemnify LMCIT for any claim or suit arising out of
refuse consent on the citys behalf. The citys notice
the failure to settle the original claim or suit,
must include the name, address, and telephone
including amounts the city may owe as a Medicare
number of the individual authorized to give or refuse
Secondary Payer under federal law.
consent on the citys behalf.
g. If the city refuses to consent to a settlement
c. If the city has notified LMCIT that the claim or suit
recommended by LMCIT, and regardless of which of
may not be settled without the citys consent, LMCIT
the options LMCIT chooses to exercise under
will notify the city of the terms and conditions of
subparagraph e. above, LMCIT as an agent of the
any proposed settlement. If the city does not consent
city, will continue to fulfill the mandatory Medicare
to the proposed settlement, the city must notify
Secondary Payer reporting obligation under Section
LMCIT within 14 days of the date the city receives
111 of the Medicare, Medicaid, and SCHIP
notice of the proposed settlement, unless the city and
Extension Act of 2007, if any, associated with the
LMCIT have mutually agreed to a longer or shorter
claim; but shall have no payment obligation beyond
period. If within that time the city does not notify
the amount of the recommended settlement amount.
LMCIT that the city does not consent to the
The city must cooperate with LMCIT in providing
settlement, the city will be deemed to have
LMCIT the necessary information to allow LMCIT to
consented to the settlement.
fulfill the reporting responsibility.
d. If the city refuses to consent to a settlement
recommended by LMCIT,LMCIT will not be liable
8. RETROACTIVE JOINT POWERS
for any excess amount. Excess amount means the
COVERAGE
sum of all damages and legal defense costs for the
claim or suit minus the sum of:
LMCIT will, upon the citys request, issue retroactive
comprehensive municipal coverage to any joint powers
(1) The amount of the settlement proposed by
entity in which the city is a member and which is not
LMCIT; and
named as a covered party under any other LMCIT
coverage.
(2) Any costs of defense incurred before the date of
the citys refusal. Any excess amount shall not be
Pursuant to this section, LMCIT will issue its standard
included in the calculation of damages for purposes
Comprehensive Municipal Coverage document to the
of any applicable Municipal Liability Deductible or
joint powers entity, but coverage shall be subject to an
General Annual Aggregate Deductible.
annual aggregate limit of $200,000. This limit shall
apply to the sum of damages and loss adjustment
e. If the city refuses to consent to a settlement
expenses, including defense costs, for all claims to
recommended by LMCIT,LMCIT may, at its sole
which the coverage applies.
discretion, exercise either of the following options:
Coverage issued pursuant to this section will be issued
(1) LMCIT may pay to the city an amount equal to
with the same inception date and the same retroactive
the amount of the recommended settlement, minus
date as this covenant.
any applicable deductible. If LMCIT makes such
payment, LMCIT has no further duty to defend or to
The premium must be paid to LMCIT before the
indemnify the city or any other covered party for this
coverage goes into effect. The premium for coverage
claim or suit, and the city assumes any duty which
LMCIT CMC (11/86)(Rev. 11/15) Page 22 of 23
issued pursuant to this section shall be equal to the forth herein, this coverage shall be construed as a
greater of $5,000 or the premium the joint powers entity separate agreement with each covered party. Nothing in
would otherwise pay for coverage at LMCIT's current this paragraph shall be construed to increase LMCIT's
rates. maximum liability set forth in the Declarations and as
described in SECTION III - LIMITS OF COVERAGE.
9. NO DUPLICATION OF COVERAGE
12. DEDUCTIBLES
This covenant shall not apply to any claim or claims
arising out of an occurrence, if any claim or claims a. For purposes of deductibles under this coverage, the
arising out of that occurrence were covered under any deductible applies to the sum of the damages, loss
prior covenant issued by LMCIT to the city.adjustment expense, defense costs and
supplementary payments as defined in SECTION V
-SUPPLEMENTARY PAYMENTS.
10. OTHER COVERAGE
b. The terms of the covenant, including those with
If, pursuant to the COMMON CONDITIONS, 11.a., a
respect to:
covered party has primary liability coverage as an
additional insured or additional named insured on
(1) The LMCIT's rights and duties with respect to the
another party's coverage, and that insurer fails to defend
defense of suit s; and
or indemnify the covered party,LMCIT will do so under
this covenant.
(2) The covered party's duties, in the event of an
occurrence, apply irrespective of the application of
In any case in which LMCIT incurs costs for a claim
the deductible amount.
which is also covered under any other liability coverage
or insurance, LMCIT shall be entitled to the covered
c. LMCIT may pay any part or all of the deductible
party's rights to recover those costs from that insurer.
amount to effect settlement of any claim or suit, and
The covered party shall cooperate with and assist
upon notification of the action taken, the city shall
LMCIT as requested in enforcing any rights against that
promptly reimburse LMCIT for such part of the
insurer.
deductible amount as has been paid by LMCIT.
11. SEPARATION OF COVERED PARTIES
As respects the particulars and statements contained in
the application for this coverage and the exclusion set
LMCIT CMC (11/86)(Rev. 11/15) Page 23 of 23
COVENANT NUMBER: CMC 39313
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 39313
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 39313
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 39313
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 citys covered losses is limited to an
amount equal to the citys 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 39313
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 39313
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