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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 - F f • t J t f J ' r ff 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 r J 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 rg! 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 1 1 ` I I � f I I I I I � I i { I i I i All other terms and conditions remain unchanged. i I 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) 1� i ' } ` rt : . k s � _ �..� : �— x._..�.aerr�� •vim �'"�_��•`• -�.. i t �` ; I + Jo 1r 4 M1 NCI : ' it 71 ,• _ f 5 r � 1 1 l f � ��_ S �v +, r ry .. t y w i ;',. I- r .. i° ,5 L• �• 1, ,. + JJJ{{{�����+ ,.Y . v �?ti � �. r ! ..� � x ..JC•'- � } .5 r ��� Iq "��} � �.r S � �. � •'71 Ya. ] •V I r _t I k "' �_�r ='J'y� '- - - f_ jai . {� {{ _•_ _Yyar� or'+..� F .x .vt +1 + i{ ' } r �.,. J- •v. I y \ ' ~ 1 - V Si }"i, �+ ti ..7C • ' r ,. t �' •� h � • � �� a. .• � 1 T 1 • .A 1� aroma— • v _ ��� u '�' � +'-F ' pp t C . t r+ r�I I { I .x } �,� �•�. � �c � _ • • x�. ; ti � � � � •t t a Im I r x kx • �:a r. • } I � j •. + ti ' c y • •r. r r .1c. 1 $ z I ( a . I ' y , ; Y �?� �„'.F r {_ Y„ L, , m��'l��' t '- �.,�'•� -.: .. �¢L•,r,µs „�` -�:�+� _rte h � i . I 1 K t + k J C Y L � �Sc�Ti F � 1" �A a , u• j . . .. it .� S. 'fir "y i l � �$v Jr� v �, F i ! 1 } ` . F 1 7 i� 1� `M1 ry i A •� '' � . I . •,.�. -•, _.• � � � •�.a�{ 'n ma -.Nt • � I HE 1 I I ur I _ II 1 I 1 I 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 � I 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 1 I It is understood and agreed that city is amended to include: i , ; ECONOMIC DEVELOPMENT AUTHORITY r I I I f f I i 1 j 1 I I I I I 1 ' f { I t � f All other terms and conditions remain unchanged. I I I 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 r A 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 .. tar ; A 'i 7. � � � •_ ,. � I ' 1I i I '" _ " 'h7Y1 F� N Y _ 'L { � I } f Z. F � 71 ` 4 l � RI[ � IY r �1 pi , • 1. rj ` � Tf 7 1 y �nnnr r ? I ' •� { C z Semi ti,a 1 4^+Y I J i 1 I i o t. A all lk r I r I I y7 1 M }r i F' I I L 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' zk 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 } y •{� ,.. .�. w-. rr r T ' Eli s I .. �..;••+ • ` ��� Y ra •••..r {� �T �_ �.r+Y � � =-. ,a � f r 2 _ � a _ a � �''t� L-� } r r� a � � r •- r � j � 4 ',� - � 6. J6, a.�ll a JL. tiM1 }Y l'ti � 4 y • 3'LyS'� r� lFt l ~ ; v ` r L t �• - r .` ` � � Y.1 S * 1 � 1 •' � f 1T y 7L +. 'f _�4 _ 71 ` te r 5 � 1 "5 � M14 I • WM� 1 � •.:4 I r 2 t � r• r s l 1 I r i �q pn r ' I% •I a %I _ I a r.rar- . n L 1 r.mr•rs r _ •� i J� -q Ere ;Lk r f +'' jrr �. •.r u +h a a { r n` L C' I � y ' }' ` •r 1 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 P P 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 f 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) ,� Pale l of .. J • 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 1 1 i I i i i f I I I I i I I 1 i All other terms and conditions remain unchanged. { I 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 SECTION I - PROPERTY COVERAGE * ♦* raa.. asa. a* t sa. l.R , •.. , li r.ta , . ,, •r ..••t # # 0 * ## 01 01. a.. r. .•rf•a.R. * #r #. # , ■sa... *•• , . li .. - 1 ! COVER AGREEMENTrl....,,r•,•R,aa 0101 *..a.,��•.s.f.r.sr. R,..��•,~f•.•.f,l 0100# r# f,,,■ f, r•• r., rtR##.., f.,rsfaf•rr *,r #ri.t,.r.i•.a.lrr a■ COVE PROPERTY ....... * � r•,• f.• rRl,l t#/ t#+.,!■.■ f., R#* f .. /itir # # #s. 0101## / ■.•,• +a•ff /0,.010001 #7 „fa�•sf.i ►. 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 +. 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UT SERVICES 0100 „ ■ ,.,!..., ., # ir r #, + R.... ,l..!l. 010101„ R!! i.aa„■., s. r,.,.. r, .,,,,. .•..l. ./,! l i . i. , ■ ■,,., # #,,,..,• ■ R #! *, g , RalRE ■ � 1 � it ■r „R! *. 0101..# t. ira,,,+l iRRl i.l,. rf„ s*#1 iRl, 4l.. r##.,, s.. a1 /!. #f,.,rf..■rw.iR #l..lt #,001,0,•~.,•• #ll.ii 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 � P P (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 P P 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 P P 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 P 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 Y g 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; P , 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 • P P is limited as described in SECTION VI - LIMITS OF open, mobile property, or builders risk ro er in P P r3' 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, • . PP Y 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. P g 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. P g 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 P � 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 Uflod luva ���x�no� axn3oxi�a z�ai�i� 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. 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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. i 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 4 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 I i 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 i i i COMPREHENSIVE MUNICIPAL COVERAGE WAIVER of STkTUTORY LIABILITY I LIMITATIONS ENDORSEMENT I In consideration of the additional premium paid b the city, Section YI- Conditions, paragraph 6, is deleted and I is replaced by the following: G, STATUTORY LIABILITY LINRTATION�i AND IMMUNITIES i 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. i I All other terms and conditions remain unchanged. i I I I i i I i I I I I i i I i I LMCIT ME073 ( 11197)(Rev. 11/0 1) I 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 i T 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 i 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 i 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 s 1 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