HomeMy WebLinkAboutLCMIT Insurance Policy 2010-2011 INVOICE #: 34797
LEAGUE OF MN CITIES INSURANCE TRUST (0011) PREMIUM NOTICE
CIO BERKLEY RISK ADMIN.CO.,LLC Invoice Date: 8/24110
222 SOUTH NINTH STREET Due Date: 09/23/10
SUITE 1300
MINNEAPOLIS MN 55402-3332
612 - 766 -3000 FAX: 612- 755 -3281
B i l l To Agent 00874
OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY
14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS
OAK PARK HEIGHTS MN 55482 -6476 232 S LAKE ST
FOREST LAKE MN 55025 -2605
Type of Coverage: MUNICIPALITY
Convenant Number CMC 32204 Coverage Period: 7107710 To 7107111
Covered Party: OAK PARK HEIGHTS, CITY OF
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
9123110 629696,00 PREMIUM
Total: $62,696.00
Payment /AdJustment
Applied: $100
Total; $62.696.00
w w w w w w w -- w w w w w w w r w w w w w w• w w w w w w w w w w w r r w r w w w w w w w- w w w w w w w w w r w -- w w w w- w r- w w w w- w r w w w w w w w w w A w- w w w w
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:
LEAGUE OF MN CITIES INSURANCE TRUST (0011) INVOICE #: 34797
CIO BERKLEY RISK ADMIN.CO.,LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458 -1517
612-766 -3000 FAX: 612 -766 -3281
Type of Coverage: MUNICIPALITY
Covenant Number: CMC 32204 DUE DATE: 09/23/10
Coverage Period: 7107/14 To 7/07/11 UNPAID BALANCE: 62,696.00
Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 62,696.00
COMPREHENSIVE LEA�U���F
M INNESOTA
CITIES
A
MUNICIPAL PROPERTY AND
CASUALTY COVERAGE
i
PREPARED ESPECIALLY FOR:
f
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
OAK PARK HEIGHTS, MN 55082
07/07/10 - 07/07/11
Agent:
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SERVICES
232 SOUTH LAKE STREET i
FOREST LAKE, MN 55025 -2605
League of Minnesota Cities
f 145 University Avenue West
St. Paul, MN 55103 -2044
Phone: (651) 281 -1200
Fax: (651) 281 -1298
Web Site: http: /Iwww.imc.org
* *IMPORTANT **
PLEASE READ YOUR AGREEMENT
Covenant Number: COMMON COVERAGE DECLARATIONS
C M C 32204 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIESR
Previous Covenant Number; INSURANCE TRUST
CM C 30974 (Herein called LMCIT) L E of
MINNESOTA
Item 1. CITY and MAILING ADDRESS; CITIES
OAK PARK HEIGHTS, CITY OF
14168 OAK PARK BLVD
OAK PARK HEIGHTS MN 550826
Item 2. COVERAGE PERIOD:
From; 07/07/10 To: 07/07/11 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 2 4, 750
Additional Covered Loss or Damages INCLUDED
Water and Supplemental Flood Coverage INCLUDED
Crime INCLUDED
Bond NOT COVERED
Petrofund INCLUDED
EQUIPMENT BREAKDOWN $ 2 , 344
MUNICIPAL LIABILITY g 31 824
Medical and Related Expense INCLUDED
AUTOMOBILE LIABILITY 2,485
AUTOMOBILE PHYSICAL DAMAGE I 293
TOTAL 62,696
Item S. 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: CC M l I -09
Item 8. DECLARATIONS APPLICABLE:
DEC -011 11 -09 DEC -012 11 -09 DEC -013 11 -09 D E C -016 07 -09
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Executive Director, LMCIT
L1ti►'ICIT DEC- 011(11186)(Rov,11/09)
COMMON CONDITIONS
ALL COVERAGE PARTS INCLUDED IN THIS COVENANT
ARE SUBJECT TO THE FOLLOWING CONDITIONS:
I. CANCELLATION AND NON - RENEWAL made a part of this covenant or by acknowledgment by
LMCITthat an endorsement will be issued at a later date,
a. The city shown in the Declarations may cancel this
covenant by mailing or d to LMCIT 3. RATING AUTHORITY AND
advance writte notice of cancellation. EXAMINATION of THE CITY� S BOOKS
AND RECORDS
b. LMCIT may cancel this covenant by mailing or
delivering to the city shown in the Declarations LMCIT shall have full discretionary authority to
wr notice of cancellation at least promulgate rates and establish the premium to be
charged for the coverage period under this covenant.
( l ) 10 days before the effective date of the
cancellation if LMCIT cancels for nonpayment of LMCIT may, at its discretion or at the city's request,
premium; or examine and audit the city's books as they relate to this
(2) covenant during the coverage period and up to one year
3 days before the effective date of the thereafter and, accordingly, make any necessary
cancellation if L 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 SUR'R'EYS
d. Notice of cancellation will state the effective date of L 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 LIFT 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 LC'1T's right to make inspections nor its
LICIT has not trade 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, ethers to determine or warrant that such property or
LMCIT will mail or deliver to the city shown in the operatiorrs 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 organisation
sufficient proof of notice. which makes inspections, surveys, reports, or
recommendations.
2, CHANGES
5, PREMIUM
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 LICIT. The coverage terms can be amended b, will be the payee for any return premiums,
or waived only by endorsement issued by L and,
LMC IT CCM (11-89 (Rev. 1 1 -09) Page 1 of 3
6. TRANSFER of THE CITY S RIGHTS AND coverage is primary, excess, contingent, or any other
DUTIES UNDER THIS COVENANT basis, unless that policy or coverage is specifically
written to be excess over this covenant.
The city's rights and duties under this covenant may not
be transferred without the written consent of LMCIT. b. This coverage is primary far any of the following
losses:
7. OVERLAP of COVERAGE
( 1 ) A covered loss of business personal effects, with
In the event of a dispute between LMCIT and one or respect to any coverage provided under the more insurers as to which policy or coverage agreement employ ee's homeowners' insurance or similar
applies to a covered loss, LMCIT shall indemnify the city coverage.
for any legal or other expenses which are necessarily
incurred b the c i t y in determining whether LICIT or (2) A covered loss of contents or mobile property in
y t3' g
the insure shall bear the loss. such indemnification the city's care, custody and control that is used to
insurer(s)
shall be made onl if it is determined that a ment of the maintain the operations of the city, with respect to
y P y coverage provided under an insurance olio of the
loss shall be made under this covenant. If the loss is g �' policy
shared by LMCIT and one or more insurers, owner covering that property.
indemnification shall be made in the same proportion as ,
the loss payment. The cit and LMCIT shall cooperate (3) A covered loss resulting from the city
P y � p maintenance or use including loadi or unloading,
in the development and execution of reasonable � g g �'
procedures to resolve the dispute. of any owned automobile that is not a trailer.
P P
S. ASSESSIBILITY
(4) A covered loss resulting from the city's
maintenance or use, including loading or unloading,
All cities t' i the joint pool are jointly and of any trailer the city does not own but which is
n ,1 covers a P g
severally liable for all claims and expenses of the pool. connected to an owned automo
The amount of any liabilities in excess of assets may be a ainst a a who
r pool when a deficient is (5) Any covered liability claim g party
assessed to the members of the P y been added b end identified. has e y as an additional
covered parry 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 A covered loss to a covered automobile as
' damage that is caused in art or in total b (
claim for darn g P y Automobile Physical
nuclear reaction or radiation or radioactive P rovided b y the Municipal P y
contamination, however caused.
Damage Coverage.
(7) A covered lass to a builders risk property as
1�. CONCEALMENT OR FRAUD
provided by Buildings in the Course of Construction,
g
Th .
This covenant is void if the city has intentionally Alteration or Repair Coverage.
concealed or misrepresented any material fact or 12. RECOVERIES
circumstance relating to this covenant.
Except as otherwise required by statute, any "net ry
11. OTHER COVERAGE recovery" from a third Pte' 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:
g 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
. ' additional insured
on which the covered party is an addi recovery" does not include amounts LMCIT recovers t from a reinsures The cit y's share of the covered loss
or additional named insured,
includes any applicable deductible; any amounts for
insurance olio
(2) Any other valid and collectible p y which the city is responsible under any co - Pay
or other coverage, whether such other policy olio or Provisions; and any amounts which exceed the
applicable coverage limit.
LMCIT CCM (11 -89 (Rev. 11 -09) Page 2 of 3
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13. TRANSFER OF RIGHTS OF RECOVERY it be deemed to apply to an action brought by a covered
AGAINST OTHERS TO LMCIT party, or any of its officers, employees or agents against
the city or another covered party.
Except as provided below, if any person or organization
to or for whom LMCIT makes paym under this 15. C OVENANT EXPIRATION DATE
covenant has rights to recover damages from another,
those rights are transferred to LMCIT to the extent of Covenant expires on the expiration date unless the city
L�lCIT"s payment. That person or organization must d
has requested that coverage be extended and LMCIT has
FY
everything necessary to secure our rights and must do sent a written confirmation of the extension to the city.
nothing before or after a loss to impair them.
16, RIGHT TO OFFSET
a, The city may waive the city rights against another
party in writing prior to a covered lass or damage Notwithstanding any other provision of this covenant to
but this does not apply to a covered loss or damage the contrary, if the city fails to make timely payment of
as provided by the Municipal Bond Coverage or amounts owed to L including premiums, penalties,
Municipal Crime Coverage, The city does not need deductibles, co -pays, premium audit adjustments or
to notify LMCIT in writing. retrospective rating plan charges, LMCIT, in addition to
other remedies available to it, shall have the right to
b. The city may waive the city's rights against another retain and offset any amounts owed to the city and apply
party in writing after a covered loss or damage as the amounts so retained against the unpaid and overdue
provided by the Municipal Property Coverage, only amounts. Amounts owed to the city, which are subject
if at the time of lass that party is one of the to an offset include, but are not l imited t o, dividends,
fallowing: premium audit adjustments, retrospective rating plan
adjustments, and claims payments owed to the city by
(1) Another covered party covered by this c 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 L
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
L CIT 's defense of any claim or suit. If the city, or
other covered party, including its officers, employees or
agents fails to cooperate or takes any action or does
anything that impairs or prejudices the investigation or
processing of any claim, or L CIT 's def ense 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 -0) Page 3 of 3
Covenant Number:
MUNICIPAL PROPERTY ,CRIME,BOND,PETROFUND, '
CM C 32204 and EQUIPMENT BREAKDOWN DECLARATIONS
Cove is provided by �
THE LEAGUE OF MINNESOTA CITIES LEAGU
INSURANCE TRUST MI NNESOTA
(Herein called LMCIT) CITI ES
Item 1. CITY: OAK PARK HEIGHTS, CITY OF
Item 2. COVERAGE PERIOD:
From. 07/07/10 To: 07/07/11 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 $ 14,354,331
This general limit is subject to the sublimits as described in Section V1,
Limits of Coverage and Valuation, and the specif property limit.
Terrorism loss occurrence - shared limit $ 50
This limit is subject to the provisions of the Terrorism Losses- Special Pool Limit
Endorsement M E079(11/09)
Section 11- Additional Covered Loss or Damage
1. Asbestos Clean up, Abatement and Removal $ 250 000 Per L ocation
2 . Loss of Revenue, Extra Expense and Exped Expense $5, Per Occurrence
3. 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
4 . Leasehold Interest $ 500, 000 Per Location
5. Pollutant Cleanup and Removal $ 2 50, 000 Per Location
6. Errors $ 500, 000 Per Occurrence
7. Rental Reimbursement $ 25,000 Annual Aggregate
8. Arson Reward $ 5, 000 Per Fire Loss
9. A ccounts Receivable $ 500, 0 0 0 Per Location
10 . Valuable Papers & Records $ 500, 000 Per Location
3.1. Extraordinary Expense $ 250, 000 Annual Aggregate
3.2. Utility Services $ 100,000 Per Occurrence
3.3. Green Building Expenses 1% of the Contract Cost but not to
exceed $100,000 per location
Section IV - Water and Supplemental Flood Coverage $ 500, 000 Per Occurrence/
500, 000 Annual Aggregate
LMCIT DEC- 012(11-86)lRev,1 1 /09) Page t of 3
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LEAGUE of
MINNESOTA
CITIES
[tern 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
OF COVERED PROPERTY FOR THOSE LOCA TIONS 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 $ 500 Per Occurrence
Item 8. COVERAGE PARTS FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE,
ME063 11 -01 ME073 11 -09 MPCBP 11 -0 MPCBP -20 11 -05
MPCBP -215 11 -09 PM -loo 11 -03 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 $ 500 Per Occurrence
I14M 12. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE,
ME063 11 -01 MPCBP 11 -09
LMCIT DEC -012(1 l •S6)(Rev l 1/09) Page 2 of 3
r O ' E �
Item 13 COVERAGE PART THREE - BOND MINNESOTA
LIMIT OF COVERAGE PER OCCURRENCE $ CITIES
DEDUCTIBLE (Dedu applies per o subject to General Annual Aggregate
Deductible, if any, shown on Common Coverage Declarations):
COVERAGE PART THREE - BOND $ Per occurrence
Item 14. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE.
Item 1 3. COVERAGE PART FOUR - PETROFUND (Cl a ims made .
LIMITS OF REIMBURSEMENT BENEFIT MAXIMUM
RE IMBURSABLE COSTS AND DEFENSE COSTS
EACH TANK RELEASE $ 250,000
REIMB URSABLE 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.
ME053 11 -01 MPCBP 11 - 0'3
Item 17. EQUIPMENT BREAKDOWN COVERAGE
EQUIPMENT BREAKDOWN LIMIT: $ 14,
DEDUCTIBLE: $ 500 ANY ONE ACCIDENT
Item 18. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE,
BM-200111-091 BM— 212 ( 11— 01 ME06 3 (11— 01) PSI -100 (11 _ 0 3 )
LMCIT DEC - 012(11- 86)(Rew.11/09) Page 3 of
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED PROPERTY �
Covenant Number,
CM C 32204 L
M I NNE SOTA
CITIES
CITY OAK PARK HEIGHTS, CITY OF
COVERAGE AT EACH OF THE L OCA TIONS BELOW APPLIES ONLY FOR B UILDINCICONTRNTSI
PROPER IN THE OPEN OR B UILDER S RISK PROPERTY DESCRIBED AND FOR THE
*SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED.
THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE
SPECIFI PROPERTY LIMIT.
* *Type of ** *Section IV Wate Estimated
Covered and Supplemental Replacement
Loci► Location Occup Property Flood Coverage Cost
1 14168 OAK PARK BLVD N CITY HALLIGARAGE B CODE C $2,379,073
2 58TH & NORELL WATER TOWER B CODE C $1,309,731
3 1416$ OAK PARK BLVD N WATER TOWER B CODE C $737,733
4 BREKKE PARK SHELTER B CODE C 5259
5 13425 64TH STREET LIFT STATION B CODE C $ 157,168
6 14168 OAK PARK BLVD ITT PUMP HOUSE #1 B CODE C 5190,386
7 SWAGER PARK SHELTER B CODE C $10,059
8 COMER PARK RECREATION BUILDING B CODE C $58
9 VALLEY VIEW PARK SHELTER B CODE C $106,575
10 BEA DETTE ON LOOKOUT TRAIL LIFT STATION B CODE C $114,209
11 SUNYSIDE MARINA LIFT STATION B CODE C $114,209
12 14200 53RD STREET LIFT STATION B CODE C $114,209
13 14168 OAK PARK BLVD N CITY HALL PIO CODE C $4
14 SWAG ER PARK PARK PIO CODE C $85
*The limit of coverage for Section IV- Water and Supplemental Coverage is $500,000 per oceUrrence 1 500,000 Annual Aggregate
**T of Covered Pro ert
B B IContents
PIO = Propera in th Op en
BR --- Builders Risk Pro er
** *Section IV -Water and Supplemental Flood Coverage
CODE A: L UCI T Water and Supp lemental Flood Covera e app lies with no additional exclusions.
CODE B: L MCI T Water and Supplemental Flood Coverage applies in addition to and in excess of the apB licable
National Flood Insurance Prn ram Cavern e,
CODE c: L MCI T Water and SuviDlemental Flood Coverage exc ludes damages from any occurrence for which anj lass
or any dams a would be payable under a National Flood Insurance Program Coverage.
PM- 100(11 r95)(Rev.1 1 103)
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED PROPERTY � � ��
Covenant Number: -�
EMC 32204 LEAGUE F
MI NN LNU
CITIES
CITY OAK PARK HEIGHTS, CITY OF
COVERAGE AT EACH OF THE L OCA TIONS BELOW APPLIES ONLY FOR B UILD INGICONTENTSI
PR IN THE OPEN OR B UILDER S 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 PROPERT LIMIT.
* *Type of ** *Section IV Watt Estimated
Covered and Supplemental Replacement
Loc## L ocation Occupancy Property Flood Covers t Cost
15 COVER PARK PARK PIO CODE C $96,559
16 VALLEY VIEW PARK PARK PIO CODE C $87,017
17 BREKKE PARK PARK PIO CODE C $11 1,250
18 CITY WIDE VARIOUS PIO CODE C $84,492
19 14290 58TH ST N PUMPHOUSE #2 B CODE C $182,440
20 KERN CENTER, 5500 STILLWATER BLVD LIFT STATION & FORCE MAIN B CODE C $270,119
21 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $140,415
22 AUTUMN HILLS PARK PARK SHELTER B CODE C $488,147
23 OAK PARK HEIGHTS CITY HALT. BR CODE C $7,105,000
*The limit of coverage for Section IV- Water and Supplemental Coverage is $500,000 per occurrence 1 500,000 Annual Aggregate
# *T of Covered Propert
B - Buildin !Contents
P IO = Property in th Open
BR = Builders Risk Pro er
** *Section IV -Water and Supplemental Flood Coverage
CODE A: L MCI T Water and Supplemental Flood Coverage applies with no additional exclusions.
CODE B: L M CI T Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable,..,_,.., ,
National Flood Insurance PMSram Coverage.
CODE C: L CIT Water and Supplamental Flood Coverage excludes dama jMs from any occurrence for which any loss
or anj damage would be payable under a National Flood Insurance Projeram Coverage.
PM- 100(11 l95)(Rev.11103)
I
DEFINITION OF CITY ENDORSEMENT
i 1
i F It is understood and agreed that city s amended to i nclude:
ECONOMIC DEVELOPMENT AUT�IORITY
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All other terms and conditions remain unchanged.
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LMCIT ME063(11 r95)(Rev. 1 1/0 1) Page 1 of 1
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
18 CITYWIDE VARIOUS SIRENS ONLY. NO OTHER PROPERTY IN THE
OPEN IS COVERED.
All other terms and conditions remain unchanged,
LMC1T MPCBP -209 (11105)
EXCLUDED PROPERTY
This endorsement modifies coverage provided under the MUNICIPAL PROPERTY COVERAGE,
It is agreed that the buildinglcontents, property in the open or builders' risk property described in the
schedule below shall not be considered covered property under this covenant:
Location Occumne Excluded Property
6180 OSGOOD AVENUE NORTH VACANT BUILDING/CONTENTS, PROPERTY IN THE
OPEN OR BUILDERS' RISK PROPERTY
All other terms and conditions remain unchanged,
LMCIT MPCBP -215 (11 -09) Page 1 of 1
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED MOBILE PROPERTY
LEAGU E of
MINNESOTA
Covenant Number: C i%1 C 32204 CITIES
CITY : OAK PARK HEIGHTS, CITY OF
COVERAGE APPLIES TO MOBILE PROPER T YVALUED AT REPLACEMENT COST VALUES OF
$25 OR LESS PER ITEM IF IDENTIFIED AS COVERED AND TO MOBILE PR OPER T Y
THAT HAVE REPLACEMENT COST VALUES GREAER THAN $25.000 PER ITEM THAT ARE LISTED.
A. MOBILE PROPERTY VALUED AT $25,000 OR LESS COVERED
B. MOBILE PROPERTY VALUED AT GREATER THAN $25,000 COVERED
Description of Mobile Property
Make Model and Year Serial No. Value
041 1995 CATERPILLAR XQ225 PORTABLE GENERATOR SET #8,IJ $ 61,742
002 2003 KUBOTA TRACTOR WITH PLOW #20224 $ 35
PM-109(11197)(Rev,11 /07)
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MUNICIPAL LIABILITY L M EAGUEOF
CITIES
CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 32204
HAZARD PREMIUM BASIS ADVANCED PREMIUM
Premises Operations Code Basis
OPERATING EXPENDITURES A 2,988,798 PREMIUM INCLUDED
FOR ALL HAZARDS
WATERWORKS D 144,460 WHERE A PREMIUM
BASIS 1S SHOWN
STREETS B 22
Independent Contractors
G 6
Products
WATERWORKS H 249,000,000
LMCIT MOL-1(01-95)(Rev , 11-09) Page 1 of 2
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MUNICIPAL LIABILITY LE AGUE of
(Cont MINNESOTA
CITIES
Municipal Liability Hazard Codes
When used as a premium basis:
Code
(A) "Operating expenditures" means all expenditures used to operate the city,
excluding capital purchases, where the individual project or item exceeds five
percent (5 %) of the total operating expenditures of the city; expenditures for the
independent contractors that provide the city with certificates of insurance
indicating adequate limits; welfare benefits and expenditures for those exposures
which we are separately rating, per $1,000.
(B) "Per mile" means the total number of miles of streets, paved or unpaved, owned
by the city, within the city limits, not including toll roads or bridges, per mile,
(C) "Receipts" means the grass amount of money charged by the city, including
taxes, for operations rated on a receipts' basis (this does not include taxes which
are collected separately and remitted directly to this or any other governmental
entity), per $ 100 of receipts.
(D) "Payroll" means the entire payroll( rem u neration) earned during the coverage
period, including overtime, employees of the city working in the department
(classification) shown, per $100 payroll.
(E) "Each" means per unit.
(F) "Square footage" means per square foot.
(G) "Cost" means the total cost for operations performed for the city by an
independent contractor during the coverage period, including the cost of labor
materials and equipment furnished, and all fees or commission made, whether
paid or due.
(H) "Per gallon" means annual usage of water, per 1,000,000 gallons.
LMCIT MGL-1(41- 95)(Ray.11-09) Page 2 of 2
COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE
® 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
Z Coverage B Medical and Related Expense
Z Coverage C Automobile Liability — Bodily Injury and Property Damage
® Coverage D Land Use, Development, Franchise or Enterprise Operations Litigation
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 o is X'd above.
All other terms and conditions remain unchanged.
LMCIT ME066(11196) (Rev. 11105) Page 1 of 1
Covenant Number MUNICIPAL AUTOMOBILE DECLARATIONS
C M C 32244 Coverage is Provided b
THE LEAGUE F TA CITIES �U � MINNESO � , --
INSURANCE TRUST L EAGUE OF
(Herm called LM CIT) MIN ESOTA
CITIES
Item 1. CITY: OAK PARK HEIGHTS, CITY OF
Item 2. COVERAGE PERIOD:
From; 07/0 To: 07/0 7/11 12;41 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, LMCTT
AGREES WITH THE COVERED PAR T Y TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT,
SUBJECT TO THE FOLLOWING LIMITS:
COVERAGE. LIMIT:
AUTOMOBILE LIABILITY $1 Per Occurrence
BASIC ECONOMIC LOSS BENEFITS Basic Minnesota Statutory Coverage.
UNINSURED AND UNDERINSURED MOTORISTS 20DOUD Per Occurrence
AUTOMOBILE PHYSICAL DAMAGE Actual Cash Value, Unless Endorsed
Item 5. DEDUCTIBLE (SUBJECT TO GENERAL ANNUAL AGGREGATE DEDUCTIBLE, IF ANY, SHOWN ON
COMMON COVERAGE DECLARATIONS).
$ 500 per occurren
Item 6. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
A 0010 11 - 09 C M C 0 1 - 03 M E063(1 1 - 1) M E066(11
M E073 I I - 01 M E079(11-09
LMCIT DEC -016(11I86)(Rev07/09)
DEFINITION OF CITY ENDORSEMENT
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It is understood and agreed that city is amended to include:
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LICIT ME063(11 /95)(Rev. 11/01) Page 1 of 1
i
COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE
® 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
® Coverage B Medical and Related Expense
® Coverage C Automobile Liability— Bodily Injury and Property Damage
® Coverage D Land Use, Development, Franchise or Enterprise Operations Litigation
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( 11196) (Rev. 11105) Page 1 of 1
INVOICE #: 34798
LEAGUE OF MN CITIES INSURANCE TRUST (0011) PREMIUM NOTICE
C/O BERKLEY RISK ADMIN.CO.,LLC Invoice Date: 8 /24 /10
222 SOUTH NINTH STREET Due Date: 09123/10
SUITE 1300
MINNEAPOLIS MN 55402 -3332
512 - 766 - 3000 FAX; 612 - 3281
Bill To Agent 00874
OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY
14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS
OAK PARK HEIGHTS MN 55082-6476 232 S LAKE ST
FOREST LAKE MN 55025 -2605
Type of Coverage: MUNICIPALITY
Convenant Number MEL 6914 Coverage Period: 7107110 To 7/07111
Covered Party: OAK PARK HEIGHTS, CITY OF
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
9/23/10 9 PREMIUM
Total: $9,747,00
Payment /Adjustment
Applied: $100
Total, $9
- - - w - - r - w w w w - - - - - � - - - w - - - - R - + w w - - - - � - - - - - w - - w w w w w - - - - - - - � - - r - - a► � + r w - - - - - - - � - - - - - w w w w w - - - � - �
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:
LEAGUE OF MN CITIES INSURANCE TRUST (0011) INVOICE: 34798
C/O BERKLEY RISK ADMIN.CO.,LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458-1517
612 - 766 -3000 FAX: 612.765 -3281
Type of Coverage: MUNICIPALITY
Covenant Number; MEL 6914 DUE DATE: 09/23/10
Coverage Period: 7/07110 To 7/07/11 UNPAID BALANCE; 9.747,00
Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 9,747,00
MUNICIPAL EXCESS �`'"
MINNL•SU'I'A
CITI ES
LIABILITY COVERAGE
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PREPARED ESPECIALLY FOR:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
OAK PARK HEIGHTS, MN 55082
07/07/10-07/07/11
Agent:
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SERVICES
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025 -2605
r
League of Minnesota Cities
145 University Avenue West
St Paul, MN 55103 -2044
Phone: (651) 281 -1200
Fax: (651) 281 -1298
Web Site: http:llwww.lmc.org
* *IMPORTANT **
PLEASE READ YOUR AGREEMENT
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MUNICIPAL EXCESS LIABILITY COVERAGE
Various provisions in this covenant restrict coverage. covered. Words and phrases that appear in italics have
Read the entire coverage agreement carefully to special meaning, as given in SECTION III -
determine rights, duties, and what is covered and not DEFINITIONS, or in the under•tying coverage.
SECTION I - LIABILITY COVERAGE
1, COVERAGE AGREEMENT c. Any failure to supply claim.
a. Subject to the terms, conditions, limitations, d. Any mold claim.
and exclusions contained herein, LMCIT will
pay amounts in excess of what LMCfT is e. Awards for attorney's fees pursuant to statute,
obligated to pay under the terms of the except for attorney's fees with respect to
underlying coverage. federal civil rights suits or state human rights
silt a.
b. The amount that LMCIT will pay is limited as
described in SECTION II - LIMITS OF f. Any linutedpollution liabilitip claim except for
COVERAGE. damages:
c. LMCTT will only pay if the date of the claim is (a) Arising out of pesticide or herbicide
on or after the retroactive date, if any, shown application operations;
in the Declarations.
(b) Arising from the accidental rupture,
d. Except as otherwise provided herein, this backup, or overflow of the city S' sanitary
coverage is subject to the same terms, sewer, storm sewer, or water supply
definitions, conditions and exclusions of the systems; or
underlying coverage.
(c) Caused by an actual, alleged, or threatened
2. EXCLUSIONS discharge, dispersal, release or escape of
pollutants which took place entirely above
In addition to the exclusions contained in the ground and not within or on the surface of
underlying coverage, the following exclusions any lake, stream, surface water, or other
apply to this coverage: body of water, and in which any resulting
damages occurred entirely above ground
a. Any obligation to pay expenses under any and not within or on the surface of any
medical payments coverage. lake, stream, surface water, or other body
of water.
b. Any obligation imposed by law under any
automobile no- fault, uninsured inotorist, g. Any outside organization clainz.
underinsured motorist, workers' compensation,
disability benefits, or unemployment
compensation or any similar law.
SECTION II --- LIMITS OF COVERAGE
1. The Limits of Coverage shown in Item 5. of the a. Covered parties:
Declarations and the rules below fix the most
LilICIT will pay under the terms of this covenant b. Claims made or suits brought;
regardless of the number of:
LtitC'1T N1 ELC• (1 1 /86) (Rev. 1 v±07) 1 1 of'
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c. Persons or organizations making claims or 3. Each payment, including defense expenses and
snits. st[pplet ?iettllll -it pavipienls, LVICITniakes under this
covenant reduces, by the amount of the payment,
?. The Aggregate Limit is the most LMCIT will pay the Aggregate Limit.
under this covenant. The Aggregate Limit includes
defense expenses and supplen entw-v payments.
SECTION III - DEFINITIONS
Undet•Iving coverage means the Comprehensive Liability Coverage of the workers Compensation and
Municipal Coverage and Part Two - Employers Employers Liability Coverage as provided by LMCIT.
SECTION IV - EXTENDED REPORTING PERIOD
The additional premium for the supplemental extended
reporting period will be a percentage the annual
expiring premium for SECTION I - LIABILITY
COVERAGE.
Number of Years Since
Retroactive Date Shown
on Declarations Page Additional Cost
1 50%
? 70%
3 80%
4 90%
)+ 100%
LNNICIT MELD' (1 ! /86)(Re . I F- () 7) rage 2 0'
OPEN MEETIN LAW LE AGUE��F
MINNESOTA
DEFENSE COST C ITI ES
REIMBURSEMENT AGREEMENT
PREPa4RED ESPECIALLY FOR:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
OAK PARK HEIGHTS, MN 55082
07/07/ 10,-.- 07/07/11
Agent:
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SERVICES
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025 -2605
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103 4044
Phone: (651) 281 -1200
Fax: (651) 281 -1298
Web Site: http: /lwww.lmc.org
* *IMPORTANT **
PLEASE READ YOUR AGREEMENT
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OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
Ie OPEN MEETING LAW DEFENSE COST 4. The city and the ci a �c ial shall at
�}' ,�`' all times
COVERAGE cooperate with and rote y respond and to LMCIT's
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requests for information, investigative data,
LMCIT will reimburse a city official for 100 percent of or any other material documentation.
the defense costs incurred by the city official in
defending an Open Meeting Lcnv defense
lanvsuit, if the S. The city official will be reimbursed only for de
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following conditions are met: casts incurred with respect to legal services actuall
rendered and expenses actually incurred.
1. The date on which the Open Meeting La�v
Iawsuit is commenced must be within the term 6. The city official shall have complete freedom to
of this agreement; and; choose an attorney licensed in the State of
Minnesota to provide the city official with legal
2. The date on which the violation took place or is services with respect to which defense costs are
alleged to have taken place must be on or after reimbursable under this Agreement.
the retroactive date, if any, shown in the
Declarations. 7. It is the express intent of the parties to this
Agreement that, neither the city nor the city official,
An Open Meeting Lmv lawsuit is deemed to be waive any immunities, defenses or limitations
on
commenced on the date the city official i s served notice liability available under Minnesota statutes or
of the lawsuit. common law.
II, LIMITS 8. In the event that a city official makes a recovery of
defense costs from any third party, LMCIT shall be
The Open Meeting Law Defense Cost Reimbursement reimbursed for any payment it has made under this
Agreement Limit is $50,000. This is the most LMCIT Agreement after the city official has been full
will reimburse any one city official for defense casts for reimbursed for his/her 1 00% share of the d en � ease
O f
Op en Meeting Law lawsuits commenced during the term costs.
of this agreement, regardless of the number of lawsuits,
the number of actual or alleged violations, or the date the 9. LMCIT may cancel this Agreement b mailing g or
defense costs are actually incurred. delivering written notice to the city at least:
III. CONDITIONS AND EXCLUSIONS a. Ten ( 10) days before the effective date of
cancellation for nonpayment of premium for the
1. The term of this Agreement shall be one year city's covenant that provides the followin
beginning with the effective date stated in the coverages:
Declarations. Subsequent renewals of this
Agreement shall be treated as separate terms. Municipal Property, Crime, Bond and Petrofund
Coverage;
2. LMCIT shall have no duty to provide a defense to a Equipment Breakdown Coverag
g
city official with respect to a legal action against that Comprehensive Municipal Covers e;
city official seeking penalties based upon an alleged Automobile Liability Coverage; or
violation of the Minnesota Open Meeting Law; Automobile Physical e. Damage Coverage.
g
however, LMCIT shall have the right to intervene at
its expense in the investigation or defense of such b. Thirty (30) days before the effective date of
legal action• cancellation for any other reason.
3. The city or the city official shall give prompt notice If LICIT decides not to renew this Agreement
to LMCIT of any actual or threatened legal action LMCTT will mail or deliver to the city written
against the city o seeking penalties against the notice of non - renewal not less than thirty 30
city official for an alleged violation of the Minnesota days before the expiration date.
Open Meeting Law.
LMCIT OMLRA- 1(11193)(Rev. I 1 /09) ,�
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10. It is mutually understood and agreed that the city and c. To hire employees;
em to
all other LMCIT pool participants are P y
P P P e jointly and
severally liable for all claims and expenses of the d. To purchase or otherwise acquire and hold Id real or
pool. The amount of any liabilities in excess of ersonal property;
P or
assets may be assessed to LMCIT pool participants
when a deficiency is identified. e. To sue or be sued.
Iv. DEFINITIONS S. "LMCIT' means the League of Minnesota Cities
Insurance Trust.
I . "City" means the city or other governmental body or
entity first named in the Declarations. Unless 6. "Open Meeting Law lawsuit" means a lawsuit
specifically named in the Declarations, city shall not seeking Penalties against a city official based on an
include a gas, electrical, or steam utilities allegation that the city official has violated
commission; port authority, housing and M.S.13 D.o 1- 13D.07, commonly known as the
redevelopment authority, economic development Minnesota Open Meeting Law.
authority, area or municipal redevelopment
authority, or similar agency; municipal power
agency; municipal gas agency; hospital or nursing
home board or commission; airport commission;
welfare or public relief agency; school board; or
jointpowers entity; but a joint planning board
created pursuant to an orderly annexation agreement
or joint resolution between the city and a township is
deemed to be a covered joint powers entity under
this agreement.
20 "City official" means any former or present elected
or appointed official of the city or any present or
former employee of the city.
3. "Defense costs" means reasonable and necessary
attorney fees, court costs, court reporter and
transcript fees, general witness and expert witness
fees and expense, and similar defense related costs.
Defense costs does not include any fines or
penalties, or any attorney's fees awarded to a
plaintiff in a suit charging a violation of the Open
Meeting Law.
4. "Joint powers entity" means an operating entity
created by two or more governmental units entering
into an agreement as provided by statute for the joint
exercise of governmental powers. An
intergovernmental agreement will be deemed to
create a joint powers entity if the agreement
establishes a board with the effective power to do
any of the following, regardless of whether the
specific consent of the constituent governmental
units may also be required:
a. To receive and expend funds;
b. To enter into contracts;
LMCIT OMLRA- i ( 11193)(Rev.1 1 /09) Page 2 of 2
DEFINITION OF CITY ENDORSEMENT
a
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHDRITY
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LMCIT ME063(11l95)(Rev. 11/01) Page 1 of 1
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 1 im it: For any terrorism loss occurrence in which the L CIT t errorism occurrence loss cost
is greater than $50,000,000, the amount LMCIT will pay for the city's covered losses is limited to an
amount equal to the city's covered loss multiplied by the terrorism loss coverage percentage for that
terrorism loss occurrence.
Z. 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 ofpollutants
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 $1 5,000,000, 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 ME479 (1114 ])(Rev.11 /09) Page t of 3
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
( 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
(d) 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 ME479 (11141)(Rev.11 /09) Page 2 of 3
r
2. Any of the activities listed in section A. 1.c. above shall be considered terrorist 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 lasses 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 lass occurrence, gross of any applicable deductibles.
D. For any terrorism loss occurrence, the terrorism lass coverage percentage is equal to $50,000,000
divided by the LMCIT terrorism occurrence loss cost for that terrorism loss occurrence.
LMCIT ME079 (11Io 1 )(Rev. 11/09) Page 3 of 3
00
0
L E-AGU E of
MINNESOTA
CITIES
MUNICIPAL PROPERTY, CRIME, BOND,
AND PETROFUND COVERAGE
LMCIT MPCBP (I IAS) (Rev. 11-09)
o�
L EAGU
E OF
MINNESOTA
CITIES
MUNICIPAL PROPERTY COVERAGE
PART ONE
LMCIT MPCBP (I 1 -05) (Rev. I I -09)
a
MUNICIPAL PROPERTY, CRIME, BOND
AND PETROFUND
COVERAGE
WHA T IT IS AND WHERE Y OU CAN FIND IT INDE
i'�
LEAD U E OF
M1NNESMA
CITIES
PROPERTY COVERAGE PART ONE
PAGE
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a■ COVE PROPERTY .......
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b • PROP NOT COV f. / lt r i *r ■r..f,• 0101,■■ a..,* ii.. r.,.• R. R„ a. r., . # * a• ,....•.,a•,,..., * * #.a ..... +••!..0, -�
SECTION II ADDITIONAL COVERED LOSS OR DAMAGE . 01 0101 ##. ,, .. ,, ,.. *. #!. # #, . ...•f.,..!l.., r #.. .01,0101.,...., 2
I ! COVERAGE AGREENYENT.... R l. l..../ .. r ,i,•.,,R „• #.!lt,.i „ • R. , .! /! l it . ,,,, R. i r.0101 +. R, # .t. #liraa,..r.arf #!.0101... Z
a. LOSS Off'REVENUE, EXTRA EXPENSE AND EXPE'DIT'ING EXPENSE Z
b01 DEMOLITION AND DEBRIS REMOVAL .. #! # #. ra. 01 .a. , •. , .ir # # ■.. # 001. sir••••. •rr *a. #.a01, 2
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e, VAL UABLE PAPERS AND C' �R�S f•• Rf. l. i. s 1. R. l., f.,,■■,.,... tRli...,, f„■.,•. r. ll .ri,,,.•,•••.rsr,.iiti..irrr,.a 3
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2 9 COVERAGE AG ■. 01 01■,!.../!! .,#.. • r,■ l,..#! i r#„ r . a,.#. l t,# .,• ....••.■.,l. . .# i.i, r..01• R,.l .0,!0 # „•01...• ■,a.., #0.0101 #.,,•
a. ASBESTOS CLEANUP, ABATEMENT AND REMOVAL ..., ..r. , #..a.r. ■., 0101 # ....,...,•,l... ,i..ra,,... ,..! 3
b! POLLUTANT CL AND REMOVAL ... 1#! i# r,,. a„ f• s lii#* s.. s• rw R# Mirta. rf. rRliRa #itrr, #.,,r,•sRRw..R #,.,,, 3
\r, E RRORS ! R.!!!. 1, r.■„ ■■..• !. Rl,. r„ 01„ /.., # # # #, 1. Ii a„ ..•.. l, .!#., ra„• si..###.,... a r..•. .. l ..##. . a.asr.s•.. ■f,., #..,aa• „■. V
d # RENTAL RE URSEMENT !! i.# ara,.•■.,. s# 0 l .a.r.., + . ,, ... *.. # „ ■. , •...l , ii. rear ,,, ... R #! #,.r. r.r.r ,•!.. #t.iri #..01.01, ■f.a..,, #..,, 4
e. ARSON 1 REW
.,,,,■ #!!Rl,l,i.rf.,.,•RR #! 001 #,001.., ■isrR #,. 0101!„ a. •0100, Rl.tt #. 0101. s..,. RR#!. r #a.r ■f. ■.■R „tR #,.r.sa,.• ■fs•.t
E EXTRAORDINARY EXPENSE.#. # * r. *... ## 00 010101, ....# .. #, a. ,, • ., .l.,i., ra. .. r.r.00. 01 01sees* ■ .•.faar, #..r.ra,.aa.•abe * **.rra 4-5
SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED . r #.a...r..a... # #ai #01.01.,.~.• �"�
SECTION IV - 'CATER AND SUPPLEMENTAL FLOOD COVERAGE 6 -7
SECTION V -, BUILDINGS IN THE COURSE OF CONSTRUCTION,
ALTERATION OR REPAIR 000-bee lboeeipowoloows 0**06 *0001 0-ppeo *off* a**** a *0001091 !
SECTION VI - LIMITS OF COVERAGE AND VALUATION . r., ...$*$*#*• r # * r..•■ .• *0R # # # ■Ota.....r. # * 010101... 0•. .8 -12
SECTION - DEFINITIONS i , aa.., +. # *. r #.a■s.• # # * rfs * 0199. f•. rr# 0rr. a, a... R,#* r. a„•■■ fa..*** a R # a. r •a..a..s. * * vote r.. *00so* 12 -17
SECTION - CONDITIONS ,,,,.. *r #aaar.s.... 010! * eve use* a.0.0s *. #.ars■ fee R *0 eve ■a.•. *f■ „* ,0101 #.a.a01r..s..a00*00900 ease off *......0.0000 -20
LMCIT MPCBP (1 1 -05) (Rev.11-09) Page i
MUNICIPAL PROPERTY COVERA
FART ONE
Various provisions in this covenant restrict coverage. words and •
g phrases that appear in italics have special
Read the entire covenant carefully to determine rights, meaning, as given in SECTION VII - D
duties and what is or i -
s not covered
g EFI�IITIONS.
d.
SECTION I = PROPERTY COVERAGE
I. COVERAGE AGREEMENT ( We wil ) pay for loss to covered grope that is
. �y
temporarily at an unscheduled location that you do
We will pay for direct physical loss of or damage to not own le .
our covered g lease or operate, as described �n
y property unless the cause of loss or SECTION VI - LIMITS OF COVE
damage is not covered as described AGE AND
bed under SECTION VALUATION.
III - CAUSES OF LOSS AND DAMAGES NOT
COVERED. The amount we will pay for loss or b. PROPER
is PROPERTY NOT COVERED is limited as described in SECTION VI -
LIMITS OF COVERAGE AND VALUATION. We will not corer the following types of property,
a. COVERED PROPERTY (1) Aircraft;
(1) We will cover the following types of property: (2) Animals exce t for police dog
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(a) Puildincontents described in the Schedule of (3) automobiles vehicles ors •
elf- propelled machines
Covered Property. that are licensed for use on '
pubtic roads;
(b) Property in the open described in the Schedule (4) Bills, currency ev enC of debt, mo ney,
of Covered Property. notes or securities;
(c) Mobile property valued at $25,000 (S) Builders er risk ro
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replacement cost or less if identified as covered on
the Schedule of Covered Mobile Property; and (6) Bridges, roadways, walks patios
Y s , p s o other paved
mobile
prop valued at greater than $25,000 surfaces, except go ff course er ro
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replacement cost and is listed on the Schedule of
Covered Mobile Property. (7) Contraband or roe in the course P P �Y a of illegal
(2) We will pay for loss to newly acquired or transportation or trade;
constructed building1contents or property in the (8) Cost of excavations, grading, backft l l i n or fill
g
open at any one location as described in
SECTION VI - LIMITS OF COVERAGE AND (9) Land, subsoil, craps or lawns, course
except of
VALUATION. P g .�'
iON. property,
(3) We will pay for loss to newly acq uired or (10) Pilings, piers, wharves or docks;
constructed mobile property as described in
SECTION VI - LIMITS OF COVERAGE AND (11) Underground and buried pipes, flues or drains
VALUATION. including those that are part of the city's g eneral
collection system; except for underground and
(4) We will pay for loss to covered property n transit buried pipes, flues or drains that are.
rtY part of the
as described in SECTION VI - LIMITS OF water treatment plant wastewater treatment l an
l • P t'
COVERAGE AND VALUATION, i1� station or gas reduction station.
LMCTT MPCBP (i i -05) (Rev It -09)
Page W 20 20
(12) Foundations of buildings, structures, machinery or roe •
boilers If their foundations are below:
(14) Transmission and distribution tines and poles and
(a) The lowest basement floor; or equipment that are usual to the transmission R mission of
electricity. This does not include substations and
(b) The surface of the ground, if there is no transformers.
basement;
(15) Trees and shrubs that are not within 100 feet of a
(13) Retaining walls that are not part of the covered building,
SECTION II - ADDITIONAL C OVERED LOSS OR DAMAGE
1 COVERAGE AGREEMENT (a) The excess of the fair rental value of similar
lar
premises over the actual rent payable by you as
We will provide coverage for the following loss or lessee includin an maintenance o
lessee ( including y r operating
damage unless the cause of loss or damage is not charges aid b the lessee during the u n e xpired
p y � g expired
covered, as described under SECTION III - CAUSES term of the lease; and
OF LOSS AND DAMAGES NOT COVERED. The
amount we will pay for loss or damage is limited as (b) The rental income that would have been
described in SECTION VI - LIMITS OF COVERAGE earned by you from sublease agreements, over and
AND VALUATION. above the rental P
expense specified in the lease
R
a. LOSS OF REVENUE, EXTRA EXFEIYSE AND between you and the lessor.
EXPEDITING EXPENSE (3) when covered property is rendered wholl y or
partially untenantable by a direct physical loss or
We will pay for the actual loss o. f revenue, extra damage and the lease is canceled b t '
� y he �eSSf�r In
expense or expediting expense sustained by you due to accordance with the conditions of the lease or b
our operations during t y
the necessary suspension of
3' P g e statutory requirements of the state in which the
period of recovery caused by direct physical toss or damaged or destroyed covered roe is to
y p roperty rty sated,
damage to any covered property, we will cover the ro rata proportion from p p p m the date
of loss to expiration date of the lease (to be paid
b. DEMOLITION AND DEBRIS REMOVAL without discount ) on your interest in:
We will cover the following expenses: Improvements and
(a) p betterments to covered
property during the unexpired term of the lease
(1) The cost of necessary demolition and removal of that is not covered under `
any other section of Part
debris of covered property and non- covered One of the covenant; or
property from a covered location resulting from
direct physical loss or damage to covered (b) The amount of advance rental
pall by you and
Property; or not recoverable under the terms of the lease for the
(2) The cost of removal of debris of non - covered unexpired term of the lease,
property from your covered location which results (4) We will cover our our leasehold interest when
� y
from a specified cause of loss. covered roe is rendered wholly '
R P rtY y or partially
untenantable and the lease is canceled by the lease
c. LEASEHOLD INTEREST orb statutory r equirement s of the stet � '
Y ry a in which
(1) We will provide coverage for leasehold interest the damaged or destroyed covered property is located.
resulting from direct physical loss or damage to
covered property. (5) We will cover our leasehold d Interest for the first
three months succeeding the date of the loss and
(2) Leasehold interest means: the net to .
lease interest for the remaining months of
LMC1T MPCBP (11- 05)(Rev 11-09) Page Z of 20
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 our exp ense to clean u
y P p, , abate or
lease,
remove from covered property asbestos particles that
are discharged, dispersed, or released, subject to the
d. ACCOUNTS RECEI fallowing conditions:
We will pay for loss or damage to your accounts (1) The discharge, dispersal or
release must have
receivable caused b direct h � P
Y physical loss or damage to occurred accidentally and must begin and end
your accounts receivable. within 72 hours;
e. VALUABLE PAPERS AND RECORDS (2) The discharge, dispersal or release must not
g P be the
result of planned building renovation, remodeling
We wi l l pay for loss or damage to valuable papers and or demol activities* and
records caused by direct physical loss or damage to 10
your valuable papers and records. (3) The exp enses must be incurred within 90
Pe days of
E LTTILn'Y SERVICES the discharge, dispersal or release.
(1) We will pay for Ions or damage to covered be POLLUTANT CLEANUP AND REMOVAL
property caused by an interruption of a utility We will pay for your a xpense to cleanup, abate or
service to your covered property. remove from covered roP e rtY pollutants other than
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asbestos, that are discharged, dispersed, or released,
(2) We will pay for the actual loss of revenue, extra subject to the following conditions;
expense or expediting expense sustained by you
due to the necessary suspension of your operations (1) The discharge, dispersal or release must have
during the period of recovery caused by an occurred accidental) and must begin and end
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interruption of a utility service to your covered within 72 hours;
property.
(2) The discharge, dispersal or release must not be the
This interruption must be caused by direct physical result of planned building enovation, remodeling
g
loss or damage to utility service property. or demolition activities; and
g. GREENBU LDING EXPENSES (3) The expenses must be incurred within 90 days of
the discharge, dispersal or release.
We will cover the following expenses:
(1) reasonable and necessary extra cost for the e. ERRORS
recertification of the damaged covered property as We will pay for loss to an covered property if the loss
Y P PertY
required by a Green Authority. is not covered solely because of:
(2) Reasonable and necessary extra cost to recycle the (1) Any inadvertent error in the description or
damaged covered property as required by a Green location of the buildin (contents, property in the
Author;
- � P P t3'
open, mobile property, or builders risk ro e
P P ty
covered by the covenant, which inadvertent error
Z. COVERAGE AGREEMENT existed at the or inception date of the covenant;
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We will provide coverage for the following loss or (2) Any inadvertent error in the description or
damage. The amount we will pay for loss or damage location of the buildin contents, p rop erty in the
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is limited as described in SECTION VI - LIMITS OF open, mobile property, or builders risk ro er in
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COVERAGE AND VALUATION. endorsements to the covenant; or
LMCIT MPCBP (11- 05)(Rey 1 I -W) Page 3 of 20
r
(3) Failing through an inadvertent error to schedule determination of whether these conditions are met
(a) any building1contents, property in the open, will be at LMCM sole discretion.
mobile property, or builders risk property owned
by the city at the inception of the covenant, or (b) (2) The city at its discretion may elect to pursue
any newly acquired or constructed b uildingl recovery from third parties of any cost or expense
contents, property in the open, mobile property or paid under SECTION 11, 2, E The city is solely
builders risk property during the term of the responsible for any costs incurred in pursuing
coverage document, recovery. The city may include such costs as part
of its extraordinary expense claim, subject to the
(4) It is a condition of this coverage that such limit established in SECTION 11, 2. f. (3). The
inadvertent error shall be reported and corrected provisions of Common Conditions 12 and 13 do
when discovered. not apply to claims paid under SECTION I1, 2, f.
d. RENTAL REI7VIBURSEMENT (3) Limit:
We will pay for rental reimbursement expenses LMCIT will not pay more than $250,000 for
incurred by you for the rental of mobile property that claims under SECTION II, 2. f., during the
was a result of a covered loss to your mobile property, coverage year, regardless of the number of claims,
occurrences or incidents.
(1) No deductibles apply to this coverage.
(4) Reimbursement of extraordinary expense
(2) This coverage does not apply while there is spare payment.
or reserve equipment available to you for your
operations. For any claims for extraordinary expense which
are paid under SECTION II, 2. f, ,the city must
e. ARSON REWARD reimburse LMCIT as provided in this paragraph,
The amount to be paid to LMCIT wi equal the
In the event that a covered fire loss was the result of an amount needed to reimburse LMCIT for the full
act of arson, we will reimburse you for rewards you amount of any claims that LMCIT pays under
pay for information leading to convictions for that act SECTION 1I, 2. f. The city may, at its discretion,
of arson. reimburse LMCIT through payment of equal
annual installments over a period of up to f ve
E EXTRAORDINARY EXPENSE years from the date the claim is paid. Each
installment will be billed and payable at the same
( 1) Extraordinary expense payment: time as the city's annual renewal A remium for
LICIT property/casualty coverage, If the city
As a benefit associated with being a member of ceases to be a member of the LICIT
L�lCIT's propertylcasuaIty program, upon
s p the full amount,
is - property/casualty P g
ubm span of a cla�rn LICIT w ill pay for any
Y accrued interest, will be
extraordinary and unanticipated cost or expense together with an
the cit incurs which; immediately due and payable on the date that the
city ceases to be a p Y
member.
(a) Is necessary for the purpose of protecting the No interest will apply l if reimbursement is made
city public health and safety, protecting p ro pew', wr*thin one year of the date the cost or expense was
or meeting the city's legal obligations; and incurred. If the city elects to pay the
reimbursement in more than one annual
fib) Is not covered by any other provision of this installment, interest at the rate of 3 annuall
Y
covenant, any other LICIT coverage covenant, or
an shall be included in the amount owed beg innin g
policy g
Y insurance A Y , � one year from the date the cost or expense was
The city must provide to LMCIT any information incurred.
or documentation needed or requested in order to Termination of benefits:
determine if these conditions are met. The
LMCIT MPCBP (I 1-05) (Rev 11- ) Page 4 of 24
The LMCIT Board of Trustees may terminate the Termination
rm � nation of this coverage shall not affect any
benefit provided under SECTION II, 2. f, at an claims .
y ms that the c ity has submitted to LCfT before
time upon 10 days written notice to the city, if the the effective
ective date of #erm � nation of coverage.
Board determines that it is necessary to protect the
interests of LMCIT or its member cities.
CAU SES OF DOSS AND DAMAGES NOT COVERED
1. CAUSES OF LOSS NOT COVERED But if loss or dams •
damag by fir results, we will pay for
We wi ll not pay for loss or damage caused directly or that resulting loss or damage.
indirectly by any of the following. Such loss or c. WAR
damage is excluded regardless of any other cause or
event that contributes concurrently or in any sequence (1) war, including undeclared or civil war
to the Ions.
(2) warlike action by a military farce, including
a. WATER action in hindering or defending against an actual
or expected attack, by any government, sovereign
(1) Flood, surface water, waves, tides, tidal waves, or other authority usin g military personnel or other
overflow of any body of water, or their spray, all agents; or
whether driven by wind or not;
(3) Insurrection, rebellion, revolution, usurped power,
(2)' 'Mudsl or mudflow; or action taken by governmental authority in
(3) water that backs up or overflows from a sewer, hindering or defending against any of these.
drain or sump; or 2. DAMAGES NOT COVERED
(4) water under the ground surface pressing on, or We will not P a y for the followin g damages:
es:
flowing or seeping through:
a. Damage to your electrical devices, appliances or
(a) Foundations, walls, floors or paved surfaces; wires caused b artificial) generated electric
y y g c
(b) Basements, whether paved or not; or current including electric arcing.
This exclusion does not apply to computer
(c) Boor, windows or other openings; e qu i pment data an media.
except for coverage that is provided by water and b. Damage caused b the discharge, g y g , dispersal,
supplemental flood coverage as described in seepage, mi ration release or escape a
SECTION Iv - migration, p fpollutanfs.
WATER AND SUPPLEMENTAL
L
FLOOD COVERAGE, This exclusion does not apply if the dis charge,
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dispersal, seepage, migration, release or escape of
But if loss or damage by fire, explosion or po llutants is itself caused b a s cause of
P y
sprinkler leakage results, we will pay far that Loss.
resulting loss or damage.
This exclusion does not apply to pollutant cleanup
This exclusion does not apply to mobile property, and removal as rovided in SECTION
p II, 2.b.
b, NUCLEAR HAZARD c. Damages caused b dishonest or cr g y m anal acts by
you, or your employees:
Nuclear reaction or radiation, or radioactive _
contamination, however caused, (1) Actin alone or in collusion with other Acting , ar
LMCrr MPCBP (11- 05)(Rev i I-") Page 5 of 20
(2) whether or not occurring during the hours of g. Damages caused by:
employment,
(1) Rust, corrosion, decay, deterioration, disease,
This exclusion does not apply to acts of hidden or latent defect, or any quality in propert
destruction by your employees; but theft by that causes it to damage or destroy itself;
employees is not covered.
(2) Mold or other fungus or fungi, fungal spores,
d. Damages caused by explosion of steam boilers, or fungal fragments or metabolites such as
steam pipes, steam engines or steam turbines mycotoxins or volatile organic components;
owned or leased by you, or operated under your
control. (3) Settling, shrinking r expanding; g ; or P g
But if loss or damage by fire or combustion (4) wear and tear.
explosion results, we will pay for that resulting
loss or damage. This exclusion does not apply if the above dame
PP y e g
•
We will also pay for loss or damage caused by or results from a specified cause o, floss,
resulting from the explosion of gases or fuel The exclusion for damages caused b disease
g y does
within the flues or passages through which the not apply to olice dogs.
gases of combustion pass.
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h. Unexplained loss, mysterious disappearance, or
e. The cost to repair or replace faulty workmanship, shortage disclosed upon taken invento ry.
materials, construction or design.
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i. Seizure or destruction of property by order of
This exclusion does not apply to computer governmental authority.
equipment data and media.
But we also will pay for acts of destruction
f. The cost to repair or replace mechanical ordered b governmental '
y g authority and taken at
breakdown, including rupture or bursting caused the time of a fire to revent i '
b centrifugal p is spread, if the fire
y ntrifugal force. would be covered under this P
coverage art.
This exclusion does not apply to computer j. The cost of fire department service
data P ervice charges that
equipment and media. the city is legally a obligated to .
g Py.
SEC ON IV - WATER AND SUPPLEMENTAL FLOOD C
I, COVERAGE AGREEMENT contents ro er •
p p ty in fire open, or builders risk
a. For your bur'ldtng1contents, property in the open, property which are caused by:
or builders risk property subject to the exclusions (a) Flood, surface water, waves .
and limitations in a tides, tidal
paragraph b. below, we will pay waves, overflow of any body of water, or their
for; s ra ,all whether driven b w' •
P y y i nd or not,
(1) Direct physical loss of or damage to your (b) Mudslide or mudflow•
uildinglcontents, property in the open, or builders
risk property described in the Schedule of Covered (c) water that backs u or overflows from rom a
Property; and sewer, drain or sump; or
(2) Any additional covered losses or damages as (d) water under the ground surface pressin
described in SECTION II ADDITIONAL on, or flowing or seeping through:
COVERED LOSS OR D P g g
DAMAGE as a result of
direct physical loss of or damage to your building! i) Foundations, walls, floors or P aved
LMCIT MPCBP (1 I- 45)(Rev 11-09) Page 6 of 20
surfaces; wi ll not a for an P Y Y loss or damage resulting from
ii) Basements whether paved or not; or
any occurrence which wou be considered a
flood for the •
purpose of the National Flood
iii} Doors, windows or other openings. Insurance Program,
But (4} For any newly acquired o constructed
tf loss or damage by fire, explosion or cover property, covered property in transit, or
sprinkler leakage results, we will not pay for that cover • temporarily at an
covered property that �s temporari
resulting loss or damage under this SECTION IV. unscheduled
eduled location, as provided by SECTION 1,
b. (1) For any building1contents, property in the I ,a., COVERED PROPERTY; or builders risk
property as p by SECTION V, l ,,
open, or builders risk property for which Code A BUILDINGS
IN THE COURSE OF
is shown on the Schedule of Covered Property, no CONSTR
UCTION, ALTERATION, DR REPAIR
additional exclusions apply to the coverage COVERAGE that are not shown on the Schedule
provided under
p this section. of Covered Proper we w'
P rty� will pay any loss or any
(Z) For any building1contents, property in the damage as if the water and supplemental flood rs e w as shown as Code C on the Schedule of
g
open, or builders risk property for which Code B cove
is shown on the Schedule of Co Covered Property
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Covered Property, the
coverage provided by this section is specifically in 2, LIMITS OF COVERAGE
addition to and in excess of the applicable
National Flood Insurance Program coverage. The maximum amount we will P a Y for all losses or
damages covered under this SECTION IV is limited as
(3) For any building1contents, property in the described in SECTION VI - LIMITS OF COVERAGE
O ERAGE
open, or builders risk property for which Code C AND VALUATION,
is shown on the Schedule of Covered Property, we
SECTION V - BUILDINGS IN THE COURSE OE CONTRUCTION
A OR REPAIR COVERAGE
L COVERAGE AGREEMENT construction to the extent of the city's obligation
for a covered physical loss or damage to such
a. We will pay for direct physical loss of or damage covered property as specified in the applicable
to your builders risk property unless the cause of contract. Such interest of contractors and
loss or damage is not covered, as described under subcontractors is limited to the property for which
SECTION III - CAUSES OF LOSS AND they have been hired to perform such work and
DAMAGES NOT COVERED. The amount we such interest will not extend to any loss of
will pay for loss or damage is limited as described revenue, extra expense, or expediting expense
in SECTION VI - LIMITS OF COVERAGE AND sustained by the contractor and subcontractors as
VALUATION, provided by this covenant.
b. We wi pay for loss to builders risk property in I PROPERTY NOT COVERED
transit as described in SECTION VI - LIMITS OF
COVERAGE AND VALUATION, We will not cover the following types of property:
c. We will pay for loss to builders risk property that a. Any builders risk property if the ap
is at a temporary location other than the estimated total project cost exceeds $2,000,000 as
construction location as described in SECTION VI of the date construction commenced,
- LIMITS OF COVERAGE AND VALUATION.
d. We will also cover the interest of contractors and b. Land, subsoil, craps or lawns.
subcontractors in builders risk property during
LMCIT MPCBP (1 ] - 05)(Rcv 11-09) Page 7 of 20
i
3. ADDITIONAL COVERED LOSS DR We will pay for loss or damage to your builders risk
DAMAGE COVERAGE property as described in SECTION IV - WATER
AND SUPPLEMENTAL FLOOD COVERAGE.
We will pay for covered losses and damages as
described in SECTION II - ADDITIONAL 59 ADDITIONAL DEFINITIONS
COVERER LOSS OR DAMAGE as a result of direct
physical damage to your builders risk property. Project cost means the cost of construction, materials
and architectural, legal, financial and other
4. WATER AND SUPPLEMENTAL FLOOD professional services relating to the construction
alteration or repair project.
SECTION VI - LIMITS OF COVERAGE AID VALUATION
I. LIMITS OF COVERAGE occurrence b ut not to exceed $5,004 per
a. We will not pay for more than the general limit per employee.
occurrence specified in Item 5 of the Declarations. e. The subl im its stated below are er occurrence ence and
are part of and not in addition to the general limit
b. We will not pay for more than the specif p er occurrence •
Property limit for loss or damage to any
i
p ro p er t y buxldingsrcontents, ppy n the open or (1) Covered ro ' • • property � n transit: $�SO,00O
builders risk property in any one occurrence.
(2) Unscheduled location: $500,000
c. We will not pay for loss or damage in any one
occurrence until the amount of loss or damage (3) God course ro er : $100 000
. . p p �' � per
exceeds the Deductible in Item 7 of the occurrence for direct damage to of g g ,� course
Declarations. We will
then pay the amount of toss property and debris removal of covered ro e '
or damage in excess of the Deductible u p P
p to the and non - covered property.
applicable lim its of coverage:
f. The subs imits stated below are in addition to the
(I) The Deductible applies against the total loss pe eneral limit r occurrence:
g
incurred by you from any one occurrence
regardless of the number of locations involved. (1) Arewly acquired or constructed .
q d bu�ldrngr
contents or property in the open at any one
(2) If two or more deductibles in Item 7 of the location: $5,000,000
PY
Declarations for property coverage apply to one i
occurrence for you, the total to be deducted will (2) Newly acquired or constructed
mobile
not exceed the largest deductible applicable. property: $500,000 per unit
d. The sublimits stated below are per occurrence and g. Except as rovided in paragraph ,
P p g p h. the limits for
are part of and not in addition to the specif the additional covered toss or damage g are
property limit, specified in Item 5 of the Declarations and
are
listed below. The limits are in addition to the
(1) Computer equipment data and media: general limit er occurrence •
$1 p and the speck
property limit:
(2) pi arts: $500 (1) Asbestos clean-up, :
p, meet and removal.
(3) Personal effects: $25,000 per occurrence, but $250,000 per location
not to exceed $2,500 per employee. (2) Loss of revenue, extra exp ense and expediti
P p rrrg
per
expense: $5,400,400 per occurrence
(4) Business personal effects: $25,000
P
LMCIT MPCBP (1 [ -05) Rev l 1-09
Page S of 20
(3) Demolition and debris removal: For each
annual coverage period.
occurrence, an amount equal to 25% of the
estimated replacement cost of the covered property The subli
P �Y m its stated below are per occurrence
as stated in the Schedule of Covered Property. and are art of and n .
P of �n addition to the per
However, if there is no
direct physical loss or occurrence limit:
damage to covered property, the most we will a
is $50, P y
per occurrence. (a) Golf course property. $100,000 -
These limits do not apply to golf course ro er ( . P P ty Property in transit. $250,000
(4) Extraordinary expense: $250,000 per annual j. The limits for Buildings in the Co of
a gg re gate Construction, Alteration, or Repair Coverage p g are'
.
(5) Leasehold interest: $500,000 per location (1) An one location: $2,000,000
Y
(6) Pollutant cleanup nd removal: $250 000 (2) •
P per The l imits stated below are part of and not �
• location addition to the an one locati
y n
(7) Errors: 90% of the loss, subject to $500,000 (a) Property in transit: $250 000
per occurrence
P � ,
( Rental reimbursement: $25,000 per annual (b) Temporary location: $500,000
aggregate k. The limit for vacant property is the fair market
value of the damaged property. This limit applies
(9) Arson reward: $5,000 per fire loss to any direct p hysical loss or damages as p
. P y g p ided
in Section I and to any additional covered loss or
(10) Accounts receivable: $500,000 per location damages as provided in Section .
g p n II. This limit is
part of and not in addition to the general limit per
(11) Valuable papers and records; $500,000 per occurrence and the s ec' lc prop .
location
p tf p party Ixmrt.
(12) Utility Services: $100,000 per occurrence 2. LOSS VALUATION
.
(13) Green Building Expenses; 1% of the contract a. GENERAL PROVISIONS
cost but not to exceed $100,000 per location, l Definitions:
h. The limit for damage caused by criminal acts other (a) Covered .
. i property is deemed to be destroyed if
than vandalism s $ 1,000,000. This limit applies the replacement co t '
to an direct phys P cost o rebuild or replace the
y d , p ys cat Ioss or damages as provided property is less than the sum of the replacement
p
in Section I and to any additional covered loss or cost to repair the roe .
es as provided P pro �Y Pius the reduction, if
damages g d in Section I1. This limit is any, in the fair market value of '
the repaired
part of and not in addition to the general limit per ro e
p p rty.
occurrence and the specific property limit.
(b) Replacement cost means the cost to repair or
i. The limits for water and supplemental flood lace c • s damaged or
p overed property that i
coverage are specified an Item 5 of the re destro destroyed, using new materials of .
Declarations and are stated below: y g equivalent size,
• kind and quality. Replacement cost includes any
additional costs necessary to comply with
(1 $500,000 per occurrence. ap buildi pP ding codes or other county, state, or
(2) Thew air and supplemental flood coverage federal requirements. But replacement cost does
annual aggregate is the most we will pay for water •
not include:
and supplemental flood coverage loss during the i
) Costs necessary solely to comply with the
LMC1T MPCBP (1 t- 05)(Rcv 11-09) Page 9 of 20
z
city's 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
property, the basis of adjustment wi be as (1) Valuable papers and records:
follows:
For valuable papers and records, LMCIT w i ! l pay
(a) If the covered property is destroyed and is the cost of blank materials for reproducing the
replaced or rebuilt, LMCIT will pay the following: records, plus the cost of tabor to transcribe or copy
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
cost of the covered property with similar size (2) Computer equipment, data and media:
and construction;
For computer equipment, data, or media, LMCIT
ii) If the covered property is replaced or will pay the cost to replace destroyed equipment
rebuilt at a different location, the replacement with equipment of greater ability; the
g �
cost cannot be greater than if you would have cost to reproduce or restore the data; and the cost
rebuilt at the same location with similar size to repair or replace media with the same kind and
and construction; or quality of material. Any replacement ui ment
� p
must be able to perform the same function as the
iii) If the covered property is replaced or destroyed equipment,
rebuilt at the same location with different size
or construction, the replacement cost cannot Unauthorized intrusive codes or programming,
be greater than if you would have re hacking
� y r at the commonly known as a computer virus or hacking
same location with similar size and intrusion, that are entered into our comp uter
y P
construction. equipment, data and media, are considered direct
physical loss of or damage to your covered
(b) If the covered property is destroyed and is not property.
replaced or rebuilt, LMCIT will pay the fair market
value of the property at the time of the loss. (3) Accounts receivable:
(c) If the covered property is damaged but not For accounts receivable, LICIT will P a y for all
destroyed and is repaired, LMCIT will pay the amounts due from your customers that you are
actual replacement cost to repair the property plus unable to collect; interest charges on any loan
the amount of the reduction, if any, in the fair required to offset amounts you are unable to
market value of the repaired property, collect pending our payment of these amounts;
collection expenses in excess of your normal
(d) If the covered property is damaged but not collection expenses that are made necessary by the
destroyed and remains in service without being loss; and other reasonable expenses y ou incur to
repaired, LMCIT will pay the amount of the re- establish your accounts receivable. I f y ou are
reduction, if any, in the fair market value of the unable to establish the amount of accounts
damaged property. receivable outstanding at the time of the loss, we
will use the average monthly amounts of accounts
(e) If the covered property is damaged but not receivable for the 12 months immediately
destroyed and the city elects not to repair it but to preceding the month in which the loss occurs,
raze or otherwise dispose of the property, LICIT adjusting to reflect the normal business durin g the
will pay to the city the estimated replacement cost joss month.
LMCIT MPCBP (1 Z - 05)(Rev 11 -09) Page 10 of 20
(4) Fine arts: But, we will not pay more than the actual cost to
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
LICIT will not pay for more than the amount you business 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, EX TRA EXPENSE AND
(6) Police dogs: EXpEDIT'ING EXPENSE PROWSIONS
A olive do 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
reasonable ros ct that the do will be able to do (a) The gross revenue of the city before the direct
P l� g
SO. physical loss or damage occu
(a) For police dog s that are destroyed, LMCIT {b} The likely gross revenue of the city if no
will , PY p a for the cost to replace the dog and the cost physical loss or damage had occurred;
of any necessary training.
(c) The operating expenses, including payroll
( b ) If a police dog is injured as a result of an expenses, necessary to resume operations with the
accident or an intentional act, LMCIT will pay the same quality of service that existed ,lust before the
cost of necessary treatment and care to enable the direct physical toss or damage; and
dog to resume performing the dog's normal
funct But LMCIT will not a the cost of (d) ether relevant sources of information,
functr pay
treatment and care to treat or prevent disease. including:
For any g occurrence single LMCIT will not ay i) Your financial records and accounting
P
more than the amount you actually spend to procedures;
replace the police dog or for care and treatment of
' or 200% of the fair market value of ii} Bills, invoices and other vouchers; and
the police dog,
the police dog, whichever is less.
iii} Deeds, liens or contracts.
(7) Trees and shrubs:
(2) The amount of extra expense loss LICIT will pay
( a) For a tree or shrub which is destroyed, LMCIT will be determined based on:
will pay the actual cost to replace it with a tree or
' and of a sire that is normally (a) Ail expenses that exceed the normal operating
shrub of sum i lar type a y b
' reasonable and Tactical to expenses that would have been incurred Y
considered to be Teas p
transplant, regardless of whether the tree or shrub op erations during the period of recovery if n o
direct physical ions or damage had occurred. We is replaced or not.
wi 11 deduct from the total of such expenses;
(b) For a tree or shrub that is damaged but not
will a the actual cost of i} The salvage value that remains of any
destroyed, LMC pay any durin the
service, p treatment, or repair that is actual property bought for temporary g
performed. period v, f' recovery once operations are
p resumed;
LMW MPCBP (I 1- 05)(Rev 11- ) Page 11 or20
a
ii) Any extra expense that is paid for by other the following:
insurance, except for insurance that is written
subject to the same plan, terms and conditions (1) The fair market value of covered property prior to
and provisions as this insurance; and the loss or damage;
(b) All necessary expenses that reduce the (2)The fa it market value of covered property after the
business income loss that otherwise would have loss or damage;
been incurred.
(3) The fair market value of covered property after
(3) We will reduce the amount ofyour: repair; or
(a) Lass of revenue loss, other than extra expense (4) The estimated cost to repair the covered property.
or expediting expense to the extent you can resume In this event, each party wi select a competent
your operations, in whole or in part, by using and impartial person. Each appointee shall be a
damaged or undamaged property (including professional appraiser or other person with
merchandise or stock) at the described location or appropriate professional expertise. The two
elsewhere appointees will select an ump ire. If they cannot
P
agree, either may request that selection be made
(b) Extra expense or expediting expense loss to by a judge of a court having jurisdiction. The two
the extent you can return your operations t o appointees will each separately state their
normal and discontinue such extra expense or respective estimates of the value or cost wh ich is
expediting expense- in question. If the fail to agree, the will submit
y �' f y
their differences to the umpire. A decision agreed
However, if you do not resume operations, or do tab two will be binding.
Y any g .
not resume operations as quickly as possible, we
will pay based on the length of time it would have Each will:
taken to resume operations as quickly as passible.
d, APPRAISAL AND ARBITRATION (a) Pay the cost of its own appointee; and
(b) Share equally the expense of the umpire and
Either party may make a written demand for any other exp enses related to the arbitrati
o11
arbitration if the city and LMCIT disagree on any of P rocess.
SECTION VII --- DEFINITI
1. Accounts receivable means: (1) The amount of the accounts that ou
y are
a. All amounts due from your customers that you able to re- establish or collect;
are unable to collect and there is a loss; (2) An amount to allow for p robable bad
b. Interest charges an any loan required to offset debts that you are normally unable to collect; and
amounts you are unable to collect pending our
payment of these accounts; (3) All unearned interest and service charges.
C. Collection expenses in excess of your normal 2. Automobile means a land motor vehicle trailer or
public collection expenses that are made necessary by the sem i- trailer designed for travel on �roads.
loss; and
d. ether reasonable expenses that you incur to re
3. Builders risk property means:
establish your records of accounts receivable. a. Building or property in the op en in the course
of construction;
e. accounts receivable does not include:
LMCrr MPCaP 01 -05) (Rev 11-09) Page 12 of 24
t
b. Alterations or repair of the city's existing . Lift stat •
building r r � Lions, wells or pumping locations;
g property in the open.
g. Electric substations, transformers or cooling
c. Addition to the city's existing building or towers;
property in the open.
d. Builders risk property also includes: h. Wanks;
(1) Foundation of the building or property in i. Lagoon li ners;
the open in the course of construction or an j. Gas reduction or odorizin stations;
g ,
addition to the ci ty's existing building or
property in the open. k. wind Turbines; or
(2) Materials, equipment, and supplies used I. Underground and buried .
PP �` d pipes, flues or drains
for construction, alteration or repair, provided that are part of the water treatment plant,
t,
i
such property s intended to be permanently in wastewater treatment plant, lift station or g as
or on the builders risk property; and reduction station, but not including those that are
(3) Temporary structures built or assembled part of the city's general collection system.
on location, including cribbing, scaffolding S. Building1contents, as described in the Schedule of
and construction forms used in the course of Covered Property, means the following:
g
construction or alterations or repair of the
builders risk property. a. Building, or
(4) Underground and buried pipes, flues or b. Contents.
drains, but not including those that are part of
the city's general collection system. 6. Business personal effects means personal property
of your employees t hat is used to maintain the
4. Building means the building including: operations of the city.
a. Completed additions; 7. City means governmental body or entity first
named in the Declarations. For purposes of this
b. Permanently installed f xtures, machinery and coverage, city includes relief associations.
equipment;
Unless specifically named in the Declarations, city
c. Outdoor fixtures; shall not include:
d. Contents owned by you that are used to a. Gas, electrical, or steam utilities commission;
maintain or service the building or its premises,
including: b. Port authority, housing nd redevelopment
ment P
authority, economic development authority, area
(1) Fire extinguishing equipment; or municipal redevelopment authority, or similar
(2) outdoor furniture; agency;
(3) Floor coverings; and c. Municipal power agency;
(4) Appliances used for refrigerating, d. Municipal gas agency;
ventilating, cooking, dishwashing or e. Hospital or nursing home board or commission;
laundering; or
f. Airport commission;
e. water towers;
g. wel fare or public relief agency;
LMC1T MPCBP (11- 0S)(Rev 11.09) Page 13 of 20
f
h. School board; or cannot legally remove.
i. Joint powers entity; but a joint planning g. Contents of others that are in your care,
board created pursuant to an orderly custody and control.
annexation agreement or joint resolution
_ and a towns is deemed to However, our payment for loss or damage to
between the cit p .
be a cowered joint p owers entity nd er this contents w be for the account of the owner of the
� �
agr eement,
property
S. Computer equipment, data and media means a
h. Trees and shrubs;
network of machine components capable of i. Accounts receivable;
accepting information, processing it according to '
plan and producing the desired results. it includes: Comp uter eq uipment data or media
j� ,
a. Air conditioning, fire protection equipment k. Valuable ' a ers and records;
and electrical equipment used exclusive) in our �'
computer operations; I. Personal effects; or
b. Facts, concepts or instructions in a form m. Fine arts.
usable for communications;
But, contents does not mean mobile property.
c. Interpretation or processing by automatic
means; or 10. Employee means for actions within his duties as
such any former or present:
d. Computer programs and materials on which
the data is recorded. a. Person whom you compensate directly b
9, contents means property located in or on the salary, wages or commissions, and who you have
building e right to direct or control while performing
open (or in a vehicle) within 100 feet of the r� described in the Declarations g p
g or in the duties for you;
described building, consisting of the following: b. Member of the city council;
a. Furniture and f xtures; c. Member of a city board, commission, or
committee which is not excluded by the definition
b. Machinery and equipment; of ci ,
c. Stock; d. Elected or appointed official of the ci ty,
d. All other contents owned by you and used in e. Volunteer erson or organization while actin
our municipal operations; P g � �
y R p on behalf of the city and subject to the c !v
.
e. Labor, materials or services furnished or direction and control;
arranged by you on contents of others; f. Other authorized ersen or agent of the ci ty
P g
while acting on behalf of the city, but excludes
f. Your use interest as tenant in improvements F inde ndent contractors;
are fixtures, alterations, installations or additions: . Members, officers, and e m p l oy ees of a cr
g t3'
(1) Made a part of the building or structure relief association.
you occupy but do not own; and 11. Expediting expense means the reasonable extra
cast of temporary repair and expediting the repair
(2) You acquired or made at your expense but of damaged covered roe overtime and
g property, �Y�
LMCIT MPCBP (11- OS)(Rev 11 -09) Page 14 of 20
express freight or other rapid means of processes certified by a Green Authority that
transportation. conserve natural resources, reduce energy or water
consumption, avoid toxic or otherwise
12. Extra expense means the excess total cost environmental impact.
necessarily incurred to continue your operations as
reasonably as practicable during the period of 16. Green Authority means an authority on green
recovery that is over and above the cost that would buildings, products, materials, methods or
normally have been incurred to conduct the processes that is certified and accepted by
operations during the same period had no loss or Leadership in Energy and Environmental Design
damage occurred. It includes: (LEED), Green Building Initiative Green Globes,
Energy Starr Rating System or any other
a. Extra expense to avoid or minimize the recognized green rating system,
suspension of business and to continue operations:
17. Joint powers entity means an operating entity
(1) At the described location; or created by two or more governmental units
entering into an agreement as provided by statute
(2) At a replacement location or at temporary for the joint exercise of overnmenta! ewers. An
g P
locations, including: intergovernmental agreement will be deemed to
create a joint pavers entity if the agreement
( a) Relocation expenses; and establishes a board with the effective power to do
any of the following, regardless of whether the
fib) hosts to equip and operate the specific consent of the constituent governmental
replacement or temporary locations, units may also be required:
Y q
b. Extra expense to minimize the suspension of a. To receive and expend funds;
business ifyou cannot continue operations.
c, Extra expense to: b. To enter into contracts;
(1) Repair or replace any covered property; or c. To hire employees;
(2) Research, replace or restore the lost
d. To purchase or otherwise acquire or hold real
. property; information on damaged valuable papers and or persona! or
records; e. To sue or be sued.
to the extent it reduces the amount of loss that 18. LMCIT means the League of Minnesota Cities
otherwise would have been payable under this Insurance Trust.
covenant.
13. dine arts means property or articles of artistic or 19. Location means:
historical value including paintings, etchings, a. The site of any covered building1
pictures, tapestries, statuary, marbles, bronzes, properly in the open, or builders risk property; or
porcelain, rare glass, antique silver, china, books
and manuscripts, rugs and similar articles. b. The site of any covered newly acquired or
constructed buildinglcontents or property in the
14, golf course property means bridges, paved open;
roadways, paved cart paths and other paved
surfaces, shelters, restrooms, ball washers, screens, 20. Loss of revenue means gross revenue, including
flags, markers, signs, tees, irrigation systems rental value, less charges and expenses that do not
including underground components, fairways and necessarily continue.
greens,
21. Mobile property means:
15. green means products, materials, methods and
LMO T MPCBP 0 ] - 45 )(Rev 11-09) Page 15 of 20
a. Machinery or equipment designed for use the loss of revenue amount: that would have
principally off public roads; existed if no direct physical or damage had
occurred; or
b. Police dogs;
(2) 60 consecutive days after the date when
c. Vehicles maintained for use solely on or next the covered property is actually repaired,
to - locations owned or rented by you and not rebuilt or replaced and operations are
licensed for highway use; resumed.
d. vehicles and its equipment whether self -- However, the expiration date of the covenant will
propelled or not maintained primarily to provide not cut short the period of recovery.
mobility to permanently mounted equipment;
27. Personal effects means personal property of your
e. Tools, including protective clothing and gear, employees, other than business personal effects,
and other similar property;
28. Pollutants means any solid, liquid, gaseous or
f. Business personal effects; or thermal irritant or contaminant, inc ludin g smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
g. Mobile property in your care, custody and waste. waste includes materials to be recycled,
y d,
control. reconditioned or reclaimed.
22. Newly acquired or constructed means that the city 29. Prop in the o
P ty en means: P
has ' acquired or taken possession of the property
during the current covenant period. a. Benches, fences, l les or outdoor lighting
tin
Po g
systems, playground equipment, sports and
23. Occurrence means an accident or event that causes recreational apparatus, icnic tables, ills statues
P �'
a direct physical loss or damage to covered monuments, ortable toilets water fountains,
P � ,
property. Any continuous accident or event that garbage cans, flagpoles, and signs that are not
� art p
causes more than one direct physical loss or of the building; or
damage to covered property during a 72 hour
period constitutes an accident or event as a single b. Gol,(course property.
occurrence.
Unless, if otherwise endorsed, property in the
24. operations means: open does not mean basketball and tennis court
surfaces, fire hydrants, street signs, street lights or
a. Your city activities occurring at the described traffic signs or signals, or any roP e rty described
P
location; or in SECTION I, Lb., PROPERTY NOT
b. The tenantabi lity of the described location. COVERED.
25. Our means the League of Minnesota Cities 30 Dental value means the sum of:
Insurance Trust. a. The total anticipated gross rental income from
P
tenant occupancy of the covered property as
26. Period of recovery means the period of time that: furnished and equipped b ou• and
yy
a. Begins immediately after the time of direct b. The amount of all continuin g charges es that are
physical loss or damage to covered property. th legal obligati
gon of the tenant and that would
otherwise be your obligation; b. Ends on the earlier of: and
C. The fair rental value of any portion of the
•
(1) The date covered property is actually covered roe that you occu
aged rebuilt � property �' �' ICY
repaired, or replaced and operations are
resumed; and your operations would generate 31. Specific property limit means 150% of the
LMCIT MPCBP (I I -OS )(Rev 11 .09) Page 16 of 24
estimated replacement cost of the covered property b. Equipment supplying communication services
as stated in the Schedule of Covered Property. or }
32. Specified causes of lass means fire; lightning;
c. Utility generation plants, switching plants,
explosion; windstorm or hail; smoke; aircraft or substations, transformers, and transmission lines
vehicles; riot or civil commotion; vandalism; supplying electricity, steam or gas.
criminal acts other than vandalism; leakage or
discharge from fire extinguishing equipment; 36. Vacant property means:
sinkhole collapse; volcanic action; falling objects;
weight of snow, ice or sleet; or water damage. a. Property owned by the city is deemed to be
vacant property if for a period of 60 consecutive
a. Sinkhole collapse means the sudden sinking or days less than 31 of the building's total square
collapse of land into underground empty spaces footage is either used by the city for customa
created by the action of water on limestone or operations or is leased out.
dolomite. This cause of loss does not include:
b. Property rented or leased to the city is deemed
(1) The cost of filling sinkholes; or to be vacant property if for a period of bo
consecutive days the property does not contain
(2) Sinking or collapse of land into man -made enough contents to conduct customary operations.
erations.
underground cavities.
However, the following are not considered vacant
b. Falling object does not include loss or damage property.
to:
(1) Builders risk prvpert} , or
(1) property in the open; or
(2) A building which is used and occupied,
(2) The interior of a building or property and which is designed to be used and
inside a building nless � .
g the roof or an outside occupied, on an occasional, interm ittent, or
wall of the building is first damaged by a seasonal basis.
falling object.
37. Valuable papers and records means inscribed,
C. water damage means accidental discharge or printed or written documents, manuscripts or
leakage of water or steam from an art of a p
y p records, including abstracts, books, deeds,
system or appliance containing water or steam. drawings, films, maps and mortgages.
gages.
33. Stock means merchandise held in storage or for But valuable a ers and records does not
P F mean
sale, raw materials and in process or finished money or securities converted data, programs ta, p grams or
goods, including supplies used in their packing or instructions used in our data processing
:n y p g
shipping. g operations, including the materials on which the
34. Us means the League of Minnesota Cities data is recorded,
Insurance Trust, 38. We means the League of Minnesota
g C ities
35. Utility service property means any of the Insurance Trust.
following types of property supplying water, 39. You means the cit hown in the Decl ar ations.
ty
communication service or power to covered
property: 40. Your means the city shown in the Declarations.
a. Pumping stations or water mains supplying
water;
L MCI` MPCB P (I I -05)(Rev 1 1 - 09) Rage 17 of 20
SECTION VIII = CONDITIONS
1, CONTROL OF PROPER'T'Y The United States of Ame rica (including its
• territories and possessions);
Any act or neglect of any person other than you
beyond your direction or control will not affect this (1) Puerto Rico; and
coverage.
(2) Canada.
The breach of any condition of this coverage part at
any one or more locations will not affect coverage at 6. LOSS CONDITIONS
any location where, at the time of loss or damage, the
breach of condition does not exist. a. Abandonment:
2. COVERAGE UNDER TWO OR MORE You cannot abandon your property to us.
COVERAGES
b. Duties in the event of loss or damage:
If two or more of this covenant's coverages apply to
the same loss or damage, we wilt not pay more than You must see that the following are done in the
the actual amount of the loss or damage. event of loss or damage to covered property:
3. LEGAL ACTION AGAINST US (I) Notify the police if a law may have been
broken.
No one may bring legal action against us under this
coverage part unless: (2) Give us prompt notice of the loss or damage.
a. There has been full compliance with all of the Include a description of the property involved.
terms of the coverage part; and .
(3) As soon as possible, give us a description of
b. The action is brought within 2 years after the date how, when and where the loss or damage
on which the direct physical loss or damage occurred.
occurred.
(4) Take all reasonable steps to protect the
4. NO BENEFIT TO BAILEE covered property from further damage. If feasible,
set the damaged property aside and in the best
No person or organization, other than f ou, having possible order for examination. Also keep record
• Y o our exp enses, for consideration
custody of covered property will benefit from this �' p � in the
coverage. settlement of the claim.
S. COVERAGE PERIOD COVERAG ( At our request, give us complete inventories
' of the damaged and undamaged property. Include
TERRITORY , , ,
quantities, costs, values, and amount claim of loss
[finder this p
coverage art: demand.
a. We cover loss or damage commencing: (b) Permit us to inspect the property and records
g g proven the loss or damage.
e. �
(1) During the coverage period shown in the .
Declarations; and (7) If requested, permit us to � uestton you under
• oath at such times as may be reasonably required
(2) within the coverage territo about any matter relating to this covenant or your
g claim, including ur books and records. In
g y such
b. The coverage territory is: event, your answers must be signed.
LMCrT MPCBP (11- OS)(Rev 11 .09) Page IS of 20
(8) Send us a signed, sworn statement of lass Covered Mobile Prop
containing the info rmation
ormat�on we request to settle the
claim. You must do this within 60 days after our c. The initial annual premiums will be based ased upon
request. We will supply you with the necessary these schedules and the appropriate replacement
p
farms. cost values.
(9) Cooperate with us in- the investigation or d. You will a us additional premium '
F � p �f the
• settlement of the claim, following roe is added during the p p g c ovenant
However, LEI CIT will not reimburse you for your period:
payment of casts, fees, or other expenses you incur in (1) Buildin contents or prop in the op p p ' p n with
establishing either the existence or the amount of lass a rep lacement cost value of
F greater than
under this covenant. $5,000,000;
c. Loss Payment: (2) Mobile ro er with a replacement � p � p cast value
•
(1) We wi ll give notice of our intentions within 3 0 of greater than $500,000;
- days after we receive the swo statement of loss. (3) Builders risk ro er with th a `
p p protect cast of
(2) We may adjust losses with the owners of lost greater than $2,000,000; or
or damaged property if other than you. If we pay (4) Additional covered lass or d .
da mage limits, o
the owners, such payments will satisfy your claims property subl im its.
against g nst us for the owners property. W will not
pay the owners more than their financial interest in e. We will return rem ium to you if the fo llowi ng
g
► the covered property. property is deleted during he covenant p erio d:
g
d. Recovered Property: (1) Buildin contents or ro e r .
p p ty in the open with
a replacement cost value of greater than
If either you or we recover any property after loss $5,000,000;
settlement, that party must give the other prompt
notice. At your option, the property will be (2) Mobile ro er with a re placement cost
p P R value
returned to you. you must then return to us the of greater than $500,000;
amount we paid to you for the property. W will
pay recovery expenses and the expenses to repair (3) Builders risk property with a project cost of
the recovered property, subject to the amount greater than $2,000,000; or
applying under this covenant.
(4) Additional covered loss o damage l o r
AD 7. PREMIUMS AND PR�MIUl1� property sublimits.
S. CANCELLA'T'ION
a. You agree to furnish us with a schedule of
buil4xngs1contents, property in the open and a►. You may cancel Part One of this covenant. You
mobile property valued at greater than $25,000, must mail or deliver not fewer than 30 days
Y
and builders risk property prior to the beginning of advance written notice to us statin g when the
each covenant period, cancellation is to take erect.
b. These schedules must include all buildings) b. We may cancel Fart One of this covenant. We must
contents, property in the open and mobile properly mail or deliver to you not fewer than 30 days
valued at greater than $25,000, and builders risk advance written notice stating when the
property that was covered by your prior covenant cancellation is to take effect, Mailing that notice
but was not described in the prior covenant's to you at your mailing address shown in the
Schedule of Covered Property or Schedule of Declarations will be sufficient to prove notice.
However, we may cancel with 10 days written
LMCiT MPCBP (11- 45)(Rev 1 i -09) Page 19
� of 20
notice for nonpayment of premium. the amount we p a y ; and
c. The covenant period will end on the day and hour (2) The mortgage holder's right to recover t
' • g w i l l not be he full
stated in the cancellation notice, amount of the mortgage holder's claim wi
d. If Part one of this covenant is canceled, we will impaired. At our option, we may pay to the mortg holder the whole p p cipal on the
send you any premium refund due.- If we cancel, mortgage lus an accrued interest. I
p y n this event,
the refund will be pro rata. If you cancel, the your mortgage and note wi be transferred to us
refund may be less than pro rata, computed in and ou will a our remaining }� pay y g mortgage debt to
accordance with our current cancellation rules. us,
The cancellation will be effective even if we have
not made or offered a refund, f. If we cancel this covenan t� we will give written
9, MORTGAGE HOLDERS notice to the mortgage holder at [east:
(1) 10 days before the effective date of
a. The term mortgage holder includes trustee, cancellation if we cancel for our nonpayment of
.Y
b. We will pay for covered loss of or damage to premium; or
buildings to each mortgage holder shown in the (2) 30 day before the effective date of
Declarations Y,
ons in their order of precedence, as if we cancel for any other reason.
interests may appear,
g. If we do not renew this covenant, we will give
C6 The mortgage holder has the right to receive loss written notice to the mortgage e holder at least 10
payment even if the mortgage holder has started days before the expiration date of this covenant,
foreclosure or similar action on the building.
d. If we deny your claim because of your acts or 109 DEDUCTIBLES
because you have failed to comply with the terms a, The Lim its of Coverage shown in the Declarations
of this coverage part, the mortgage holder will still apply to the amount of loss or excess
have the right damages in ht to receive loss payment i ` • � i
g
g p y f the of the Municipal Property Deductible shown n the
mortgage holder: Municipal Property, Crime, Bond, Petrofund and
(1) Pays any premium due under uipment Breakdown Declarations or the
er this coverage general Annual Aggregate Dedu .
. Coble, � f an
part at our request if you have fasted to do so; shown in the Common Covers g a Declarations and
the Limits of Coverage will not be reduced by the
(2) submits a signed, sworn proof of loss within Deductible amount,
60 days after receiving notice from us of your
failure to do so; and b. LMCI ' shall be liable to the city r to
ty others on
behalf of the city only to the amount of loss or
(3) Has notified us of any change in ownership, damages in excess of an d
occupancy or substantial change in risk known to
g y duct�ble amounts.
the mortgage holder. We will
then pay the amount of loss up to the
All of the terms of this coverage part will then applicable limit of coverage.
apply to the mortgage holder.
e. If we pay the mortgage holder for any loss or
damage and deny payment to you because of your
acts or because you have failed to comply with the
terms of this coverage part,
(1) The mortgage holder's rights under the
mortgage will be transferred to us to the extent of
LMCrr MPCBP (l 1- 85)(Rev 11 -09) Page 20 of 20
00
LEAGUE o i r
MINNESOTA
CITIES
MUNICIPAL CRIME COVERAGE
PART TWO
LMQT MPCBP (11-05) (Rev.l I-09)
MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND
COVERAGE
WHA T IT IS AND WHERE YOU CAN FIND IT INDEX
I EAGU E or
"MINNESOTA
CITIES
CRIM COVERAGE - PART TWO
PAGE
SECTION I - COVERAGE AI REEilriENT ..................................... ............................... 4000.... #..........., l
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED ....,.,.. t ....... .......................t.... -
SECTION III - LIMITS OF . t.... 9......., 44...# 99. t .., ..4..,,..t 2
SECTION - DEFINITIONS. ■a,..00, 44..•. 09 r■ , . , .t , a40449 , .4.9•..00.4.. #90.. a 00a, a.., 99. t9r,tr .0..,9tt,..0..st..a,0a.0• 24
SECTION - CONDITIONS , ...� # *.. *.ttt.■ 490 ....0. #4.90■ t 9. t.t.. t. , .a , •sa. . 090...,,###„ 00#. 9,.• t ■,.ta........a.s..a0..sa, *.0#400906 4-6
LMCIT MPCBP (11-05) (Rev. 11-09) .
MUNICIPAL CRIME COVERAGE
PART TWO
Various provisions in this covenant restrict coverage. words and phrases that appear in italics have s ecial
PP p
Read the entire covenant carefully to determine rights, meaning, as given in SECTIGN IV - DEFINITIONS.
duties and what is or is not covered.
SECTION I = COVERAGE AGREEMENT
1. THEFT, DISAPPEARANCE, AND 3e FORGERY OR ALTERATION
DESTRUCTION - INSIDE THE PREMISES
We wi I i pay for loss involving instruments of payment
We will pay for loss of money and securities resulting resulting directly from the forgery or alteration of, on
directly from theft, disappearance, or destruction or in any instruments of payment.
inside the premises or barking premises.
If you are sued for refusing to pay any instrument of
We will pay the toss of, and loss from damage to, the payment, we will pay any reasonable legal expenses
property that contains the money and securities; and that you incur and pay in that defense. The amount we
loss from damage to the premises resulting directly pay will be in addition to the applicable limit of
from the theft or attempted theft. coverage.
2. THEFT, DISAPPEARANCE, AND 4. AUDI'T'ING AND ACCOUNTING COSTS
DESTRUCTION - OUTSIDE THE
'REMISES We will reimburse you for reasonable auditing and
accounting costs you incur to establish the existence
We will pay for loss of money and securities resulting and the amount of a covered loss, but in no case will
directly from the theft, disappearance, or destruction this reimbursement exceed 25% of the amount of the
outside the premises in the care, custody and control of covered loss. This reimbursement is in addition to the
a messenger or an - armored motor vehicle, coverage limit.
SECTION II - CAUSES OF LOSS AND DAMAGES NAT COVERED
We will not pay for loss or damages as specified 3. FIRE
below:
Loss or damage to the premises resulting from fire,
19 ACCOUNTING OR ARITHMETICAL however caused.
ERRORS OR OMISSIONS
Loss resulting from accounting or arithmetical errors 4. GOVERNMENTAL ACTION
and omissions. Loss resulting from seizure or destruction of e ro
P Prty
. -
2. ACTS OF EMPLOYEES by order of governmental authority,
Loss resulting from any dishonest or criminal act 59 INDIRECT LOSS
committed by any ofyour employees: Loss that is an indirect result of any act or occurrence
covered by this covenant including, but not limited to,
a. Acting alone or in collusion with other persons; or loss resulting from:
b. While performing services for you or otherwise. a. Your inability to realize income that
you would y
LMCrT MPCBP (11- 05)(Rev.11 -09) .
Page ] of 6
have realized had there been no loss of, or loss radioactive contamination however caused.
f rom damage to, money and securities; or
instruments of payment 8. VANDALISM
b, Payment of damages of any type for wh you are Loss from damage to the '
g e prernrses or its exterior or to
legally liable. containers of mone s '
ey and securities by v andalism or
malicious mischief.
But, we will pay compensatory damages arising r
directly from a loss covered under this covenant. 9e WAR
c. Except as provided by SECTION I -- Loss resulting
g from.
COVERAGE AGREEMENT, 4. AUDITING
AND ACCOUNTING COSTS, payment of costs, a. War, including undeclared or civil war;
fees, or other expenses you incur in establishing
either the existence or the amount of loss under b. Warlike action by a military force, includin
• • g
this covenant action in hindering or defending against an actual
or expected attack, by any government, sovereign
6. LEGAL EXPENSES or other authority using military p ersonnel or other
agents; or
Expenses related to any legal action.
c. Insurrection, rebellion, revolution, usurped power,
7e NUCLEAR HAZARD or action taken by governmental authority in
hindering or defending against any of these.
Loss resulting from nuclear reaction or radiation, or
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. W wi ill then
Declarations. pay the amount of loss in excess of the Deductible
educt� ble
'
2. We will not pay for loss �n any one occurrence amount, up to the limit of coverage.
SECTION IV - DEFINITIONS
I. Banking premises means the interior of that c. Municipal ower ag
p g y;
portion of any building occupied by a banking
institution or similar safe depository. d. Municipal gas agency;
y
2. City means the governmental body or entity first e. Hospital or nursing ome board or commissio
g s
named in the Declarations. For purposes of this
coverage, city includes relief associations. Unless f. Welfare or public relief agency;
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 board
authority, economic development authority, area 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.
LMCrr MPCBP (1 I- 05)(Rev.11 -09) Page 2 of 6
3. Employee means for actions within his duties as d. To purchase or otherwise acquire and hold real
such, any present or former: or personal property; or
a. Person whom you compensate directly by e. To sue or be sued.
salary, wages or commissions and who you have
the right to direct or control while performing 6. L1 CIT means the League of Minnesota Cities
duties for you; Insurance Trust.
b. Member of the city council; 7. Messenger means you, or any of your employees,
while having care and custody of the money and
c. Member of a city board, commission, or securities outside the premises.
committee which is not excluded by the definition
of city; 8. Money means:
d. Elected or appointed official of the city; a. Currency, coins, and bank notes in current use
. and having a face value; and
e. Volunteer person or organisation while acting
on behalf of the city and subject to the city's b. Travelers checks, register checks and money
direction and control; orders held for sale to the public.
f. Other authorized person or agent of the city 9. Occurrence means:
while acting on behalf of the city, but excludes
independent contractors; a. with respect to SECTION I - COVERAGE
AGREEMENT, 1. and 2.:
g. Members, officers, and employees of. a city
relief association. (1) Act or series of related acts involving one
or more persons; or
4. Instruments of payment means checks, drafts,
promissory notes or similar written promises, (2) Act or event, or series of related acts or
orders or directions to pay a sum certain in money, events not involving any person.
that are:
b. with respect to SECTION I - COVERAGE
a. Made or drawn by or drawn upon you; or AGREEMENT, 3., all loss caused by any person
or in which that person is involved, whether the
b. Made or drawn by one acting as your agent; or loss involves one or more instruments of payment.
that are purported to have been so made or drawn.
The date of the occurrence is the date on which
5. .Joint powers entity means an operating entity the act, event or loss is alleged to have taken place.
created by two or more governmental units If the loss or damages are alleged to have arisen
entering into an agreement as provided by statute from a series of acts or events, the date of
for the joint exercise of governmental powers. An occurrence is deemed to be the date when the first
intergovernmental agreement will be deemed to such wrongful act or event took place or is alleged
create a joint powers entity if the agreement to have taken place.
establishes a board with the effective power to do
any of the following, regardless of whether the 10. Our means the League of Minnesota Cities
specific consent of the constituent governmental Insurance Trust.
units may also be required:
11. Premises means the interior of that portion of any
a. To receive and expend funds; building you occupy in conducting your business.
b. To enter into contracts; 12. ,Securities means negotiable and nonnegotiable
instruments or contracts representing either money
c. To hire employees; or other property and includes:
LMC1T MPCBP (1 1- 05){Rev.l 1 -0) Page 3 of 6
a. Tokens, tickets, revenue and other stamps 13 . Theft means .
P ,� any act of stealing,
(whether represented by actual stamps or unused
value in a meter) in current use; and 14. Us means the League of Minnesota ' .
� C�t�es
b. Evidences of debt issued in connection with Insurance Trust.
credit or charge cards, which cards are not issued 15. We means the League o '
y ou , b g f Minnesota C
yy , Insurance Trust.
but does not include money. 16. You means the cit hown in the he Declarations.
17. Your means the city shown in the Declarations.
SECTION V CONDITIONS
1. COVENANT PERIOD 4. INTERESTS COVERED
a. The covenant period is shown in the Declarations. Coverag p rovided b this ' '
� P y covenant �s limited ited to
money and securities; and instruments of payment; and
b. Subject to the loss sustained during prior insurance
to damages
condition, we will a on f g p or premises, as described under
p ay y or loss that you SECTION I - COVERAGE AGREEMENT, 1, that:
sustain through acts committed or events occurring '
during the covenant period. a. You own or hold • or
2. DISCOVERY PERIOD FOR LOSS b. For which ou are legally l
y g y able.
We will pay only for covered loss discovered no later However, this covenant is for our benefit o nly. nly. It
than one year from the end of the covenant period. provides no rights or benefits to an other
g y person or
I DUTIES IN THE EVENT OF LOSS organization.
After you discover a loss or a situation that may result 5. LEGAL ACTION AGAINST US
in loss of, or loss from damage to, money and You may not brie an l .
Y g y g action against us
securities; or instruments of payment, you must: involving loss:
a. Notify us as soon as possible. a. Unless you have complied with all the terms of
b. Submit to examination under oath at our request this Covenant; and
and give us a signed statement of your answers, b. Until 90 days aver you have fled P roof of Ioss
C. Give us a detailed, sworn proof of loss within 120 with us; and
days. If the loss was due to forgery or alteration, c. Unless brought within 2 ou ears from the date
Y y
you must include with your proof of loss any discover the loss,
instrument involved in that loss; or if that is not
possible, you must give us an affidavit setting 6. LOSS COVERER UNDER MORE THAN
forth the amount and cause of loss ONE COVERAGE OF THIS COVENANT
d. Cooperate with us in the investigation and If two or more coverages of this coven
claim g ant apply to the
settlement of any same loss, we wi pay the lesser of:
e. If you have reason to believe that any loss of, or a. The actual amount of loss or
l oss from damage to, money or securities involves
a violation of law, you must notify the police. b. The sum of the limits of coverage applicable g PP a to
that toss.
LMCIT MPCBP { l 1- 05)(Rev.11 -09) Page 4 of 6
79 LOSS COVERED UNDER THIS 1 OTHER INSURANCE
COVENANT AND PRIOR COVENANT
ISSUER BY US This covenant does not apply to loss recoverable or
recovered under other insurance or indemnity.
If any Loss is covered:
However, if the limit of the other insurance or
a. Partly by this covenant; and indemnity is insufficient to cover the entire amount of
the toss, this covenant will apply to that part of the
b. Partly by the prior canceled or terminated loss, other than that fallin g a Deductible
y
covenant that we had issued to you or any amount, not recoverable or recovered under the other
predecessor in interest, the most we wil pay is the insurance or indemnity. However, this covenant will
larger of the amount recoverable under this not apply to the amount of loss that is more than the
covenant or the prior covenant. applicable limit of coverage shown in the
Declarations.
8. LOSS SUSTAINED DURING PRIOR
INSURANCE 11. RECORDS
a. Ifyou or any predecessor in interest sustained loss You must keep records of all money and securities+, and
during the period of any prior insurance that you instruments of payment, so we can verify the amount
or the predecessor in interest could have recovered of any loss.
under that insurance, except that the time within
which to discover loss had expired, we will pay for 1 TERRITORY
it under this covenant provided:
a. This covenant covers theft, disappearance, or
( 1) This covenant became effective at the time of destruction of money or securities only from acts
cancellation or terminafion of the prior insurance; committed or events occurring within the United
and States of America, U.S. virgin Islands, Puerto
Rico, Canal Zone, or Canada, and white
(2) The loss would have been covered by this temporarily outside this territory for a p eriod of
covenant had it been in effect when the acts or not more than 90 days.
events causing the loss were committed or
occurred. b+ This covenant covers loss you sustain from forgery
gry
or alteration anywhere in the world.
b. The coverage under this condition is part of, not in
addition to, the limits of coverage applying to this 139 VALUATION - SETTLEMENT
covenant and is limited to the lesser of the amount
recoverable under: a. Subject to the applicable limit of coverage
(1) This covenant as of its effective date; or provision, we will pay for;
i
(1) Loss of money, but only up to and including
(2) The prior insurance had it remained n effect. its face value. Nye may at our option, for loss
y p �� �
of money issued by any country other than the
9. NON - CUMULATION OF LIMIT OF United States of America:
COVERAGE
(a) At face value in the money issued by that
Regardless of the number of years this covenant country; or
remains in force or the number of premiums paid, no
limit of coverage cumulates from year to year or (b) In the United States of America dollar
period to period. equivalent determined by the rate of exchange
on the day the loss was discovered.
L,MC1T MPCBP (I 1- 0S) (Rcv.11 -a9) Page 5 of 6
(2) Loss of securities, but only up to and exchange on .
g he day the loss was discovered,
including their value at the close of business on
the day the loss was discovered, ive may, at our c. An roe that we
Any property pay for or replace becomes
option: our ro e
p p rt3'•
(a) Pay the value of such securities or replace 14, FACSIMILE SIGNATURES:
them in kind, in which event you must assign
to us all your rights, title and interest in and to we will treat mechanical) •
y reproduced facsimi
le
those securities; signatures the same ash •
� handwritten signatures.
(b) Pay the cost of any Lost Securities Bond
required in connection with issuing duplicates
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, I •, 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 detenn ined by the rate of
LMCIT MPCBP (I I- 0S )(Rev.11 -09) Page 6 of 6
L EAGU E or
MINNESOTA
CITIES
MUNICIPAL BOND COVERAGE
PART THREE
LMCIT MPCBP (I I -05)(Rev.1 I A9)
MUNICIPAL PROPERTY CRIME, BOND, AND PETROFUND
COVERAGE
WHA T IT IS AND WHERE YOU
n LE
MINNESOTA
CITI ES
BOND COVERAGE -- PART THREE
PAGE
SECTION I BOND COVERAGE ..,.. i.....,....,.. i.....,..,. ...................... r. r... ...,.....,...,...,..i..r,.,a...
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED ...,,..i..,...,i.,,,,,i,.,..,,.
SECTION III -LIMITS OF COVERAGE . rr......,.....►,.. a..,..l .................................. ...................l,....,,aa,.
SECTIONIV — DEFINITIONS...I..,...**l i.. r.... a,..l...... sa.,. i•.....■• a••... i....,■,l... ii., ar.• s,,,.. i. r.■ r ■a...!!.!l....r,a.....i.i..r „a• -
SECTIONV - CONDITIONS .•..., ra.l.!!l..... s■ a.,•,.•.......... ii..... r.,••...l...,..,l.. ii.,,..,. s *.,. *r....r...rrr.i.....r.ra.sa
LMCTC MPCBP (l t - 05)(Rev.1 1 -09)
MUNICIPAL BOND COVERA
PART THREE
Various provisions in this covenant restrict coverage. words and phrases that appear in italics have special
RF p
Read the entire covenant carefully to determine rights, meaning, as given in SECTION Ill - DEFINITIONS.
duties and what is or is not covered.
SECTION I --- BOND COVERAGE
1. COVERAGE AGREEMENT (3) Coverage provided by another insurance . com an
R Y
a. We will pay for loss or damages from the failure of c. We wi ll reimburse y ou for reasonable auditing nd
our employee to ro p roperly perform � g
Y P R y R rm 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
period. Z. DISCOVERY
b. We will pay for other loss or damages required to Discovery of loss occurs when y ou first become aware
be covered under Minnesota Statute §574.24 that are of facts which would cause a reasonable Re rson to
not otherwise covered by the following; assume that a loss covered by this covenant has been
or wi 11 be incurred, even though the exact amount of
l } I . COVERAGE AGREEMENT, a., as described details of loss may not then be known. Discovery lso
above; y � �
f occurs when you receive notice of an actual or
potential claim against you alleging facts that if true
(2 ) Other coverage provided by LIIT; or would constitute a covered loss under this covenant.
ant.
SECTION II - CAUSES OF LOSS AND D NAT COVER
We will not pay for loss damages as specified below: a. An invento ry comp utation; or
P
1. GOVERNMENTAL ACTION b. A profit and loss computation.
Loss resulting from seizure or destruction of property However, where ou establish wholly apart from y y p such
by order of governmental authority. computations that you have sustained
P y a lass, then you
may offer your inventory records and actual physical
2,o INABILITY To REALISE INCOME count of inventory n su of the amount o
rY pp f Ioss
Loss that is resulting from your inability to realize claimed.
income that you would have realized had there been no 4, LEGAL EXPENSES
loss.
1 INVENTORY SHORTAGES Expenses related to any legal action.
Loss, or that part of any loss, the proof of which as to 5, NUCLEAR
its existence or amount is dependent upon: Loss resulting rom nuclear reaction or radiation, on, or
radioactive contamination, however caused.
LMCIT MPCSP 01- 05xRev. 11-09)
Page 1 or 5
r
6. wAR e n or
other authority p ed attack, by any government, sovereign $
Loss resulting from: using military personnel or other
agents; or
a, war, including undeclared or civil war; •
c. insurrect�an, rebellion, revolut
ion, usurped power,
e
or action t � P
b, Warlike action b a m ilitary . taken by governmental authority in hindering
• • y . I Mary force, including or defending ag ain st -
action in hindering or defending against an actual any of these.
g � al or
SECTION III - LIMITS OF COVERAGE
1. The most we for loss or damages in in will pay for Toss or damages n any one occurre
any one occurrence, as described in SECTION unless the amount of
I -- BOND CO'�ERAC E l loss or damages exceeds
.a., is the applicable the Deductible amount shown
limit of coverage shown in the Declarations. Declarations. to the
2. The most we wi ll pay for loss o r damages, as
g b. For third party claims, we may pay an art
described in SECTION I — BOND . y p
or all of the Deductible amount shown in the
COVERAGE, l .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, y ou
This sublim it is per occurrence and is f
art o, sh '
' addition � all promptly reimburse L�1CIT' for such part of
and not
in addition to, the applicable limit of the deductible amou
coverage shown in the Declaratio unt as paid by us.
c. In the event of a covered loss to the ci ty
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, LICIT will reimburse
amount, as shown in the Declarations. We wi the city elief •
� association, port authority, or
then pay the amount of loss or damages u to economic . ,
p narriic authority i ful! subject to the bond
the limit of coverage shown in the coverage limit. .
g The city shown in the
Declarations,
declarations will reimburse LUCFF for an
deductible which applies to the loss, any
a. For claims that you make, we will not pay
SECTION IV - DEFINITIONS
1. City means the governmental body or entity irst �
ty e, Hospital o nursing home board or
named in the Declarations. For purposes of this commission
coverage, city includes relief associations. ,
Unless specifically named in the Declarations, f. welfare o r public relief agency;
• .
city shall not include:
a. Gas, electrical, or steam utilities commission; g. School board;
b. Port authority, housing and redevelopment h. Airport commission; or
authority, economic development authority, area i. Joint owers jo • p entity, but a planning
or municipal redevelopment authority, or similar board created ursuan •
p t to an orderly annexation
agency; agreement or joint resolution between the city and
c. Municipal power agency;
a township is deemed to be a covered joint entity uncle '
P r this agreement.
d. Municipal gas agency; Z. Emp lo y ee � •
means for actions wi thin h is dunes as
LMCIT MPCBP (I l - Q5){Rev. l 1-4g}
Pale 2 of 5
such, any present o f orme r: 5. Money means:
a. Person whom your comp ensate directly by a. Currency, coins, and bank notes in c
salary, wages or comm issions and who you have use and having a face value; and
the right to direct or control while performing
duties foryou; b. Travelers checks, register checks and money
Y
b, Member of the city council; orders held for sale to the public,
-
6. Occurrence means all loss caused by an
c. Member of a city board, commission, or em ployee, 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 o c c urrence
currence �s
acting on behalf of the city and subject to the deemed to be the date when
the first such
city's direction and control; wrong act task lace or is alleged � p to have
f. other authorized person or agent of the city taken place.
while acting on behalf of the city, but excludes 7. Our means the League of Minnesota Cities
independent contractors* � ota C�t�es
inde
p Insurance Trust.
g. Members, officers and employees of a city S. Property other than money nd securities
y means
relief association. an tangible roe that has intrinsic � g property rty ntrinsic value,
3. Joint powers entity means an operating entity 9. Securities means neg otiable '
b two g and nonnegotiable
created
* y or more governmental units instruments or contracts representing either
entering into an agreement as provided by statute money or other property and includes:
for the joint exercise of p '
governmental powers.
An intergovernmental agreement will be deemed a. Tokens, tickets revenue and o ther stamps
to create a ,point powers entity if the agreement (whether represented 6 actual stamps or unused
establishes a board with the effective y p
ective power to do value in a meter) in current use; and
any of the following, regardless of whether the
specific consent of the constituent governmental b. Evidences of debt issued in connection with
units may also be required: credit or charge cards, which cards are not iss
a. To receive and expend funds; by you;
b. To enter into contracts; but does not include money.
10. Us means the League of Minnesota Cities
C. To hire employees; Insurance Trust.
d. To purchase or otherwise acquire and hold H. We means the League of Minnesota ' .
g nnesota C�ties
real or personal property; or Insurance Trust,
e. To sue or be sued. 12. You means the city hown in the Declarations.
ons.
4. LMCITmeans the League of Minnesota Cities 13. Your means the city hown ' .
Insurance T � �n the Declarat
Trust.
LM MFCBP ( 1- 05)(Rev. I I-o9)
Page 3 of 5
SECTION V - CONDITIONS
I. CANCELLATION AS TO ANY EMPLOYEE days.
We reserve the right to cancel the covenant as to any d. Cooperate with us in the investigation
- to ee. � and
employ Y ' settlement of any claim.
a. Immediately upon discovery by you or any official Except as rovided b SECTION I
F y BOND
or employee authorized to manage, govern or COVERAGE, I ,c., L11 CIT will not reimburse ou
y for
control your employee, of any act on the part of an your payment of costs, fees, or other expen
employee whether before or after becoming incur � F s you
g ur in establishing the existence or the amount of
employed by you which would constitute a loss loss under this covenant.
covered under the terms of this covenant.
b. On the date specified in a notice mailed to you. S. INDEPENDENT RIGHT OF RECOVERY
That date will be at least 30 days after the date of W have an independent right of recover against an
� � a g y
mailing. employee for any loss due to the employee's
negligence, malfeasance, willful neglect of duty or bad
The mailing of notice to you at the last mailing faith.
address known to us will be sufficient proof of
notice. Delivery of notice is the same as mailing. 6. LEGAL ACTION AGAINST US
29 COVENANT PERIOD You may not bring an y g g l action against us
involving loss:
The covenant period is shown in the Declarations.
a. Unless you have complied with all the terms of
3. EXTENDED DISCOVERY PERIOD FOR this covenant; and
LOSS
b. Until 90 days after you have filed proof of loss
We will pay for loss sustained prior to the effective with us; and
date of termination or cancellation of this covenant,
which is discovered by you no later than one year from c. Unless brought within Z ears from the date
Y you
the date of that termination or cancellation; but this discover the loss,
extended period to discover loss terminates
immediately upon the effective date of any other ?. LOSS COVERED UNDER MORE THAN
coverage or insurance obtained by you replacing in ONE COVERAGE OF THIS COVENANT
whole or in part the coverage afforded under this
covenant, whether or not such other coverage or If two or more coverages of this covenant apply to the
insurance provides coverage for loss sustained prior to same loss, we will pay the lesser of
its effective date.
4. DUTIES IN THE EVENT OF LOSS a. The actual amount of Loss; or
b. The sum of the limits of coverage applicable to
After you discover a loss or a situation that may result that loss,
in loss as provided by this coverage, you must:
8. NON-CUMULATION OF LIMIT OF
a. Notify us as soon as possible. COVERAGE
b. Submit to examination under oath at our request Regardless of the number of gears this covenant
and give us a signed statement of your answers, remains in force or the number of premiums paid, no
limit of coverage cumulates from year to year or
c. Give us a detailed, sworn proof of loss within 120 period to period,
LMC1T MPCBP (I I - 05)(Rev. 11-09)
Page 4 of 5
9. OTHER INSURANCE them in kind, in which event ou must assign
# gn
to us all your rights, title and interest in and to
This covenant does not apply to loss recoverable or those securities;
recovered under other insurance or indemnity.
However, if the limit of the other insurance or (b) Pay the cost of an Lost Securities Bond
and
indemnity is insufficient to cover the entire amount of required in connection with issuing 9 g
the loss, this covenant will apply to that part of the of the securities.
toss, other than that falling within any Deductible
amount, not recoverable or recovered under the other However, we will be liable onl y for the
insurance or indemnity. However, this covenant will payment of so much of the cost of the bond
as
not apply to the amount of loss that is more than the would be charged for a bond having p enal ty
g P tY
applicable limit of coverage shown in the not exceeding the lesser of the:
Declarations.
'I) Value of the securities at the close of
1�. RECORDS 'I)
on the da y the loss was
You must keep records of all money, securities, and d iscovered* or
property other than money and securities; and prov ii) Limit of coverage.
any other reasonably obtainable information so we can
verify the amount of any loss. (c) Loss of, or loss from damage to, prop
g F P ty
other than money and securities, or loss from
11. TERRITORY damage to the premises for not more than the:
This covenant covers only acts committed or events i) Actual cash value of the ro e
F P on
occurring within the United States of America, U.S. the day the toss was discovered;
Virgin Islands, Puerto Rico, Canal Zone, or Canada
and while temporarily outside this territory for a ii) Cost of repairing he roe
g property rtY or
period not more than 90 days. premises; or
12a VALUATION - SETTLEMENT iii) Cost of replacing the roe with
P P rty
property of like kind and quality.
a. Subject to the applicable limit of coverage
provision, we will pay for: We may, at our option, pay the actual cash value
(1) Loss of money, but only up to and including of the property or repair or replace it.
its face value. We may, at our option, pay for loss If we cannot agree with you up on the actual cash
of money issued by any country other than the value or the cost of repair or replacement the
R �
United States of America; value or cost will be determined b y arbitration.
(a) At face value in the money issued by that b. We may, at our option, pay for loss of, or toss
country; or from damage to, property other than money:
(b) In the United States of America dollar (1) In the money of the country in which the loss
equivalent determined by the rate of exchange occurred; or
on the day the loss was discovered.
(2) In the United States of America dollar
(2) Loss of securities, but only up to and equivalent of the money of the country in which
including their value at the close of business on the loss occurred determined by the rate of
the day the loss was discovered, we may, at our exchange on the day the loss was discovered.
option:
c. Any property that we pay for or replace becomes
(a) Pay the value of such securities or replace our property.
LMCIT MPCBP 01- 05)(Rev. 11 -09)
Page 5 of 5
(60-11 'Aall) (SO-I I) dBJdW 11JW'1
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s g I JLI:)
VIOS9NNIW
JO 3n�d�1
-.A- . ............ ---
CRIME BOND AND PETROFUND
0 MUNI PROPERTY
COVERAGE
WH A T IT IS AND WHERE YOU CAN FIND IT INDE
L��lUE-
M * NHOIA
c1T1 ES
PETROFUND COVERAGE - PAIN FOUR
PAGE
SECTION I - REIMBURSEMENT BENEFITS ..............,..,.,....,......,.......,,............,.,,...,,...., ,..,....,.,..........,...,..... l
SECTION II - LIMITS OF REIMBURSEMENT BENEFITS rrr... s.• rr. r•..*,. s .r..r + *.. 1
SECTION - DE ONS......,, r..... r ......................... s.....,........ .
SECTION IV - CONDITIONS AND EXCLUSIONS ........................... r, rr.. r...... rr.. rr.... ................,........ 3
LMC1T MPCRP ( 11 -05) (Rev. 11-09)
MUNICIPAL PETROFUND COVERAGE
FART 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 co sts for which you have
I. 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
I. with respect to a single rank release, L Cfrs 2. LMCIrs 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 lank release, and $254,000 in the
damage. aggregate for all claims made against you during
the term of this Agreement regardless of the
number of lank releases.
SECTION III - DEFINITIONS
I. City means the governmental body or entity first C. Municipal power agency;
named in the Declarations. For purposes of this
coverage, city includes relief associations. Unless d. Municipal gas agency;
specifically named in the Declarations, city shall
not include: e. Hospital or nursing home board or
commission;
a. has, electrical, or steam utilities commission;
f. Welfare or public relief agency;
b. Port authority, housing and redevelopment
authority, economic development authority, area g. School board;
or municipal redevelopment authority, or similar h. Ai .
rport commission; or
agency;
LMCIT MPCBP (11- 05)(Rev.11 -09) Page 1 of 3
i. .Taint powers entity; but a joint planning board for the joint exercise of governmental powers. An
created pursuant to an orderly annexation intergovernmental agreement will be deemed to
agreement or joint resolution between the city and create a joint powers entity if the agreement
a township is deemed to be a covered joint powers establishes a board with the effective power to do
entity under this agreement. any of the following, regardless of whether the
specific consent of the constituent governmental
2. Corrective action means an acti taken to units may also be required:
minimize, eliminate, or clean up a release to
protect the public health and welfare of the a. To receive and expend funds;
environment.
b. To enter into contracts;
3. Defense costs means reasonable and necessary
claim adjuster fees, attorney fees incurred by or on c. To hire em ployees;
behalf of you, court costs, court reporter and
transcript fees, general witness and expert witness d. To purchase or otherwise acquire and hold real
fees and expenses, and similar defense related or personal property; or
costs.
e. To sue or be sued.
4. Employee means for actions within his duties as
such, any present or former: �. Minnesota Petrafurrd means the petroleum tank
release cleanup fund as defined in Minn. Stat.
a. person whom you compensate directly by Chapter 115 C, and administered by the Petroleum
salary, wages or commissions and who you have Tank Release Compensation Board.
the right to direct or control while performing
duties foryou; 7, L�IICT' means the League of Minnesota Cities
Insurance Trust.
b, Member of the city council;
8. Reimb ursable casts means costs which are eligible
c. Member of a city board, commission, or costs and which are reimbursable under the
committee which is not excluded by the definition provisions of the Petroleum Tank Release Cleanup
of city; Act, and excludes all ineligible costs as defined by
that Act.
d. elected or appointed official of the city,
9. Responsible ,person means a person who is
e. Volunteer person or organization while acting responsible for a tank release under the Petroleum
on behalf of the city and subject to the city's Tank Release Cleanup Act.
direction and control;
10. Tank release, tank releases means an accidental
f. Other authorized person or agent of the city spilling, leaking, emitting, discharging, escaping,
while acting on behalf of the city, but excludes leeching, or disposing of petroleum from a tank
independent contractors; into the environment.
g. Members, officers, and employees of a city 11. You and your means the city shown in the
relief association. Declarations.
S. Joint powers entity means an operating entity 12. Petroleum Wank Release Cleanup Act means
created by two or more governmental units Minn. Stat. Chapter 115C, and the rules and
entering into an agreement as provided by statute regulations duly adapted thereunder,
LMC1T MPCBP (l l -05){Rev, 11-09) 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
and corrective action costs provided to you by the 8. In the event of a tank release covered by this
Minnesota Petrofund and applies only to damages Agreement, you shall promptly give written notice
and corrective action costs which would be to LMCIT with full particulars of any tank release
reimbursable costs to you from the Minnesota incident or any claim or suit brought against you
Petrofund but for the monetary limitations under with respect to such tank release.
the provisions of the Petroleum Tank Release
Cleanup pct. 9. You shall at all times cooperate with and promptly
respond to LMCIrs requests for information,
2. The reimbursement benefits provided by this investigative data, records, or any other
Agreement are strictly limited to the corrective documentation material to the determination of
action, stated damages and defense costs set forth your and LMCIrs liability 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 common
bodily injury, or property damage expected or 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 reimbursable costs or def ense costs.
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 I I5C.09, subd. 3, (1) and 0).
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 01- 05)(Rev.11 -49) Page 3 of 3
EQUIPMENT BREAKDOWN COVERAG F
Various provisions in this covenant restrict coverage. Read the entire cove .
Want carefully to determine rights,
duties, and what is or is not covered.
Words and phrases that are in italics have special meaning. Refer to ui 9 s ection G DEFINITIONS, except for
accident and covered equipment, pment, which are defined in A.1 .a. and b. below.
A• COVERAGE
1, covered Cause of Loss
The insurance provided by this Coverage Part applies to the direct result of an a
equipment GCI de 17t to covered
a, accident means direct physical loss as follows:
(1) Mechanical breakdown, including rupture or bursting aused b centr •
9 y fugal force,
(2) Artificially generated electrical current, including electrical arcing, hat disturbs � .
appliances or wires;
9' rbs electrical devices,
(3) Explosion of steam boilers, steam piping, steam engines or steam turbines
owned or leased by
you, or operated under your control;
(4) Loss or damage to steam boilers, steam pipes, steam eng ines or steam turbines
resulting from an condition or 9 rb Wes caused by or
9 Y event inside such equipment; or
(5) Loss or damage to hot water boilers or other water heating equipment •
g caused by or resulting from
any condition or event Inside such boilers or equipment.
. Covered Equipment, unless specified otherwise in the Declarations means:
f
(1 Any property built to operate under vacuum or pressure, other than weight
An p 9 of contents, or
2
y Y p perty, other than excluded electrical generating equipment, used f o r '
transmission, or utilization f � a �' �° � r the generation,
o energy.
Such property must be at a location described in the Declarations and must be owned or leased by
you or operated under your control, except as specifically provided for under Service Interruption
coverage and the Service Interruption co ptian
. P R ent of other coverages.
2, Coverages Provided loss that otherwise would have
The fallowing coverages are provided. been payable under this
The accident must occur during the coverage.
Covenant Period, but expiration of the (c) We will consider the actual
covenant does not limit our liability. experience of your business
before the accident and the
ae Property Damage probable experience you would
We will pay for direct damage to covered have had without the accident in
property. determining the amount of our
payment.
be Business Income and Extra Exp ense (d) This coverage ends 80 days
� after the date the dam
(1) Business Income g
(a) We will pay your actual Ions of (2) property is repaired or replaced.
Extra Exp ense
business income that results We will a the
directly from the necessary total pay reasonable extra
or partial interruption of your expense to operate your business
business. during a total or partial interruption
(b) We will also pay any necessary of business.
expenses you incur to reduce c. Service In
the amount of loss under this Interruption
coverage. a will pay for such �1 Any insurance provided for Business
expenses to the extent that they Income and Extra Expense
do not exceed the amount of coverage is extended to apply to
LMCIT BM- 200(11/01)(Rev.1
Page 1 of 13
Ions as qualified below.
p►'operty; and the loss is increased by
(2) The covered equipment is owned by a enforcement •
ant of any ordinance or law in
a� Utility, force at the time of the ac cc dent that
M Landlord, or regulates the construction or re air of
buildings, or • P
(c) Other supplier g establishes zoning or land
with whom you have a contras t to use requirements, we will pay for the provide you with any of the following following additional costs to s comply with
services: electrical ower, such ordinance or law:
co P � ( Your a .
com munications, waste disposal, air actual expenditures for the
conditioning, refrigeration, heating, cost to demolish and clear the site of
gas, air, water or steam. undamaged parts.
The most we will pay for loss or damage (2) Your actual expenditures for
e ' epair,
under this covers increased costs to r
g is $25D,00�. , rebuild, or
construct the build If the building
d. Perishable Goods is repaired or rebuilt, it must be
(1) We will pay for your loss of intended for similar use ar accu arc $- nods d R y as the current building,
perishable
g due to spoilage. unless otherwise required b zoning
a for such to or land us e y 9
(2) We will also
p loss a ordinance or law.
caused by an accident to covered (3) Your loss as described in
aquipn�enl owned b a Business
y Income and Extra Expense
(a) Utility, coverage caused by loss covered in
fib) Landlord, or (1) or (2) above.
(c) Other supplier We will not pay for:
with whom you have a contract to ( Any fine;
provide you with any of the fallowing ( Any liability to a third party;
services: electrical power, ( Any increase in loss due
to a
communications, waste disposal, air pollutant; or
conditioning, refrigeration, heating, � Increased as, air, water heating, ( 7) construct• ion costs until
9 or steam. the building s •
(3) We will also a for 9 actually repaired or
pay your loss of replaced.
perishable foods due to The most
contamination from the vales we will pay for loss or damage
se of under this coverage is $250
refrigerant, including but not limited
to ammonia.
(4) We will also R Y a an n e c essary Q. Expediting Expenses
Y cessary
expenses you incur to reduce the With respect to your damaged covered
amount of toss under this coverage. pr°Pe we will pay the reasonable
Y
P such expenses to the
We will a for extra cost to:
extent that they do not exceed the ( Make temporary repairs; and
amount of loss that otherwise would (2) Expedite permanent repairs or
have been payable under this p
Permanent replacement,
coverage. The most we will a for los
The most we will p for I p Y s or damage
1' y l oss or damage under this coverage is $250,000.
under this coverage is $250,000.
h. Pollutant
e. Data Restoration We will a fo
a p y r the additional cost to
We will
pay for your cost to research, repair or replace covered property
p rtY
replace and restore dat including because of contamination by a pollutant.
Programs and operating systems. The This includes the additional expenses t
a clean u or di p °
most we will pay for loss or damage R spore of such property.
under this coverage is $ 1 00, 000, Additional costs mean those beyond
what would have been required had no
f. Demolition and 1CC (increased cost pollutant been involved.
of construction) We will also a for a p y ditional Toss as
If an accident to covered equipment described in Business Income and Extra
damages a building that is covered Expense, and Perishable Goods
coverages caused by such
LMCIT Bin- 200(11/01)(Rev.11/09)
Page 2 of 13
. contamination. the ri �t at any
The most we will pay for lass or damage po. ght ant.
to settle '
under this coverage is $250,000.
(2) We will pay, with respect to .any
claim or suit we defend:
�. CFC Refrigerants (a) All expenses we incur;
We will pay for the additional cost to
re (b) Th e cost of bonds to release air or replace p pace covered property attachments. �e do not
because of the use or presence of a have to
refrigerant containing CFC
p furnish these bonds;
(chlorofluorocarbon) substances. This (c) All reasonable expenses
means the additional expense to do the incurred by you at our request to
least expensive of the following: assist us in the investigation or
(1) Repair the damaged property and defense of the claim or suit '
including replace an lost CFC refrigerant; actual lass of earnings
y gerant; up to $250 a day because of
(2) Repair the damaged property, time off from work;
retrofit the sy stem to accept y � - (d) All casts taxed against you in
CFC refrigerant and charge the
system with anon -G refrig erant; any suit we defend;
(e) Prejudgment i nte re st
or j 9 st awarded
(3) Replace the system with one using a against you on that part of the
non -CFC refrigerant. rant. judgment we pay. If we make
g an offer to pay the applicable
Addifional costs mean those beyond limits, pA
y mi #s, we will not pay any
what would
have been required had no prejudgment interest based o
CFC refrigerant been involved. n
that period of time after the
We will also pay for additional lass as offer; and
described in Business Inco and Extra f} All interest on the full
Expense, and Perishable foods amount of
any judgment that accrues after
coverages caused by such loss. entry of the judgment and before
The most we will pay for loss or damage we have paid, offered to , or
under this covers $250,000. pa a is de y
g posited in court the part of the
judgment that is within the
Ice Rink Buried Piping applicable limits.
WO will pay for lass or damage caused
by or resulting from an accident to M, Mold
buried piping at an ice rink. The most (1) We will pay for loss, damage or
we will pay under this coverage is expense caused by mold, only when
$50,000. mold is the direct result of an
accident to covered equipment that
k. Newly Acquired Locations occurs during the policy period. This
All coverages provided b y Coverage this Cov includes, but is not limited to, costs
Par are extended to a newly acquired
Pa p arising from clean u ,removal or
p or
location that you have purchased abatement of such mold.
leased. As used in this coverage, the term
loss or damage means:
I. Defense (a) Direct physical loss or damage
This coverage is automatically chided in to covered property caused by and does not need to be indicated in the mold including the cast o
Declarations. removal of the mold,
(1) If a claim or suit is brought h against (b) The cost to tear out and replace you alleging that you are liable for any covered prop as needed
ro
p p �y of
damage to e an to gain access to the mold;
other in
your care, custody or control, that (c) The cost of testing performed
was directly caused by an accident after removal, repair,
to covered equipment, the damaged property is we will either: replacement or restoration of
(a) fettle the claim or suit, or completed,
pleted provided there �s a
(b) Defend you against the claim reason to believe that mot '
d as
or suit but keep for ourselves present; and
LlVICiT BNi- 200(11101 I 1l09)
Page 3 of 13
Q
(d) Additional loss as described in results, we will a for that resul i
p Y t ng loss
Business Income and Extra
or damage.
Expense coverages caused by b. Thee •
enforcement of any ordinance, law
such loss. ,
regulation, rule or ruling regulating or
(2) The most we will this for loss or restdctin repair, r
damage under this coven e ' 9 A replacement,
da
, g �s alteration, use, operation, construction
$ 1,000,000. Regardless. of the or installation exc as r
� P p rovided under
number of claims, the most we will
the following coverages: Demolition and
pay for the total of all loss or ICC, Pollutants or CFC Refrig
damage arising out of all accidents 9 .
to covered equiprr�ent which take c• Any earth movement, including but not
place within the 12-month eriod limited to earthquake, subsidence,
p sinkhole collapse, landslide, mudslide,
starting with the beginning of the ea ,
period is earth sinking, tsunami or volcanic action.
present annual policy p d, Flood surface water, .
$'1,000,000, With respect to a w ,waves, tides, tidal
particular accident which results in waves, overflow of any body of water, Or
mold, we will not pay more than a their spray, all whether driven by wind or
total of $1s000,000 even if the mold not.
continues to be present or active or However, if electrical covered equipment
recurs in a later policy period. requires drying out because of the
(3) The coverage provided under this above, we will pay for the direct
Mold Coverage does not increase expenses of such drying out, subject to
the Equipment Breakdown Limit on the applicable Property Damage limit
any covered property. If a particular and deductible.
occurrence results in loss or e. Windstorm or hail.
damage by mold, and other loss or However, we will pay if.
damage, we will not pay more, for (1) Covered equip located withi
the total of all loss or damage, than n a
building or structure suffers an
the Equipment Breakdown Limit on accident that results from rain
the affected covered roe '
p ro p er ty. �Y• snow, sand or dust; and
If there is covered loss or damage to (2) The building or structure
, 9 re did not first
covered property not caused by sustain wind or hail damage to its
mold, loss payment will not be roof or walls through which the i
limited by the terms of this g ra
snow, sand or dust entered.
coverage, except to the extent that f, Nuclear reaction or radiation or
mold causes an increase in the loss. '
radioactive contamination, however
Any such increase in the Ions will be
caused,
subject to the terms o f this
coverage. g. War, including undeclared or civil war;
Warlike action by a military force,
including action in hindering or
�. Green Building Expenses defending against an actual or expected
9 0 p cted
We will cover the following expenses: attack, by any government, sovereign or
(1 ) Reasonable and necessary extra other authority using military personnel
cost for the recertification of the or other agents; or
damaged covered property as Insurrection, rebellion, revolution,
required by a Green Authority. usurped power or acfion taken by
(2) Reasonable and necessary extra governmental authority in hindering or
cost to recycle the damaged defending against any of these.
covered property as required by a h. Fire or combustion explosion, whether or
Green Authority. not caused by or resulting from an
accident.
B. EXCLUSIONS i. Any of the following tests:
I. We will not pay for loss or damage caused ( A hydrostatic, pneumatic or gas
by or resulting from: pressure test of any boiler or
a. Depletion, deterioration, corrosion, pressure vessel; or
erosion, wear and teat, or other (2) An insulation breakdown test of any
gradually developing conditions. type of electrical equipment.
But if loss or damage from an accident j. Water or other means used to extinguish
a fire, even when such an attempt is
LMCIT BM -200(1 1101 )(Rev. 1 1109) Page 4
g of 13
unsuccessful. 4. With respect to Perishable Goods coverage,
k. Any of the following causes of loss: we will also not pay for Ions or damage as a
•
(1) Lightning, Explosion (except for result of your failure to use all reasonable
steam or centrifugal explosion); means to protect the perishable oods from
Smoke, Aircraft or Vehicles damage following g m
. ,Riot or 9 lowing an accident.
Civil commotion, Vandalism or
Sprinkler Leakage; - 5. We will also not pay for loss or damage
( Breakage of Glass, Failing Objects, caused b or resulting fr
Weight of Snow, y g om any defect,
Wei
9 w, Ice or Sleet or programming error, programming limitation
Water Damage (including Water virus loss s of data, lass of access, Ions of
Damage that is the result of an use, loss of functionality or other condition
acctdeft or within or involving data or media of any kind.
(3) Freezing (caused by cold weather), But if loss or damage from
Collapse or Molten Malaria r 9 an accident
I. results, we will pay for that resulting loss or
I, The presence, growth, proliferation, damage.
spread or activity of mold. This includes,
but is not limited to, costs arising from 6. None of the followin
clean up, removal, or abatement is c overed e q u ipment
n# of such a. Structure, foundation cabins
mold However, if an accident occurs, t'
compartment, or air supported structure
we will pay the resulting loss or damage. or building;
This exclusion does not ap ply: �lding;
b. Insulating r refract '
(1) to spoilage of personal grope that 9 ry rnatenal;
r c. Sewer piping, un
s perishable goods, to the extent R A �9 derground vessels or
that spoilage is covered under piping, or piping forming a part of a
Perishable Goods coverage; or sprinkler system, except as provided
under Ice Rink Buried Piping coverage;
(2) to the extent that coverage is . .
a for d. Water piping other than boiler feed water
provided under Mold covers piping, boiler
that o 9 pg, iler condensate r '
p of any loss or damage . , e atom piping or
growth, water piping forming a part of a
resulting from the presence,
raliferatian g refrigerating or air condiflanin •
p , spread or activity of 9 system,
mold as a result of an accident to e. Vehicle, aircraft, floating vessel or any
covered equipment, equipment mounted on such vehicle,
aircraft or floating vessel. However, an
grope that is Y
2. With respect to Business Income, Extra rtY static nary, permanently
Expense and Service installed at a covered location and that
Interruption
• R receives electrical power coverages, we will also not pay for � from an
o external power supplier will not be
a. Loss caused by y ou r failure to use due considered a vehicle, aircraft
diligence and dispatch and all v l or floating
reasonable means to r v essel,
. resume business f. Drs line, excavation •
at the described location; 9 n or construction
b. That an art of equipment,
p y to ss that is due solely to
the suspension, lapse or cancellation of g. Equipment manufactured by you for
a contract n accident sale; or
• g h. E equipment,
extending beyond the time business Electronic data processing equi
income is applicable; or unless used to control or operate
c. Delay in resuming operations due to the covered equipment. Electronic Data
need to reconstruct or re-input data Processing Equipment includes
p to or '
programs an media. programmable that
is programmable electronic e
used to store, retrieve and process
data; and associated peripheral
3. With respect to Service Interruption eq uipment.
q pment.
coverage and
paragraph (2} of Perishable I. An build .
Goods coverage, we will also not a for Y buil risk property if the
p approved estimated total p cost
loss caused by or resulting from any of the f
causes of loss named in Exclusion 1 exceeds $2,000,000 as of the date
above w . k ' construction commenced,
whether or not coverage far such
cause of loss is provided by another 7. Cove
of insurance - property does not include:
coverage part or policy y � °u a. Live animals; or
e.
b. Transmission and distribution lines and
LMCiT BM- 200(11101 )(Rev. I 1 «9)
Page 5 of 13
poles and equipment that are usual to
the transmission of electric4 and are The limit of your insurance for Your green
not at i exp enses is °/ building ex 1
a location described in the A a of the loss cost but
Declarations. This does not include not to exceed $100,000 per location. This
substations and transformers. Thi s limit is in addition to the Equipment
apply to Service
exclusion does not a Breakdown Limit.
Interruption coverage a s provided under
section A.2.c. above. - D. DEDUCTIBLE
c. Any bullders risk property if the I. If deductibles vary by type of covered
approved estimated total project cost equipment and more than one type of
exceeds $2,000,000 as of the date covered equipment Is involved in an one
hest
construction commenced. accident, the hi d y
s de ductibles will apply.
Unless otherwise shown in the Declarations
C. LINTS CP INSURANCE the Deductibles apply to all loss or damage
Any payment made under this Coverage part wi ll covered by this Coverage Part.
not be increased if more efense Co •
e than one city is shown C o v erage is not subject to a
in the Declarations. deductible.
. If two or more limits apply to the carne ortion of 2
a loss, we will only a the s m a ller • . Vl�e will not a f •
pay alley lirni #for that
portion of the loss. from any one accident until the amount Ions p or loss or damage resulting
o r d am a ge e e of
1. Equipment Breakdown Limit g ex ceeds the applicable
The most we will l° a Y for loss deductible or deductibles shown in the
g from any one accident Is the amount
arising or damage Declarations. We will then
Ions o Ray the amount of
shown as the Equipment Breakdow damage in excess of the applicable
wn Lirrilt in deductible or deductibles, subject to th
s. This total limit applies to all applicable limits s � e
the Declaration
coverages under this Coverage Part exce shown in the Declarations.
' pt
Defense. The costs we
incur under the E. LOSS CONDITI
Defense coverage shall not reduce the oNS
The following conditions apply in addition to the
available Equipment Breakdown Limit,
Common Covenant Con ditions:
2. Coverage Limits 1 • Abandonment
The limit of your insurance under each of the There can be no abandonment of an
coverages from loss or dams property to us. Y
a
an � 9 arising from
Y one a is the amount shown for
that coverage. unless otherwise shown 2. Appraisal
. below, these limits are a part of, and not in if w - liability a admit liability for a Ions and we and you
addition to, the Equipment Breakdown Limit. disagree on the value of the roe rrcc P p rtY or
business incom either may make written
3. Business Income and Extra Expense Limit demand for an app •
pp sal of the Ions In this
Th e limit of your insurance for Business event, each party will select a comp etent
lnoome and Extra Exp ense c and impartial apprais R
p overages is pR ser. The two appraisers
$51P000 This limit is in addition to the will select an umpire. If the cannot a either may re y re • agree,
Equipment Breakdown
Limit. y quest that selection be made
by a judge of a court having jurisdiction. The
4. hlewiy Acquired Locations Limit appraisers will state separately the value of
The limit of ranee our insurance the property or business income. If they fail
A Y for Newly to agree, they will submit their di
Acquired Locations coverage is $5, 000,000, the umpire. A decision agreed to by any two differences to
This limit is in addition to the Equipment will be b'
Breakdown Limit. ending. Each party will;
However, an newt a• Pay its chosen appraiser; and
has Y • y acquired location that b. Bear the o . sal
as covered electrical generating equipment ot her expenses of the appra
must be reported to us with p and umpire equally.
in g0 days after
you have purchased or leased the location
and will be subject to the terms and 3. Brands and Labels
conditions as determined by us. If branded or labeled merchandise th is
covered property is damaged by an accident
S. Green Building Expenses Limit to covered equr'prnent, but retains a salvage
Y expense:
our
value, You may, at g
LMCIT BM -200(1 1!0 )(Rev. 1 1/09)
Page 6 of 13
J
a. Stamp the word SALVAGE on the not in the resence of
a any other city and at
merchandise or its containers if
the such times as may be reasonably required
stamp will not physically damage the about an matter relating to this c
Y g overage or
merchandise; or the claim, including a crlyrs books and
b. Remove the brands or labels, if doing so records. In the event of an examination a
will not physically damage the cilys answers must be signed.
merchandise. You must re -label the
merchandise or its containers to comply However, L MCITwill not reimburse ou for
with the law. Y
your payment of costs, fees or other
We will pay far any reduction in value of the expenses you incur in establishing either the
salvage merchandise resulting from either of existence or the amount of loss under this
these two actions. covenant.
If a Brands and Labels Limit is shown on the
Declarations, we will not pay more than the, Reducing your Loss
indicated amount for coverage under this You must reduce your loss, if possible, by:
Condition. a. Resuming business partially y or
completely; 4. Duties In the Event of Loss or Damage b. Making up lost business within a
You must see that the following are done in reasonable amount of time. This includes
the event of loss or damage: working extra fame or overtime at the
a. Give us prompt notice of the loss or location of loss or at another location. The
damage. Include a description of the reasonable amount of time does not
properly involved; necessarily end when the operations are
b. As soon as possible, ive us a resumed;
g Using descripfion of how, when and where the c. g merchandi se or other property
loss or damage occurred; available to you;
c. Allover us a reasonable time and d. Using the property or services of others; or
opportunity to examine the property and e. Salvaging the damaged property.
premises before repairs are undertaken
or physical evidence of the accident is 6. Salvage and Recoveries
removed. But you must take whatever When, in connection with
measures are necessary for rotecton any loss under this
p Coverage Part, any salvage or recovery is
from further damage; received subsequent to the payment of such
d. Permit us to inspect the property and loss, the loss shall be refigured on the
records. Also ermit us t 9 basis
p o take samples on which it would have been settled had the
of damaged and undamaged property amount of salvage or recover een known
for inspection, testis and analysis- a ��
9 Y r t the time the loss was originally
e. If requested, permit us to question you determined. Any amounts thus found to be
under oath, at such times as may be due either party from the other shall be paid
reasonably required about any matter promptly.
relating to this insurance or your claim
including your books and records. In 7, Valuation
such event, your answers must be a. Our payment for damaged cove red
r+ed
signed;
property will be the smallest of.
f. Send us a signed, sworn proof of loss (1) The cost to repair
' � } p the damaged
containing the information we request to property;
settle the claim. You must do this within ( 2
S� days after our req uest; ) The cost to replace the damaged
q � property an the same site; or
g. Cooperate with us in the Investigation ( 3 ) am
and settlement of the claim; � � punt you actually spend that
is necessary to repair or replace the
h. Promptly send us any legal papers or damaged p
notices received p P ��
ed concerning the loss or Except t as described ed under f. below, you
damage; and
must pay the extra cost of replacing
i. Make no statement that will assume any damaged roe with p
obligation or admit an g property rhl p perky of a
obli
9 y liability, for any better kind or quality or of a different size
loss or damage for which we may be or capacity.
liable without consent. c. If you do not re air or repla
city and P P ce the
We may examine an
y ty er oath, while damaged property within 24 months
LMCIT BM- 200(11101)(Rev. 11109)
Page 7 of 13
after the date of the accident, then we p
will pay only the smaller of the: o
( ) 150% of the estimate replacement
{ 1 Cost i } t would have taken to repair at cast of the covered ro e as
the time of the accident or P �
stated in the Schedule of Covered
(2) Actual cash value; at the time of the Property, or
accident The actual cash vale (3) e of the
d: If any of the following conditions are covered property, if the covered
met, property held by you for sale will be property is vacant property.
valued at the sales price as if no loss or However amounts i
damage had occurred less an � any paid for
Y coverages as provided by A. Coverages,
discounts and expenses you otherwise 2.b. - 2.. are in addition to these
would have had: � s
limitations.
( 1) The property was manufactured by
You; F, ADDITIONAL CONDITIONS
(2) The sales price of the property is The following conditions apply in addition to the
less than the replacement PR Y
R cost of Common Conditions:
the property; or 1. Additional Covered Party
{3} You are unable to replace the if a arson � ated sale. P or organization is designated . in
property before its anticipated this Leverage Part as an additional city, we
e. The most we will pay for loss or damage will consider them to be a city rom an one accid under this
arising Y accident is the Coverage Part only to the extent of their
amount shown as the Equipment interest.
Breakdown Limit in the Declarations. This
total limit applies to all coverages under 2. Bankruptcy
this Coverage Part excep Defense. T P Y .
p he The bankruptcy y ou
costs we incur under the Defense p Y or insolvency of Y or your
coverage shall not reduce the available estate will not relieve us of any obligation
Equipment Breakdown Limit except as
s under this Coverage Part.
specifically F
p f y provided for under Data 3+ C
Restoration Coverage, data and media C oncealment, Misrepresentation or Fraud
will be valued on the following basis: We will not pay for any loss if you or any
(1) For mass-produced and other city at any time intentionally conceal or
commercially available software, at misrepresent a material fact concerning:
the replacement cost. a. This Coverage Part;
{2} For all other data and media, at the b. The covered property,
cost of blank material for reproducing c. Your interest in the covered property, or
the records. This includes data d. A claim under this Coverage Part.
representing financial records. We 9
will not pay based on their face value, 4,
Jurisdictional inspections
i. Environmental, Safety and Efficiency
Improvements If any covered equipment rewires inspection
to comply with state or municipal boiler and
If covered equipment requires pressure vessel regulations, gulations, we agree to
replacement due to an accident, we will perform such inspection on your behalf
pay your additional cost to replace with
equipment that is better for the 5, Legal Action A
environment, safer or more efficient than � Against Us
the equipment being replaced. No one may bring a legal action against us
However, we will not pay more than under this Covenant unless:
125 of what the cost would have been a• There has been full compliance with all
to repair or replace with like kind and the terms of this Covenant; a nd
quality. This coverage does not increase b. The action is brought within two years
any of the applicable limits. This after the date of the accident; or
coverage does not apply to any property c. We agree in writin that you have an
indicated as bung valued on an actual 9 Y
obligation to pay for damage to covered
cash value basis. property of others or until the amoun of
g. In any event, we will not pay more than that obligation has been determined b
the following, whichever is the least: Y
final judgment or arbitration award. No
{ 1 } Your financial interest in the covered one has the right under this Covenant to
bring us into an action to determine your
LMCIT BM- 200(11/01 )(Rev. 11/09) Pa
4
liability.
1 } The mortgage holder's right under
the mortgage will be transferred to
�. Loss Payable us to the extent of the amount we
a• We will * pay You and the loss payee pay; and
shown in the Declarations for loss (2) The mortgage ho!
this Coves der's right to recover
covered b
y Coverage Part, as the furl amount of the mortgage
interests may appear. The insurance holder' •
s claim will not be impaired.
covers the interest of the loss payee At our op tion, At °nt we may pay to the
unless the loss resul from conversion, mortgage holder the whole rinci
secretion or embezzlement on your pad. p pal on
b. the mortgage plus any accrued interest.
We may cancel the covenant as allowed In this event our
' � �" mortgage and note
by the Cancellation Conditio will be transferred to us and you will a
Cancellation ends this agreement as to your remaining Y
the loss payee's interest. if w If 9 m0 rt9age debt to us.
e cancel, f. we cancel this covenant, we will iv
vice will mail you and the lass payee the wri 9 e
same advance notice. tten notice to the mortgage holder at
least:
C. if we make any payment to the lass
p ' - (1) 1 � days before the effective date of
payee, we will obtain their rights against cancellation if we cancel fo your
any other part
nonpayment of premium; or
7* Mortgage Holders (2) 30 days before the effective date of
a. The term mortgage holder includes cancellation if we cancel for any
trustee. other reason.
b. We will y a for direc damage �� c overed g• If we elect not to renew this covenant,
� we w ill give wr itten notice to
Property due to an accident to covered the
mortgage holder at least 10 days before
equipment to you and each mortgage mortgage
ex it .
holder shown in the Decla rations in their h. If we sus p ation end date of this covenant.
.
order of precedence, as interests may p coverage, it will also be
appear. suspended as respects the 'mortgage
c• The mortgag hol holder. WO will give written notice of the
der has the right to suspension to the mortgage
receive loss payment even if the holder.
mortgage holder has started foreclosure
or similar action on the covered p other insurance
p perty a. Y
d. If we deny your claim because of our to the ou may have other insurance subject
acts or becau y same Ian term c onditio ns
use you have failed to , . plan, , s, condrtio and
comply with the terms of this Coverage provisions as the insurance under this
Fart, the mortgage holder will still have Coverage Part. If you dc, we will pay our
the right to receive loss payment if the share of the covered loss or damage.
mortgage holder: Orr share is the proportion that the
(1) Pays any premium due un der this applicable limits under this Coverage
f Coverage Part at our request if you Part bear to the Limits o Insurance of all
have failed to do so; insurance covering on the same basis.
' f of roo
(2) Subrriits a signed, sworn b. If there is other insurance covering the
i
loss with p same lass or damage, other than that
n fi0 days after receiving describe '
notice from us of our failure t din day above, we will pay only
Y o do the amount of covered loss
so; and or damaged
in excess of the amount due from that
(3) Has notified us of any change in other in
9 surance, whether you can collect
ownership or material change in risk on it or not.
known to th mortgage holder. I n no case
will we pay more than the
All of the terms of this Coverage Part will applicable limits.
then apply directly to the mortgage holder.
e. If we pay the mortgage border for an loss �. y Coverage Period, Cov erage Territory
and deny p to you because of your Under this Co •
Coverage Part:
acts or because you have failed to comply verage Part.
with the terms of this a. The accident must occur.
(1) Du ring the Coverage Period shown
in the Declarations; and
(2) Within the CoVerage Territory.
LIMCIT BM- 200(11101)(Rev. 1 1109)
Page 9 of 13
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28, We means the League of Minnesota Cities
Insurance Trust.
299 vacant property means:
a. Covered propertyis deemed to be
vacant property if for a period of 60
consecutive days less than 31% of the
covered property square footage is
either used by the city for customa
operations or is leased out.
b. Covered property rented or leased to the
City is deemed to be vacant property if
fora
period of 60 consecutive days the
covered property does not contain
enough property to conduct customary
operaUons.
However bullderS risk property is not
considered vacant property.
LMCIT S - 20001101)(Rev.11/09)
Page 13 of 13
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;
(b) Microprocessors( computer chips) not part of any computer
syste m; o r
(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 far, 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(l 1-01) Page 1 of 1
•
COMPREHENSIVE MUNICIPAL COVERAGE
Various provisions in this covenant restrict coverage. SECTION II - WHO IS COVERED.
Read the entire coverage agreement carefully to
determine rights, duties and what is and is not covered. Other words and phrases that appear in italics have
special meaning, as given in SECTION IV -
The words city and covered party are defined under DEFINITIONS.
SECTION I -- COVERAGES
COVERAGE A, MUNICIPAL LIABILITY bodily injury or property damage first took place or
COVERAGE (CLAIMS MADE BASIS) is alleged to have taken place.
L 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 occurrence must have taken place in the
coverage territory. (1) For any employment liabi claim, the cl 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 Depa 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 wh ichever comes fi rst.
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 of 1996 claim (HIPAA), the
claim is deemed to have been made on the earliest
(1) For claims for bodily injury or property d�mage, of:
the date of the occurrence is the date on which the
LMCIT CMC 0 t - 86)(Rev. 11 -09) Page I of 22
{
(a) The date the claimant files a complaint with (2) To an obligation to share damages
�' � g w ith or
the Federal Health and Human Services Office repay someone else who must a dam p y � because
for Civil Rights; or of the inju
(b) The date when notice of claim for damages This exclusion does not apply to liabil pp y assumed
is received by any co vered party or by L11 CIT, by the covered p arr y under a covered con tract.
P �' act.
whichever comes first. -
d. Any loss, cost, or expense arising out of any
(3) For any other claim for damages, the claim is direction demand, or request b the government q y � ment or
deemed to have been made when notice of such any other entity hat the city or an ot tY ty y e entity test
claim is received and recorded by any covered party for, monitor, clean u remove conta
or by L�lC'�'T', whichever comes first. p3 i n, treat,
detoxify or neutralize pollutants, or
(4) All claims for damages arising from a single Damag arising out of the actual a
g g alleged or
e,
occurrence will be deemed to have been made at the threatened di schar dispersal, se m
ratio
g P � see Pg� g n,
time the first of those claims is made against any release or escape of ollutants:
covered party.
p
( 1) At or from premises the city owns, rents, leases,
3. EXC LUSI O NS uses, or occup and remises the cit no p p ty longer
This coverage does not apply to:
owns, rents, leases, uses, or occupies;
-
(2) At or from any landfill, dump, or other site or
a. Damages for which the covered party is liable by location presents or formerly used b or for th
y y y e city
reason of the assumption of liability in a contract or or others for the handling, a , story disposal,
g g� p ,
agreement. This exclusion does not apply to liabi processing or treatment ofpollutants,
for damages:
(3) ■
ich are or were at any time transported,
(1) Assumed in a contract or agreement that is a handled, stored, treated, disposed of, or p rocessed as
A
covered contract; or waste by or for the city or an person or organization
�p g
(2) The covered party would have in the absence of for whom the city may be legally responsible; or
the contract or agreement. (4) At or from an site or location on which the ci
ty
or any contractors or subcontractors working directly
b. Damages for which the covered warty may be liable or indirectly n the ci s behalf are or
y have been
by reason of the Minnesota Civil Damages Act performin g operations.
erations.-
(M-S, §340A.801-- 340A.802), or any other law
governing liability for 'illegal sales of alcoholic (a) If the pollutants are brought on or to the site
beverages. or location in connection with such operations;
p ns,
or
c. Bodily injury to:
(b) If the operations are to test far, monitor,
(1) An employee of the city arising out of and in the clean up, remove, contain treat detoxify or
course of employment by the city; or neutralize the P oll utants.
(2) Damages to the spouse, child, parent, brother or This exclusion does not ap to an of the
pP Y �'
sister of that employee as a consequence of (1) foIIowin
g
above.
This exclusion applies; (I) Any limited pollution liability claim,
(2) Any claim arising out of the discharge or
(1) whether the city may be liable as an employer or dispersal of mace, tear as or similar agent if such
g
in any other capacity; and discharge was for the purpose of protecting rp P g ersons P
or property or incident to an arrest.
LMC1T CMC (I 1-86)(Rev. 11 -o9) Page 2 of 22
(3) Any damages arising out of heat, smoke, or i. Dams '
ges claimed for any lass, cost or expense
fumes from a hostile fire. A hostile fire is a fire incu •
rred by the c ity or others for the lass of use,
which becomes uncontrollable or breaks out from vvithdr inspection, • •
swat, recall, repair, replacement,
where it was intended to be. adjustment, •
J tment, removal or disposal o
(4) Any damages included in the products hazard 1 .
(} our prod ucl,
e. Damages arising out of the ownership, maintenance,
( ) Your work; o r
use or entrustment to others of any aircraft, auto or
watercraft owned or operated by or rented or loaned ( 3) Im aired r ,.
� } P p open} ,
to any covered party. Use includes operation and
loading or unloading, if such rode .
p ct, work, or property �s withdrawn or
recalled from the market or from use by any person
This exclusion does not apply to: or organization
because of a known or suspected
defect, deficiency, i
(1) A watercraft while ashore on premises the city or dangerous
• • g
owns or rents; cand 1t�an � n at.
j. Bodily injury to any volunteer while actin on behalf
(2) A watercraft that is: of g
the city if the volunteer is an employee within the
(a) Less than 26 feet Long; and
meaning of a workers' compensation law or similar
law, or is covered under a voluntary endorsement to
(b) Not bein g used to c persons or property
a workers' compensation insurance policy.
for a charge; .
k. Damages for bod injury, properly damage or
injur (3) Parking an auto on, or on the ways next t ° p ersonal .l ry arising out of the c ity ' s ownership,
� a i r port.
premises the city owns or rents, provided the auto is operation or maintenance of any
not owned by or rented or loaned to the covered 1,
Damages for odrly injury, properly d or
Pparty. • g
personal injury arising out of the city's ownership,
f. Damages due to war, whether or not declared il construction, op eration or an p or maintenance of any
act or condition incident to war. War includes civil ra track or rolling stack.
war, insurrection, rebellion or revolution.
m. Damages for bodily Injury, properly damage, or
g. Property damage to: personal injury arising out of the city's ownership,
p maintena of any:
operation or mainten p
(1) Property the city owns, rents, or occupies; �
(l ) Medical clinic ,
(2) Premises the city sells, gives away or abandons
a arises out (2) Licensed hospital boarding care home
g of any part of those t
if the property dams
premises, outpatient surgical center, facility; or supervised living
(3) Your product arising out of it or any art of it.
P (3} Licensed psychiatric hospital t
This exclusion does not apply to er pro damage .
fir propert g (4) Mental health clinic;
b
y e to premises rented to the city. A separate
limit of coverage applies to this a as covers .
coverage Licensed nursing home or home care p
described in SECTION III -
LIMITS OF COVERAGE. P
or
h. Damages claimed for any repair or replacement of .
our word P (�} Registered housing with services establishment
s.
LMC1T CMC 0 1 -86 }(Rev, 11 -09)
Page 3 of 22
r
r
n. Damages arising out of the rendering of or failure to
render Professional (3) Rodeos; or
p nal services by any professional
fisted below: 4 F' exhibitions.
ireworks displays or
(1) Attorney, unless the attorney is an employee of Darn a � .
and no q ages arising from o relating to the detention o r
the cit t an independent contractor, and the confinement of an ,
y p erson (s) i n any jail, holding cell
professional services are within the scope of the or s detention fac wh the cit
attorney's duties as a city employee, inc luding ty wns,
professional services � e prates or maintains, if the date of the occurrence
P performed for any of the city s cau
boards, commissions authorities g such damages g tak place after a continuous
es or agencies, or detention or confinement period of 30 da s or '
joint powers entities in which the city participates. an deter Y , �n
y tion facility which is intended and
(2) Architect.
regularly used for confinement of persons for periods in excess of 30 days.
�3 ) Doctor of medicine.
r. Damages arising out of the activities of an of the
following c i t y �
g ty boards, commissions, or agencies:
(4 ) Dentist.
(5) Nurse, exclusion shall not apply
excep that this ( 1) Gas, electrical or steam utilities commission;
to: ( 2) Po .
Port authority, housing and redevelopment
authority, economic development authority, area or
(a) Claims arising from the nurse's activities in � •
rnun is ipal redevelopment authority, or similar
the capacity of an emergency medical �' agency;
technician, paramedic or first responder; or
(b) Claims arisin nurse's .. (3) M un is ipal power agency; or
g from the activities :n
administering Vaccinations or immunizations to (4) •
employees or � � � Municipal gas agency,
city volunteers.
unless such board i
, commission, authority, or agency
(6) Pharmacist. g Y
is named in the Declarations, in which case the city
(7) Psychologist. will , also be covered to the extent of coverage
'
P rovided under this covenant to the named board,
o. Damages arising ut of the commission, es
authority or agency for dams
g failure or bursting of arising out of a g
any: g the activities of the respective named
board, commission, authority or agency.
(1) Class I or Class Il dam as classified b the • .
y s. Damages arising out of the acti of a joint
Commissioner of the Department of Natural
powers entity in which the city is a member unless
Resources pursuant to Minnesota Rules §6115.0340;
or the� ornt i
powers entity is Warned n the Declarations.
t. Damages arising out of condemnation, inverse
(2) Any dike, levee or similar structure. .
condemnation, adverse possession, or dedication by
.
p. Damages arising ut of the c adverse use. This exclusion does not apply to an
g e city s ownership, of roe y
sponsorship or operation of: c laim for taking • property rty wherein the taking of
property i s incident to an arrest or for the purpose of
(I) Motorized amusement devices if the power protecting persons or property in an emergency.
supply motor is rated at greater than 5 horsepower;
u. Any criminal proceedings or proceedings under the
(2) Any mobile equipme • equipment, automobile sno open meeting law against any covered party,
ob i le
or motorcycle in any racing, pulling, pushing, speed,
or demolition contest or in an stun ' v. Damages with respect to any claim(s) made by
y ting activity; LUCIT or the city ag ainst a n other g y cove party.
LMCIT CMC (I 1- 86)(Rev. 1 1-09)
Page 4 of 22
w. Any claim for damages asserted in any land trsef h. To a member or uest of an '
rrxent ftanc � � club, to urist court or
develop , or enterprise operati trailer park operated or owned b the city- r
litigation.
A y ty, a
i. For any i njury for which the injured has
COVERAGE Be MEDICAL AND 1�E ' 'injured p
LA TEED received or is entitled to receive workers'
EXP
compensation benefits.
i
I• COVERAGE AGREEMENT The exclusions of the MUNICIPAL LIABILITY
COVERAGE PART (COVERAGE A) al apply to this
a. LUCIT will pad' to or for each person who sustains Coverage Fart as respects bodily injury,
bodily injury caused by accident all reasonable
me and related expense incurred within one 3. ADDITIONAL DEFINITIONS
year from the date of the accident as a result of suc
hodily injury, provided such bodily injury arises ou when used herein:
of a condition in the covered premises.
Covered remises means all p remises ses ow
. p p ow ned or rented to
b. The amount LMCIT will pay for medical and related the city with respect to which the city is afforded
expense is l imited as described in SECTION III - coverage for bodily Inj liability i l i under this
�' J ' covenant,
LIMITS OF COVERAGE. and includes the ways immediate] adjoining on lan d;
y J d
however, covered premises does not include streets,
2• EXCLUSIONS sidewalks, or boulevards that do not abut a city awned
I
building or city owned parking lot.
LICIT will not pay expenses for bodily injury:
Medical and related expense means expenses for
a. Arising out of the operation or use of any necessary medical, surgical, x - ray and dental services
snowmobil or trailer designed for use therewith; including prosthetic devices, necessary ambulance,
hospital, professional Nursing and funeral services, and
b. included within the products hazard; replacement or rep air of A p damaged eye glasses or
clothing.
c. Arising out of op erations performed for th
P p e city by
an independent contractor other than: j 4. ADDITIONAL CONDITION MED
REPOR'T'S; PROOF AND PAYMENT OF
(I) Maintenance and repair of the covered premises* CL
o AIM
As soon as practicable, the injured person or someone on
(2) Structural alterations at such premises which do; his behalf shall give to L written proof of claim,
not involve changing the size of or moving buildings � u •
un der oath if required, and shall, after each request from
or other structures;
LMCIT, execute authorization to enable LICIT to obtain
d, To an tenant or other residing medical reports and copies of records. The injured
Y r e person regularly res�d�ng on ; arson shall submit to
the covered premises; P physical examination by
physicians selected by L when and as often as
e. To an other LMCI T m ay reasonably require. LI CIT may a the
y tenant if the bodily an,Iury occurs an ' P y
that part of the covered p remise s i injured person or any person or organization rendering
p es rented from the � the services and the
city; payment shall reduce the amount
payable hereunder for such injury. Payment hereunder
f. To any person while engaged in ma' shall not constitute an admission of liability of an
maintenance and �'
repair of the covered premises or alteration covered party or o LMCIT.
demolition or new construction at such premises;
I
g. To any person practicing, instructing or participatin
in any physical training, sport, athletic activity or
contest whether on a formal or informal basis;
LMCIT CMC (1 1 - 86)(Rev. 11 -og)
Page 5 of 22
COVERAGE C. AUTOMOBILE LIABILITY - This exclusion does not apply to liability pp y �
BODIL Y INJUR Y AND PROPER TY DA MA GL by the covered party under a covered contract.
1. COVERAGE AGREEMENT c. Property damage to property owned by the covered
party.
LMCIT wi 11 pay on behalf of the covered party al 1 sums
which the cowered party shall become legally obligated d. Bodily injury due to war, whether or not declared,
to pay as damages because of bodily injury or property civil war, insurrection, rebellion or revolution o to
damage to which this coverage applies, caused by an any act or condition inc .
ident to any of the foreg
, g g
occurrence and ar ising out of the ownership,
maintenance or use, including loading or unloading, of e. Any loss, cost, or expense arising out of any
any automobile. This coverage applies only to bodily direction, demand, or request by the government or
injury or property damage which occurs during the any other entity that the city or any other entity test
coverage period and within the coverage territory. for, monitor, clean up, remove, contain, treat,
detoxify or neutralize pollutants; or
LMCIT will have the right and duty to defend any suit
seeking those damages. However: Damages arising out of the actual, alleged or
threatened discharge, dispersal, seepage, migration,
a. The amount LMCIT will pay for damages is limited release or escape of pollutants:
as described in SECTION III - LIMITS OF
COVERAGE. (I) At or from premises the city awns, rents, leases,
uses, or occupies, and premises the city no longer
b. LMCIT may, at its discretion, investigate any owns, rents, leases, uses, or occupies;
occurrence and settle any claim or suit that may
result. (2) At or from any landfill, dump, or other site or
location presently or formerly used by or for the city
2e EXCLUSIONS or others for the handling, storage, disposal,
processing or treatment ofpollutants;
This coverage does not apply to:
(3) which are or were at any time transported,
a. Any obligation for which the covered party or any handled, stored, treated, disposed of, or processed as
carrier as his insurer may be held liable under any waste by or for the city or any person or organization
workers' compensation, unemployment compensa- for whom the city may be legally responsible; or
tion or disability benefits law, or under any similar
law. ( At or from any site or location on which the city
or any contractors or subcontractors working directly
b. Any liability the city may have for bodily in, jury to: or indirectly on the city s behalf are or have been
performing operations;
(1) An employee of the city arising out of and in the
course of employment by the city; or (a) If the pollutants are brought on or to the site
or location in connection with such operations;
(2) Damages to the spouse, child, parent, brother or or
sister of that employee as a consequence of (1)
above. (b) If the operations are to test for, monitor,
clean up, remove, contain, treat, detoxify or
This exclusion applies: neutralize the pollutants.
(1) whether the city may be liable as an employer or This exclusion does not apply to any of the
in any other capacity; and following:
(2) To any obligation to share damages with or (1) Any l united pollution liability claim.
repay someone else who roust pay damages because
of the injurer.
LMCIT CMC (I I - 85)(Rev. 1 I -o9) Page 6 of 22
(2) Any claim arising out of the discharge or a. 100% of the first $25,000 of litigation costs which !
dispersal of mace, tear gas or similar agent, if such are incurred after the litigation has been reported to
discharge was for the purpose of protecting persons; LMCIT; 85 of the next $225,000 of litigation costs
or property or incident to an arrest. incurred after the litigation has been reported to
L IT; and 0 of any litigation costs in excess of
(3) Any lead or asbestos claim unless the actual $250,000 wh ich are incurred after the lit has
alleged, or threatened discharge, dispersal, release, been reported to LICIT; and
escape, use, distribution, or handling of lead or
asbestos took place at or from any landfill, dump, or b. 5 0% of any necessary legal fees for counsel to
other site or location presently or formerly used by represent the city which the cit incurs prior to
, �' p
or for the city or others for the handling, storage, reporting the litigation to LMCI'T;
disposal, processing or treatment of pollutants.
This coverage shall not apply to an land use
i
g pp y y
(4) Any damages arising out of heat, smoke, orb development, ftanchise or enterprise operations
fumes from a hostile fire. A hostile fire is a fire litigation which is first reported to L'IT more than
which becomes uncontrollable or breaks out from i one year after the date on which the litigation w
i t � y a on as first
where tt was intended to be. ! 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 LICIT will pay for litigation costs for laird
under a covered contract. I .
use, development, f ranchise or enterprise operations
litigation covered under this section is limited as
3, ADDITIONAL DEFINITIONS _
described in SECTION III LIMITS OF COVERAGE.
These additional definitions apply for purposes of The amount LCIT a s for litig costs for
p y g laird
COVERAGE use, development, franchise or enterprise operations
i
litigation is subject to the Municipal Liability Deductible
Automobile business means the business or occupation' shown in the Municipal Liability Declarations or the
of selling, repairing, servicing, storing or parking general Annual Aggregate Deductible, if any, shown 'in
automobiles. � y
the Co C overa ge Decla
Hired automobile means an automobile not ow ned by' 2 LITIGATION MANAGEMENT
and is used under contract on behalf of, or loaned to, the
c ity. For any laird use, development, franchise or enterprise
operations litigat legal counsel will be selected by
Owned automobile means an automobile owned by the! mutual agreement of the city and LMCIT.
city.
1
IfLCIT and the city are not able to agree on selection
Trailer includes semi - trailer but does not include mobile of counsel, LMOIT will rovide a list of five
p attorneys
equipment. experienced in land use, d fr anch ise or
enterprise operations litigation matters; and the city wi U
COVERAGE E D, LAND I,S'L', DEVEL OPMENT, select legal counsel from that list.
S� �R E NTERPRISE �P�RA PIONS� FRANCHI g
LITI TION A land use, development, franchise or enterp
operations litigation suit may not be settled without the
I. COVERAGE AGREEMENT ! approval of both L CIT and the city.
Except as provided below for an land us ! 3, ADDITIONAL y e, � L DEEINITI DNS
development, franchise or enterprise operations
litigation which is first filed or served b or against the This additional definition ap for the p urpose Y g 1�P p rp a of
city or a city officer or employee during the annual I COVERAGE D.
coverage period of this agreement, L CIT wi pay the
following on the city's behalf;
LMCIT CMC (l 1- $5)(Rev. 11 -o9) Page ? ofd
i
i
Litigation costs means: b. The amount LMCIT will pay for uninsured and
underinsured motorists coverage is limited as
a. Legal fees for counsel appointed pursuant to 2. described in SECTION III - LIMITS OF
LITIGATION MANAGEMENT, above; COVERAGE.
b. Necessary legal fees for counsel to represent the city 2, ADDITIONAL DEFINITIONS
which the city incurs prior to reporting the litigation
to LMCIT-, These additional definitions apply for pur poses of
c. Necessary 1 itigation expenses other than legal fees; COVERAGE E:
Covered motor vehicle means any motor vehicle that is
d . Damages which the city is required to pay; and owned by the city.
e. Supplementary payments made or incurred as Uninsured and underinsured motorists coverage means
defined in SECTION V - SUPPLEMENTARY
amounts due to such persons, in such amounts and for
TA YMEN TS. such covered motor vehicles in accordance with and as
may be required, limited or excluded by the terms,
4. SPECIAL PROVISIONS - INTER definitions, limitations, conditions and exclusions of the
LITIGATION Minnesota No -Fault Act, Minnesota Statutes 65B.41 to
§6513.71 in no greater amount or scope than required by
The following special provisions shall apply only to said Statute unless a contra intent is clear[ and
�' Y
coverage for any land use, development, franchise or unequivocally stated herein.
enterprise operations litigation in which: 1) An
opposing litigant is also a member of the LMCIT But uninsured and underinsured motorists coverage
property/casualty program; and 2} The litigation is also a does not include punitive or exemplary damages.
covered claim for the opposing litigant under
COVERAGE D of the opposing litigant's LMCIT Un insured motor vehicle and underinsured motor
municipal liability coverage: vehicle have the meaning given them in the Minnesota
No -Fault Automobile Insurance Act, Minnesota Statutes
a. Legal counsel will be selected as provided above, §6513,41 to §6513.7 1.
but LMCIT will not otherwise participate in the
management of the litigation. Motor vehicle has the meaning given it in the Minnesota
No -Fault Automobile Insurance Act, Minnesota Statutes
b. Any settlement of the litigation involving a payment §6513.41 to §65B.71 but for the purposes of this
of damages must be approved by LMCIT. coverage, motor vehicle also includes motorcycles, as
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
costs will be one -half of the percentages specified in meets the definition of a motor vehicle under the Act.
COVERAGE D. 1. COVERAGE AGREEMENT.
When necessary to determine the application of this
d. LMCITs total liability to the city for litigation costs policy under Minnesota Statute §65B.49 Subd.(3a)
for the litigation shall not exceed $500,000. This occupying means in, or upon a motor vehicle.
does not increase the annual aggregate limit as
described in SECTION III - LIMITS OF 3, ADDITIONAL CONDITIONS
COVERAGE, 10.
These additional conditions apply for purposes of
COVERAGE E. UNINSURED AND COVERAGE E:
UNDERINSURED MO TORISTS CO VERA GE
Any amount payable under this coverage will be reduced
I. COVERAGE AGREEMENT by:
a. LMCIT agrees to provide uninsured and a. All sums paid or payable under any workers
underinsured motorists coverage. compensation, disability benefits or similar law; and
LMCIT CMC (11.86)(Rev. 11 -09) Page 8 of 22
1
b. All sums paid by or for anyone who is legally Basic econ do
� Y • non�r benefit means benefits is to such
responsible, includ all sums paid under persons, in
such amounts and for 1
such covered motor
Comprehensive Municipal Coverage, Coverage C.- vehicles in accordance with an •
i d as may be required,
Automobile Liabi lity - Bodily Injury ury acrd 'roper 1 ins i #ed or excluded b the to defin ` "
Rama e. y rms, conditions
limitations and exclusions of the Minnesota -
No Fault
Automobile Insurance Act, Minnesota Statutes §6513.41
The COMMON CONDITIONS also apply unless the to §6513.71 in na . . . Y greater amount and scope than required
are in conflict with the Minnesota No -Fault Automobile by said statute unless a con "
Crary intent is clearly and
Insurance Act, Minnesota Statutes §6513.41 to §6513.71 uneq uivocally stated her
� y e rein.
COV ERAGE F.
F.ASIC Loss Motor vehicle has the mean
n given it in the Minnesota
BENEFITS Co E GE No -Fault Automobile Insurance Act M innesota nnesota Statutes
§6513.41 to §65B.71 but for the P r u P oses of this
L C A coverage, motor vehicle also includes motorcycles, as
defined under the Act, and vehicles not required to be
registered pursuant to Chapter ] �S, but which otherwise
a. LUCIT agrees to provide basic economic loss i
berets. meets the definition of a motor vehicle under the Act.
b. The amount LMCIT gill 3. AID
pay for basic econom loss DITIONAI1 CoNDITIONS
benefits is limited as described in SECTION III
LIMITS OF COVERAGE, i This additional condition applies for purposes of
P� p �
COVERAGE F.
2. ADDITIONAL DEFINITION
The COMMON CONDITIONS also a pply unless the
y
These additional definitions apply for purposes of are in conflict with the Minnesota No - Fault Automobile
COVERAGE F. Insurance Act, Minnesota Statutes §6513-41 to §65B.71.
i
Covered motor vehicle means any motor vehicle that is
owned by the city.
i
SECTION II WHO IS COVERED
1. City means the city or other governmental body
r created pursuant y p t to an orderly annexation agreement
entity first named in the Declarations. Unless' or joint resolution be .
J between the city and a township is
specifically named in the Declarations, city shall not deemed to be a covered ' i
�c nt powers entity under �
include any of the f ol lowing: this agreement.
i
a. Gas, electrical or steam utilities commission 2. For
purposes of COVERAGE A and COVERAGE
b. Port authority, housing and redevelopment D, covered party means:
authority, economic development authority, area or a. The city, d an " ,
municipal redevelopment �'� Y other entity named �n the
F pment authority or similar Declarations;
agency;
. . b. For actions within his duties as such, any present
C. Municipal power agency; or former:
d. Municipal gas agency-
( 1) Member of the city
ty council,
e. welfare or public
reliefagency-
a (2) Member of a city board, comm ission, or
School board; or
f. ! committee wh ich is not excluded by the
definition of city; !
g. Joint powers entity; but a joint planning board (3) Elected or a •
� � appointed official of the city;
LMCIT CMC 11 -8 )
( )(Rev. i 1- � Page 9 �
g f 22
i
(4) Employee of the city; connected to an owne •
d aut
(5) Volunteer person or organization while d. An p erso n .
tin on b y p on while using an owned automobile or
ac
• fi g . • ehalf of the city and subject to the fired automobile only while y hlle such automobile i or
city s direction and control; was used with the ci .
s perm 15 s 1Qn.
( Other authorized person or agent of the city e. An other p erson •
while actin on behalf of the ci , �' p or organization but only with
g t3, but excluding respect to his or its liability because of acts or
independent contractors; omissions of a cover party under a., b., c, or d.
(7) Ci relief association and its members, above.
officers, and employees; or For u oses of
P rp COVERAGE C, Wane of the
(8) Person while acting in the adm inistrative following is a covered party:
capacity of medical director or medical advisor a. An p erson or organization Any p rgan�zation from wham a
to the city ambulance service, covered ar hires o r w •
p t bo r rows an automobile that :s
not a trailer.
c. with respect to a joint powers entity named in
the Declarations: � b. An p erson wh il e • e
Any p hale employed i n or otherwis
engaged in duties in connection with an automobile
( The joint powers entity; business other .
e than an automobile business operated
(2) while acting on behalf of the joint powers b the city.
entity, or with respect to liability arising out of c. An p erson while 1 .
Joint y P e loading or un loading an
the activities of the
J powers entity, any automobile, other than:
present or former:
(a) Governmental member of the joint ( 1 ) A city officer, employee, or volunteer; or
powers entity; (2) A lessee or borrower of an
owned
(b) Elected or appointed official of the automobile or their employees.
governmental member; 4. For purposes of this COVERAGE E cover
ed party
(c) Employee of the governmental member; means:
or Anyone occupying a covered motor vehicle,
(d) Other authorized person or agent of the For u oses of COVE
p rp RASE E, none of the
governmental member, but excluding followin g P is a covered p arty .,
independent contractors.
Anyone using a covered motor vehicle while such
3. For purposes of COVERAGE C, covered party covered motor vehicle w as as used w ithout the city s
cans. permission.
a. The city, and any other entity named in the 5. For u oses of COVE
respect P � RAGE F, covered parr
Declarations with res
p to any automobile; means.
b. Any present or former elected or appointed Anyone entitled to
official, employee �' benefits as may be required,
o
p yee or volunteer of the city with limited or excluded b the terms defin i
respect to any automobile while such automobile is �tl • • �' ttons,
cond and excl usions of the Minnesota No-
or was being used in the business of the city; Fault Automobile Insurance Act, Minnesota
c. Any person or organization from whom a Statutes §65B,41 to §65B.71.
covered parry hires or borrows a trailer which is
LMC1T CMC (I 1-86)(Rey. 11-09) Page 10 of 22
For purposes of COVERAGE F, none of the Anyone using a covered motor vehicle while such
fallowing is a covered party. covered motor vehicle was used without the city's
permission
SECTION III = LIMITS OF COVERAGE
1. The Limits of Coverage shown in the Declarations 7. The Limited Pollution Liabili t Claim Annual
and the rules below, except as otherwise described, Aggregate Limit is the most LUCIT will pay for
fix the most LMCIT will pay as damages under each limited pollution liability claims during the annual
coverage part regardless of the number of: coverage period. The Limited Pollution Liability
Claim Annual Aggregate Limit applies to the sum of
a. Covered parties; damages and loss adjustment expense, including
defense costs and supplementary payments as
b. Claims made or suits brought; or defined in SECTION V - SUPPLEMENTARY
PA YMEN TS.
c. Persons or organizations making claims or
bringing suits. S. The Failure to Supply Claim Annual Aggregate
2. LMCIT s maximum limit of liability for
Limit is the most LMCIT will pay for damages for
failure to supply claims during the annual
COVERAGES A and C combined shall be the per e
coverage
I period.
occurrence or sudden occurrence limit shown in the
Declarations whether the claim or claims fall under 9. The EMF Claim Annual Aggregate Limit is t
he most
COVERAGE A. COVERAGE C, or both. LMCIT will pay for damages for EMF claims during
3. The Limits of Coverage shaven in the Declarations, the annual coverage period.
except as otherwise described, apply only to the 10. LMCIT's total liability for litigation costs, as defined
damages under each Coverage Part in excess of the in SECTION I - COVERAGE D, LAND RISE,
Municipal Liability Deductible shown in the DEVELOPMENT FRANCHISE OR ENTERPRISE
Municipal Liability Declarations or the General OPERATIONS LMGATION, for all laird use,
Annual Aggregate Deductible, if any, shown in the development, „franchise or enterprise operations
Common Coverage Declarations and the Limit • • P P
g s of litigation which is first filed or served against the
Coverage will be reduced by the Deductible amount. city during the annual coverage period of this
agreement shall not exceed $1,000,00% regardless of
4. The Products Annual Aggregate Limit is the most the number of suits, defendants, or claimants.
LICIT will pay under COVERAGE A for damages
included in the products hazard. 11 ■ The Mold Claim Annual Aggregate re ate Limit is the
5. The Fire Damage Limit is the most LMCIT will pay most LMCIT will pay for damages for maid claims
under COVERAGE A for during the annual coverage rind,
g g
damages because of
property damage to premises rented to the cit}j 12. The Outside Organization Claim Annual Aggregate
arising out of any one fire. Limit is the most LMCIT will R a y for outside
organization claims during the annual coverage
6. The Medical and Related Expense Limit is the most period. The outside Org anization Claim Limit
LMCIT will pay under COVERAGE B for all' g
applies to the sum of damages and loss adjustment
medical expenses because of bodily injury sustained expense, including efense costs and supplementary
g PR ry
by any one person, and the occurrence limit is the payments as defined in SECTION V --
most LMCIT will pay under COVERAGE B for all SUPPLEMENTARY PAYMENTS.
medical expenses because of bodily injury to two or
more persons resulting from one occurrence. 13. The Uninsured and Underinsured Motorists Limit as
stated in the Declarations is the most LMCIT will
LMCIT CMC (11- 86)(Rev. 1 1-09) Page 1 I of 22
pay under COVERAGE E for uninsured and unequivocally stated herein.
underinsured coverages in any one accident
regardless the number of 15. LMCIT shall not be obligated under this covenant to
pay any claim or judgment or to defend any suit after
a. Covered motor vehicles; the applicable limit of LMCITs coverage has been
exhausted or by tender to any excess carrier or
b. Covered parties; excess coverage including excess coverage provided
by LMCIT.
c. Claims made; or
16. For any Annual Aggregate Limit shown in the
d. Motor vehicles involved in the accident. Declarations, the limit shall apply separately to each
consecutive annual period and to any remaining
14. The BASIC ECONOMIC LASS BENEFITS LIMIT as period of less than 12 months, starting with the
stated in the Declarations is the most LMCIT will beginning of the coverage period shown in the
pay under COVERAGE F to one person for basic Declarations, unless the coverage period is extended
economic loss benefits and the party to whom this after issuance for an additional period of less than 12
policy is issued specifically rejects its right, if any it months. In that case, the additional period will be
may have, to elect to add two or more policies or deemed part of the last preceding period for
limits together unless otherwise clearly and purposes of determining the limits of coverage.
SECTION IV - DEFINITIONS
1. Advertisement means a notice that is broadcast or given in connection with subparagraphs a. and b.
published to the general public or specific market above; or
segments about the city's goods, products or services
for the purpose of attracting customers or supporters. d. Any obligation of the covered party to
indemnify any party in connection with
2. Aircraft means any aircraft, including engines, subparagraphs a., b. or c. above.
propellers, operating and navigating instruments and
radio equipment attached to or usually attached to or 4. Automobile (auto) means a land motor vehicle,
carried on the aircraft, including component parts trailer or semi-trailer designed for travel on public
detached and not replaced by other similar parts and roads, including any attached machinery or
tools therein which are standard for the make and equipment. But automobile does not include mobile
type of aircraft. equipment.
3. Asbestos claim means any claim for damages arising 5. Bodily injury means bodily injury, sickness or
directly or indirectly out of, resulting from, caused disease sustained by a person, including death
by or contributed to by: resulting from any of these at any time.
a. The use of, sale of, installation of, removal of, 6. Coverage territory means:
abatement of, distribution of, containment of, or
exposure to asbestos, asbestos products, asbestos - a. The United States of America (including its
containing material, asbestos fibers, or asbestos dust; territories and possessions), Puerto Rico and
Canada;
b. The actual or threatened abatement, mitigation,
removal or disposal of asbestos, asbestos products, b. International waters or airspace, provided the
asbestos - containing material, asbestos fibers, or injury or damages do not occur in the course of
asbestos dust; travel or transportation to or from any place not
included in a. above; or
c. Any supervision, instructions, recommendations,
warnings or advice given or which should have been
LMCIT CMC (11- 86)(Rev. 11-09) Page 12 of 22
c. All parts of the world if: 8. Damag means mon ney damages, and 'Includes
awards for attorneys' fees with respect to suits
(1) The injury or damage arises out of: alleging violations u '
g u federal civil rights laws,
state human rights laws or the federal or state
(a) Goods or products made or sold by tIJe constitution.
cite in the territory described in a. above; or
With respect to any land use, development, franchise
fib} The activities of a person whose home is or enterprise li t i g a t i on, p operations litigation, damages also
in the territory described in a. above, but is includes am ' s obligated to pay for loss
r unts the c ity i s away far a short time on the city's business, of use of ra � .
and p per y during the time prior to a final
determination by the court that enforcement of a
land use, zoning, subdivision, or similar ordinance
(2) The covered party's responsibil t o pay u la ' . vate property.
g tion constitutes a taking of private damages is determined in a suit on the merits, in or re
the territory described in a. above or in a Damag .
settlement LM � g s daes not include any of the following:
'IT' agrees to.
a. Any obligation of a covered party under a
7. Covered contract means an indemnification of a . . ty benefits, leers compensation, disabili or
municipality work ers'
as required by ordinance, or that part of unemp loyment compensation law or any s law. unem to
any contract or agreement pertaining to the city's
A
business under which the city assumes the tort b. Exemplary d `
organization, i . � p ry amages o r punitive damages except i
liabi of another to pay damages to a third person unitive or or if the c P da mages claimed or levied against an
g contract or agreement is made officer, employee or volunteer of the city, provided
prior to the date of the occurrence giving rise to the � R
g g that the officer, employee or volunteer:
damages. Tort liability means a liability that would
be imposed by law in the absence of any contract or (1) Was actin .
� } gin the performance of the duties
agreement. of the position; and
Covered contract does not include that part of any (2) as not guilty i
) g ty of malfeasance in office,
contract or agreement, willful neglect of duty, or bad faith.
a. That indemnifies an architect, engineer or c. Fines or enalties impose
or for injury or .. P R d by taw.
curve
y 1 ry damages arising out of:
d. injunctive or equitable relief, or quasi- judicial
(1) Preparing, approving or failing to prepare or or administrative orders.
approve maps, drawings, opinions, reports,
surveys, change orders, designs or e. Repayment of an tax, assessment fee or
y other
specifications; or ! charge that was wrongfully g g y or any interest
on, or any other amount claimed for loss of use of,
(2) Giving directions or instructions, or failing such tax, assessment fee or other
to give the same � f that i s 3 er charge.
g the primary cause of
the injury or damages; f. Amounts aid or p aya ble p p y ble for the purchase or
b. permanent acquisition of property or property rights,
Under which the citys architect, engineer or or for the rig to e •
or assumes liability .. � i g p permanently enforce an ordinance,
survey for inl ury or damages regulation, or restriction on the use
arising out of the ci s rendering or fa ilin g of property.
tY g failing to render
professional services, including those listed in a. g. Amounts due under the terms of any contractual
above, and supervisory, inspection or engineering obligation, except for l iabi li
services; or
g p ty.
.
c. That indemnifies any person or organization for (I) Assumed in a covered contract; or
damages by fire to premises rented or loaned to the (2) Assumed in an
� } employment contract
city. between the city and its employees.
LMCIT CMC 01 -86y (Rev. 11-09) Pap 1 3 of 22
h. Any back wages or employment benefits for intergovernmental agreement will be deemed to
work that has been performed by the employee create a joint powers entity if the agreement
making the claim, except for any of the following: establishes a board with the effective power to do
any of the following, regardless of whether the
(1) Back wages or benefits owed because of a specific consent of the constituent governmental
violation of the wage and hour provisions of the units may also be required:
federal or state pair Labor Standards Acts; or -
a. To receive and expend funds;
(2) Back gages or benefits owed because of a
violation of any state or federal statute b. To enter contracts;
prohibiting discrimination in employment based
on race, color, creed, religion, national origin, c. To hire employees;
sex, marital status, status with regard to public
assistance, disability, sexual orientation, or age. d. To purchase or otherwise acquire and hold real
or personal property; or
i. Any claimed increases in wages and
employment benefits for work to be performed in the e. To sue or be sued.
future by the employee making the claim.
14. Land use, development, franchise or enterprise
9. EMF claim means any claim for damages arising out operations litigation means:
of the actual or alleged exposure to electromagnetic
fields, electromagnetic radiation or stray voltage. a. Any litigation relating to the application or
interpretation of a city s land use, zoning,
10. Failure to supply claim means any claim for subdivision, or similar ordinance or regulation; or
damages arising out of the complete or partial failure
to supply water, electricity, gas or steam. b. Any litigation relating to the city's involvement
in the financing or approval of any development or
11. Fungus(es) includes, but is not limited to, any form redevelopment project.
or type of mold, mushroom or mildew.
c. Any litigation relating to the granting, refusal,
f
12. Impaired property means tangible property, other interpretation, or enforcement of any franchise,
than your product or your work, that cannot be used ordinance, permit, license, or other mechanism
or is less useful because: through which the city authorizes or regulates parties
other than the city, the provision of
a. It incorporates your product or your work that is telecommunications, electricity, gas, heat, sewage
known or thought to be defective, deficient, treatment or refuse collection within the city.
inadequate or dangerous; or
d. Any litigation relating to the city s authority to
b. The city has failed to fulfill the terms of a engage in enterprise operations, "Enterprise
contract or agreement; operations" means an y arrangement ement under which the
city offers goods or services for a fee, including but
if such property can be restored to use by: not limited to sales of utilities, telecommunications
services, refuse collection, and liquor.
(1) The repair, replacement, adjustment or
removal of your product or your work; or Any litigation meeting the criteria listed above will
be considered to be land use, development, franchise
( The city s fulfilling the terms of the contract or enterprise operations litigation in its entirety,
or agreement. regardless of whether the litigation may assert other
claims as well.
13. ,point powers entity means an operating entity
created by two or more governmental units entering But land use, development, franchise or enterprise
into an agreement as provided by statute for the joint operations litigation does not include litigation:
exercise of governmental powers. An
LMCIT CMC (11- 86)(Rev. 11 -09) Page 14 of Z2
a. That seeks only compensation or other relief for (1) was caused by an actual, alleged, or threatened
an actual or alleged physical occupation, invasion, or discharge, dispersal, release, or escap of p ollutants;
p p p ,
use of property by the city; or
b. That seeks only a reduction or invalidation of a (2) Arises from the accidental rupture, backup, or
special assessment; overflow of the city S" sanitary sewer, storm sewer, or
c. That seeks only com pensation for damages, water supply systems.
based on the cirys actual or alleged negl igent c. Any lead claim or asbestos claim, unless the
inspection or enforcement of the state building, actual, alleged, or threatened discharge, dispersal
g
plumbing, electrical, fire, or similar codes; release, escape, use, distribution, or handlin g of lead
or asbestos took place at or from any landfill, dump,
d. That seeks only amounts due under contract, or other site or location resent] or formers used
P �' y
including any city bonds or other obligation; or by or for the ci ) or others for the handling, e
� gf storage,
disposal, processing or treatment of pollutants.
e. That was initiated by the city to enforce a
building, zoning, subdivision, or similar ordinance 17. L11 MIT means the League of Minnesota Cities
ties
or regulation related to the use of property, unless Insurance Trust,
that litigation also involves a challenge to the
constitutionality of the ordinance or regulation or to 18. Loading or unloading means the handlin g of
the legal authority of the city to enact it, property:
15, Lead claim means any claim for damages arising j a. After it is moved from the p lace w here it i s
directly or indirectly out of, resulting from, caused accepted for movement into or onto an aircraft
b r �'
y o contributed to by: watercraft or auto;
a. The toxic or pathological properties of lead, lead b. while it is in or on an aircraft, watercraft or
compounds or lead contained in any materials; auto; or
b. The actual or threatened abatement, mitigation, c. While it is being oved from an aircr
� g �,
removal or
disposal of lead, lead compounds or watercraft or auto to the place where it is finally
materials containing lead; delivered; but loading or unloading does not include
the movement of property by means of a mechanical
C. Any supervision, instructions, recommendations, device, other than a hand truck, that is not attached
warnings or advice given or which should have been to the aircraft, watercraft or auto.
given in connection with subparagraphs a, or b.
above; or 19. Mobile equip means an of the following lowin es
� y g l�
of land vehicles, including any attached machine
d. Any obligation of the covered ar to
P t3' or equipment:
indemnify any party in connection with
subparagraphs a., b. or c. above. a. Bulldozers, farm machinery, forklifts and other
vehicles designed for use principally off public
15. Limited pollution liability claim means any claim for roads;
damages:
b. Vehicles that travel on crawler treads;
a. Arising out of pesticide or herbicide application
operations; or c. Vehicles, whether self- propelled or not,
maintained primarily to provide mobility to
b. which resulted from a sudden occurrence which permanently mounted:
took place on or after the retroactive date shown in
the Declarations and prior to the expiration date of (1) Power cranes, shovels, loaders, diggers or
this covenant, and which: drills; or
LMC1T CMC (1 1 - 86)(Rev. E 1-09) Page 15 of 22
i
(2) Road construction or resurfacing equipment ? 1. Occurrence means:
such as graders, scrapers or rollers;
a. With respect to COVERAGE A, a wrongful act
d. Vehicles not described in a., b., or c. above that or a series of related wrongfi4l acts.
are not self - propelled and are maintained primarily
to provide mobility to permanently attached b. With respect to COVERAGE C, an accident,
equipment of the following types: including continuous or repeated exposure to
substantially the same general harmful condition.
(1) Air compressors, pumps and generators,
including spraying, welding, building cleaning, Provided that for purposes of SECTION III -
geophysical exploration, lighting and LIMITS OF COVERAGE, occurrence shall be
well- servicing equipment; or given the same meaning as given in the applicable
statute establishing monetary limits on the city's tort
(2) Cherry pickers and similar devices used to liability.
raise or lower workers;
22. Outside organization claim means any claim for
e. Vehicles not described in a., b., or c. above damages against a city officer, employee, or
maintained primarily for purposes other than the volunteer, arising from his or her activities as a
transportation of persons or cargo. member or officer of any formally organized
membership association, any professional
20. Mold claim means any claim for damages arising organization, or any rivate non-profit
t or
P P
directly or indirectly out of, resulting from, caused corporation, if the city determines that the
by, or contributed to by: individual's membership and artici ation in that
P P
association, organization, or corporation are within
a. Any,ungus(es or spares; the scope of the individual's duties as a city officer
employee, or volunteer. But outside organization
b. Any solid, liquid, vapor, or gas produced by or claim does not include an claim
y m a r is ing from the
arising out of any fungus Y ent es) or spore(s); activities of an enti listed in SECTION II -WHO
C. Any material, product, building component, or IS COVERED, l., a - g,, or any entity that is a covered under this covenant.
buildin g structure that contains harbors part nurtures or �
acts as a medium for any fungu(es) or spore(s); 23. Personal ln' means in'J u other than bo di l y
l ry rY y
in, j
d. Any intrusion, leakage, or accurnulabon of water ury, arising out of one or more of the following
offenses:
or any other liquid that contains, harbors, nurtures or
acts as a medium forfungus(es) or spore(s); a. False arrest, detention or imp risonment, , P s or
e. The actual or threatened abatement, mitigation, malicious prosecution.
removal or disposal of fungus(es) or spore(s) or any b. The ublication or utterance of a libel or slander
material, product, building cam building P
P g P anent or ding or other defamatory or disparaging material, or a
structure that contains, harbors, nurtures or acts as a publication or utterance in violation of an
medium for anyfungus(es) or spore(s); individual's . rig of privacy.
g P y
f. Any supervision, instructions, recommendations, c. Wrongful entry or eviction or other invasion of
warnings or advice given or which should have been g '
g the right of private occupancy.
given in connection with subparagraphs a., b., c., d,,
or e. above; or d. Assault or battery mmitted for the purpose of
�' P rP
g. Any obligation of the covered party to
protecting persons or property or incident to an
arrest.
indemnify any party in connection with
subparagraphs a., b., c., d., e., or f. above. e. The use of another's advertising dea in our
� y
advertisement.
LMCIT CMC (I 1- 86)(Rev. 1 1-09) Page 16 of 22
I
f. Infringing upon another's copyright, trade die ' .
dress �7. Rolling stock means any railroad locomotive c I
or slogan in your advertisement, other or
other equipment designed to be used on railroad
24, pollutants means an s � tracks.
y liquid, gaseous o r
irritant rritant or contaminant, including moke F
g I � �S, Spore(s) include any reproductive bod b
vapor, soot, fumes, acids, alkalis, chemicals and or ari si Y p produced �
waste, waste includes materials to be recycled,
reconditioned or reclaimed. 29,Sudde occurrence means an accident or a related
. series of accidents
25. Products hazard includes all darna es arising out and the release of pollutants � g t of resulting there from, all of which begin and
your product except that the products hazard does wit g end
not include an of the follow'
'thin 72 hours; except that each incident in which
y follo
the city's sanitary sewer backs • .
� � up into a budding �s
deemed to be a separate sudden occurrence. In the
a. Damages which arise from products that are still
in the city s physical p ossession; case of a related series of accidents, the sudden
occurrence will be deemed to
I have taken place when
b. Damages which arise out of th the first accident in the related series of such
e actual, alleged accidents took lace.
or threatened discharge, dispersal, seepage! p
migration, release or escape of pollutants at or from
� 30. Suit means a civil proceeding in which damag to
any landfill, dump, or other site or location present !
or formerly used b or for which this coverage applies are alleged. Suit
y y the city or others for th includes an arbitration -
handling, storage, disposal, p rocessing , tr b�tration proceeding alleging such
of p P g ea #men damages to which the ci must submit
or submit
with LM Irs consent. Suit does not mean an
c. ! ! criminal proceedin a ainst an y
amages which arise out of the actual, alleged, any g g y covered party or 1
open meeting law proceeding, unless damages
or • migration, release or escape threatened discharge, dispersal, see a e, , •
mi e o P g are also claimed in that proceeding.
p f pollutants which are
or were at any time transported, handled, stored,) The following
treated, disposed of, or processed as waste by or Ear are also deemed a surf for damagedamages: l
the city or any person or organisation for whom the
� a. A charge of employment discrimination fled
city may be legally responsible;
with the Federal Equal Employment ortuni
pP ty
art
d . Damages r ' Commission, the Commissioner of the Minne
hich arise out of the actual, alleged,' Lie sofa
or threatened discharge, dispersal s p meat of Human Rights, or a local human
F � eepage, rights commission as defined in Minnesota Statut
migration, release or escape of pollutants at or from e
any site or location on wh ic h the city or any � �3 . � l , subd �3; or
contractor or subcontractors working directly or I b. A c
indirectly on the city s behalf are Services filed with the Federal Health and
e or have been Human Sices Office for ' '
performing operations if the operations are to test
, •tell Rights alleging any
t breach of the response b :l sties, obl igations or duties
for, monitor, clean up, remove, treat, detail or
neutralize mposed by the Health Insurance Portab ility e the pollutants; or sty and
Accountability Act of 199 IPPA
� ) and any rules
H
I or regulations promulgated thereunder.
e• Damages which arise out of pesticide or
herbicide application operations,
31. Wrongful act means any actual or alleged error
g
2 . Property damage means: statement, act, omission, offense, neglect, accident,
or violation. Violation includes violation of an
• rights, immunities, or privileges y
Physical injury to tangible property, p g secured by the
a.
. ng loss of use of that property; or g including all � constitution and Laws of '
result the United States of
America.
b. Loss of use of tangible property that is not
physically injured.
i
I
LMCIT CMC (11 96)(Rev. 1 1-09)
Page 17 of 22
k
I
4
32. Your product means. Your roduct includes warranties es ar representations
made at any time with respect to the fitness, quality,
a. Any goods or products, other than real property, durability or performance
manufactured sold � � p rmance of any of the Items
, handled, distributed or disposed included in a. and b. above.
of by:
Your product does not include vending machines or
(1) The city; other roe rented
P p rty to or located for the use of
(2) Others trading under the city name; or others but not sold.
(3) A person or organization whale business or 33. Your work means:
assets the city has acquired; and a. Imp rovements, a lterations p lterations or other work the ctof
b. Containers father than vehicles ), materials, parts performs on the property of others.
or equipment furnished in connection with such b. Your work i •
in cludes w arrant i es or representations
goods or products. made an time w' .
y wit respect to the fitness, quality,
durability; or performance of any items included in
a. above.
SECTION V - SUPPLEMENTARY PAYMENTS
With respect to any claim or suit LMCIT defends under work.
COVERAGES A. C, AND D, LMCIT will pay
supplementary payments. 5. All costs taxed against •
g ns# the covered party � n the sort.
Supplementary payments means: 6. Prejudg int `
J g Brest awarded against the covered
party on that part of the judgment LMCIT pays. If
I. . Ail expenses LMCIT incurs. LMCIT makes
kes an offer to pay the applicable limit of
2. Up to $254 for cost of bail bands required because coverage, LMCIT will not pay any prejudgment .
int erest based on that period of time aver the offer.
of accidents or traffic law violations arising out of
the use of any vehicle to which the coverage applies. 7. All interest judgment t an the full amount of any that
LMCIT does not have to furn ish these bonds. accrues after
entry of the ,judgment and before
LMCIT has paid, offered to pay, or deposited in
3. The cost of bonds to release attachments, but only judgment . for band y court the part of the that is within the
amount within the applicable l m it of applicable ! tm its of coverage..
erage.
coverage. LMCIT does not have to furnish these
bonds. S. U to $2�� 0�
Up 0 for all awards for attorneys fees
erases into pursuant to a statute, but this supplementary
4. All reasonable expenses incurred by the covered payment does not include:
party at LMCITs request, to assist it in the:
a. Investigation or defense of the claim or suit, or a. Awards for attorney fees with respect to suits alle in violation
alleging s under federal civil rights laws,
b. Litigation of any land use, development,
state human rights laws or the federal or state
franchise or enterprise operations li tigation which is .
constitution; or
filed or served. b. At torneys' ttorneys fees awarded for an act, error,
omission or violation which LMCIT does not have a
Reasonable expenses include the actual loss of du .
i s u to $�� a day dut to indemnify pursuant to SECTION VI -
earnings P y because of time of from CONDITIONS, 1.
LNICIT CMC (I 1-86)(Rey. 11-09) Pap 18 of 22
SECTION VI - CONDITIONS
I. LIMITATIONS ON L CIrS DUTY To agents as soon as
INDEM
� � practicable.
lyiNIFY
The city shall promptly take, at its own expense, all
LI C11's duty to pay on behalf of or to indemnify reasonable steps to p revent d a r is ing
fy P p da mages from arising
covered party other than the city shall not apply to an out of the same or similar conditions •
Y • , provided that.
act, error, omission, or violation:
( l ) A failure to take such preventative measures shall
a. which constitutes malfeasance in office; or not constitute a breach of this condition �t�on unless
LUCIT has requested the city in writing to undertake
b. which constitutes willful neglect of duty; or such reventative measur es, and
c. Which constitutes bad faith; or (2} Such expense shall n
� p of be recoverable under thi
d. For which the city is not authorized to indemnify any covenant.
person by statute; or Notice of damag or injury is not noti � 1 ry of a claim.
e. Which constitutes dishonesty on the part of a b. If claim is made or suit is `
brought against the
covered party; or covered part the covered p ar ty �' p ty shall immediately
forward to LMCIT every demand, notice, summons
f. which constitutes the willful violation of a statute or or other
process received by him or his
ordinance by any official, employee, or agent of the representative.
city.
c. with respect to any incident or occurrence for which
The terms "malfeasance ", "willful neglect of duty" ty ", and no claim for damages has been made but that might
bad faith shall be given the same meaning in this resu in a covered
d claim for damages under this
covenant as given in the applicable statute with respect covenant, LMCIT shall have
to defend or ' e the right, at its
to the city's duty indemnify 'Its officers, discretion and at its expense, to associate with P the
employees or agents.
covered party in the investigation, handling and
defense of such matter, in which event LMCIT and
2. FINANCIAL RESPONSIBILITY LAW the covered p ar ty p ty shall mutually cooperate.
When this covenant is certified as proof of financial 4. EXTENDED
REPoRTINO PERIOD
responsibility for the future under the provisions of any,
motor vehicle financial responsibi law, such coverage ; a. LMCIT will rovide one or more ore extended reporting
as is afforded by this covenant shall comply with the eriods as described '
p below, if. .
provisions of such law to the extent of the coverage and
limits of liability required by such law. l COVERAGE A ' .
�) � s canceled or not renewed, or
3 . COVERED PARTY'S DUTIES IN THE (2) LUCIT renews or rep laces •
p COVERAGE A with
EVENT OF OCCURRENCE, CLAIM OR SNIT coverage that:
a. In the event of a claim or suit, notice containing (a) Has a retroactive date later than the date
particulars sufficient to identify the covered party shown on the Declarations page; or
and also reasonably obtainable information with
respect to the time, place and circumstances thereof, b) Does not apply on a claims made basis.
and the names and addresses of the ' injured and of
available witnesses, shall be given by or for the b• A basic extended reporting period o 60 days from
covered parry to LUCIT or any of its authorized the end of the coverage period is automatically
provided without additional charge.
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LMCIT CMC { l 1- 86}{Rev. l 1-09)
Page 19 of 22
c. A supplemental extended reporting period of I ) Any limited pollution liability claim; or
unlimited duration is available, but only by an
endorsement and for an extra charge. The (2) Any land use, development, franchise or
supplemental extended reporting period starts 60 enterprise operations litigation.
days after the end of the coverage period.
S. ACTION AGAINST LMCIT
The city must give LMCIT a written request for the
endorsement within 60 days after the end of the No action shall lie against LMCIT unless, as a condition
coverage period. The supplemental extended precedent thereto, there shall have been full compliance
reporting period will not go into effect unless the with all of the terms of this covenant, nor until the
city pays the additional premium promptly when amount of the covered party's obligation to pay shall
due. have been fully determined either by judgment against
the covered party after actual trial or by written
The additional premium for the supplemental agreement of the covered ar 1 , the claimant and
P �
extended reporting period will be a percentage of the LMCIT.
annual expiring premium for COVERAGE PART A.
Any person or organization or the legal representative
Number of Years Since
thereof who has secured such judgment or written
Retroactive Date Shown agreement shall thereafter be entitled to recover under
on Declarations Page Additional Cost this covenant to the extent of the coverage afforded b
g Y
this covenant. No person or organization shall have any
Z 57.
1 55.0% right under this covenant to J oin LMCIT as a j p �Y to any
3 action against the covered p arty to determine th
•9 3 % o
4 65.9% covered party imp leaded
liability, nor shall LMCIT be im leaded
5 70.8% by the covered party or his legal representative.
5+ 70.8% Bankruptcy or insolvency of the covered p � ar or of the
covered party's estate shall not relieve LICIT' of any of
d, An extended reporting period does not extend the its obligations hereunder.
coverage peri g od or change the scope of coverage
provided. It applies only i f the date of the. WAIVER of STATUTORY U ORY LIABILITY
occurrence giving rise to the claim for damages is LIMITATIONS
aver the retroactive date and before the end of the
coverage period. a. It is the exp ress intent of the city an
p ty d of LICIT that
the procurement of this covenant shall not waive any
Claims for damages which are first received and 1' .. M
ry units of liability provided by Mi
recorded during the basic extended reporting period rnoneta Statut
Statute §466.04 by any comparable or successor
for during the supplemental extended reporting statute
period, if it is in e , or by common law, which may be applicable
P effect) wi ll be deemed to have been to an covere party; '
of the coverage Y p t, and that any previous waiver
made on the last day g p eriod ' of liability imits is revoked to the extent that It may
y
Once in effect, extended reporting periods may not apply to claims covered under this covenant,
be canceled. b. I t is the .
express intent of the city and of LMCIT that
the procurement of this covenant shall not v►raive any
e. Extended reporting periods do not reinstate or other immunities, . ,
increase the limits of coverage applicable to s, limitations, or defenses imposed
• g PP, any
claim to which this coverage part applies. by or available under any statute or common law
which is applicable to any covered party.
f. Neither the basic extended reporting period nor the
sup supplemental extended reporting period is �• CONSENT To SETTLE
P P g p applicable
to, and no extended reporting period is provided for,
the following-. The city may prohibit LICIT' from settling any claim or
g suit against a covered part without the ci t y 's consent, p �' ty t, s a
LKIC1T CMC 01- 86KRev. 11-49) Page 24 of 22
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provided below; a rn
p y ent, LMCIT has no further duty to defend or to
indemnify the city or any other covered ar for this
a. At any time before LMCIT has offered or made a � �
� claim or suit, and the city assumes any duty which
settlement of a claim or suit, the city may not
�f LMCIT would of �r'
here ise have had to defend and to
LMCIT that LMCIT may not settle the claim or suit indemnify an other
without the city's con � i fy y er cowered party.
y sent. The city must give a
separate notice for each claim or suit which the city (2) LMCIT may continue to defers .
intends to prohibit LMCIT from settling without �' d the claim or suit.
g ithout the If LMCIT elects to continue to defend the claim or
city's consent. i sort the city ust '
ty reimburse LMCIT for any excess
amount.
b. If the city notifies LMCIT that the claim or suit may;
not be settled without the city's consent, the city' f. If the city efuses to consent ent to a settlement
must designate an individual authorized to give or recommended b LMCIT the '
refuse consent on the city behalf. The city's noti y i city must defend and
ce indemnify LMCIT for any claim or suit arising ut of
must include the name, address, and telephone � the failure to settle the original claim ' m orsurt g
,
number of the individual authorized to give or refused
consent o the city behalf. $. RETROACTIVE JOINT POWERS
COVERAGE
c. If the city has notified LMCIT that the claim or suit
may not be settled without the city's consent, LMCITI LMCIT will u •
will notify the city of the terms and conditions � pan the city's request, issue retroactive
conditions of comprehensive municipal coverage to an joint
any proposed settlement. If the city does not consent . p g y J p ers
entity in which the city is a member and which is not
to the proposed settlement, the city must notify named as a covered
LMCIT within 14 days of the date the cit r party under any other LMCIT
Y ty eceives coverage.
notice of the proposed settlement, unless the city and
LMCIT have mutually agreed to a longer or shorter pursuant to this sect' •
doe � ion, L MCIT wi ll Issue its standard
period. If within that time the cit snot notify' Comprehensive Municipal Coverage document to the
LMCIT that the city does not consent to the owers ertt i
settlement, the city ill be d
j oint �' , but coverage shall be subject to an
ty deemed to have
annual aggregate limit of $2oD,0oO. This limit s
consented to the settlement, � hall
apply to the sum of damages and loss adjustment
expenses, including defense costs, for all claims to
d. If the city refuses to consent to a settlemen t which t '
recommended b LMCIT, LM I he coverage applies.
recommended LM will not be liable
or an excess amount.
Y Excess amount means the Coverage issued pursuant to this section will be iss
sum of all damages and legal defense costs for the
� with the same inception date and the same retroactive
claim or suit minus the sum of.- date as this coven
(1) The amount of the settlement proposed by The premium must '
LMCIT; and i p be paid to LMCIT before the
coverage goes into effect. The premium for coverage
issued pursuant to this section shall be equal to the
(2) Any costs of defense incurred before the date of � rester of � •
the ci s refusal. An ex g $5,000 or the premium the,Toint powers entry
Y cess amount shall not be would otherwise a for co
included in the calculation of damages for purposes p y coverage at LMCIT's current
g p rP rates.
of any applicable Municipal Liability Deductible or
General Annual Aggregate Deductible, 9, NO DUPLICATION OF COVERAGE
e. If the city refuses to consent to a settlement This covenant -
recommended by LMCIT, LMCIT ma at its sole t shall not apply to any claim or claims
�' a arising out of an occurrence, if any claim or claims
discretion, exercise either of the fallowing options: arising of that occurrence were covered under any
prior covenant issued by LMCIT to the city.
(1) LMCIT may pay to the city an amount equal to ii
the amount of the recommended settlement, minus
any applicable deductible. If LMCIT makes such
LMOT CMC (1 ] -86 )(Rev. ] l - )
Page 21 of
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10, OTHER COVERAGE
If, pursuant to the COMMON CONDITIONS, I La., a
covered party has primary liability coverage as an
additional insured or additional named insured on
another party's coverage, and that insurer fails to defend
or indemnify the covered party, LICIT will do so under
this covenant.
In any case in which LMCIT incurs costs for a claim
which is also covered under any other liability coverage
or insurance, LMCIT shall be entitled to the covered
party's rights to recover those costs from that insurer.
The covered party shall cooperate with and assist
LMCIT as requested in enforcing any rights against that
insurer,
11, SEPARATION OF COVERED PARTIES
As respects the particulars and statements contained in
the application for this coverage and the exclusion set
forth herein, this coverage shall be construed as a
separate agreement with each covered party. Nothing in
this paragraph shall be construed to increase LMCIT s
maximum liability set forth in the Declarations and as
described in SECTION III - LIMITS OF COVERAGE.
12. DEDUCTIBLES
a. For purposes of deductibles under this coverage, the
deductible applies to the sum of the damages, loss
adjustment expense, defense costs and
supplementary payments as defined in SECTION V
- SUPPLEMENTARY PA YMEA T'S'.
b. The terms of the covenant, including those with
respect to:
(1) The LICIT s rights and duties with respect to the
defense of suits; and
(2) The covered party's duties, in the event of an
occurrence, apply irrespective of the application of
the deductible amount.
C. LICIT may pay any part or all of the deductible
amount to effect settlement of any claim or suit, and
upon notification of the action taken, the city shall
promptly reimburse LICIT for such part of the
deductible amount as has been paid by LICIT.
LMCIT CMC (11 -$f )(Rev. 11 -09)
Page 22 of 22
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COMPREHENSIVE MUNICIPAL COVERAGE
WAIVER of STkTUTORY LIABILITY
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LIMITATIONS ENDORSEMENT
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In consideration of the additional premium paid b the city, Section YI- Conditions, paragraph 6, is deleted and
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is replaced by the following:
G, STATUTORY LIABILITY LINRTATION�i AND IMMUNITIES
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a. It is the express intent of the city and of L ClTthat for any claim to which this covenant applies, the
monetary limits of liability provided by III nnesota 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 no 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 LAfCITthat 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 anycovened party.
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All other terms and conditions remain unchanged.
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LMCIT ME073 ( 11197)(Rev. 11/0 1)
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MUNICIPAL AUTOMOBILE
PHYSICAL DAMAGE COVERAGE
Various provisions in this covenant restrict coverage. Read I The word you and your refer to the city shown in the
the entire covenant carefully to determine rights, duties and i 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 N— DEFINITIONS.
SECTION I - COVERAGE AGREEMENT
We will pay for direct and accidental damage or loss to a not covered as described under SECTION I1— CAUSES
covered automobile unless the cause of loss or damage is i OF LOSS AND DAMAGES NOT COVERED.
SECTION II - CAUSES OF LOSSAND 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. i
� (1) Wear and tear; i
a. War.
(2) Freezing; except freezing of the pumping apparatus
(1) War, including undeclared or civil war; of a fire truck or similar emergency or other utility
truck; or
(2) Warlike action by a military force, including
action in hindering or defending against an actual or (3) Mechanical or electrical breakdowns.
expected attack by any government, sovereign or other
authority using military personnel or other agents; or . This exclusion does not apply if the above damage results
from other loss or damage covered by this Coverage Part.
(3) Insurrection, rebellion, revolution, usurped power
or action taken by governmental authority in hindering 'I 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
1. LIMITS OF COVERAGE property at the time of the loss or damage; or
a. The most we will pay for loss or damage is the smaller (2) The cost of repairing or replacing the damaged or
of the following amounts: i stolen property with other like kind and quality.
(1) The actual cash value of the damaged or stolen I b. We will not pay for loss or damage in any one
LMCIT A0010(11 /89)(Rev. 11-09) Pagel of 4
occurrence anti l the amount of loss or damage exceeds b. If you and we fail to agree as to the amount of loss or
the Deductible in Item S of the Declarations, and the damage, either may demand an appraisal of the loss or
amount of loss will be reduced by the deductible damage. In such event, you and we shall each select a
amount. competent appraiser. The two appraisers will select a
competent and disinterested umpire. If they cannot
The deductible applies against the total loss incurred by agree, either may request that selection be made by a
you from any one occurrence, regardless ofthe number judge of court having jurisdiction, The appraisers will
of covered automobiles involved. state separatelythe actual cash value and the amount of
the loss or damage. If the appraisers fail to agree, they
2, LOSS VALUATION will submit their differencesto 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
p ro pe r; 1 Fay its chosen appraiser and;
(2) Return the stolen property at our expense. We will (2) Bear the other expenses of the appraisal and
pay for any damage that results to the covered umpire equally.
automobile from the theft; or
We shall not be held to have waived any of our rights
(3) Take all or any part of the damaged or stolen by 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 gavel on public roads.. automobile while used in the business of thecity.
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 city employee's household.
more than 30 days;
3. City means governmental body or entity first named in
c. Any automobile that you borrow; the Declarations. For purposes of this coverage, city
includes relief as soc i ati ons. Unless specifcallynamed
d. Any automobile that you rent or lease from a person or in the Declarations, city shall not include;
organization that is • not in the business of renting or
leasing automobiles; or a. Gas, electrical or steam utilities commission;
e. Any automobile that you or an employee rents for city b. Port authority, housing and redevelopment authority,
business for less than 30 days from a person or economic development authority, area or municipal
organization in the business of renting automobiles if redevelopment authority or imilar agency;
the rental agreement requires you or the individual
renting the automobile to pay for loss or damage to the c. Municipal power agency;
automobile.
d. Municipal gas agency;
LMC1T A0010(11I89)(Rev. 11 -09) Page 2 of 4
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e. Hospital or nursing home board or commission; control;
f. Airport commission; f. Other authorized person or agent of the city while
acting on behalf of the city but excludes independent
g. Welfare or public relief agency; contractors; or
h. School board; g. Members, officers and employees of a city relief
association.
i. Jointpowers entity, but a joint planning board created
pursuant to an orderly annexation agreement or joint S. Joint powers entity means an operating entity created
resolution between the city and a township is deemed by two or more governmental units entering into an
to be a covered joint powers entity under this agreement as provided by statute for the joint exercise
agreement, of governmental powers. An intergovernmental
agreement will be deemed to create a ,joint powers
4. Employee means for actions within his duties as such entity if the agreement establishes a board with the
any present or former: effective power to do any of the following, regardless
of whether the specific consent of the constituent
a. Person whom you compensate directly by salary, governmental units may be required:
wages, or comm iss ions, and who you have the right to
direct or control awhile performing duties foryou a. To receive and expend funds;
b. Member of the city council; b. To enter into contacts;
c. Member of a city board, commission, or committee c. To hire employees;
which is not excluded by the definition of city ,
d. To purchase or otherwise acquire or hold real or
d. Elected or appointed official of thecity; personal property; or
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e. Volunteer person or organization while acting on e. To sue or be sued.
behalf of the city and subject to the city's direction and
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SECTION V -- CONDITIONS
1. OVERAGE UNDER TWO OR MORE (2) Within the coverage territory.
COVERAGES
b. The coverage territory is:
If two or more of this covenant's coverages apply to the
same loss or damage, we will not pay more than the actual (1) The United States of America (including its
amount of the loss or damage. territories and possessions;
2. COVERAGE PERIOD, COVERAGE (2) Puerto Rico; and
TERRITORY
(3) Canada
Under this Coverage Part:
3e LOSS CONDITIONS
a. We cover loss or damage commencing:
Duties in the event of loss:
(1) During the coverage period shorn in the
Declarations; and a. You must promptly notifyus of any loss.
LMCIT A0010(11l89)(Rev. 11 -09) Page 3 of 4
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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 covered automobile 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, LICIT will not reimburseyou 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 Ao030(111$9)(Rev. 11 -09) Page 4 of 4