HomeMy WebLinkAboutUntitled 410 MI 1
League of Minnesota Cities
League of Minnesota Cities
145 University Avenue West
St.Paul,MN 55103-2044
(612)281-1200
Comprehensive
Municipal
Property and
•
Casualty Coverage
Administered By:
Berkley Risk Services,Inc.
145 University Avenue West
St.Paul,MN 55103-2044
(612)281-1200
vFn PAI6 1997
**IlVIPORTANT**
PLEASE READ YOUR AGREEMENT
Covenant Number: COMMON COVERAGE DECLARATIONS
CMC 17704 Coverage is Provided by:
• THE LEAGUE OF MINNESOTA CITIES
Previous Covenant Number: INSURANCE TRUST —_
• CMC 16674 (Herein called LMCIT)
League of Minnesota Cities
Sem 1. CITY and MAILING ADDRESS:
OAK PARK HEIGHTS
P.O.BOX 2007
STILLWATER MN 55082
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/97 To: 07/07/98 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:
Premium
PROPERTY $ 6,057
INLAND MARINE $ 813
GLASS NOT COVERED
• MUNICIPAL LIABILITY $ 25,507
MEDICAL PAYMENTS INCLUDED
AUTOMOBILE LIABILITY $ 2, 131
AUTOMOBILE PHYSICAL DAMAGE $ 1, 399
CRIME NOT COVERED
BOILER and MACHINERY NOT COVERED
TOTAL $ 35,907
Item 5. GENERAL ANNUAL AGGREGATE DEDUCTIBLE: DOES NOT APPLY
Item 6. PREMIUM IS DUE AND PAYABLE: ANNUAL - IN ADVANCE
Item 7. FORMS APPLICABLE TO ALL COVERAGE PARTS:
CCM(11-95) CMC(11-96) DEC-011(05-95) DEC-012(05-95)
DEC-013(11-96) DEC-016(11-95)
ecuti Director,LMCIT
LMCIT DEC-011(05-95)
Common Conditions
All coverage parts included in this covenant are
subject to the following conditions:
1. CANCELLATION AND NON-RENEWAL The first "city" shown in the Declarations is
authorized to make changes in the terms of this
a. The first "city" shown in the Declarations may cancel coverage agreement with the consent of LMCIT.
this covenant by mailing or delivering to LMCIT advance The coverage terms can be amended or waived only
written notice of cancellation. by endorsement issued by LMCIT and made a part of
this covenant or by acknowledgement by LMCIT that
b. LMCIT may cancel this covenant by mailing or an endorsement will be issued at a later date.
delivering to the first "city" shown in the Declaration
a e written 3. RATING AUTHORITY AND
page, of cancellation at least:
EXAMINATION OF "YOUR" BOOKS AND
(1) 10 days before the effective date of the RECORDS
cancellation if LMCIT cancels for nonpayment of
premium; or
LMCIT shall have full discretionary authority to
(2) 30 days before the effective date of the promulgate rates and establish the premium to be
cancellation if LMCIT cancels for any other
charged for the coverage provided under this
reason. covenant. LMCIT may at its discretion or at
"your" request examine and audit "your" books
c. LMCIT will mail or deliver its notice to the first "city" as they relate to this covenant during the
shown in the Declaration's last mailing address known to coverage period and up to one year thereafter
LMCIT. and accordingly make any necessary adjustments
• in premium. No premium adjustments will be
d. Notice of cancellation will state the effective date of made after one year following the expiration of
cancellation. The coverage period will end on that date. the coverage period.
e. If this covenant is cancelled, LMCIT will send the first 4. INSPECTIONS AND SURVEYS
"city" shown in the Declaration any premium refund due.
If LMCIT cancels, the refund will be pro-rata. If the first
"city" cancels, the refund may be less than pro-rata. The LMCIT has the right, but it is not obligated to:
cancellation will be effective even if LMCIT has not
made or offered a refund. a. Make inspections and surveys at any
time.
f. If "we" decide not to renew this covenant "we" will
mail or deliver to the first "city" shown in the b. Give the "city" reports on the conditions it
Declarations written notice of the non-renewal not less finds; and
than 30 days before the expiration date.
c. Recommend changes.
g. If notice is mailed, proof of mailing will be sufficient
proof of notice. Neither LMCIT's right to make inspections nor its
making any report thereon shall constitute any
2. CHANGES undertakin g on behalf of or for the benefit of the
"city" or others to determine or warrant that such
This covenant contains all the agreements between property or operations are safe or healthful or free
LMCIT and "you" concerning the coverage afforded. from hazard or are in compliance with any law, rule
or regulation.
LMCIT CCM(11-89)(Rev. 11-95) 1 of 3
A
t
These conditions apply not only to LMCIT, but also to The terms of the covenant, including those with
any rating advisory, rate service, or similar organization respect to: ,
which makes inspections, surveys, reports, or ,
recommendations. (a)the LMCIT's rights and duties with respect
to the defense of suits; and
5. PREMIUMS
(b)the "covered party's" duties, in the event of
The first "city" shown in the Declarations: an occurrence, apply irrespective of the
application of the deductible amount.
a. Is responsible for the payment of all premiums;
and LMCIT may pay any part or all of the deductible
amount to effect settlement of any claim or suit and
b. Will be the payee for any return premiums. upon notification of the action taken, the first "city"
shall promptly reimburse LMCIT for such part of the
6. TRANSFER OF "CITY'S" RIGHTS AND deductible amount as has been paid by LMCIT.
DUTIES UNDER THIS COVENANT 9. ASSESSIBILITY
The "city's" rights and duties under this covenant may
not be transferred without the written consent of LMCIT. All "cities" in the joint coverage pool are jointly and
severally liable for all claims and expenses of the
7. OVERLAP OF COVERAGE pool. The amount of any liabilities in excess of
assets may be assessed to the members of the pool
In the event of a dispute between LMCIT and one or when a deficiency is identified.
more insurers as to which policy or coverage agreement 10. SEPARATION OF "COVERED
applies to a covered loss, LMCIT shall indemnify the PARTIES"
"city" for any legal or other expenses which are
necessarily incurred by the "city" in determining whether
LMCIT or the insurer(s) shall bear the loss. Such As respects the particulars and statements contained
indemnification shall be made only if it is determined that in the application for this coverage and the exclusion 0
payment of the loss shall be made under this covenant. set forth herein, this coverage shall be construed as a
If the loss is shared by LMCIT and one or more insurers, separate agreement with each "covered party".
indemnification shall be made in the same proportion as Nothing in this paragraph shall be construed to
the loss payment. The "city" and LMCIT shall cooperate increase LMCIT's maximum liability set forth in the
in the development and execution of reasonable Declarations.
procedures to resolve the dispute.
11. NUCLEAR HAZARD
8. DEDUCTIBLES
LMCIT under this covenant does not cover any loss
LMCIT shall be liable to the "city" or to others on behalf or claim for damage that is caused in part or in total
of the "city" only to the amount of damages in excess of by nuclear reaction or radiation, or radioactive
any deductible amounts. contamination, however, caused.
For purposes of this section, damages include defense 12. CONCEALMENT OR FRAUD
costs. Defense costs means those costs which are
allocated to each claim to include attorneys' fees, court This covenant is void if any "covered party" has
costs, court reporting and transcript fees, the cost of intentionally concealed or misrepresented any
obtaining records, general witness and expert witness fees material fact or circumstance relating to this
and expenses and similar defense related costs. Damages covenant.
do not include claim adjuster fees that are not allocated to
each claim.
M
LMC[TCCM(I1-89)(Rev. 11-95)
2of3
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13. OTHER COVERAGE
This coverage is excess over any other valid and
collectible insurance policy or other coverage whether
primary, excess, contingent, or any other basis, except
other coverage written specifically to be excess over this
coverage.
LMCIT CCM(11-89)(Rev. I1-95) 3 of 3
4
i
• COMPREHENSIVE MUNICIPAL COVERAGE
Various provisions in this covenant restrict The words "city" and "covered party" are
coverage. Read the entire coverage agreement defined under SECTION II - WHO IS
carefully to determine rights, duties and what is and COVERED.
is not covered. Throughout this covenant the word
"city" refers to the first "city" shown in the Other words and phrases that appear in italics
Declarations. The word LMCIT refers to the have special meaning, as given in SECTION IV
League of Minnesota Cities Insurance Trust. - DEFINITIONS.
SECTION I - COVERAGES
COVERAGE A. MUNICIPAL LIABILITY 2. CLAIM AND OCCURRENCE DATES
COVERAGE (CLAIMS MADE BASIS)
a. For any claim for damages, the date of the
I. COVERAGE AGREEMENT occurrence shall be deemed to be as follows:
a. Except as otherwise provided in this agreement, (1) For claims for bodily injury or property
LMCIT will pay on behalf of the "covered party" damage, the date of the occurrence is the
all sums which the "covered party" shall become date on which the bodily injury or property
legally obligated to pay as damages as a result of an damage first took place or is alleged to have
occurrence, if the following conditions are met: taken place.
(I) The claim for such damages must be first (2) For any other claim for damages, the
• made against the "covered party" during the date of the occurrence is the date on which
coverage period; and the wrongful act giving rise to the claim for
damages took place or is alleged to have
(2) The date of the occurrence giving rise to the taken place. If the damages are alleged to
claim for damages must be on or after the have arisen from a series of wrongful acts
retroactive date, if any, shown in the the date of the occurrence is deemed to be
Declarations; and the date when the first such wrongful act
took place or is alleged to have taken place.
(3)The occurrence must have taken place in the If both (1) and (2) apply to claims for damages
coverage territory.
arising from a single occurrence, the date of the
b. LMCIT will have the right and duty to defend occurrence is the earlier of the dates defined by
any such claim or suit seeking damages. LMCIT (1) and (2), respectively.
may, at its discretion, investigate any actual or
potential claim; and unless the "city" has given b For any claim for damages, the date the
notice as provided in Section VI, 7, below, LMCIT claim is made is deemed to be as follows:
may settle any claim or suit. •
(1) For any employment liability claim,
c. The amount LMCIT will pay for damages is the claim is deemed to have been made on
limited as described in SECTION III - LIMITS OF the earliest of:
COVERAGE.
LMCIT CMC(11-86)(Rev. 11-96) 1 of 20
(a) The date the claimant files a charge in the course of employment by the "city";
with the Federal Equal Employment or
Opportunity Commission, the •
Commissioner of the Minnesota (2) Damages to the spouse, child, parent,
Department of Human Rights,or a local brother or sister of that employee as a
human rights commission as defined in consequence of(1)above.
Minn. Stat.§363.01, subd. 23,
whichever comes first; or This exclusion applies:
(b) The date when notice of claim for (1) Whether the "city" may be liable as an
damages is received by any covered employer or in any other capacity; and
parry or by LMCIT, whichever comes
first. (2) To any obligation to share damages with
or repay someone else who must pay
(2) For any other claim for damages, the claim damages because of the injury.
is deemed to have been made when notice of
such claim is received and recorded by any This exclusion does not apply to liability
"covered party" or by LMCIT, whichever comes assumed by the "covered party" under a covered
first. contract.
(3) All claims for damages arising from a single d. Any loss, cost, or expense arising out of any
occurrence will be deemed to have been made at direction, demand, or request by the
the time the first of those claims is made against government or any other entity that the "city" or
any "covered party". any other entity test for, monitor, clean up,
remove, contain, treat, detoxify or neutralize
3. EXCLUSIONS pollutants; or
arisin out of the actual, alleged or
•
This coverage does not apply to: Damages arising � g
threatened discharge, dispersal, seepage,
a. Damages for which the "covered party" is liable migration, release or escape of pollutants:
by reason of the assumption of liability in a contract
or agreement. This exclusion does not apply to (1) At or from premises the "city" owns,
liability for damages: rents, leases, uses, or occupies, and premises
the "city" no longer owns, rents, leases,
(1) Assumed in a contract or agreement that is a uses, or occupies;
covered contract; or
(2) At or from any landfill, dump, or other
(2) The "covered party" would have in the site or location presently or formerly used by
absence of the contract or agreement. or for the "city" or others for the handling,
storage, disposal, processing or treatment of
b. Damages for which the "covered party" may be pollutants;
liable by reason of the Minnesota Civil Damages -
Act (M.S. 340A.801-340A.802), or any other law (3) Which are or were at any time
governing liability for illegal sales of alcoholic transported, handled, stored, treated,
beverages. disposed of, or processed as waste by or for
the "city" or any person or organization for
c. Bodily injury to: whom the "city" may be legally responsible;
or
(1) An employee of the "city" arising out of and
(4) At or from any site or location on which
•
LMCIT CMC(11-86)(Rev. 11-96) 2 of 20
the "city" or any contractors or subcontractors (b) Not being used to carry persons or
• working directly or indirectly on the "city's" property for a charge;
behalf are or have been performing operations;
(3) Parking an auto on, or on the ways next
(a) If the pollutants are brought on or to the to, premises the "city" owns or rents,
site or location in connection with such provided the auto is not owned by or rented
operations; or or loaned to the "covered party".
(b) If the operations are to test for, monitor, f. Damages due to war, whether or not
clean up, remove, contain, treat, detoxify or declared, or any act or condition incident to
neutralize the pollutants. war. War includes civil war, insurrection,
rebellion or revolution.
This exclusion does not apply to any of the -
following: . g. Property damage to:
(1) Any Limited Pollution Liability Claim. (1) Property the "city" owns, rents, or
occupies;
(2) Any claim arising out of the discharge or
dispersal of mace, tear gas or similar agent, if (2) Premises the "city" sells, gives away or
such discharge was for the purpose of protecting abandons, if the property damage arises out
persons or property or incident to an arrest. of any part of those premises;
(3) Any lead or asbestos claim, unless the actual, (3) Property loaned to a "covered party";
alleged, or threatened discharge, dispersal,
release, escape, use, distribution, or handling of (4) Personal property in the care, custody
• lead or asbestos took place at or from any and control of any "covered party", except
landfill, dump, or other site or location presently for personal property of others which comes
or formerly used by or for the "city" or others into the care, custody, and control of police,
for the handling, storage, disposal, processing or fire, or emergency medical services
treatment of pollutants. personnel in the course of performing public
safety services;
(4) Any damages arising out of heat, smoke, or
fumes from a hostile fire. A hostile fire is a fire (5) That particular part of real property on
which becomes uncontrollable or breaks out from which the "city" or any contractors or
where it was intended to be. subcontractors working directly or indirectly
on the "city's" behalf are performing
e. Damages arising out of the ownership, operations, if the property damage arises out
maintenance, use or entrustment to others of any of those operations; or
aircraft, auto or watercraft owned or operated by or
rented or loaned to any "covered party". Use (6) Work performed by or on behalf of the
includes operation and loading or unloading. "city" arising out of your work or any
portion thereof, or out of materials, parts or
This exclusion does not apply to: equipment furnished in connection therewith;
(1) A watercraft while ashore on premises the (7) Your product arising out of it or any part
"city" owns or rents; of it.
(2) A watercraft that is: Paragraph (3), (4), (5) and (6) of this exclusion
do not apply to liability assumed under a
• (a) Less than 26 feet long; and sidetrack agreement.
LMC1T CMC(11-86)(Rev. 11-96) 3of20
This exclusion does not apply to property damage which the "city" participates.
by fire to premises rented to the "city". A separate
limit of coverage applies to this coverage as (2) Architect •
described in SECTION III - LIMITS OF
COVERAGE. (3) Doctor of Medicine
h. Damages claimed for any loss, cost or expense (4) Dentist
incurred by the "city" or others for the loss of use,
withdrawal, recall, inspection, repair, replacement, (5) Nurse, except with respect to those
adjustment, removal or disposal of: activities in the capacity of an emergency
medical technician or first responder.
(1) Your product;
(6)Pharmacist
(2) Your work; or
m. Damages arising out of the failure or
(3) Impaired property; bursting of any:
if such product, work, or property is withdrawn or (1) Class I or Class II dam as classified by
recalled from the market or from use by any person the Commissioner of the Department of
or organization because of a known or suspected Natural Resources pursuant to Minnesota
defect, deficiency, inadequacy or dangerous Rules Section 6115.0340; or
condition in it.
(2) Any dike, levee or similar structure.
i. Bodily injury to any volunteer while acting on
behalf of the "city" if the volunteer is an employee n. Damages arising out of the "city's"
within the meaning of a Workers Compensation law ownership, sponsorship or operation of:
or similar law, or is covered under a voluntary
•
endorsement to a Workers Compensation insurance (1) Motorized amusement devices if the
policy. power supply motor is rated at greater than
5 horsepower;
j. Damages for bodily injury, property damage or
personal injury arising out of the "city's" (2) Any mobile equipment, automobile,
ownership, operation or maintenance of any airport. snowmobile or motorcycle in any racing,
pulling, pushing, speed, or demolition
k. Damages for bodily injury, property damage or contest or in any stunting activity;
personal injury arising out of the "city's"
ownership, operation or maintenance of any (3) Rodeos; or
,
hos ital nursing home or medical clinic.
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(4) Fireworks displays or exhibitions.
1. Damages arising out of the rendering of or
failure to render professional services by any o. Damages arising from or relating to the
professional listed below: detention or confinement of any person(s) in
any jail, holding cell or similar detention
(1) Attorney, unless the attorney is an employee facility, which the "city" owns, operates or
of the "city" and not an independent contractor, maintains, if the date of the occurrence causing
and the professional services are within the scope such damages takes place after a continuous
of the attorney's duties as a "city" employee, detention or confinement period of 30 days, or
including professional services performed for in any detention facility which is intended and
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any of the "city's" boards, commissions, regularly used for confinement of persons for
authorities or agencies, or joint powers entities in periods in excess of 30 days;
•
LMCIT CMC(I I-86)(Rev. I I-96) 4 of 20
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p. Damages arising out of the activities of any of COVERAGE B. MEDICAL AND
• the followin B "city" boards, commissions, or RELATED ED PAYMENTS
agencies:
1. Gas, electrical or steam utilities commission;
1. COVERAGE AGREEMENT
2. Port authority, housing and redevelopment LMCIT will pay to or for each person who
sustains bodily injury accident all
authority, economic development authority area ry caused by
or municipal redevelopment authority, or similar reasonable medical and related upense incurred
within one year from the date of the accident as
agency; a result of such bodily injury provided such
3. Munici al power a en or bodily injury arises out of a condition in the
P Pte' g �' covered premises.
4. Municipal gas agency; 2. EXCLUSIONS
unless such board, commission, authority, or
agency is named in the Declarations, in which case LMCIT will not pay expenses for bodily injury:
the "city" will also be covered to the extent of
coverage provided under this covenant to the named a. Arising out of the operation or use of any
designed for use i d
il
snowmobile or trailer es
board, commission, authority or agency for snowmo g
damages arising out of the activities of the
therewith;
respective named board, commission, authority or
agency. b. Included within the completed operations
hazard or the products hazards;
q. Damages arising out of the activities of a joint
powers entity unless the joint powers entity is named c. Arising out of operations performed for the
li p a p ty "city" by an independent contractor other than:
in the Declarations.
r. Damages arising out of any obligations imposed (1) Maintenance and repair of the covered
or imputed to any "covered party" under the premises; or
Employee Retirement Income Security Act of 1974
(2) Structural alterations at such premises
and any law amendatory thereof;
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which do not involve changing the size of or
s. Damages arising out of condemnation, inverse moving buildings or other structures;
condemnation, adverse possession, or dedication by
adverse use. This exclusion does not apply to any d. To any tenant or other person regularly
claim for taking of property wherein the taking of residing on the covered premises;
property is incident to an arrest or for the purpose
of protecting persons or property in an emergency. e. To any other tenant if the bodily injury
occurs on that part of the covered premises
t. Any criminal proceedings or proceedings under rented from the "city";
the open meeting law against any "covered party".
f. To any person while engaged in maintenance
u. Damages with respect to any claim(s) made by and repair of the covered premises or alteration,
LMCIT or the "city" against any other "covered demolition or new construction at such
party". premises;
►
v. Any claim for damages asserted in any land use
or development litigation.
•
LMCIT CMC(I 1-86)(Rev. 11-96) 5 of 20
•
g. To any person practicing, instructing or and as often as LMCIT may reasonably require.
participating in any physical training, sport, athletic LMCIT may pay the injured person or any
activity or contest whether on a formal or informal person or organization rendering the services
•
basis; and the payment shall reduce the amount
payable hereunder for such injury. Payment
h. To a member or guest of any club, tourist court hereunder shall not constitute an admission of
or trailer park operated or owned by the "city"; liability of any "covered party" or of LMCIT.
i. For any injury for which the injured party has COVERAGE C. AUTOMOBILE
received or is entitled to receive workers LIABILITY - BODILY INJURY AND
compensation benefits. PROPERTY DAMAGE
The exclusions of the Municipal Liability Coverage 1. COVERAGE AGREEMENT
Part (Coverage A) also apply to this Coverage Part
as respects bodily injury. LMCIT will pay on behalf of the "covered
3. ADDITIONAL DEFINITIONS party" all sums which the "covered party" shall
become legally obligated to pay as damages
When used herein: because of bodily injury or property damage to
which this coverage applies, caused by an
Covered premises means all premises owned or occurrence and arising out of the ownership,
rented to the "city" with respect to which the "city" maintenance or use, including loading or
is afforded coverage for bodily injury liability under unloading, of any automobile. This coverage
includes the ways immediately applies only to bodily injury or property damage
a
this covenant, and t Y which occurs during the coverage period and
adjoining on land; however, covered premises does within the covered territory.
not include streets, sidewalks, or boulevards that do
not abut a "city"-owned building or "city"-owned LMCIT will h ave th e right and duty to defend •parking lot. any suit seeking those damages. However:
Medical and related expense means expenses for a. The amount LMCIT will pay for damages
necessary medical, surgical, x-ray and dental is limited as 'described in SECTION III -
services, including prosthetic devices, necessary LIMITS OF COVERAGE;
ambulance, hospital, professional nursing and
funeral services, and replacement or repair of b. LMCIT may, at its discretion, investigate
damaged eye glasses or clothing.
g any occurrence and settle any claim or suit
4. ADDITIONAL CONDITION MEDICAL that may result.
REPORTS; PROOF AND PAYMENT OF 2. EXCLUSIONS
CLAIM.
This coverage does not apply to:
As soon as practicable the injured person or
someone on his behalf shall give to LMCIT written a. Any obligation for which the "covered party"
proof of claim, under oath if required, and shall, or any carrier as his insurer may be held liable
after each request from LMCIT, execute under any workers' compensation,
authorization to enable LMCIT to obtain medical unemployment compensation or disability
reports and copies of records. benefits law, or under any similar law;
The injured person shall submit to physical "city" may have for bodily
J b. Any liability the city m y y
examination by physicians selected by LMCIT when injury to:
•
LMCIT CMC(11-86)(Rev. 11-96) 6 of 20
(1) An employee of the "city" arising out of and any other entity that the "city" or any other
• in the course of employment by the "city"; or entity test for, monitor, clean up, remove,
• contain, treat, detoxify or neutralize pollutants;
(2)Damages to the spouse, child,parent,brother or
or sister of that employee as a consequence of(1)
above. Damages arising out of the actual, alleged or
threatened discharge, dispersal, seepag e,
This exclusion applies: migration, release or escape of pollutants:
(1) Whether the "city" may be liable as an (l) At or from premises the "city" owns,
employer or in any other capacity; and rents, leases, uses, or occupies, and premises
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the "city" no longer owns, rents, leases,
(2) To any obligation to share damages with or uses, or occupies;
repay someone else who must pay damages
because of the injury. (2) At or from any landfill, dump, or other
site or location presently or formerly used by
This exclusion does not apply to liability assumed or for the "city" or others for the handling,
by the "covered party" under a covered contract. storage, disposal, processing or treatment of
pollutants;
c. Property damage:
(3) Which are or were at any time
(1) To property owned or being transported by transported, handled, stored, treated,
the "covered party"; or disposed of, or processed as waste by or for
the "city" or any person or organization for
(2) To property rented to or in the care, custody whom the "city" may be legally responsible;
• or control of the "covered party", or as to which or.
the "covered party" is for any purpose exercising
physical control, other than: (4) At or from any site or location on which
the "city" or any contractors or
a. Property damage to a residence or private subcontractors working directly or indirectly
garage by a private passenger automobile on the "city's" behalf are or have been
covered by this covenant; or performing operations;
b. Property damage to an automobile that is (a) If the pollutants are brought on or
rented by the covered party on a weekly or to the site or location in connection
daily basis and is used for "city" business. with such operations; or
c. Personal property of others which comes (b) If the operations are to test for,
into the care, custody, and control of police, monitor, clean up, remove, contain,
fire, or emergency medical services personnel treat, detoxify or neutralize the
in the course of performing public safety pollutants.
services;
This exclusion does not apply to any of the
d. Bodily injury due to war, whether or not following:
declared, civil war, insurrection, rebellion or
revolution or to any act or condition incident to any (1) Any Limited Pollution Liability Claim.
of the foregoing;
e. Any loss, cost, or expense arising out of any
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• direction, demand, or request by the government or
LMCIT CMC(11-86)(Rev. 11-96) 7 of 20
(2) Any claim arising out of the discharge or private passenger or station wagon type
dispersal of mace, tear gas or similar agent, if automobile.
such discharge was for the purpose of protecting •
persons or property or incident to an arrest. Trailer includes semi-trailer but does not
include mobile equipment.
(3)Any lead or asbestos claim unless the actual,
alleged, or threatened discharge, dispersal, COVERAGE D. LAND USE OR
release, escape, use, distribution, or handling of DEVELOPMENT LITIGATION
lead or asbestos took place at or from any
landfill,dump, or other site or location presently I. COVERAGE AGREEMENT
or formerly used by or for the "city" or others
for the handling, storage, disposal, processing or For any land use or development litigation
treatment of pollutants. which is first filed or served against the "city"
or a "city" officer or employee during the
(4) Any damages arising out of heat, smoke, or annual coverage period of this agreement,
fumes from a hostile fire. A hostile fire is a fire LMCIT will pay the following on the "city's"
which becomes uncontrollable or breaks out from behalf:
where it was intended to be.
a. 100% of the first $50,000 of defense costs,
f. Liability assumed under any contract or 85% of the next $200,000 of defense costs, and
agreement, but this exclusion does not apply to 60% of any defense costs in excess of
liability assumed under a covered contract. $250,000; and
3. ADDITIONAL DEFINITIONS b. 85% of any damages which the "city" shall
be required to pay.
These additional definitions apply for purposes of
Coverage C: The amount LMCIT will pay for damages and
defense costs for land use or development
Automobile business means the business or litigation covered under this section is limited as
occupation of selling, repairing, servicing, storing described in SECTION III - LIMITS OF
or parking automobiles; COVERAGE.
Hired automobile means an automobile not owned The amount LMCIT pays for damages or
by the "city" which is used under contract on defense costs for land use or development
behalf of, or loaned to, the "city", provided such litigation is subject to the Municipal Liability
automobile is not owned by (a) a partner or Deductible shown in the Municipal Liability
executive officer of the "city" or(b)an employee or Declarations or the General Annual Aggregate
agent of the "city" who is granted an operating Deductible if any shown in the Common
allowance of any sort for the use of such Coverage Declarations.
automobile.
2. LITIGATION MANAGEMENT
Non-owned automobile means an automobile which
is neither an owned automobile nor a hired For any land use or development litigation,
automobile. defense counsel will be selected by mutual
agreement of the "city" and LMCIT. If LMCIT
Owned automobile means an automobile owned by and the "city" are not able to agree on selection
the "city". of counsel, LMCIT will provide a list of five
defense attorneys experienced in land use or
Private passenger automobile means a four wheel development litigation matters; and the "city"
will select defense counsel from that list.
•
LMCIT CMC(11-86)(Rev. 11-96) 8 of 20
•
A land use or development litigation suit both LMCIT and the "city".
• may not be settled without the approval of
SECTION II - WHO IS COVERED
*City" "city"1. City means the city or other governmental (6) Other authorized person or agent of
the "city" while acting on behalf of the
body or entity first named in the Declarations ty ing
� tY in the Declarations, *city", but excluding Unless specifically named i m8 independent
"city* shall not include any of the following: contractors;
y g
a. Gas, electrical or steam utilities commission; (7) "City" relief association and its
officers, and employees.
members, o em P
b. Port authority, housing and redevelopment
authority, economic development authority, area (8) Person while acting in the
or municipal redevelopment authority or similar administrative capacity of medical
P P
agency; director or medical advisor to the "city"
ambulance service.
c. Municipal power agency;
c. With respect to a joint powers entity named in
Municipal gas agency; the Declarations:
d. P 8
e. Welfare or public relief agency; (1) The joint powers entity;
f. School board; or (2) While acting on behalf of the joint
powers entity, or with respect to liability
g. Joint powers entity. arising out of the activities of the joint
powers entity, any present or former:
2. For purposes of Coverage A, "covered party"
means: (a) Governmental member of the joint
powers entity;
a. The "city", and any other entity named in the
Declarations; (b) Elected or appointed official of the
governmental member;
b. For actions within his duties as such, any
present or former: (c) Employee of the governmental
member;
(1) Member of the "city" council;
(d) Other authorized person or agent of
(2)Member of a "city" board,commission, or the governmental member, but excluding
committee which is not excluded by the independent contractors.
definition of"city";
3. For purposes of Coverage C, "covered
(3) Elected or appointed official of the "city"; party" means:
(4) Employee of the "city"; a. The "city", and any other entity named in
the Declarations;
(5) Volunteer person or organization while
acting on behalf of the "city" and subject to b. Any present or former elected or
the "city's" direction and control; appointed official or employee of the "city"
•
LMCIT CMC(11-86)(Rev. 11-96) 9 of 20
with respect to a non-owned automobile only while For purposes of Coverage C, none of the
such automobile is or was being used in the business following is a "covered party":
of the "city";
a. An elected or appointed official or
c. Any other person while using an owned employee of the "city" with respect to an
automobile or a hired automobile with the automobile owned by a member of his
permission of the "city", provided his actual household unless such automobile is
operation or (if he is not operating) his other specifically described in this covenant;
actual use thereof is within the scope of such
permission, but with respect to bodily injury or b. Any person or organization, other than
property damage arising out of the loading or the "city", with respect to:
unloading thereof, such other person shall be a
"covered party" only if he is or was: (1) A motor vehicle while used with any
trailer owned or hired by such person or
(1) A lessee or borrower of the automobile; or organization and not covered by LMCIT
(except a trailer designed for use with a
(2) An employee of the "city" or of such private passenger automobile and not
lessee or borrower; being used for business purposes with
another type of motor vehicle); or
d. A present or former firefighter with respect to
any automobile while such automobile is or was (2) A trailer while used with any motor
being used in the performance of his official vehicle owned or hired by such person or
duties; organization and not covered by LMCIT.
e. Any other person or organization but only c. Any person while employed in or
with respect to his or its liability because of acts otherwise engaged in duties in connection
or omissions of a "covered party" under (a), (b) with an automobile business, other than an
•
or (c) above. automobile business operated by the "city".
SECTION III - LIMITS OF COVERAGE
occurrence or sudden occurrence whether the
1. The limits of coverage shown in the Declarations claim or claims fall under Coverage A,
and the rules below fix the most LMCIT will pay as Coverage C, or both.
damages under each coverage part regardless of the
number of: 3. The Products-Completed Operations Annual
Aggregate Limit is the most LMCIT will pay
a. "Covered Parties"; under Coverage A for damages included in the
products-completed operations hazard.
b. Claims made or suits brought; or
4. The Fire Damage Limit is the most LMCIT
c. Persons or organizations making claims or will pay under Coverage A for damages
bringing suits. because of property damage to premises rented
to the "city" arising out of any one fire.
2. LMCIT's maximum limit of liability for
Coverages A and C combined shall be $600,000 per 5. The Medical Expense Limit is the most
LMCIT will pay under Coverage B for all
medical expenses because of bodily injury
sustained by any one person, and the occurrence
aggregate limit is the most LMCIT will pay
•
LMCIT CMC(11-86)(Rev. 11-96) 10 of 20
under Coverage B for all medical expenses because damages for all land use or development
of bodily injury to two or more persons resulting litigation which is first filed or served against
• from one occurrence. the "city" during the annual coverage period of
this agreement shall not exceed 51,000,000,
6. The Limited Pollution Liability Annual regardless of the number of suits, defendants, or
Aggregate Limit is the most LMCIT will pay for claimants.
limited pollution liability claims during the annual
coverage period. The Limited Pollution Liability 11. LMCIT shall not be obligated under this
Annual Aggregate limit applies to the sum of covenant to pay any claim or judgment or to
damages and loss adjustment expense, including defend any suit after the applicable limit of
defense costs. LMCIT's liability under Coverages A or C has
been exhausted by payment of judgments or
7. The Lead or Asbestos Claim Annual Aggregate settlements or by tender to any excess carrier or
Limit is the most LMCIT will pay for lead or excess coverage including excess coverage
asbestos claims during the annual coverage period. provided by LMCIT.
The Lead or Asbestos Claim Annual Aggregate
Limit applies to the sum of damages and loss 12. For any Annual Aggregate Limit shown in
adjustment expense, including defense costs. the Declarations, the limit shall apply separately
to each consecutive annual period and to any
8. The Failure to Supply Annual Aggregate Limit is remainin g period of less than 12 months,
the most LMCIT will pay for damages for failure to starting with the beginning of the coverage
supply claims during the annual coverage period. period shown in the Declarations, unless the
coverage period is extended after issuance for
i ' period of less n 12 months. In
9. The EMF Annual Aggregate Limit is the most an additional pe 1od o es ha 1 m nths
LMCIT will pay for damages for EMF claims that case, the additional period will be deemed
during the annual coverage period. part of the last preceding period for purposes of
• determining the limits of coverage.
10. LMCIT's total liability for defense costs and
SECTION IV - DEFINITIONS
1. Automobile (Auto) means a land motor vehicle, travel or transportation to or from any place
trailer or semi-trailer designed for travel on public not included in a. above; or
roads, including any attached machinery or
equipment. But automobile does not include mobile c. All parts of the world if:
equipment.
(1) The injury or damage arises out of:
2. Bodily injury means bodily injury, sickness or
disease sustained by a person, including death (a)Goods or products made or sold by
resulting from any of these at any time. the "city" in the territory described in
a. above; or
3. Coverage territory means:
(b) The activities of a person whose
a. The United States of America (including its home is in the territory described in a.
territories and possessions), Puerto Rico and above, but is away for a short time on
Canada; the "city's" business; and
b. International waters or airspace, provided the (2)The "covered party's" responsibility to
injury or damage does not occur in the course of pay damages is determined in a suit on
•
LMCIT CMC(11-86)(Rev. 11-96) 11 of 20
the merits, in the territory described in a. that enforcement of a land use, zoning,
above or in a settlement LMCIT agrees to. subdivision, or similar ordinance or regulation
constitutes a taking of private property.
4. Covered contract means ...
Damages does not include any of the following:
.. an indemnification of a municipality as
required by ordinance, or that part of any a. Any obligation of a "covered party" under
contract or agreement pertaining to the "city's" a workers' compensation, disability benefits,
business under which the "city" assumes the tort or unemployment compensation law or any
liability of another to pay damages to a third similar law;
person or organization, if the contract or
agreement is made prior to the date of the b. Exemplary damages or punitive damages
occurrence giving rise to the damages. Tort except punitive damages claimed or levied
liability means a liability that would be imposed against an officer, employee or volunteer of
by law in the absence of any contract or the "city", provided that the officer,
agreement. employee or volunteer:
Covered contract does not include that part of any (1) Was acting in the performance of the
contract or agreement: duties of the position; and
a. That indemnifies an architect, engineer or (2) Was not guilty of malfeasance in
surveyor for injury or damage arising out of: office, willful neglect of duty, or bad
faith.
(1)Preparing, approving or failing to prepare
or approve maps, drawings, opinions, reports, c. Fines or penalties imposed by law.
surveys, change orders, designs or
specifications; or d. Injunctive or equitable relief, or
quasi-judicial or administrative orders.
(2)Giving directions or instructions, or failing
to give the same, if that is the primary cause e. Repayment of any tax, assessment, fee, or
of the injury or damages; other charge that was wrongfully obtained,
or any interest on, or any other amount
"city's" er claimed for loss of use of, such tax,
Under which the architect, engineer ,
� 8
r assessment, fee, or other charge.
or surveyor, assumes liability for injury o arg
damages arising out of the "city's" rendering or
failing to render professional services, including f. Amounts paid or payable for the purchase
those listed in a. above and supervisory, or permanent acquisition of property or
inspection or engineering services; or property rights, or for the right to
permanently enforce an ordinance,
c. That indemnifies any person or organization regulation, or restriction on the use of
for damages by fire to premises rented or loaned property.
to the "city".
g. Amounts due under the terms of any
5. Damages means money damages, and includes contractual obligation, except for liability:
awards for attorneys' fees with respect to federal
civil rights suits and state human rights suits. With (1) assumed in a covered contract; or
respect to any land use or development litigation,
damages also includes amounts the "city" is (2) assumed in an employment contract
obligated to pay for loss of use of property during between the "city" and its employees.
the time prior to a final determination by the court •
LMCIT CMC(11-86)(Rev. 11-96) 12 of 20
h. Any wages and employment benefits for work c. To hire employees;
that has been performed by the employee making
the claim, or any claimed increases in such d. To purchase or otherwise acquire and
wages and employment benefits for work that is hold real or personal property; or
hereafter performed by the employee making the
dim. e. lb sue or be sued.
6. F1lsF claim means any claim for damages arising 10. Land use or development litigation
means:
out of the actual or alleged exposure to
electromagnetic fields, electromagnetic radiation or a. Any litigation relating to the application
stray voltage. or interpretation of a land use, zoning,
subdivision, or similar ordinance or
7. Failure to supply claim means any claim for 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
8. Impaired property hmeans tangible property, any develo ment or redevelopment project.
other than your product or your work, that cannot
be used or is less useful because: Any litigation meeting the criteria listed above
will be considered to be land use or
a. It incorporates your product or your work that development litigation in its entirety, regardless
is known or thought to be defective, deficient, of whether the litigation may assert other claims
inadequate or dangerous; or as well.
b. The "city" has failed to fulfill the terms of a But land use or development litigation does not
• contract or agreement; include litigation that seeks only:
actual
be restored to use b . a. Compensation such property ca n b } p ensation or other relief for an a
or alleged physical occupation, invasion, or
_ (1) The repair, replacement, adjustment or use of property by the "city"; or
removal of your product or your work; or
b. Reduction or invalidation of a special
(2) The "city's" fulfilling the terms of the assessment; or
( ) Y 8
contract or agreement.
c. Compensation for damages based on the
9. Joint powers entity means an operating entity "city's" actual or alleged negligent
created by two or more governmental units entering inspection or enforcement of the state
into an agreement as provided by statute for the building, plumbing, electrical, fire, or
8 P Y
joint exercise of governmental powers. An similar codes; or
intergovernmental agreement will be deemed to
create a joint powers entity if the agreement d. Amounts due or allegedly due under -
establishes a board with the effective power to do contract, including any "city" bonds or other
any of the following, regardless of whether the obligations.
specific consent of the constituent governmental
units may also be required: 11. Lead or asbestos claim means any claim
for damages arising out of the actual, alleged,
a. To receive and expend funds; or threatened discharge, dispersal, release,
escape, use, distribution, or handling of lead or
b. To enter contracts; asbestos.
•
LMCIT CMC(11-86)(Rev. 11-96) 13 of 20
12. Limited pollution liability claim means any (1) Power cranes, shovels, loaders,
claim for damages which resulted from a sudden diggers or drills;or
occurrence which took place on or after the
retroactive date shown in the Declarations and prior (2) Road construction or resurfacing
to the expiration date of this covenant, and which: equipment such as graders, scrapers or
rollers;
a. Was caused by an actual, alleged, or
threatened discharge, dispersal, release, or d. Vehicles not described in a., b., or c.
escape of pollutants which took place entirely above that are not self-propelled and are
above ground and not within or on the surface of maintained primarily to provide mobility to
any lake, stream, surface water, or other body of permanently attached equipment of the
water, and in which any resulting damages following types:
occurred entirely above ground and not within or
on the surface of any lake, stream, surface (1) Air compressors, pumps and
water, or other body of water; or generators, including spraying, welding,
building cleaning, geophysical
b. Arises from the accidental rupture, backup or exploration, lighting and well-servicing
overflow of the "city's" sanitary sewer, storm equipment; or
sewer, or water supply systems.
(2) Cherry pickers and similar devices
13. Loading or unloading means the handling of used to raise or lower workers;
property:
e. Vehicles not described in a., b., or c
a. After it is moved from the place where it is above maintained primarily for purposes
accepted for movement into or onto an aircraft, other than the transportation of persons or
watercraft or auto; cargo.
b. While it is in or on an aircraft, watercraft or 15. Occurrence means:
auto; or
a. With respect to Coverage A, a wrongful
c. While it is being moved from an aircraft, act or a series of related wrongful acts.
watercraft or auto to the place where it is finally
delivered; but loading or unloading does not b. With respect to Coverage C, an accident,
include the movement of property by means of a including continuous or repeated exposure to
1 device, other than a hand truck, that substantially the same general harmful
mechanlca d c , Y 8
is not attached to the aircraft, watercraft or auto. condition.
14. Mobile equipment means any of the following Provided, that for purposes of Section III,
land vehicles, including any attached occurrence shall be given the same meaning as
s of lan 8 8
types n8 Y
s
machinery or equipment: given in the applicable statute establishing
monetary limits on the "city's" tort liability.
a. Bulldozers, farm machinery, forklifts and
other vehicles designed for use principally off 16. Personal injury means injury other than
public roads; bodily injury, arising out of one or more of the
following offenses:
b. Vehicles that travel on crawler treads;
a. False arrest, detention, or imprisonment,
c. Vehicles, whether self-propelled or not, or malicious prosecution.
maintained primarily to provide mobility to
permanently mounted:
LMCIT CMC(11-86)(Rev. 11-96) 14 of 20
b. The publication or utterance of a libel or a. Physical injury to tangible property,
slander or other defamatory or disparaging including all resulting loss of use of that
material, or a publication or utterance in property; or
violation of an individual's right of privacy.
b. Loss of use of tangible property that is not
c. Wrongful entry or eviction, or other invasion physically injured.
of the right of private occupancy.
21. Sudden occurrence means an accident
d. Assault or battery committed for the purpose which takes place entirely above ground or
of protecting persons or property or incident to water, and the pollution resulting therefrom,
an arrest. which begins and ends within 72 hours
following the accident. A related series of
17. Pollutants means any solid, liquid,gaseous or accidents shall be deemed to be a single sudden
thermal irritant or contaminant, including smoke, occurrence. In the case of a related series of
vapor, soot, fumes, acids, alkalis, chemicals and accidents the sudden occurrence will be deemed
waste. Waste includes materials to be recycled, to have taken place when the first accident in
reconditioned or reclaimed. the related series of such accidents took place.
18. Products-completed operations hazard 22. Suit means a civil proceeding in which
includes all bodily injury and property damage damages to which this coverage applies are
occurring away from premises the "city" owns or alleged. Suit includes an arbitration proceeding
rents and arising out of your product or your work alleging such damages to which the "city" must
except: submit or submit with LMCIT's consent. Suit
does not mean any criminal proceeding against
a. Products that are still in the "city's" physical any "covered party" or any open meeting law
possession; or P roceeding, unless damages are also alleged in
• that proceeding. A charge of employment
b. Work that has not yet been completed or discrimination filed with the Federal Equal
abandoned. Employment Opportunity Commission, the
Commissioner of the Minnesota Department of
19. Your work will be deemed completed at the Human Rights, or a local human rights
earliest of the following times: commission as defined in Minn. Stat. §363.01,
subd. 23 shall be deemed to be a suit alleging
a. When all of the work called for in the "city's" damages.
contract has been completed;
23. Wrongful act means any actual or alleged
b. When all of the work to be done at the site has error, statement, act, omission, offense,
been completed if the "city's" contract calls for neglect, accident, or violation. "Violation"
work at more than one site;
c. When that part of the work done at a job site
had been put to its intended use by any person or
organization other than another contractor or
subcontractor working on the same project.
Work that may need service, maintenance,
correction, repair or replacement, but which is
otherwise complete, will be treated as completed.
20. Property damage means:
LMCIT CMC(I 1-86)(Rev. 11-96) 15 of 20
includes violation of any rights, immunities, or Your product includes warranties or
privileges secured by the Constitution and Laws of representationsmade at any time with respect to
the United States of America. the fitness, quality, durability or performance of
any of the items included in a. and b. above.
24. Your product means:
Your product does not include vending machines
a. Any goods or products, other than real or other property rented to or located for the
property, manufactured, sold, handled, use of others but not sold.
distributed or disposed of by:
25. Your work means:
(1)The "city"; •
a. Work or operations performed by the
(2)Others trading under the "city's" name; or "city" or on the "city's" behalf; and
(3) A person or organization whose business b. Materials, parts or equipment furnished in
or assets the "city" has acquired; and connection with such work or operations.
b. Containers (other than vehicles), materials, Your work includes warranties or
parts or equipment furnished in connection with representations made at any time with respect to
such goods or products. the fitness, quality, durability, or performance
of any of the items included in a. or b. above.
SECTION V - SUPPLEMENTARY PAYMENTS - COVERAGES A AND C
LMCIT will pay, with respect to any claim or suit suit,including actual loss of earnings up to $100
LMCIT defends: a day because of time off from work.
1. All expenses LMCIT incurs. 5. All costs taxed against the "covered party" in
the suit.
2. Up to $250 for cost of bail bonds required
because of accidents or traffic law violations arising 6. Prejudgment interest awarded against the
out of the use of any vehicle to which the coverage "covered party" on that part of the judgment
applies. LMCIT does not have to furnish these LMCIT pays. If LMCIT makes an offer to pay
bonds. the applicable limit of coverage, LMCIT will
not pay any prejudgment interest based on that
3. The cost of bonds to release attachments, but period of time after the offer.
only for bond amount within the applicable limit of
coverage. LMCIT does not have to furnish these 7. All interest on the full amount of any
bonds. judgment that accrues after entry of the
judgment and before LMCIT has paid,
offered
reasonable expenses incurred the "covered to pay, or deposited in court the part of the
4. All reaso Y
. A pe by P
" at LMCIT's request, to assist it in the judgment that is within the applicable limits of
art a L J 8
party" q
investigation or defense of the claim or coverage.
LMCIT CMC(11-86)(Rev. 11-96) 16 of 20
SECTION VI • CONDITIONS
• In addition to the Common Conditions, Liability a. In the event of a claim or suit, notice
Coverage Parts A and C are subject to the following containing particulars sufficient to identify the
conditions: "covered party" and also reasonably obtainable
information with respect to the time, place and
1. LIMITATIONS ON LMCIT'S DUTY TO circumstances thereof, and the names and
INDEMNIFY addresses of the injured and of available
witnesses, shall be given by or for the "covered
LMCIT's duty to pay on behalf of or to indemnify party" to LMCIT or any of its authorized agents
a "covered party" other than the "city" shall not as soon as practicable. The "city" shall
apply to any act, error, omission, or violation: promptly take, at its own expense, all
reasonable steps to prevent damages from
a. Which constitutes malfeasance in office; or arising out of the same or similar conditions;
provided that:
b. Which constitutes willful neglect of duty; or
(1) A failure to take such preventative
c. Which constitutes bad faith; or measures shall not constitute a breach of this
condition unless LMCIT has requested the
d. For which the "city" is not authorized to "city" in writing to undertake such
indemnify any person by statute; or preventative measures; and
e. Which constitutes dishonesty on the part of a (2) Such expense shall not be recoverable
"covered party"; or under this covenant.
f. Which constitutes the willful violation of a Notice of damages or injury is not notice of a
• statute or ordinance by any official, employee, or claim.
agent of the "city".
b. If claim is made or suit is brought against the
The terms "malfeasance", "willful neglect of duty", "covered party", the "covered party" shall
and "bad faith" shall be given the same meaning in immediately forward to LMCIT every demand,
this covenant as given in the applicable statute with notice, summons or other process received by
respect to the "city's" duty to defend or indemnify him or his representative.
its officers, employees or agents.
c. The "covered party" shall cooperate with
2. FINANCIAL RESPONSIBILITY LAW LMCIT and, upon LMCIT's request, assist in
making settlements, assist in the conduct of suits
When this covenant is certified as proof of financial and assist in enforcing any right of contribution
responsibility for the future under the provisions of or indemnity against any person or organization
any motor vehicle financial responsibility law, such who may be liable to the "covered party"
coverage as is afforded by this covenant shall because of damages for which coverage is
comply with the provisions of such law to the extent afforded under this covenant; and the "covered
of the coverage and limits of liability required by party" shall attend hearings and trials and assist
in securing and getting evidence and obtaining
such law. the attendance of witnesses. The "covered
3. "COVERED PARTY'S" DUTIES IN party" shall not, except at his own cost,
THE EVENT OF OCCURRENCE, CLAIM voluntarily make any payment, assume any
obligation or incur any expense other than for
OR SUIT first aid to others at the time of accident.
LMCIT CMC(11-86)(Rev. 11-96) 17 of 20
1c
4. EXTENDED REPORTING PERIOD coverage period or change the scope of
coverage provided. It applies only if the date of
a. LMCIT will provide one or more extended the occurrence giving rise to the claim for
•
reporting periods, as described below, if: damages is after the retroactive date and before
the end of the coverage period.
(1)Coverage A is cancelled or not renewed; or
Claims for damages which are first received and
(2)LMCIT renews or replaces Coverage A with recorded during the basic extended reporting
coverage that: period (or during the supplemental extended
reporting period, if it is in effect) will be
(a) Has a retroactive date later than the date deemed to have been made on the last day of
shown on the Declarations page; or the coverage period.
(b) Does not apply on a claims made basis. Once in effect, extended reporting periods may
not be cancelled.
b. A basic extended reporting period of 60 days
from the end of the coverage period is automatically e. Extended reporting periods do not reinstate
provided without additional charge. or increase the limits of coverage applicable to
any claim to which this coverage part applies.
c. A supplemental extended reporting period of
unlimited duration is available, but only by an f. Neither the basic extended reporting period
endorsement and for an extra charge. The nor the supplemental extended reporting period
supplemental extended reporting period starts 60 is applicable to, and no extended reporting
days after the end of the coverage period. period is provided for, the following:
The "city" must give LMCIT a written request for (1) Any limited pollution liability claim; or
the endorsement within 60 days after the end of the •
coverage period. The supplemental extended (2) Any land use or development litigation.
reporting period will not go into effect unless the
"city" pays the additional premium promptly when (3) Any lead or asbestos claim.
due.
5. ACTION AGAINST LMCIT
The additional premium for the supplemental
extended reporting period will be a percentage of No action shall lie against LMCIT unless as a
the annual expiring premium for Coverage Part A. condition precedent thereto, there shall have
been full compliance with all of the terms of this
Number of years since covenant= nor until the amount of the "covered
retroactive date shown party's" obligation to pay shall have been fully
on Declarations page Additional cost determined either by judgment against the
"covered party" after actual trial or by written
1 55.0% agreement of the "covered party", the claimant
2 57.0% and LMCIT.
3 60.3%
4 65.9% Any person or organization or the legal
5 70.8% representative thereof who has secured such
5+ 70.8% judgment or written agreement shall thereafter
be entitled to recover under this covenant to the
d. An extended reporting period does not extend the extent of the coverage afforded by this
LMCIT CMC(11-86)(Rev. 11-96) 18 of 20 •
covenant. No person or organization shall have any conditions of any proposed settlement. If the
right under this covenant to join LMCIT as a party "city" does not consent to the proposed
411 to any action against the "covered party" to settlement,the "city"must notify LMCIT within
determine the "covered party's" liability, nor shall 14 days of the date the "city" receives notice of
LMCIT be impleaded by the "covered party" or his the proposed settlement, unless the "city" and
legal representative. Bankruptcy or insolvency of LMCIT have mutually agreed to a longer or
the "covered party" or of the "covered party's" shorter period. If within that time the "city"
estate shall not relieve LMCIT of any of its does not notify LMCIT that the "city" does not
obligations hereunder. consent to the settlement, the "city" will be
deemed to have consented to the settlement.
6. WAIVER OF STATUTORY LIABILITY
LIMITATIONS d. If the "city" refuses to consent to a settlement
recommended by LMCIT, LMCIT will not be
By accepting coverage from LMCIT under this liable for any excess amount. "Excess amount"
"
means damages legal the sum of all dama es and le al defense
"city"the c1ry waives the monetary limits of
liability (commonly known as municipal damages costs for the claim or suit minus the sum of:
"caps") imposed by Minnesota law to the extent of
the coverage shown in the declarations and further (1)the amount of the settlement proposed by
described in Section III - Limits of Coverage. LMCIT; and
However, it is the express intent of the parties to
this covenant that the procurement of this covenant (2) any costs of defense incurred before the
shall not waive other immunities, limits, or defenses date of the "city's" refusal. Any excess
imposed or available under any statute or amount shall not be included in the
P
by Y
common law which is applicable to "covered calculation of damages for purposes of any
party" Pp any applicable "Each Occurrence Deductible" or
"General Aggregate Deductible".
• 7. CONSENT TO SETTLE
e. If the "city" refuses to consent to a settlement
The "city" may prohibit LMCIT from settling any recommended by LMCIT, LMCIT may, at its
claim or suit against a "covered party" without the sole discretion, exercise either of the following
"city's" consent, as provided below: options:
a. At any time before LMCIT has offered or made (1) LMCIT may pay to the "city" an amount
equal to the amount of the recommended
a settlement of a claim or suit, the "city" may notify
' y y settlement, minus any applicable deductible.
LMCIT that LMCIT may not settle the claim or suit If LMCIT makes such payment, LMCIT has
without the "city's" consent. The "city" must give no further duty to defend or to indemnify the
a separate notice for each claim or suit which the
"city" or any other covered party for this
"city" intends to prohibit LMCIT from settling claim or suit, and the "city" assumes any
without the "city's" consent. duty which LMCIT would otherwise have
b. If the "city" notifies LMCIT that the claim or suit had to defend and to indemnify any other
may not be settled without the "city's" consent, the covered party.
"city" must designate an individual authorized to
give or refuse consent on the "city's" behalf. The (2) LMCIT may continue to defend the claim
"city's" notice must include the name, address, and or suit. If LMCIT elects to continue to
telephone number of the individual authorized to defend the claim or suit, the "city" must
give or refuse consent on the "city's" behalf. reimburse LMCIT for any excess amount.
c. If the "city" has notified LMCIT that the claim or
suit may not be settled without the "city's" consent,
• LMCIT will notify the "city" of the terms and
LMCIT CMC(11-86)(Rev. 11-96) 19 of 20
f. If the "city" refuses to consent to a settlement
recommended by LMCIT, the "city" must defend
and indemnify LMCIT for any claim or suit arising
out of the failure to settle the original claim or suit.
S. RETROACTIVE JOINT POWERS •
COVERAGE.
LMCIT will, upon the "city's" request, issue
retroactive comprehensive municipal coverage to
any joint powers entity in which the "city"
participates and which is not named as a "covered
party" under any other LMCIT coverage. Pursuant
to this section, LMCIT will issue its standard
Comprehensive Municipal Coverage document to
the joint powers entity but coverage shall be subject
to an annual aggregate limit of$200,000. This limit
shall apply to the sum of damages and loss
adjustment expenses including defense costs for all
claims to which the coverage applies. Coverage
issued pursuant to this section will be issued with
the same inception date and the same retroactive
date as this covenant.
The premium must be paid to LMCIT before the
coverage goes into effect. The premium for
coverage issued pursuant to this section shall be
equal to the greater of $5,000 or the premium the
joint powers entity would otherwise pay for
coverage at LMCIT's current rates.
LMCIT CMC(I 1-86)(Rev. 11-96) 20 of 20
•
Covenant #: MUNICIPAL PROPERTY, INLAND MARINE, BOILER an'
.CMC '17704 MACHINERY AND GLASS COVERAGE DECLARATIONS==
Coverage is provided by:
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST s
(Herein called LMCIT) League of Minnesota Cities
•
Item 1. CITY: OAK PARK HEIGHTS
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/97 To: 07/07/98 12:01 A.M. 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 THE PREMIUM, AND SUBJECT TO ALL THE
TERMS OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO
PROVIDE COVERAGE AND LIMITS AS STATED IN THIS COVENANT, SUBJECT
TO THE FOLLOWING FORMS AND ENDORSEMENTS:
Property:
ME053(01-95) PM-100(01-95) PM-101(11-89) PM-102(11-95)
PM-104(11-95)
Inland Marine:
•
IM-300(11-89) IM-301(11-89) IM-302(11-96) IM-303(11-89)
Glass:
Boiler:
Item 5. DEDUCTIBLE: (Subject to General Annual Aggregate Deductible,if any,shown on
Common Coverage Declarations)
PROPERTY: $ 500 Per Occurrence
INLAND MARINE: $ 500 Per Occurrence
GLASS: $ Per Occurrence
Item 6. DEDUCTIBLE:
BOILER and MACHINERY: $ Per Accident
litMCIT DEC-012(05-95)
f
ASBESTOS, CLEAN UP, ABATEMENT AND REMOVAL
•
We will pay your expense to clean up, abate, or remove from covered buildings
asbestos particles that are discharged, dispersed, or released if proximately and
predominantly caused by:
1. Fire;
2. Lightning;
3. Wind or hail;
4. Leakage from fire protective equipment;
5. Explosion;
6. Aircraft or vehicles;
7. Sonic shock wave;
8. Riot or civil commotion; or
9. Vandalism.
The expenses to clean up, abate, or remove asbestos particles will be paid only if
such expenses are incurred within 90 days of the date of direct physical loss or
damage.
The most we will pay under this additional coverage is $250,000 per building but
• not to exceed $250,000 for all buildings for the sum of all such expenses arising
out of covered causes of loss listed above in any one 12-month coverage period of
this covenant.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
• LMCIT
ME053 (01-95)
Page 1 of 1
League of Minnesota Cities Insurance Trust
Schedule of Property
Covenant#: CMC 17704 League of Minnesota Cities
•ITY : OAK PARK HEIGHTS
SCHEDULE OF PREMISES
Premises I Bldg. I I
No. I No. I Location I Occupancy
1 I 1 1 14168 57TH ST NORTH I WATER TOWER
1 I 2 1 14168 57TH ST NORTH I GARAGE&MUNICIPAL BUILDING
1 I 3 1 14168 57TH ST NORTH I PUMP HOUSE #2
1 I 1 14168 57TH ST NORTH I PROPERTY IN THE OPEN
2 I 1 I SWAGER PARK I SHELTER
i
2 I I SWAGER PARK I PROPERTY IN THE OPEN
I
COVERAGE AT EACH OF THE BELOW PREMISES APPLIES ONLY FOR THOSE TYPES OF PROPERTIES,
BUSINESS INCOME OR EXTRA EXPENSE FOR WHICH A LIMIT OF COVERAGE IS SHOWN.
• 1 I 1 1 Cause I Risk Sharing % I Additional I
Premises I Bldg. I Type of I ACV I of Loss I -OR- I Forms and I Limit of
No. I No. I Property" I RC**I Basic/Special I Agreed Value I Endorsements I Coverage
1 I i i i
BLANKET - B. MPP. PIO $3, 314, 142
1 I 1 IB IRC ISPECIALI AGREED VALUE I IINCL-BLNKT
1 I 2 IB IRC SPECIAL AGREED VALUE 1 IINCL-BLNKT
1 I 2 IMPP IRC ISPECIALI AGREED VALUE I IINCL-BLNKT
1 I 3 I IRC SPECIAL AGREED VALUE I IINCL-BLNKT
1 I 3 IMPP IRC ISPECIALI AGREED VALUE I IINCL-BLNKT
1 I IPIO IRC SPECIAL AGREED VALUE I IINCL-BLNKT
2 I 1 IB IRC SPECIAL AGREED VALUE I IINCL-BLNKT
2 I IPIO IRC SPECIAL I AGREED VALUE I IINCL-BLNKT
I 1 I I
1 1 I 1
• B =Building BI =Business Income ** ACV =Actual Cash Value
MPP =Municipal Personal Property EE =Extra Expense RC =Replacement Cost
PPO =Personal Property of Others
PIO =Property in the Open
LMCIT PM-100(01-95) Page 001
League of Minnesota Cities Insurance Trust -
Schedule of Property =.-
League of Minnesota Cities Insurance Trust
Schedule of Property =-=
Covenant#: C M C 17704 League of Minnesota Cities
•1TY : OAK PARK HEIGHTS
SCHEDULE OF PREMISES
Premises I Bldg. I I
No. I No. I Location I Occupancy
i
7 I 1 1 5500 OMAR (BREKKE PARK) I PARK BUILDING
i
7 I 1 5500 OMAR (BREKKE PARK) I PROPERTY IN THE OPEN
1 I
8 I I OAK PARK HEIGHTS-VARIOUS LOCATIONS I OUTDOOR SIRENS
i i
9 I 1 1 53RD STREET I LIFT STATION
10 I 1 1 58TH AND NORELL I WATER TOWER
11 I 1 1 60TH STREET I LIFT STATION
i i
COVERAGE AT EACH OF THE BELOW PREMISES APPLIES ONLY FOR THOSE TYPES OF PROPERTIES,
BUSINESS INCOME OR EXTRA EXPENSE FOR WHICH A LIMIT OF COVERAGE IS SHOWN.
• I I I I Cause I Risk Sharing % I Additional
Premises I Bldg. I Type of I ACV I of Loss I -OR- I Forms and I Limit of
No. I No. I Property* I RC**1 Basic/Special I Agreed Value I Endorsements I Coverage
7 I 1 1 1 R ISPECIAL AGREED VALUE I IINCL-BLNKT
7 I IPIO IRC ISPECIAL AGREED VALUE I IINCL-BLNKT
8 I IPIO 1 R ISPECIAL AGREED VALUE I IINCL-BLNKT
9 I 1 1 1 R ISPECIAL AGREED VALUE I IINCL-BLNKT
10 I 1 I IRC ISPECIAL AGREED VALUE I IINCL-BLNKT
11 I 1 1 1 R ISPECIAL AGREED VALUE I IINCL-BLNKT
I I I I I I
1 I I I I I
I I I I I I
I I i I I I
* B =Building BI =Business Income ** ACV =Actual Cash Value
0 MPP =Municipal Personal Property EE =Extra Expense RC =Replacement Cost
PPO =Personal Property of Others
PIO =Property hi the Open
LMCIT PM-100(01-95) Page 003
Municipal Property Conditions
This Coverage Part is subject to the following conditions,the 2. The action is brought within 2 years after the date on
Common Conditions and applicable Loss Conditions and which the direct physical loss or damage occurred.
Additional Conditions in municipal property coverage forms.
D.NO BENEFIT TO BAILEE
41111A.CONTROL OF PROPERTY
No person or organization,other than you,having custody
Any act or neglect of any person other than you beyond of Covered Property will benefit from this coverage.
your direction or control will not affect this coverage.
E.COVERAGE PERIOD.COVERAGE TERRITORY
The breach of any condition of this Coverage Part at any
one or more locations will not affect coverage at any Under this Coverage Part:
location where,at the time of loss or damage,the breach
of condition does not exist. . 1. We cover loss or damage commencing:
•
B.COVERAGE UNDER TWO OR MORE COVERAGES a. During the coverage period shown in the Decla-
rations;and
If two or more of this covenants coverages apply to the
same loss or damage,we will not pay more than the actual b. Within the coverage territory.-
amount of the loss or damage.
2. The coverage territory is:
C.LEGAL ACTION AGAINST US -
a. The United States of America(including its ter-
No one may bring a legal action against us under this ritories and possessions);
Coverage Part unless:
b. Puerto Rico;and
1. There has been full compliance with all of the terms
of the Coverage Part;and c. Canada
•
• LMCITPM-101(11/89) page 1 of 1
Municipal Property Coverage Form
Words and phrases that appear in quotation marks have repairs to the building or structure.
P P 4 P g
special meaning. Refer to SECTION H--DEFINITION.
b. Your Municipal Personal Property located in
• A. COVERAGE or on the building described in the
Declarations or in the open(or in a vehicle)
We will pay for direct physical loss of or damage to within 100 feet of the described building,
Covered Property at the premises described in the consisting of the following:
Declarations caused by or resulting from any covered
Cause of Loss. (1) Furniture and fixtures;
1. Covered Property (2) Machinery and equipment;
Covered Property of the "City', as used in this (3) 'Stock";
Coverage Part, means the following types of
property for which an amount applying under this (4) All other personal property owned by you
Covenant is shown in the Declarations: and used in your municipal operations;
a. Building, meaning the building or structure (5) Labor, materials or services furnished or
described in the Declarations, including: arranged by you on personal property of
others; and
(1) Completed additions;
(6) Your use interest as tenant in
(2) Permanently installed fixtures, machinery improvements and betterments.
and equipment; Improvements and betterments are
fixtures, alterations, installations or
(3) Outdoor fixtures; additions:
(4) Personal property owned by you that is (a) Made a part of the building or
• used to maintain or service the building structure you occupy but do not
or structure or its premises, including: own; and
(a) Fire extinguishing equipment; (b) You acquired or made at your
expense but cannot legally remove.
(b) Outdoor furniture;
c. Personal Property of Others that is:
(c) Floor coverings; and
(1) In your care, custody or control; and
(d) Appliances used for refrigerating,
ventilating,cooking,dishwashing or (2) Located in or on the building described in
laundering; the Declarations or in the open (or in a
vehicle)within 100 feet of the described
(5) If not covered by other insurance: building.
(a) Additions under construction, However, our payment for loss of or damage
alterations and repairs to the to personal property of others will only be for
building or structure; the account of the owner of the property.
(b) Materials, equipment, supplies and 2. Property Not Covered
temporary structures, on or
Covered Property does not include:
within 100 feet of the described building,
used for making additions, alterations or a. Accounts,bills,currency,deeds,evidences of
• LMCIT PM-102 (11195) page 1 of 9
debt, money,notes or securities; (2) Are operated principally away from the ,
described premises.
b. Animals,unless owned by others and boarded
by you, or if owned by you, only as 'stocks This paragraph does not apply to:
while inside of buildings;
(a) Vehicles or self-propelled machines
c. Automobiles held for sale; or autos you manufacture, process
•
or warehouses;
d. Bridges, roadways, walks, patios or other
paved surfaces; (b) Vehicles or self-propelled machines,
other than autos, you hold for sale;
e. Contraband, or property in the course of or
illegal transportation or trade;
(c) Rowboats or canoes out of water at
f. The cost of excavations, grading, backfilling the described premises.
or filling;
p. The following property while outside of
g. Foundations of buildings, structures, buildings:
machinery or boilers if their foundations are
below: (1) Grain,hay, straw or other crops;
(1) The lowest basement floor; or (2) Fences, radio or television antennas,
including their lead-in wiring, masts or
(2) The surface of the ground, if there is no towers,signs(other than signs attached to
basement; buildings), trees, shrubs or plants, all
except as provided in the Coverage
h. Land(including land on which the property is Extensions.
located), water growing crops or lawns;
3. Covered Causes of Loss
i. Personal property while airborne or
waterborne; See applicable Causes of Loss Form as shown in
the Declarations.
j. Pilings, piers, wharves or docks; •
4. Additional Coverages
k. Property that is covered under another
coverage form of this or any other policy in a. Debris Removal
which it is more specifically described, except
for the excess of the amount due(whether you (1) We will pay your expense to remove
•
can collect on it or not) from that other debris of Covered Property caused by or
insurance; resulting from a Covered Cause of Loss
that occurs during the policy period. The
1. Retaining walls that are not part of the expenses will be paid only if they are
building described in the Declarations; reported to us in writing within 180 days
of the earlier of:
m. Underground pipes, flues or drains;
(a) The date of direct physical loss or
n. The cost to research, replace or restore the damage;or
information on valuable papers and
records, including those which exist on (b) The end of the policy period.
electronic or magnetic media, except as (2) The most we will pay under this
provided in the Coverage Extensions; Additional coverage is 25% of:
o. Vehicles of self-propelled machines(including (a) The amount we pay for the direct
aircraft or watercraft) that: physical loss of or damage to
Covered Property; plus
(1) Are licensed for use on public roads; or
•
LMCIT PM-102 (11/95) page 2 of 9
(b) The deductible in this policy We will pay for loss to any covered property if the
• applicable to that loss or damage. loss is not covered solely because of:
But this limitation does not apply to 1. Any error or omission in the description or
any additional debris removal limit location of the property covered by the covenant,
provided in the Limits of Insurance which error or omission existed at the inception
section. date of the covenant, or
(3) This Additional Coverage does not apply 2. Any errors or omissions in the description or
to costs to: location of the property in endorsements to the
covenant,or
(a) Extract "pollutants" from land or
water; or 3. Failing through error to schedule(a)any covered
property owned by the covered party at the
(b) Remove,restore or replace polluted inception of the covenant, or (b) any newly
land or water. acquired location during the term of the covenant,
b. Preservation of Property such loss shall be covered hereunder,but in no case
to exceed $500,000. With respect to this loss, we
If it is necessary to move Covered Property will pay 90% of the loss and the "city" will pay 10%
from the described building to preserve it of the loss. It is a condition of this coverage that
from loss or damage by a Covered Cause of such error or omission shall be reported and
Loss, we will pay for any direct physical loss corrected when discovered.
or damage to that property:
5. Coverage Extensions
(1) While it is being moved or while
temporarily stored at another location; a. Newly Acquired or Constructed Property
and
(1) You may extend the coverage that applies
(2) Only if the loss or damage occurs within to Building to apply to:
10 days after the property is first moved.
(a) You new buildings while being built
c. Pollutant Clean Up and Removal on the described premises; and
•
We will pay your expense to extract (b) Buildings you acquire at locations,
"pollutants" from .land or water at the other than the described premises,
described premises if the release, discharge or intended for:
dispersal of the "pollutants" is caused by or
results from a Covered Cause of Loss that (i) Similar use as the building
occurs described in the Declarations;
or
during the policy period. The expenses will
be paid only if they are reported to us in (ii) Use as a warehouse.
writing within 180 days of the earlier of:
The most we will pay for loss or damage
(1) The date of direct physical loss or under this Extension is 25% of the
damage; or amount applying under this Covenant for
Building shown in the Declarations, but
(2) The end of the policy period. not more than$250,000 at each building.
The most we will pay for each location under (2) You may extend the coverage that applies
this Additional Coverage is $10,000 for the to Your Municipal Personal Property to
sum of all such expenses arising out of apply to that property at any location you
Covered Causes of Loss occurring during acquire other than at fairs or exhibitions.
each separate 12 month period of this policy.
The most we will pay for loss or damage
d. Errors and Omissions under this Extension is 10% of the
• LMCIT PM-102 (11/95) page 3 of 9
amount applying under this Covenant for we will pay under this Extension is
Your Municipal $1,000 at each described building.
Personal Property shown in the d. Property Off-Premises
Declarations,but not more than$100,000
at each building. You may extend the coverage provided
by this Form to apply to your Covered •
(3) Coverage under this Extension for each Property, other than "stock', that is
newly acquired or constructed property temporarily at a location you do not own,
will end when any of the following first lease or operate. This Extension applies
occurs: only if loss or damage is caused by 2a
Covered Cause of Loss. This Extension
(a) This covenant expires; does not apply to Covered Property:
(b) 30 days expire after you acquire or (1) In or on a vehicle;
begin to construct the property; or
(2) In the care, custody or control of
(c) You report values to us. your salespersons; or
We will charge you additional premium (3) At any fair or exhibition.
for values reported from the date
construction begins or you acquire the The most we will pay for loss or damage
property. under this Extension is$5,000.
b. Personal Effects and Property of Others e. Outdoor Property
You may extend the coverage that applies You may extend the coverage provided
to Your Municipal Personal Property to by this form to apply to your outdoor
apply to: fences, radio and television antennas,
signs (other than signs attached to
(1) Personal effects owned by you or building), trees, shrubs and plants,
your employees. This extension including debris removal expense, caused
does not apply to loss or damage by by or resulting from any of the following •
theft. causes of loss if they are Covered Causes
of Loss:
(2) Personal property of others in your
care, custody or control. (1) Fire;
The most we will pay for loss or damage (2) Lightning;
under this Extension is $10,000 at each
described building. Our payment for loss (3) Explosion;
of or damage to personal property of
others will only be for the account of the (4) Riot or Civil Commotion; or
owner of the property.
(5) Aircraft.
c. Valuable Papers and Records--Cost of
Research The most we will pay for loss or damage
this Extension is $1,000,
under th but not
applies more than $250 for any one tree, shrub
You may extend the coverage that a Y
Y 8
PP
to our Municipal Personal Property or plant.
Y P perty
apply to your costs to research, replace
or restore the lost information on lost or Each of these Extensions is additional
damaged valuable papers and records, coverage. The Additional Condition,
including those which exist on electronic Risk Sharing, does not apply to these
or magnetic media, for Extensions.
which duplicates do not exist. The most B. EXCLUSIONS
LMCIT PM-102 (11/95) page 4 of 9
•
See applicable Causes of Loss Form as shown in the 2. Appraisal
Declarations.
• It we and you disagree on the value of the
C. AMOUNTS APPLYING UNDER THIS property or the amount of loss,either may make
COVENANT written demand for an appraisal of the loss. In
• this event, each party will select a competent and
The most we will pay for loss or damage in any one impartial appraiser. The two appraisers will
occurrence is the applicable amount applying under select an umpire. If they cannot agree, either
this Covenant shown in the Declarations. may request that selection by made by a judge of
a court having jurisdiction. The appraisers will
The most we will pay for loss or damage to outdoor state separately the value of the property and
signs attached to buildings is$1,000 per sign in any amount of loss. If they fail to agree, they will
one occurrence. submit their differences to the umpire. A
decision agreed to by any two will be binding.
The limits applicable to the Coverage Extensions is Each parry will:
an addition to the amounts applying under this
Covenant, a. Pay its chosen appraiser; and
Payments under the following additional Coverages b. Bear the other expenses of the appraisal and
will not increase the applicable amounts applying umpire equally.
under this Covenant:
If we submit to an appraisal, we will still retain
1. Preservation of Property; or our right to deny the claim.
2. Debris Removal; but if 3. Duties In The Event Of Loss Or Damage
a. The sum of direct physical loss or damage and You must see that the following are done in the
debris removal expense exceeds the Limit of event of loss or damage to Covered Property:
Insurance; or
a. Notify the police if a law may have been
b. The debris removal expense exceeds the broken.
amount payable under the 25% limitation in
the Debris Removal Additional Coverage; b. Give us prompt notice of the loss or damage.
• Include a description of the property involved.
we will pay up to an additional 55,000 for each
location in any one occurrence under the Debris c. As soon as possible, give us a description of
Removal Additional Coverage. how, when and where the loss or damage
occurred.
D. DEDUCTIBLE
d. Take all reasonable steps to protect the
We will not pay for loss or damage in any one Covered Property from further damage. If
occurrence until the amount of loss or damage feasible, set the damaged property
exceeds the Deductible shown in the Declarations.
We will then pay the amount of loss or damage in aside and in the best possible order for
excess of the Deductible, up to the applicable examination. Also keep record of your
amounts applying under this Covenant. expenses, for consideration in the settlement
of the claim.
E. LOSS CONDITIONS
e. At our request, give us complete inventories
The following conditions apply to the Common of the damaged and undamaged property.
Covenant Conditions and the Municipal Property Include quantities, costs, values, and amount
Conditions. of loss claimed.
1. Abandonment f. Permit us to inspect the property and records
proving the loss or damage.
There can be no abandonment of any property to
us. g. If requested, permit us to question you under
LMCIT PM-102 (111 95) page 5 of 9
oath at such times as may be reasonably (1) You have complied with all of the terms
•
required about any matter relating to this of this Coverage Part; and
Covenant or your claim, including your books
and records. In such event, your answers . (2) (a) We have reached agreement with
must be signed. you on the amount of loss;or
h. Send us a signed, sworn statement of loss (b) An appraisal award has been made.
containing the information we request to settle
•
the claim. You must do this within 60 days 5. Recovered Property
after our request. We will supply you with
the necessary forms. If either you or we recover any property after loss
settlement, that party must give the other prompt
i. Cooperate with us in the investigation or notice. At your option, the property will be
settlement of the claim. returned to you. You must then return to us the
amount we paid to you for the property. We will
- 4. Loss Payment pay recovery expenses and the expenses to repair
the recovered property, subject to the amount
a. In the event of loss or damage covered by this applying under this Covenant.
Coverage Form, we will either:
6. Vacancy
(1) Pay the value of lost or damaged
property; If the building where loss or damage occurs has
been vacant for more than 60 consecutive days
(2) Pay the cost of repairing or replacing the before that loss or damage, we will:
lost or damaged property, plus any
reduction in value of repaired items; a. Not pay for any loss or damage caused by any
of the following even if they are Covered
(3) Take all or any part of the property at an Causes of Loss:
agreed or appraised value; or
(1) Vandalism;
(4) Repair, rebuild or replace the property
with other property of like kind and (2) Sprinkler leakage, unless you have
quality, protected the system against freezing;
•
b. We will not pay you more than your financial (3) Building glass breakage;
interest in the Covered Property.
(4) Water damage;
c. We will give notice of out intentions within 30
days after we receive the sworn statement of (5) Theft; or
loss.
(6) Attempted theft.
d. We may adjust losses with the owners of lost
or damaged property if other than you. If we b. Reduce the amount we would otherwise pay
pay the owners, such payments will satisfy for the loss or damage by 15%.
your claims against us for the owners'
property. We will not pay the owners more Buildings under construction are not considered
than their financial interest in the Covered vacant.
Property.
7. Valuation
e. We may elect to defend you against suits
arising from claims of owners of property. We will determine the value of Covered Property
We will do this at our expense. in the event of loss or damage as follows:
f. We will pay for covered loss or damage a. At actual cash value as of the time of loss or
within 30 days after we receive the sworn damage, except as provided in b.,c.,d.,e, and
statement of loss, if: f. below.
LMCIT PM-102 111195) page 6 of 9
•
b. If the amount applying under this Covenant (1) Blank materials for reproducing the
for Building satisfies the Additional records; and
Condition,Risk Sharing,and the cost to repair
or replace the damaged building property is (2) Labor to transcribe or copy the records
$2,500 or less, we will pay the cost of when there is a duplicate.
building repairs or replacement.
F. ADDITIONAL CONDITIONS
This provision does not apply to the following
• even when attached to the building: The following conditions apply in addition to the
Common Covenant Conditions and the Municipal
(1) Awnings or floor coverings; Property Conditions.
(2) Appliances for refrigerating,ventilating, 1. Risk Sharing
cooking, dishwashing or laundering; or
If a Risk Sharing percentage is shown in the
(3) Outdoor equipment or furniture. Declarations,the following condition applies.
c. "Stock"you have sold but not delivered at the a. We will not pay the full amount of any loss if
selling price less discounts and expenses you the value of Covered Property at the time of
otherwise would have bad. loss times the Risk Sharing percentage shown
for it in the Declarations is greater than the
d. Glass at the cost of replacement with safety amount applying under this Covenant for the
glazing material if required by law. property.
e. Tenant's Improvements and Betterments at: Instead, we will determine the most we will
pay using the following steps:
(1) Actual cash value of the Iost or damaged
property if you make repairs promptly. (I) Multiply the value of Covered Property
at the time of loss by the Risk Sharing
(2) A proportion of your original cost if you percentage;
do not make repair promptly. We will
determine the proportionate value as (2) Divide the amount applying under this
follows: Covenant of the property by the figure
determined in step(1);
(a) Multiply the original cost by the
number of days from the loss or (3) Multiply the total amount of the covered
damage to the expiration of the loss, before the application of any
lease; and deductible, by the figure determined in
step(2); and
(b) Divide the amount determined in(a)
above by the number of days from (4) Subtract the deductible form the figure
the installation of improvements to determined in step(3).
the expiration of the lease.
The amount determined in step(4)is the most
If your lease contains a renewal option, we will pay. For the remainder, you will
the expiration of the renewal option either have to rely on other insurance or
period will replace the expiration of the absorb the loss yourself.
lease in this procedure.
2. Mortgage Holders
(3) Nothing if others pay for repairs or
replacement. a. The term "mortgage holder" includes trustee.
f. Valuable Papers and Records, including those b. We will pay for covered loss of or damage to
which exist on electronic or magnetic media buildings or structures to each mortgage
(other than prepackaged software programs), holder shown in the Declarations in their
at the cost of: order of precedence, as interests may appear.
LMCIT PM•102 (11!951 page 7 of 9
c. The mortgage holder has the right to receive g. If we do not renew this policy, we will give
loss payment even if the mortgage holder has written notice to the mortgage holder at least •
started foreclosure or similar action on the 10 days before the expiration date of this
building or structure. covenant.
•
d. If we deny your claim because of your acts or G. OPTIONAL COVERAGES
because your have failed to comply with the
terms of this Coverage Part, the mortgage If shown in the Declarations, the following Optional
•
holder will still have the right to receive loss Coverages apply separately to each item.
payment if the mortgage holder:
1. Agreed Value
(1) Pays any premium due under this
Coverage Part at our request if you have The Additional Condition,Risk Sharing,does not
failed to do so; apply to Covered Property to which this Optional
Coverage applies. We will pay no more for loss
(2) Submits a signed, sworn proof of loss or damage to that property than the proportion
within 60 days after receiving notice that the amount applying under this Covenant
from us of your failure to do so;and under this Coverage part for the property bears to
the Agreed Value shown for it in the
(3) Has notified us of any change in Declarations.
ownership, occupancy or substantial
change in risk known to the mortgage 2. Replacement Cost
holder.
a. Replacement Cost (without deduction for
All of the terms of this Coverage Part will depreciation) replaces Actual Cash Value in
then apply to the mortgage holder. the Loss Condition, Valuation, of this
Coverage Form.
e. If we pay the mortgage holder for any loss or
damage and deny payment to you because of b. This Optional Coverage does not apply to:
your acts or because you have failed to
comply with the terms of this Coverage Part: (1) Property of others;
(1) The mortgage holder's rights under the (2) Contents of a residence;
mortgage will be transferred to us to the
extent of the amount we pay; and (3) Manuscripts;
(2) The mortgage holder's right to recover (4) Works of an, antiques or rare articles,
the full amount of the mortgage holder's including etchings, pictures, statuary,
claim will not be impaired. At our marbles, bronzes, porcelains and bric-a-
option, we may pay to the mortgage brat; or
holder the whole principal on the
mongage plus any accrued interest. In (5) "Stock%
this event, your mortgage and note will
be transferred to us and you will pay c. You may make a claim for loss or damage
your remaining mortgage debt to us. covered by this covenant on an actual cash
value basis instead of on a replacement cost
f. If we cancel this policy, we will give written basis. In the event you elect to have loss or
notice to the mortgage holder at least: damage settled on an actual case value basis,
you may
(1) 10 days before the effective date of still make a claim for the additional coverage
cancellation if we cancel for your non- this Optional Coverage
payment of premium; or
provides if you notify us of your intent to do
(2) 30 days before the effective date of so within 180 days after the loss or damage.
cancellation if we cancel for any other
reason. d. We will not pay on a replacement cost basis
for any loss or damage:
LMCIT PM-102 (11/95) page 8 of 9
•
(1) Until the lost or damaged property is for the joint exercise of governmental powers.
actually repaired or replaced; and An intergovernmental agreement will be deemed
to create a 'joint powers entity' if the agreement
(2) Unless the repairs or replacement are establishes a board with the effective power to do
made as soon as reasonably possible after any of the following, regardless of whether the
the loss or damage. specific consent of the constituent governmental
units may also be required:
• e. We will not pay more for loss or damage on
a replacement cost basis than the least of: a. To received and expend funds;
(1) The amount applying under this Covenant b. To enter into contracts;
applicable to the lost or damaged
property; c. To hire employees;
(2) The cost to replace, on the same d. To purchase or otherwise acquire and hold
premises, the lost or damaged property real or personal property; or
with other property:
e. To sue or be sued.
(a) Of comparable material and quality;
and
(b) Used for the same purpose; or
(3) The amount you actually spend that is
necessary to repair or replace the lost or
damaged property.
H. DEFINITIONS
1. "Pollutants" means any solid, liquid, gaseous or
thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
• reconditioned or reclaimed.
2. "Stock" means merchandise held in storage or for
sale, raw materials and in-process or finished
goods, including supplies used in their packing or
shipping.
3. "City" means governmental body or entity first
named in the Declarations. For purposes of this
coverage "city" includes relief associations.
Unless specifically named in the Declarations,
"city" shall not include a gas, electrical, or steam
utilities commission; port authority, housing and
redevelopment authority, economic development
authority, area or municipal redevelopment
authority, or similar agency; municipal power
agency; municipal gas agency;hospital or nursing
• home board or commission; welfare or public
relief agency; school board; airport commission;
or "joint powers entity".
"Joint powers entity" means an operating entity
created by two or more governmental units
entering into an agreement as provided by statute
LMCIT PM-102 111/951 page 9 of 9
•
{ e Municipal Property Coverage
g
• Special Causes of Loss Form
Words and phrases that appear in quotation marks have But if loss or damage by fire, building glass
special meaning. Refer to Section F.-DEFINITIONS. breakage or volcanic action results,we will pay
for that resulting loss or damage.
A. COVERED CAUSES OF LOSS
Volcanic action means direct loss or damage
When Special is shown in the Declarations, Covered resulting from the eruption of a volcano when
Causes of Loss means risks of direct physical loss the loss or damage is caused by:
unless the loss is:
(a) Airborne volcanic blast or airborne shock
1. Excluded in Section B., Exclusions; or waves;
2. Limited in Section C., Limitations; (b) Ash, dust or particulate matter; or
that follow. (c) Lava flow.
B. EXCLUSIONS All volcanic eruptions that occur within any 168
hour period will constitute a single occurrence.
1. We will not pay for loss or damage caused
directly or indirectly by any of the following. Volcanic actions does not include the cost to
Such loss or damage is excluded regardless of remove ash, dust or particulate matter that does
any other cause or event that contributes not cause direct physical loss or damage to the
concurrently or in any sequence to the loss. described property.
• a. Ordinance or Law c. Governmental Action
The enforcement of any ordinance or law: Seizure or destruction of property by order of
governmental authority.
(1) Regulating the construction, use or
repair of any property; or But we will pay for acts of destruction ordered
by governmental authority and taken at the time
(2) Requiring the tearing down of any of a fire to prevent its spread, if the fire would
property, including the cost of be covered under this Coverage Part.
removing its debris.
d. Nuclear Hazard
But this exclusion does not apply if the
building has Replacement Cost coverage. Nuclear reaction or radiation, or radioactive
contamination, however caused.
b. Earth Movement
But if loss or damage by fire results, we will
(1) Any earth movement (other than pay for that resulting loss or damage.
sinkhole collapse), such as an
earthquake, landslide,mine subsidence e. Power Failure
or earth sinking, rising or shifting.
But if loss or damage by fire or The failure of power or other utility service
explosion results, we will pay for that supplied to the described premises, however
resulting loss or damage. caused, if the failure occurs away from the
described premises.
• (2)Volcanic eruption, explosion or effusion.
LMCIT PM-104 (11155) page 1 of 6
But if loss or damage by a Covered Cause of c. Smoke, vapor or gas from agricultural
Loss results,we will pay for that resulting loss smudging or industrial operations.
•
or damage.
d. (1) Wear and tear;
f. War And Military Action
(2) Rust, Corrosion, fungus, decay,
(1) War, including undeclared or civil war; deterioration, hidden or latent defect or
any quality in property that causes it to
(2) Warlike action by a military force, damage or destroy itself;
including action in hindering or defending
against an actual or expected attack, by (3) Smog;
any government, sovereign or other
authority using military personnel or other (4) Settling,cracking,shrinking or expansion;
agents;or
(5) Insects, birds, rodents or other animals;
(3) Insurrection, rebellion, revolution,
usurped power, or action taken by (6) Mechanical breakdown, including rupture
governmental authority in hindering or or bursting caused by centrifugal force; or
defending against any of these.
(7) The following causes of loss to personal
g. Water property:
(1) Flood, surface water, waves, tides, tidal (a) Dampness or dryness of atmosphere;
waves, overflow of any body of water, or
their spray, all whether driven by wind or (b) Changes in or extremes of
not; temperature;or
(2) Mudslide or mudflow; (c) Marring or scratching.. •
(3) Water under the ground surface pressing But if loss or damage by the "specified causes
on, or flowing or seeping through: of loss" or building glass breakage results, we
will pay for that resulting loss or damage.
(a) Foundations, walls, floors or paved
surfaces; e. Explosion of steam boilers, steam pipes, steam
engines or steam turbines owned or leased by
(b) Basements,whether paved or not; or you, or operated under your control. But if
loss or damage by fire or combustion explosion
(c) Door, windows or other openings. results, we will pay for that resulting loss or
damage. We will also pay for loss or damage
But if loss or damage by fire, explosion or caused by or resulting from the explosion of
sprinkler leakage results, we will pay for that gases or fuel within the flues or passages
resulting loss or damage. through which the gases of combustion pass.
2. We will not pay for loss or damage caused by or f. Continuous or repeated seepage or leakage of
resulting from any of the following: water that occurs over a period or fourteen(14)
days or more.
a. Artificially generated electric current, including
electric arcing, that disturbs electrical devices, g. Water,other liquids,powder or molten material
appliances or wires. that leaks or flows from plumbing, heating, air
conditioning or other equipment (except fire
But if loss or damage by fire results, we will - protective systems)caused by or resulting from
pay for that resulting loss or damage. freezing,unless:
b. Delay, loss of use or loss of market. (1) You do your best to maintain heat in the •
LMCIT PM-104(11/95) page 2 of 6
•
building or structure;or decide, of any person, group, organization or
governmental body.
(2) You drain the equipment and shut off the
•
supply if the heat is not maintained. c. Faulty,inadequate or defective;
h. Dishonest or criminal act by you, any of your (1) Planning, zoning, development.
partners, employees, "directors, trustees, surveying, siting;
authorized representatives or anyone to whom
you entrust the property for any purpose: (2) Design, specifications, workmanship.
repair, construction, renovation.
(1) Acting alone or in collusion with others; remodeling, grading,compaction;
or
(3) Materials used in repair, construction.
(2) Whether or not occurring during the hours renovation or remodeling;or
of employment.
(4) Maintenance;
This exclusion does not apply to acts of
destruction by your employees; but theft by of any or all of any property on or off the
employees is not covered. described premises.
i. Voluntary parting with any property by you or 4. Special Exclusions
anyone else to whom you have entrusted the
property if induced to do so by any fraudulent The following provisions apply only to the Business
scheme, trick, device or false pretense. Income Coverage Form and the Extra Expense
Coverage Form.
j. Rain, snow, ice or sleet to personal property in
the open. We will not pay for:
k. Collapse, except as provided below in the a. Any loss caused by or resulting from:
Additional Coverage for Collapse. But if loss
or damage by a Covered Cause of Loss results (1) Damage or destruction of "finished
at the described premises, we will pay for that stock"; or
resulting loss or damage.
(2) The time required to reproduce "finished
I. Release, discharge or dispersal of"pollutants" stock".
unless the release, discharge or dispersal is
• Extra Expense.
itself caused by any of the specified causes of This exclusion does not apply to Extr pe
loss". But if loss or damage by the "specified
causes of loss' results, we will pay for the b. Any loss caused by or resulting from direct
resulting damage caused by the 'specified cause physical loss or damage to radio or television
of loss'. antennas, including their lead-in wiring, masts
or towers.
3. We will not ay for loss or damage caused b
P 8 by or
resulting from any of the following. But if loss or c. Any increase of loss caused by or resulting
damage by a Covered Cause of Loss results,we will from:
pay for that resulting loss or damage.
(1) Delay in rebuilding,repairing or replacing
a. Weather conditions. But this exclusion only the property or resuming operations',
applies if weather conditions contribute in any due to interference at the location of the
way with a cause or event excluded in rebuilding, repair or replacement by
paragraph 1. above to produce the loss or strikers or other persons; or
damage.
or cancellation(2) Suspension, lapse )
b. Acts or decisions, including the failure to act or license, lease or contract. But if the
•
LMCIT PM-104 (11/951 page 3 of 6
suspension, lapse or cancellation is f. Gutters and downspouts caused by or resulting
directly caused by the suspension of from weight of snow, ice or sleet.
'operations", we will cover such loss that
affects your Business Income during the g. Property that has been transferred to a person
"period of restoration'. or to a place outside the described premises on
the basis of unauthorized instructions.
d. Any Extra Expense caused by or resulting
from suspension, lapse or cancellation of 2. We will not pay more for loss of or damage to glass
any license, lease or contract beyond the that is part of a building or structure than$100 for
'period of restoration'. each plate, pane, multiple plate insulating unit,
radiant or solar heating panel, jalousie, louver or
e. Any other consequential loss. shutter. We will not pay more than$500 for all loss
of or damage to building glass that occurs at any one
C. LIMITATIONS time.
1. We will not pay for loss of or damage to: This Limitation does not apply to loss or damage by
the "specified causes of loss",except vandalism.
a. Steam boilers, steam pipes, steam engines
or steam turbines caused by or resulting 3. We will not pay for loss of or damage to the
from any condition or even inside such following types of property unless caused by the
equipment. But we will pay for loss of or "specified causes of loss"or building glass breakage:
damage to such equipment caused by or
resulting from an explosion of gases or fuel a. Valuable papers and records, such as books of
within the furnace of any fired vessel or account, manuscripts, abstracts, drawings, card
within the flues or passages through which index systems, film, tape, disc, drum, cell or
the gases of combustion pass. other data processing, recording or storage
media, and other records.
b. Hot water boilers or other water heating •
equipment caused by or resulting from any b. Animals, and then only if they are killed or
condition or event inside such boilers or their destruction is made necessary.
equipment, other than an explosion.
c. Fragile articles such as glassware, statuary,
c. The interior of any building or structure marbles, chinaware and porcelains, if broken.
caused by or resulting from rain, snow, This restriction does not apply to:
sleet, ice, sand or dust, whether driven by
wind or not, unless: (1) Glass that is part of a building or
structure;
(1) The building or structure first sustains
damage by a Covered Cause of Loss to its (2) Containers of property held for sale; or
roof or walls through which the rain,
snow, sleet, ice, sand or dust enters; or (3) Photographic or scientific instrument
lenses.
(2) The loss or damage is caused by or results
from thawing of snow, sleet or ice on the d. Builders,machinery, tools, and equipment you
building or structure. own or that are entrusted to you, while away
from the premises described in the
d. Building materials and supplies not attached as Declarations, except as provided in paragraph
part of the building or structure,unless held for C.5.b. below.
sale by you, caused by or resulting from theft,
except as provided in C.5.a. below. 4. For loss or damage by theft, the following types of
property are covered only up to the limits shown:
e. Property that is missing, but there is no
physical evidence to show what happened to it, a. 52,500 for furs, fur garments and garments •
such as shortage disclosed on taking inventory, trimmed with fur.
LMCIT PM-104 (1 1/95) page 4 of 6
r i
b. $2,500 for jewelry, watches, watch We will not pay for loss or damage to the following
movements,jewels,pearls,precious and semi- types of property, if otherwise covered in this
precious stones, bullion, gold, silver,platinum Coverage Part, under items D-2.,3.,4.,5., and 6.
• and other precious alloys or metals. This limit unless the loss or damage is a direct result of the
does not apply to jewelry and watches worth collapse of a building:
$100 or less per item.
outdoor radio or television antennas,including
c. $2,500 for patterns, dies, molds and forms. their lead-in wiring, masts or towers; awnings,
gutters and downspouts;yard fixtures; outdoor
d. $250 for stamps, tickets and letters of credit. swimming pools; fences; piers, wharves and
docks; beach or diving platforms or
5. Builders Risk Form Limitations appurtenances; retaining walls; walks,
roadways and other paved surfaces.
The following provisions apply only to the Builders
Risk Form. Collapse does not include settling, cracking.
shrinkage,bulging or expansion.
a. Limitation C.1.d. is replaced by the following:
This Additional Coverage will not increase the
(1). Building materials and supplies not Limits of Coverage provided in this coverage form.
attached as part of the building or
structure caused by or resulting from E. ADDITIONAL COVERAGE EXTENSIONS
theft.
I. Property In Transit. This Extension applies
(2) Limitation C.3.d. is replaced by the only to your personal property to which this
following: form applies.
a. Builders, machinery, tools and a. You may extend the coverage provided by
equipment you own or that are the Coverage Part to apply to your personal
entrusted to you. property (other than property in the care,
• custody or control of your salespersons) in
D. ADDITIONAL COVERAGE - COLLAPSE transit more than 100 feet from the
described building. Property must be in or
We will pay for loss or damage caused by or on a motor vehicle you own, lease or
resulting from risks of direct physical loss involving operate while between points in the
collapse of a building or any part of a building coverage territory.
caused only by one or more of the following:
b. Loss or damage must be caused by or result
1. The 'specified causes of loss" or breakage of from one of the following causes of loss:
building glass, all only as insured against in the
Coverage Part; (1) Fire, lightning, explosion, windstorm
or hail, not or civil commotion, or
2. Hidden decay; vandalism.
3. Hidden insect or vermin damage; (2) Vehicle collision, upset or overturn.
Collision means accidental contact of
4. Weight of people or personal property; your vehicle with another vehicle or
object. It does not mean your
5. Weight of rain that collects on a roof; vehicle's contact with the road bed.
6. Use of defective material or methods in (3) Theft of an entire bale, case or
construction, remodeling or renovation if the package by forced entry into a securely
collapse occurs during the course of the locked body or compartment of the
construction, remodeling or renovation. vehicle. There must be visible marks
of the forced entry.
• LMCIT PM-104 (11/95) page 5 of 6
c. The most we will pay for loss or damage building or structure is first damaged by a
under the Extension is$1,000. falling object.
•
This Coverage Extension is additional 3. Water damage means accidental discharge or
coverage. The Additional Condition Risk leakage of water or steam as the direct result of
Sharing does not apply to this Extension. the breaking or cracking of any part of a system
or appliance containing water or steam.
2. Water Damage, Other Liquids, Powder or
Molten Material Damage. If loss or damage
caused by or resulting from covered water or
other liquid,powder or molten material damage
loss occurs,we will also pay the cost to tear out
and replace any part of the building or structure
to repair damage to the system or appliance
from which the water or other substance
escapes.
We will not pay the cost to repair any defect
that caused the loss or damage; but we will pay
the cost to repair or replace damaged parts of
fire extinguishing equipment if the damage:
a. Results in discharge of any substance from
an automatic fire protection system; or
b. Is directly caused by freezing.
F. DEFINITIONS •
"Specified Causes of Loss" means the following:
Fire; lightning; explosion; windstorm or hail;
smoke; aircraft or vehicles; riot or civil commotion;
vandalism; leakage from fire extinguishing
equipment; sinkhole collapse;volcanic action; falling
objects; weight of snow, ice or sleet;water damage.
1. Sinkhole collapse means the sudden sinking or
collapse of land into underground empty spaces
created by the action of water on limestone or
dolomite. This cause of loss does not include:
a. The cost of filling sinkholes; or
b. Sinking or collapse of land into man-made
underground cavities.
2. Falling object does not include loss or damage
to:
a. Personal property in the open; or
b. The interior of a building or structure, or -
property inside a building or structure, •
unless the roof or an outside wall of the
LMCIT PM-104 111/95) page 6 of 6
Municipal Inland Marine Schedule
• YOUR UNSCHEDULED MOBILE, MOVABLE OR MISCELLANEOUS EQUIPMENT NOT TO EXCEED
$5,000. ANY ONE ITEM IS INCLUDED. DEDUCTIBLE: $500.
MOBILE EQUIPMENT DEDUCTIBLE: $500. TOTAL LIMIT: $14,176.
PER SCHEDULE ON FILE WITH THE COMPANY.
EDP EQUIPMENT DEDUCTIBLE: $500. TOTAL LIMIT: $86,524.
PER SCHEDULE ON FILE WITH THE COMPANY.
page 1 of 1
I'MIT IM-300(11/89)
Municipal Inland Marine Conditions
The following conditions apply in addition to the 4. Take all reasonable steps to protect the Covered
• Common Coverage Conditions and applicable Property from further damage.If feasible,set the
Additional Conditions in Municipal Inland Marine damaged property aside and in the best possible
Coverage Forms: order for examination.Also keep a record of your
expenses,for consideration in the settlement of the
LOSS CONDITIONS claim.
A. ABANDONMENT 5. Make no statement that will assume any obligation
or admit any liability,for any"loss" for which we
There can be no abandonment of any property to us. may be liable,without our consent.
B. APPRAISAL 6. Permit us to inspect the property and records
proving"loss."
If we and you disagree on the value of the property or
the amount of"loss",either may make written demand 7. If requested,permit us to question you under oath,
for an appraisal of the"loss".In this event,each party at such times as may be reasonably required,about
will select a competent and impartial appraiser. The any matter relating to this coverage or your claim,
two appraisers will select an umpire. If they cannot including your books and records. In such event,
agree,either may request that selection be made by a your answers must be signed.
judge of a court having jurisdiction. The appraisers
will state separately the value of the property and 8. Send us a signed, sworn statement of"loss"
amount of"loss".If they fail to agree,they will submit containing the information we request to settle the
their difference to the umpire.A decision agreed to by claim. You must do this within sixty(60)days after
any two will be binding. Each party will: our request. We will supply you with the necessary'
forms.
• 1. Pay its chosen appraiser;and
9. Promptly send us any legal papers or notices
2. Bear the other expenses of the appraisal and received concerning the "loss".
umpire equally.
10. Cooperate with us in the investigation or settlement
If we submit to an appraisal, we will still retain our of the claim.
right to deny the claim.
D. TWO OR MORE COVERAGES
C. DUTIES IN THE EVENT OF LOSS
If two or more coverages apply to the same "loss",we
You must see that the following are done in the will not pay more than the actual amount of the "loss
event of"loss"to Covered Property:
E. LOSS PAYMENT
1. Notify the police if a law may have been
broken. We will pay or make good any"loss"covered under
this
2. Give us prompt notice of the "loss". Include a Coverage Part within thirty(30)days after:
description of the property involved.
1. We reach agreement with you; •
3 . As soon as possible, give us a description of
how, when and where the "loss" occurred. 2. The entry of final judgment; or
3. The filing of an appraisal award.
• LMCIT IM-301 (11/89) 1(3.12
We will not be liable for any part of a"loss"that has us. That person or organization must do everything
been paid or made good by others. necessary to secure our rights and must do nothing after
"loss"to impair them.
F. PAIR,SET OR PARTS
GENERAL CONDITIONS •
1. Pair or Set.In case of"loss"to any part of a pair
or set we may: A. LEGAL ACTION AGAINST US
a. Repair or replace any part o restore the pair No one may bring a legal action against us under this
or set to its value before the"loss";or Coverage Part unless:
b. Pay the difference between the value of the 1. There has been full compliance with all the terms of
pair or set before and after the"loss". the Coverage Part;
2. Parts. In case of"loss" to any part of Covered 2. The action is brought within two(2)years after you
Property consisting of several parts when first have knowledge of the"loss".
complete, we will only pay for the value of the
lost or damaged part. B. NO BENEFIT TO BAILEE
G. PRIVILEGE TO ADJUST WITH OWNER No person or organization, other than you, having
custody of Covered Property, will benefit from this
In the event of"loss" involving properly of others in coverage.
your cam,custody or control,we have the right to:
C. COVERAGE PERIOD
1 . Settle the "loss" with the owners of the property.
A receipt for payment from the owners of that We cover"loss"commencing during the coverage period
property will satisfy any claim of yours. shown in the Declarations.
2. Provide a defense for legal proceedings brought D. VALUATION
against you. If provided, the expense of this
•
defense will be at our cost and will not reduce the The value of property will be the least of the following
applicable Limit of Coverage under this coverage. amounts:
H. RECOVERIES 1. The actual cash value of that property;
Any recovery or salvage on a "loss" will accrue 2. The cost of reasonably restoring that property to its
entirely to our benefit until the sum paid by us has condition immediately before"loss";or
been made up.
3. The cost of replacing that property with substantially
1. REINSTATEMENT OF LIMIT AFTER LOSS identical property.
The Limit of Coverage will not be reduced by the In the event of "loss". the value of property will be
payment of any claim, except for total "loss" of a determined as of the time of"loss".
scheduled item, in which event we will refund the
unearned premium on that item.
J. TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
If any person or organization to or for whom we make
payment under this coverage has rights to recover
damages from another,those rights are transferred to
LMCIT IM-301 (I 1/89) 2 of 2
Municipal Inland Marine Coverage
• Municipal Mobile and Miscellaneous
Equipment Form
Words and phrases that appear in quotation marks have those causes of"loss" listed in the exclusions.
special meanings. Refer to Section F-DEFINITIONS.
4. Additional Coverages
A. COVERAGE
We will pay for "loss" caused by or resulting
We will pay for "Ioss" to Covered Property from from risks of direct physical "loss" to:
any of the covered causes of loss.
a. Additionally acquired property of a similar
1. Covered Property of the "city" as used in this nature to that scheduled, which is acquired
Coverage Form means: subsequent to the effective date of this
coverage form not exceeding:
a. Your mobile or movable equipment that is
greater than $5,000 any one item as (1) 25% of the total amount of your
scheduled; and scheduled Covered Property; or
b. Your miscellaneous equipment that is (2)$50,000,whichever is the lesser amount.
greater than $5,000 any one item as
scheduled; and This additional amount of coverage shall
cease:
c. Similar property of others in your care,
custody or control as scheduled. (a.)Ninety(90)days from the date such
property is acquired; or
d. Your unscheduled mobile, movable or
• miscellaneous equipment not to exceed (b.) On the date values are reported to
$5,000 any one item. LMCIT; or
2. Property Not Covered (c.) On the termination date of this
coverage form, whichever shall
a. Covered Property does not include first occur, additional premium
contraband, or property in the course of shall be due and payable from the
illegal transportation or trade; or date such property is acquired.
b. Automobiles, trucks or tractors, trailers or b. Rental Reimbursement
semi-trailers,or similar conveyances which
are designed and licensed for highway use; We will pay for rental reimbursement
or expenses incurred by you for the rental of
equipment because of "loss" to a covered
c. Motorcycles, aircraft, and similar item of equipment. We will not pay more
conveyances, unless specifically scheduled; than:
or
(1)$25.00 per day per item of equipment;
d. Plans, blueprints, designs or specifications;
or (2) $500.00 total per policy year for rental
of one or more items.
e. Property while located underground, or in
caissons, or underwater. No deductibles apply to this coverage.
3. Covered Causes of Loss This coverage does not apply while there
are spare or reserve equipment available to
• Covered causes of loss means "risks of direct you for your operations.
physical loss" to Covered Property, except
LMCIT IM-302(11/96) page 1 of 4
i__
c. Unscheduled Mobile or Movable and spread if the fire would be covered under
Miscellaneous Equipment this Coverage Form.
•
(1) Unscheduled mobile or movable and b. Nuclear Hazard
miscellaneous equipment in your
care,custody or control. (1) Any weapon employing atomic
fission or fusion;or
(2) The loss shall not exceed$5,000 any
one item and is subject to a limit of (2) Nuclear reaction or radiation, or
$5,000 any one loss. radioactive contamination, from any
other cause. But we will pay for
d. Errors and Omissions direct "loss"caused by resulting fire
if the fire would be covered under
We will pay for loss to any covered this Coverage Form.
property if the loss is not covered solely
because of: c. War and Military Action
(1) Any error or omission in the (1) War, including undeclared or civil
description or location of the property war;
covered by the covenant,which error
or omission existed at the inception (2) Warlike action by a military force,
date of the covenant, or including action in hindering or
defending against an actual or
(2) Any errors or omissions in the expected attack,by any government,
description or location of the property sovereign or other authority using
in endorsements to the covenant,or military personnel or other agents;or
(3) Failing through error to schedule (a) (3) Insurrection, rebellion, revolution,
any covered property owned by the usurped power or action taken by
covered party at the inception of the governmental authority in hindering
covenant, or (b) any newly acquired or defending against any of these.
covered property during the term of •
the coverage document, 2. We will not pay for a loss" caused by or
resulting from any of the following:
such loss shall be covered hereunder, but in
no case to exceed $500,000 Any One Item a. Occasioned by the weight of a load
subject to a maximum of$500,000 Any One exceeding the manufacturer's rated lifting or
Loss. With respect to this loss, we will pay supporting capacity of any equipment or
90% of the loss and the "city"will pay 10% machine;
of the loss. It is a condition of this coverage
that such error or omission shall be reported b. Artificially generated current creating a
and corrected when discovered. short circuit or other electric disturbance
within an article covered under this
B. EXCLUSIONS Coverage Form.
1. We will not pay for a "loss" caused directly or But we will pay for direct "loss" caused by
indirectly by any of the following. Such "loss" resulting fire if the fire would be covered
is excluded regardless of any other cause or under this Coverage Form.
event that contributes concurrently or in any
sequence to the "loss". This exclusion only applies to "loss" to that
article in which the disturbance occurs.
a. Governmental Action
c. Voluntary parting with any property by you
Seizure or destruction of property by order or anyone entrusted with the property if
of governmental authority. induced to do so by any fraudulent scheme,
trick, device or false pretense.
But we will pay for acts of destruction
ordered by governmental authority and d. Unauthorized instructions to transfer
taken at the time of a fire to prevent its property to any person or to any place.
•
LMCIT IM-302(11/96) page 2 of 4
i
e. Mechanical breakdown or failure. dampness, cold or heat.
But we will pay for direct "loss"caused by C. LIMITS OF COVERAGE
resulting fire or explosion if the fire or
• explosion would be covered under this The most we will pay for loss" in any one
Coverage Form. occurrence is the applicable Limit of Coverage
shown in the Declarations.
f. Corrosion, rust, clouding, warping, or
discoloration. D. DEDUCTIBLE
g. Dishonest acts by you, anyone else with an We will not pay for "loss" in any one occurrence
interest in property, or your or their until the amount of the adjusted
employees or authorized representative, or
anyone entrusted with the property,whether "loss" before applying the applicable Limits of
or not acting alone or in collusion with other Coverage exceeds the Deductible shown in the
persons or occurring during the hours of Declarations. We will then pay the amount of the
employment. adjusted "loss" in excess of the Deductible, up to
the applicable Limit of Coverage.
But this exclusion does not apply to a carrier
for hire. E. ADDITIONAL CONDITIONS
h. Unexplained "loss", mysterious The following conditions apply in addition to the
Municipal Inland Marine Conditions and the
disappearance, or shortage disclosed upon Common Conditions:
taking inventory.
1. Coverage Territory
3. We will not pay for a "loss" caused by or
resultin g any from an of the following. But if We cover property wherever located within:
"loss"by a Covered Cause of Loss results, we
will pay for that resulting "loss". a. The United States of America; -
• a. Weather conditions. b. Puerto Rico; and
b. Acts or decisions, including the failure to c. Canada.
act or decide, of any person, group,
organization or governmental body. 2. Risk Sharing
c. Faulty, inadequate or defective: All Covered Property, except property in
transit,must be insured for its total value as of
(1) Planning, zoning, development, the time of"loss"or you will incur a penalty.
surveying, sitting;
The penalty is that we will pay only the
(2) Design, specifications, workmanship, proportion of any "loss" that the Limit of
repair, construction, renovation, Coverage shown in the Declarations for all
remodeling, grading, compaction; Covered Property at all locations bears to the
total value of all property at all locations as of
(3) Materials used in repair, the time of"loss". This penalty will not apply
construction, renovation or to property in transit.
remodeling; or
F. DEFINITION
(4) Maintenance;
"Loss" means accidental loss or damage.
of part or all of any property wherever
located. "Auto" means a land motor vehicle, trailer or semi-
trailer designed for travel on public roads.
d. Wear and tear, any quality in the property
that causes it to damage or destroy itself, "City" means governmental body or entity first
• hidden or latent defect, gradual
deterioration; mechanical breakdown; named in the Declarations. For purposes of this
coverage"city" includes relief associations. Unless
LMCIT IM-302(11/96) page 3 of 4
specifically named in the Declarations, "city" shall ',
not include a gas, electrical, or steam utilities
commission; port authority, housing and
redevelopment authority, economic development
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
"joint powers entity".
"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 received and expend funds;
b. To enter into contracts;
c. To hire employees;
d. To purchase or otherwise acquire or hold real
or personal property; or
e. To sue or be sued.
•
LMCIT IM-302(11/96) page 4 of 4
Municipal Inland Marine Coverage
• Electronic Data Processing Form
Words and P hrases that appear in quotation marks have special 4. Additional Coverage
meaning.Refer to Section F-DEFINITIONS.
a. Collapse
A.COVERAGE
We will pay for direct "loss" caused by or
v red from any of resulting from risks of direct physical "loss"
We will pay for"loss"to Coe Property y g P y
the Covered Causes of Loss. involving collapse of all or of a building or
g Ps part
structure caused by one ormore of the following:
1. Covered Property rt as used in this coverage form
means: (1) Fire;lightning;windstorm;hail;explosion;
smoke; aircraft; vehicles; riot; civil com-
a. Your electronic data processing equipment and motion;vandalism;breakage of glass;fall-
its component parts as scheduled;and lag objects; weight of snow, ice or sleet;
water damage; all only as covered in the
b. Yo ur electronic"data",computer programs and Coverage Form.
"media"as scheduled;and
(2) Hidden decay;
c. Similar property of others in your care,custody
or control as scheduled. (3) Hidden insect or vermin damage;
2. Property Not Covered (4) Weight of people or personal property;
Covered Property does not include: (5) Weight of rain that collects on a roof;
• a. Accounts,bills,evidences of debt,valuable papers, (6) Use of defective materials or methods in
records, abstracts, deeds, manuscripts or other construction, remodeling or renovation if
documents except when convened to "data" the collapse occurs during the course of the
form and then only in that form; construction,remodeling or renovation.
r
b. Supportive documents such as flow charts,rec- This Additional Coverage does not increase the
ord formats or narrative descriptions except when Limits of Coverage provided in this Coverage
converted to"data"form and then only in that Form.
form;
b. Preservation of Property
c. Property not specifically declared and described
in the Declarations if such property cannot be re- If it is necessary to move Covered Property from
placed with other property of like kind and the described premises to preserve it from loss or
quality; damage by a Covered Cause of Loss,we will pa)
for any direct physical loss or damage to that
d. Property rented or leased to others,or property in property:
storage,while away from the"premises"shown
in the Declarations. (1) While it is being moved or while temporar-
ily stored at another location;and
3. Covered Causes of Loss
(2) Only if the loss or damage occurs within ten
Covered causes of loss means risks of direct physical (10)days after the property is first moved.
"loss" to covered property except those causes of
"loss"listed in the Exclusions.
•
LN9CIT IM-303(11/89)
page 1 of 4
c. Debris Removal payable from the date such property
acquired.
We will pay your expense to remove debris of
Covered Property caused by or resulting from a B. EXCLUSIONS
Covered Cause of Loss. 1111 1. We will not pay for a "loss" caused directly or
This Additional Coverage does not increase the Limits indirectly by any of the following. Such "loss" is
of Coverages provided in this Coverage Form. excluded regardless of any other cause or event that
contributes concurrently or in any sequence to the
d. Breakdown "loss".
We will pay for direct"loss"to Covered Prop- a. Governmental Action
erty from risks of direct physical"loss"caused
by one or more of the following: Seizure or destruction of property by order of
governmental authority.
(1) Mechanical,or machinery breakdown;
But we will pay for acts of destruction ordered by
(2) Short circuit, blowout or other electrical governmental authority and taken at the time of
damage; a fire to prevent its spread if the fire would be
covered under this Coverage Form.
(3) Electrical or magnetic injury, disturbance,
or erasure of electronic recordings. b. Nuclear Hazard
But this Additional Coverage does not apply if (1) Any weapon employing atomic fusion or
"loss"is caused by any change in the electrical fission;or
power supply,such as interruption,power surge,
or brown-out,if the change originates more than (2) Nuclear reaction or radiation,or radioactive
100 feet away from the"premises". contamination from any other cause. But
we will pay for direct "loss" caused by
This Additional Coverage does not increase the resulting fire if the fire would be covered
Limits of Coverage provided in this Coverage under this Coverage Form. •
Form.
c. War and Military Action
e. Additionally Acquired Property
(1) War,including undeclared or civil war;
We will pay for "loss"caused by or resulting
from risks of direct physical"loss"to property of (2) Warlike action by a military force,includ-
a similar nature to that scheduled which is ac- ing action in hindering or defending against
quired subsequent to the effective date of this an actual or expected attack,by any govern-
Coverage eq pe Y }g
Coverage Form,not exceeding: ment, sovereign or other authority using
military personnel or other agents;or
(1) 25%of the total amount of your scheduled
Covered Property;or (3) Insurrection,rebellion,revolution,usurped
power or action taken by governmental
(2) 50 000 whichever is the lesser amount. authority in hindering or defending against
( ) $ e s Y g g g
This additional amount of coverage shall any of these.
cease:
2. We will not pay for a"loss"caused by or resulting
a) Ninety (90) days from the date such from any of the following:
property is acquired;or
a. Dishonest acts by you, anyone else with an
b) on the date values are reported to LMCI T; interest in the property,or your or their employ-
or ees or authorized representatives, or anyone
entrusted with the property,whether or not act-
c) on the termination date of this Cover- ing alone or in collusion with other persons or
age Form whichever shall first occur. occurring during the hours of employment.
Additional premium shall be due and •
LNICIT IM-303(11/89) page 2 of 4
•
But this exclusion does not apply to a carrier for hire. d. Wear and tear,any quality in the property that
causes it to damage or destroy itself, gradual
b. Errors or omissions in processing or copying. deterioration;insects,vermin or rodents.
• But we will pay for direct `loss" caused by C. LIMITS OF COVERAGE
resulting fire or explosion if these causes of
"loss"would be covered by this Coverage Form. The most we will pay for"loss"in any one occurrence is
the applicable Limit of Coverage shown in the Declara-
c. Voluntary parting with any property by you or lions.
anyone entrusted with the property if induced to
do so by any fraudulent scheme,trick,device or D. DEDUCTIBLE
false pretense.
We will not pay for"loss"in any one occurrence until the
d. Unauthorized instructions to transfer property to amount of the adjusted`loss"before applying the appli-
any person or to any place. cable Limits of Coverage exceeds the Deductible shown
in the Declarations. We will then pay the amount of the
e. Dampness or dryness of atmosphere,extremes adjusted `loss" in excess of the Deductible, up to the
of temperature,corrosion,or rust,unless directly applicable Limit of Coverage.
resulting from physical damage to the air condi-
tioning system that services the data processing E. ADDITIONAL CONDITIONS
equipment and caused by a covered cause of
loss. The following conditions apply in addition to the Munici-
pal Inland Marine Conditions and the Common Condi-
f. Unexplained"loss",mysterious disappearance, tions:
or shortage disclosed upon taking inventory.
1. Coverage Territory
g. Earthquake,landslide or other earth movement.
We cover property:
3. We will not pay for a"loss"caused by or resulting
• from any of the following. But if"loss"by a Covered a. Within your"premises";and
Cause of Loss results,we will pay for that resulting
"loss". b. Away from your"premises"while in transit or
within premises of others;
a. Acts or decisions,including the failure to act or
decide, of any person, group, organization or wherever located within:
governmental body.
(1) The United States of America;
b. Faulty,inadequate or defective:
(2) Puerto Rico;and
(1) Planning,zoning,development,surveying,
siting; (3) Canada.
(2) Design, specifications, workmanship, re- 2. Risk Sharing
pair,construction,renovation,remodeling,
grading,compaction; All Covered Proprty,except property in transit.must
be covered for at least 90%of its total value as of the
(3) Materials used in repair,construction,repo- time of loss"or you will incur a penalty.
vation or remodeling;or
The penalty is that we will pay only the proportion of
(4) Maintenance. any'loss"that the Limit of Coverage shown in the
Declaration for all Covered Property at all locations
of part or all of any property wherever located. bears to 90%of the total value of all property at all
locations a of the time of"loss".This penalty will not
c. Collapse except as provided in the Additional apply to property in transit.
• Coverage-Collapse section of this Coverage Form.
LMC1T 1M-303(11/89) page 3 of 4
3. Replacement Cost a) Of comparable material and quality;
•
and
Replacement Cost(without deduction for deprecia-
tion)replaces General Condition E,Valuation,of the b) Used for the same purpose;or
Municipal Inland Marine Conditions.
(3) The amount you actually spend that is nec-
a. We will not pay on a replacement cost basis for essary to repair or replace the lost or dam-
any loss or damage: aged property.
(1) Until the lost or damaged property is actu- c. You may make a claim for loss or damage
ally repaired or replaced;and covered by this covenant on an actual cash value
basis instead of on a replacement cost basis.
(2) Unless the repairs or replacement are made
as soon as reasonably possible after the loss F. DEFINITIONS
or damage.
1. "Loss"means accidental loss or damage.
b. We will not pay more for loss or damage on a
replacement cost basis than the least of: 2. "Premises"means that interior portion of the build-
ing at the address shown in the Declarations that you
(1) The Limit of Coverage applicable to the lost occupy for your business.
or damaged property;
3. "Data" means facts, concepts or instructions con-
(2) The cost to replace,on the same premises, vented to a form usable in data processing operations.
the lost or damaged property with other including computer programs.
preperty;
4. "Media" means materials on which data are re-
corded, such as magnetic tapes, disk packs, paper
tapes and cards.
•
•
LMCIT IM-303(11/89) page 4 of 4
Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS
CMC 17704 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES -= ==
INSURANCE TRUST
(Herein called LMCIT) —
League of Minnesota Cities
•
Item 1. CITY: OAK PARK HEIGHTS
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/97 To: 07/07/98 12:01 AM Standard Time at Mailing Address
Indicated on Common Coverage Declarations
Item 3. THE COVERED PARTY IS: CITY
Item 4. SCHEDULE OF COVERAGES AND COVERED AUTOS:
THIS COVENANT PROVIDES ONLY THOSE COVERAGES WHERE A SYMBOL IS SHOWN IN THE COVERED AUTO COLUMN BELOW.
EACH OF THESE COVERAGES WILL APPLY ONLY TO THOSE AUTOS SHOWN AS COVERED AUTOS. AUTOS ARE SHOWN AS
COVERED AUTOS FOR A PARTICULAR COVERAGE BY THE ENTRY OF ONE OR MORE OF THE SYMBOLS FROM ITEM SIX
NEXT TO THE NAME OF THE COVERAGE.
COVERAGES I COVERED AUTOS* LIMIT
LIABILITY I 1 ** $600,000 Per Occurrence
PERSONAL INJURY PROTECTION I 2 ** Basic Minnesota Statutory Coverage
Uninsured&Underinsured Motorists In . 2 ** $600,000 Per Occurrence
COMPREHENSIVE COVERAGE I 6 **
SPECIFIED PERILS COVERAGE I NOT COVERED **
COLLISION COVERAGE I 6 **
*(Entry of one or more of the symbols from Item Six shows which autos are covered autos)
Item 5. **DEDUCTIBLE (SUBJECT TO GENERAL ANNUAL AGGREGATE DEDUCTIBLE,IF ANY,
SHOWN ON COMMON COVERAGE DECLARATIONS).
$ 500 per occurrence (unless otherwise indicated on MEO21).
Item 6. DESCRIPTION OF COVERED AUTO DESIGNATION SYMBOLS:
SYMBOL DESCRIPTION
1 ANY AUTO
2 OWNED AUTOS ONLY. Only those autos you own(and for liability coverages any trailers you don't own
while attached to power units you own).
3 SPECIFICALLY DESCRIBED AUTOS.Only those autos described in ITEM FOUR for which a premium charge is shown
(and for liability coverages any trailers you don't own while attached to any power unit described in ITEM FOUR).
4 HIRED AUTOS ONLY.Only those autos you lease,hire,rent or borrow.This does not include any auto you lease,hire,
rent or borrow from any of your employees or members of their households.
5 NON-OWNED AUTOS ONLY. Only those autos you do not own,lease,hire or borrow which are used in connection with your
business.This includes autos owned by your employees or members of their households,but only while used in your
business or your personal affairs.
6 OWNED AUTOS ONLY.Only those autos you own and are scheduled on ME021. This includes autos
that you acquire ownership after the covenant begins.
Item 7. SEE ATTACHED SCHEDULE OF COVERED AUTOS YOU OWN (ME021).
Item 8. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
A0010(11-95) A2108(11-96) A2225(11-89) ME021(01-95)
•
LMCIT DEC-016(11-95)
Municipal Auto Physical Damage
Coverage Part
• In return for the payment of the premium and subject to a. To received and expend funds;
all the terms of this Coverage Part, we agree with you
as follows: b. To enter into contracts;
PART I — WORDS AND PHRASES WITH c. To hire employees;
SPECIAL MEANING -- READ THEM
CAREFULLY d. To purchase or otherwise acquire and hold
real or personal property; or
The following words and phrases have special meaning
throughout this Coverage Part and appear in quotes e. To sue or be sued.
when used:
PART II — WHICH AUTOS ARE COVERED
A. "You"and "your" mean the person or organization AUTOS
shown as the "city" in ITEM ONE of the
declarations.
A. ITEM FOUR of the declarations shows the "autos"
B. "We", "us", "our" mean League of Minnesota for each of "our" coverages. The numerical
Cities Insurance Trust. symbols, explained in ITEM SIX of the
declarations describe which "autos" are covered
C. "Auto" means a land motor vehicle, trailer or "autos". The symbols entered next to a coverage
semitrailer designed for travel on public roads. designate the only "autos" that are covered under
"autos".
D. "Loss" means direct and accidental damage or
loss. B. OWNED AUTOS YOU ACQUIRE AFTER THE
• POLICY BEGINS
E. "City" means governmental body or entity first
named in the Declarations. For purposes of this 1. If symbol "3" is entered next to a coverage in
coverage "city" includes relief associations. ITEM FOUR, an "auto" "you" acquire will
Unless specifically named in the Declarations, be a covered "auto" for that coverage only if:
"city" shall not include a gas, electrical, or steam
utilities commission; port authority, housing and a. "We" already cover all "autos"that"you"
redevelopment authority, economic development own for that coverage if it replaces an
authority, area or municipal redevelopment "auto" "you" previously owned that had
authority, or similar agency; municipal power that coverage; and
agency; municipal gas agency; hospital or nursing
home board or commission; welfare or public b. "You"tell "us"within 30 days after"you"
relief agency; school board; airport commission; acquire it that "you"want "us" to cover it
or "joint powers entity". for that coverage.
"Joint powers entity" means an operating entity 2. If symbol "6" is entered next to a coverage in
created by two or more governmental units ITEM FOUR, an auto "you" acquire will be a
entering into an agreement as provided by statute covered "auto" for that coverage until the
for the joint exercise of governmental powers. An covenant period ends.
intergovernmental agreement will be deemed to
create a "joint powers entity" if the agreement
establishes a board with the effective power to do PART III -- WHERE AND WHEN THIS
any of the following, regardless of whether the COVERAGE PART COVERS
specific consent of the constituent governmental
units may also be required: "We" cover "losses" which occur during the coverage
period:
•
LMCIT A0010 (11/89) (Rev. 11-95) page 1 of 3
A. In the United States of America, its territories or 6. "Loss" to tape decks or other sound
possessions, Puerto Rico or Canada; or reproducing equipment not permanently •
installed in a covered "auto".
B. While the covered "auto" is being transported
between any of these places. 7. "Loss" to tapes, records, or other sound ti
reproducing devices designed for use with
PART IV—PHYSICAL DAMAGE COVERAGE sound reproducing equipment.
•
A. "WE" WILL PAY 8. "Loss" to any sound receiving equipment
designed for use as a citizens' band radio, two-
1. "We" will pay for "loss" to a covered "auto" way mobile radio or telephone or scanning
or its equipment under: monitor receiver, including its antennas and
other accessories,unless permanently installed
a. Comprehensive Coverage. From any in the dash or console opening normally used
cause except the covered "auto's" by the "auto" manufacturer for the installation
collision with another object or its of a radio.
overturn.
C. HOW WE WILL PAY FOR LOSSES -- THE
b. Specified Perils Coverage. Caused by: MOST WE WILL PAY
(1) Fire or explosion; 1. At "our" option "we" may"
(2) Theft; a. Pay for, repair or replace damaged or
stolen property; or
(3) Windstorm, hail, or earthquake;
b. Return the stolen property, at "our"
(4) Flood; expense. "We" will pay for any damage
that results to the "auto" from the theft.
(5) Mischief or vandalism;
2. The most "we" will pay for "loss" is the
(6) The sinking, burning, collision smaller of the following amounts:
or derailment of any conveyance
transporting the covered "auto". a. The actual cash value of the damaged or •
c. Collision Coverage. Caused by the stolen property at the time of"loss";
covered "auto's" collision with another
object or its overturn. b. The cost of repairing or replacing the
damaged or stolen property with other of
B. WE WILL NOT COVER-EXCLUSIONS like kind or quality.
This coverage does not apply to: 3. For each covered "auto" "our" obligation to
pay for, repair, return or replace damaged or
1. Wear and tear, freezing, except freezing of the stolen property will be reduced by the
pumping apparatus of a fire truck or similar applicable deductible shown in the declarations.
emergency or other utility truck, mechanical or
electrical breakdowns unless caused by other D. GLASS BREAKAGE -- HITTING A BIRD OR
"loss" covered by this Coverage Part. ANIMAL, FALLING OBJECTS OR MISSILES
2. Blowouts, punctures, or other road damage to "We"will pay for glass breakage, "loss" caused by
tires unless caused by other "loss" covered by hitting a bird or animal or by falling objects or
this Coverage Part. missiles under Comprehensive Coverage if "you"
carry Comprehensive Coverage for the damaged
3. "Loss"-caused by declared or undeclared war covered "auto". However, "you" have the option
or insurrection or any of their consequences. of having glass breakage caused by covered
"auto's" collision or overturn considered a "loss"
4. "Loss" caused by the explosion of a nuclear under Collision Coverage.
weapon or its consequences.
E. ERRORS AND OMISSIONS
5. "Loss" caused by radioactive contamination.
We will pay for loss to any owned "auto" if the
LMCIT A0010 (11/89) (Rev. 11-95) page 2 of 3
loss is not covered solely because of: amount of"loss", either may
1. Any error or omission in the description of the demand an appraisal of the "loss". In such
owned "auto" covered by the covenant, which event, "you" and "we" shall each select a
error omission existed at the inception date of competent appraiser. The two appraisers will
the covenant, or select a competent and disinterested umpire. If
they cannot agree, either may request that
• 2. Any errors or omissions in the description of
the owned "auto" in endorsements to the selection be made by a judge of court having
jurisdiction. The appraisers will state
covenant, or separately the actual cash value and the amount
of"loss". If the appraisers fail to agree, they
3. Failing through error to schedule an owned will submit their differences to the umpire. An
"auto" at the inception of the covenant. award agreed to by any two will be binding.
Each party will:
such loss shall be covered hereunder, but in no
case to exceed $500,000 Any One "Auto" a. Pay its chosen appraiser; and
subject to a maximum of$500,000 Any One
Loss. With respect to this loss, we will pay b. Bear the other expenses of the appraisal
90% of the loss and the "city" will pay 10% of and umpire equally.
the loss. It is a condition of this coverage that
such error or omission shall be reported and 2. "We" shall not be held to have waived any of
corrected when discovered. "our" rights by any act relating to appraisal.
PART V—CONDITIONS C. RENTAL VEHICLES
A. "YOUR" DUTIES AFTER LOSS If "you" rent an "auto" and it is used for "city"
business, this coverage will be primary.
1. "You" must promptly notify "us" or "our"
agent of any "loss". "You" must tell "us"
how, when, and where the "loss" happened.
"You" must assist in obtaining the names and
addresses of any witnesses.
2. Additionally, "you" must:
a. Cooperate with "us" in the investigation,
settlement or the conduct of any suit.
"You" shall not, except at "your" own
cost, voluntarily make any payment,
assume any obligation, or incur any
expense.
b. Permit "us" to inspect and appraise the
damaged property before its repair or
disposition.
c. Do what is reasonably necessary after
"loss" at "our" expense to protect the
covered "auto" from further loss.
d. Submit a proof of"loss"when required by
"us".
e. Promptly notify the police if the covered
"auto" or any of its equipment is stolen.
B. APPRAISAL
• 1. If "you" and "we" fail to agree as to the
LMCIT A0010 (11/89) (Rev. 11-95) page 3 of 3
Uninsured and Underinsured
Motorists Coverage
•
A. WORDS AND PHRASES WITH SPECIAL a. Owned or operated by a self-insurer under
MEANING any applicable motor vehicle law.
In addition to the WORDS AND PHRASES WITH b. Owned by a governmental unit or agency.
SPECIAL MEANING in the COVENANT, the
following words and phrases have special meaning for c. Designed for use mainly off public roads
UNINSURED MOTORISTS COVERAGE, and while not on public roads.
UNDERINSURED MOTORISTS COVERAGE.
4. "Underinsured motor vehicle" means a land
1. "Family Member"means a person related to you motor vehicle or trailer for which the sum of all
by blood, marriage or adoption who is a resident liability bonds or policies at the--time of an
of your household, including a ward or foster accident provides at least the amounts required
child. by the applicable law where a covered auto is
principally garaged but their limits are less than
2. "Occupying" means in, upon, getting in, on, out the limit of this insurance. However,
or off. "underinsured motor vehicle" does not include
any vehicle:
3. "Uninsured motor vehicle" means a land motor
vehicle or trailer: a. Owned or operated by a self-insurer under
any applicable motor vehicle law.
a. For which no liability bond or policy at the
time of an accident provides at least the b. Owned by a governmental unit or agency.
• amounts required by the applicable law
where a covered auto is principally garaged, c. Designed for use mainly off public roads
or while not on public roads.
b. For which the sum of all liability bonds or d. Which is an uninsured motor vehicle.
policies at the time of an accident provides at
least the amounts required by the applicable B. WE WILL PAY
law where a covered auto is principally
garaged but their limits are less than the limit 1. We will pay all sums the beneficiary is legally
of this insurance, or entitled to recover as "damages" from the owner
or driver of an uninsured motor vehicle or
c. For which an insuring or bonding company underinsured motor vehicle. The "damages"
denies coverage or is or becomes insolvent, must result from bodily injury sustained by a
or "covered party" caused by,an accident. The
owner's or driver's liability for these "damages"
d. Which is a hit-and-run vehicle and neither the must result from the ownership, maintenance or
driver nor owner can be identified. The use of the uninsured motor vehicle or
vehicle must hit a beneficiary,a covered auto underinsured motor vehicle.
or a vehicle a beneficiary is occupying.
2. If this coverage provides a limit in excess of the
However, "uninsured motor vehicle" does not amounts required by the applicable law where a
include any vehicle: covered auto is principally garaged, we will pay
A2108(11/96) Page 1 of 2
•
•
only after all liability bonds or policies have been 2. Any amount payable under this COVERAGE
exhausted by judgments or payments. shall be reduced by:
3. Any judgment for"damages" arising out of a suit a. All sums paid by or for anyone who is legally
•
brought without written notice to us is not responsible,including all sums paid under the
binding on us. COVENANT'S LIABILITY coverage.
C. WE WILL NOT COVER-EXCLUSIONS F. CHANGES IN CONDITIONS
This does not apply to: The CONDITIONS of the COVENANT are changed
for UNINSURED MOTORISTS COVERAGE as
1. Any claim settled without our consent, follows:
2. The direct or indirect benefit of any insurer or 1. YOUR DUTIES AFTER ACCIDENT OR LOSS
self-insurer under any workers' compensation, is changed by adding the following:
disability benefits or similar law.
a. Promptly notify the police if a hit-and-run
3. Bodily injury sustained by you or any family driver is involved, and
member while occupying or struck by any
vehicle owned by you or any family member b. Promptly send us copies of the legal papers if
which is not a covered auto. a suit is brought.
4. Anyone using a vehicle without a reasonable 2. OUR RIGHT TO RECOVER FROM OTHERS
belief that the person is entitled to do so. is changed by adding the following:
D. WHO IS COVERED If we make any payment and the "covered party"
recovers from another party,the beneficiary shall
1. You or any family member. hold the proceeds in trust for us and pay us back
the amount we have paid.
2. Anyone else occupying a covered auto or a •
temporary substitute for a covered
auto. The covered auto must be out of service
because of its breakdown, repair, servicing, loss
or destruction.
3. Anyone for "damages" he or she is entitled to
recover because of bodily injury sustained by
another beneficiary.
E. OUR LIMIT OF LIABILITY
1. Regardless of the number of "covered parties",
claims made or vehicles involved in the accident,
the most we will pay for all "damages" resulting
from any one accident is the limit of
UNINSURED AND UNDERINSURED
MOTORISTS COVERAGE shown in the
declarations.
A2108(11/96) Page 2 of 2
•
•
Personal Injury Protection Endorsement
(Minnesota)
LMCIT agrees to provide Statutory Minnesota No-Fault Coverage for all autos described on the
Municipal Automobile Declarations.
The Comprehensive Municipal Coverage Common Conditions also apply unless they are in
conflict with the Minnesota No-Fault law.In that event,Minnesota No-Fault law shall govern.
•
•
IlACIT A-2225(11/89)
SCHEDULE OF VEHICLES - OAK PARK HEIGHTS
COVENANT NUMBER - CMC 17704
COVENANT PERIOD: 07/07/97 - 07/07/98
League of Minnesota Cities
• I COMP.
{ I [] SP. PERILS► I
VEH VEH 1 ACV 1 COMP.1 STATED 1 COLL I
NO. DESCRIPTION ID ! COMPJ DED. I AMOUNT J DOLL. DED._I
I 1 I 1
I Autos owned at inception of this covenant and shown I ! i ! I
I I I I
I on thit_schedule have coverag a as indicated by "X". I ! I 4 !
1 { I I I 1
1Coverage is subject to the deductible indicated. I 1 1 1 1 L
1 I I I I I I
1 001) 1987 CHEV 1TON TRK 69601 X 1 5001 I X ! 5001
I { { I { I {
1002) 1990 OLDS CAR 19361 X 1 5001 ! X I 5001
1 I I 1 I 1 I
1003) 1990 OLDS CIERRA 06101 X I 5001 I X 1 5001
I { 1 I I I
1004) 1993 CHEV CAPRICE 02381 X 1 5001 1 X 1 5001
I I I I
1005) 1995 CHEV CAPRICE 4521] X I 5001 I X 500L
1 I I I 1 1
1006) 1995 FORD CROWN VICT 1817! X I 5001 1 X L 500
I { I I I I
1007) 1996 FORD CROWN VICT 6000! X 1 5001 1 X [ 500
I
08) 1997 FORD CROWN VICTORIA 1
500 70691 X ! 1 I X I 500]
1 1009) 1997 CHEV PICKUP 65711 X L 5001 1 X l 5001
1 I I I I I
I I 1 I 1 I I
I I I 1 I I
1 I I I I I L
I 1 I I I I I
1 I ! I I 1 L
I I I 1 1 1 1
1 1 1 I I 1
{ 1 I I
1 1 1 1
I I I {
1 ! ! I I I L
I I 1 I 1 1 1
1 I I I I I L
1 1 I I I I
1 I I I I I L
I I I I I I I
1 ! ! 1 I ! 1
1 i 1 I { I
1 1 1 I
I 1 I I I I I
1 ! ! I I I L
0 i i I I I L
ME021 (01-95)
4
I i
Agreement Number: Agreement Declarations League of Minnesota Cities
OML- 860 Open Meeting Law
Defense Cost Reimbursement Agreement
Is Provided By:
THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
(Herein called LMCIT)
Previous Agreement
Number:
OML- 631 Claims-Made
Item 1. COVERED PARTY AND MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
P.O. BOX 2007
STILLWATER, MN 55082-2007
Item 2. AGREEMENT TERM: 12:01 AM Standard Time at
From: 7/7/97 To: 7/7/98 Mailing Address Indicated Above.
Item 3. RETROACTIVE DATE: 11/9/94
• Item 4. THE COVERED PARTY IS:
X City Joint Powers Entity Other (Describe)
Item 5, REIMBURSEMENT LIMITS:
A. "Reimbursable Costs": MAXIMUM
1. Defense Costs Per Lawsuit Per Official: $ 20,000
2. Agreement Term Aggregate Per Official: $ 20,000
Item 6. CHARGE: $500.
Item 7. FORMS AND ENDORSEMENTS APPLICABLE TO AGREEMENT:
OMLRA-1(11-94)
• Executive Director, CIT
•
LMCIT DEC-019(11-93) Administered by Berkley Risk Services,Inc.
. OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
I. OPEN MEETING LAW DEFENSE COST the Minnesota Open Meeting Law; however,
COVERAGE LMCIT shall have the right to intervene at its
expense in the investigation or defense of such
LMCIT will reimburse a city official for 80 percent of legal action.
the defense costs incurred by the city official in
defending an Open Meeting Law lawsuit, if the 3. The city or the city official shall give prompt
following conditions are met: notice to LMCIT of any actual or threatened
legal action against the city official seeking
1. The date on which the Open Meeting Law penalties against the city official for an alleged
Open violation of the Minnesota O Meeting Law.
lawsuit is commenced must be within the p g
term of this agreement; and
4. The city and the city official shall at all times
2. The date on which the violation took place or cooperate with and promptly respond to
is alleged to have taken place must be on or LMCIT's requests for information,
after the retroactive date, if any, shown in investigative data, records, or any other
the Declarations. material documentation.
An Open Meeting Law lawsuit is deemed to be 5. The city official will be reimbursed only for
g
commenced on the date the city official is served defense costs incurred with respect to legal
notice of the lawsuit. services actually rendered and expenses
1111 actually incurred.
II. LIMITS
6. The city official shall have complete freedom
The Open Meeting Law Defense Cost to choose an attorney licensed in the State of
Reimbursement Agreement Limit is $20,000. This Minnesota to provide the city official with legal
is the most LMCIT will reimburse any one city services with respect to which defense costs are
official for defense costs for Open Meeting Law reimbursable under this Agreement.
lawsuits commenced during the term of this It is the express intent of the parties to this
agreement, regardless of the number of lawsuits, the Agreement that neither the city nor the city
number of actual or alleged violations, or the date official waive any immunities, defenses, or
the defense costs are actually incurred. limitations on liability available under
III. CONDITIONS AND EXCLUSIONS Minnesota statutes or common law.
8. In the event that a city official makes a
1. The term of this Agreement shall be one year recovery of defense costs from any third party,
beginning with the effective date stated in the LMCIT shall be reimbursed for any payment it
Declarations. Subsequent renewals of this
Agreement shall be treated as separate terms. has made under this Agreement after the city
official has been fully reimbursed for his/her
2. LMCIT shall have no duty to provide a 20% share of the defense costs.
defense to a city official with respect to a 9. LMCIT may cancel this Agreement by mailing
legal action against that city official seeking or delivering written notice to the city at least:
penalties based upon an alleged violation of
LMCIT OMLRA-1 (11-93)(Rev. 11-94) 1 of 2
a. Ten (10) days before the effective 3. "Defense costs" means reasonable and
date of cancellation for nonpayment necessary attorney fees, court costs, court
of the charge for this Agreement; or reporter and transcript fees, general witness
and expert witness fees and expense, and
b. Thirty (30) days before the effective similar defense related costs. Defense costs
date of cancellation for any other does not include any fines or penalties, or any
reason. attorney's fees awarded to a plaintiff in a suit
charging a violation of the Open Meeting Law.
If LMCIT decides not to renew this
Agreement, LMCIT will mail or deliver to 4. "Joint powers entity" means an operating entity
the city written notice of nonrenewal not less created by two or more governmental units
than thirty (30) days before the expiration entering into an agreement as provided by
date. statute for the joint exercise of governmental
powers. An intergovernmental agreement will
10. It is mutually understood and agreed that the be deemed to create a joint powers entity if the
city and all other LMCIT pool participants agreement establishes a board with the
are jointly and severally liable for all claims effective power to do any of the following,
and expenses of the pool. The amount of regardless of whether the specific consent of
any liabilities in excess of assets may be the constituent governmental units may also be
assessed to LMCIT pool participants when a required:
deficiency is identified.
a. To receive and expend funds;
IV. DEFINITIONS b. To enter into contracts;
1. "City" means the city or other governmental c. To hire employees;
•
body or entity first named in the
Declarations. Unless specifically named in d. To purchase or otherwise acquire and
the Declarations, city shall not include a gas, hold real or personal property; or
electrical, or steam utilities commission; port
authority, housing and redevelopment e. To sue or be sued.
authority, economic development authority,
area or municipal redevelopment authority, 5. "LMCIT" means the League of Minnesota
or similar agency; municipal power agency; Cities Insurance Trust.
municipal gas agency; hospital or nursing
home board or commission; airport 6. "Open Meeting Law lawsuit" means a lawsuit
commission; welfare or public relief agency; seeking penalties against a city official based
school board; or joint powers entity. on an allegation that the city official has
violated M.S. §471.705, commonly known as
2. "City official" means any former or present the Minnesota Open Meeting Law.
elected or appointed official of the city or
any present or former employee of the city.
LMCIT OMLRA-1 (11-93)(Rev. 11-94) 2 of 2
•
League of Minnesota Cities
League of Minnesota Cities
145 University Avenue West
St.Paul,MN 55103-2044
(612)281-1200
Municipal
Excess
Liability
• Coverage
Administered By:
Berkley Risk Services, Inc.
145 University Avenue West
St.Paul,MN 55103-2044
(612)281-1200
**IMPORTANT**
PLEASE READ YOUR AGREEMENT
Covenant Number: MUNICIPAL EXCESS
MEL- 28 7 6 LIABILITY DECLARATIONS
Coverage Ls Provided by:
Previous Covenant Number: THE LEAGUE OF MINNESOTA CITIES
MEL- 2623 INSURANCE TRUST
(Herein called LMCIT) League of Minnesota Cities
• Item 1. CITY and MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
P.O. BOX 2007
STILLWATER, MN 55082-2007
Item 2. COVERAGE PERIOD: Year(s)ear(s) Clams-Made
From: 7/7/97 To:7/7/98
12:01 A.M. Standard Time
at Mailing Address Indicated
in ITEM ONE.
Item 3. RETROACTIVE DATE: 7/7/87
Item 4. THE COVERED PARTY IS:
X City Joint Powers Entity Other(Describe)
Item 5. LIMITS OF COVERAGE:
Each Occurrence Limit $ 1,000,000.
Aggregate Limit $ 1,000,000.
Minimum Retention $ 10,000.
(If Applicable)
Item 6. PREMIUM: $ 6,589.
Item 7. AUDIT PERIOD: X Annual None Other(Describe)
• Item 8. SCHEDULE OF UNDERLYING COVERAGE:
Primary Coverage Provided By: LMCIT
Covenant Number: CMC 17704
Coverage Period: From: 7/7/97 To: 7/7/98
Including those coverages X'd below:
LIMITS:
X Automobile X Municipal
Liability Liability
$600,000 CSL $600,000 CSL* $ $
*See underlying coverage document for other specific limits that may apply.
Employers Liability Insurance:
Carrier: LMCIT Coverage B Limits:
Policy Number: $200,000./$600,000./$600,000.
Policy Term: From: 7/7/97 To: 7/7/no
Other: Carrier: Policy Number:
Policy Term: From: To:
Item 9. FORM NUMBERS AND/OR ENDORSEMENTS FORMING A PART OF THE AGREEMENT AT ISSUE:
MELC (11-96), UME-4(01-95), UME-2 (01-95), UME-43(01-95), UME-45(01-95)
UME-46(01-95)
• eeutive tor, LMCIT
LMCIT DEC-017 (1t-86)(Rev. 3-93) Administered by: Berkley Risk Services, Inc.
•
MUNICIPAL EXCESS LIABILITY COVERAGE
Various provisions in this covenant restrict coverage. League of Minnesota Cities Insurance Trust,
Read the entire coverage agreement and any hereinafter referred to as LMCIT.
underlying coverage carefully to determine rights,
duties and what is covered and not covered. The words "this coverage" mean the liability coverage
provided under this covenant.
Throughout this covenant the words "you" and "your"
refer to the "city" shown in the Declarations. The Other words and phrases that appear in italics have
words "we", "us" and "our" refer to the special meaning. Refer to SECTION III -
DEFINITIONS.
SECTION I - LIABILITY COVERAGE
1. COVERAGE AGREEMENT
d. With respect to any coverage provided by
a. "We" will pay those sums, in excess of the amount underlying coverage on a claims made basis, "this
payable under the terms of any underlying coverage, coverage" does not apply to any injury or damage, or
that the covered party becomes legally obligated to personal injury offense, or negligent act, error,
pay as damages because of injury or damage to which omission, or violation(or the first in a series of related
this covenant applies, provided that the underlying acts, errors, omissions, or violations) which occurred
coverage also applies, or would apply but for the or were committed before the retroactive date, if any,
• exhaustion of its applicable limits of coverage. If, shown in the Declarations of this covenant or which
however, a Minimum Retention applies, as set forth in occurs or is committed after the coverage period.
paragraph 4 below, "we" will pay only those sums in
excess of the Minimum Retention. e. This covenant is subject to the same terms,
conditions, agreements, exclusions and definitions as
b. "We" will have the right to participate in the the underlying coverage, except:
defense of claims or suits against the covered party
seeking damages because of injury or damage to (1) "We" will have no obligation under this
which "this coverage" may apply. "We" will have a covenant with respect to any claim or suit that is
duty to defend such claims or suits when the settled without "our" consent; and
applicable limit of coverage of the underlying
coverage has been used up by payment of judgments, (2) With respect to any provisions to the contrary
settlements and any cost or expense subject to such contained in this covenant.
limit.
2. EXCLUSIONS
This right or duty to defend is limited as set forth in
paragraph 3, below. The exclusions applicable to the underlying coverage
also apply to this covenant. Additionally, this
c. The amount "we" will pay for damages and defense - covenant does not apply to:
expense is limited as described in SECTION II -
LIMITS OF COVERAGE. Damages include a., Any obligation to pay expenses under any
prejudgment interest awarded against the insured. medical payments coverage.
•
LMCIT MELC(11-86)(Rev.12-95)(Rev.11-96) 1 of 7
b. Any obligation imposed by law under any c. When "we" control the defense of a claim or suit,
automobile no-fault, uninsured motorist, "we" will pay for the defense expense. If by mutual
underinsured motorist, Workers' Compensation, agreement or court order the covered party assumes
disability benefits or unemployment compensation control before the applicable amount of coverage
law or any similar law. available is used up, "we" will reimburse the covered •
party for reasonable defense expense. In either case,
c. Any loss or claim for damage that is caused in the amounts "we" pay will reduce the amount of
part or in total by nuclear reaction or radiation, or coverage available as provided under SECTION II -
radioactive contamination, however caused. LIMITS OF COVERAGE.
d. Any "lead or asbestos claim" as defined in the d. As soon as practicable after "we" become aware
underlying coverage. that an amount of coverage available is used up:
e. Any "failure to supply claim" as defined in the (1) "We" will notify "you" of any outstanding
underlying coverage. claims and suits subject to that amount; and
f. Any loss or claim for damages with respect to (2) "You" will then arrange to assume control of
personal property in the care, custody or control of the defense of all such claims and suits against
any covered party. "you" or any other covered party when "our" right
or duty to defend them ends.
3. DEFENSE OF CLAIMS OR SUITS
e. "We" will assist the covered party in the transfer of
a. When "we" have the duty to defend, and except as control of the defense of claims and suits under(c.)or
provided under Section II - Limits of Coverage, (d.) above. Until such arrangements are completed,
paragraph 4, with respect to "land use or development "we" will take on behalf of any covered party those
litigation", "we" will pay for all defense expense once steps that "we" think appropriate:
"our" duty to defend begins. "We" may make
investigation of any claim or suit as "we" think (1) To avoid a default in any claim or suit; or •
appropriate.
(2) To the continued defense of a claim or suit.
If "we" exercise "our" right to defend when there is
no duty, "we" will pay only that defense expense "we" "You" agree that if"we" take such steps:
incur.
(1) "We" do not waive or give up any of "our"
If "we" provide a defense, "we" may investigate any rights under this covenant; and
claim or suit at "our" discretion. "We" may settle such
claim or suit within the amount of coverage available (2) "You" will reimburse "us" for any defense
at the time of the settlement, except for any "land use expense that arises out of such steps if the
or development litigation" suit which may not be applicable amount of coverage available has been
settled without the approval of both LMCIT and the used up.
"city".
4. MINIMUM RETENTION
b. "Our" right or duty to defend ends when "we" have
used up the amount of coverage available in the The Minimum Retention, if any, shown in the
payment of any combination of judgments, settlements Declarations applies to all injury and damage arising
or defense expense, as provided under SECTION II- out of any one occurrence, if at the time of the first
LIMITS OF COVERAGE. This applies both to claims claim or suit for any such injury or damage the
and suits pending at that time and those filed applicable aggregate limit of the underlying coverage
thereafter. has been used up by payment of judgments,
settlements, and any costs or expenses subject to such
limit. •
LMCrr MELC(11-86)(Rev.12-95)(Rev.11-96) 2 of 7
SECTION II - LIMITS OF COVERAGE
1. The limits of coverage shown in the Declarations 3. Subject to (2) above, the each occurrence limit is
and the rules below fix the most "we" will pay under the most "we" will pay for the sum of damages under
the terms of this covenant regardless of the number of: SECTION I-LIABILITY COVERAGE because of all
injury and damage arising out of any one occurrence.
a. Covered parties;
4. For any "land use or development litigation" as
b. Claims made or suits brought; defined in the underlying coverage to which "this
g
coverage" applies, "we" will pay the same
c. Persons or organizations making claims or suits. percentages of defense costs and/or damages as would
otherwise be paid by the underlying coverage subject
2. The amount of coverage stated as the aggregate to the limits shown in the Declarations for this
limit is the most "we" will pay for the sum of: covenant.
a. Damages under SECTION I - LIABILITY 5. The limits of "this coverage" apply separately to
COVERAGE; and each consecutive annual period and to any remaining
period of less than 12 months, starting with the
b. Defense expense for claims and suits seeking beginning of the coverage period shown in the
damages payable under a. above, except as Declarations, unless the coverage period is extended
provided in the Appeals Condition. after issuance for an additional period of less than 12
months. In that case, the additional period will be
Each payment "we" make for such damages or deemed part of the last preceding period for purposes
defense expense reduces by the amount of the payment of determining the limit of coverage.
the aggregate limit. This reduced limit will then be the
amount of coverage available for further expenses and
idamages of these kinds.
SECTION III - DEFINITIONS
1.Aggregate limit means the maximum amount stated (d) The cost of bonds to release attachments, but
in the covenant for which LMCIT will be liable, only for bond amounts within the amount of
regardless of the number of covered claims. coverage available;
2. Defense expense means payments allocated to a (e) Reasonable expenses incurred by the covered
specific claim or suit for its investigation, settlement, party at "our" re q uest to assist "us" in the
or defense, including: investigation or defense of the claim or suit,
including actual loss of earning up to $100 a day
(a)Attorney fees and all other litigation expenses; because of time off from work;
(b) The cost of bonds to appeal a judgment or (t)Cost taxed against the covered party in the suit;
award in any suit "we" defend;
(g)Interest on the full amount of any judgment that
(c) Up to $250 for the cost of bail bonds required accrues after entry of the judgment and before
because of accidents or traffic law violations "we" have paid, offered to pay, or deposited in
arising out of the use of any vehicle to which court the amount available for the judgment under
bodily injury liability coverage provided by the provisions of SECTION II - LIMITS OF
underlying coverage applies; COVERAGE.
•
LMCIT MELC(11-86)(Rev.12-95)(Rev.11-96) 3 of 7
3. Defense expense does not include: Constitution and the laws of the United States of
America or a series of related acts, errors, omissions,
(a) Salaries and expenses of "our" employees or or violations of which the series of related acts,
the covered party's employees, other than: errors, omissions, or violations shall be deemed to
have occurred when the first act, error, omission, or •
(b)That portion of"our" employed attorney's fees, violation occurred.
salaries and expenses allocated to a specific claim
or suit; and 5. Occurrence limit means any specific limit, other
than an aggregate limit, applicable to any underlying
(c) The expenses described in(e) above. coverage, regardless of whether such limit is subject
to an aggregate limit in the underlying coverage.
(d) Fees and expenses of independent adjusters
"we" hire. 6. Underlying coverage means the liability coverage
provided under coverage agreements shown in the
4. Occurrence means: Declarations, for the limits and period indicated. It
includes any coverage agreements issued to replace
a. With respect to bodily injury to persons other those coverage agreements during the term of this
than "your" employees and property damage, an covenant that provide:
accident, including continuous or repeated
exposure to substantially the same general harmful a. At least the same coverage limits;
conditions; and
b. The same hazards covered, except as modified
b. With respect to bodily injury to "your" by general program revisions or as agreed to by
employees arising out of and in the course of their "us" in writing; and
employment by "you", the accident or disease
which causes the bodily injury; and c. The same retroactive date, if issued on a claims
made basis.
c. With respect to personal injury liability, all
•
personal injury arising out of a single offense or a Underlying coverage also includes any extended
series of related offenses of which the series of reporting periods on the policies shown in the
related offenses shall be deemed to have occurred Declarations. It includes only coverage agreements
when the first offense in such series occurred; or shown in the Declarations or endorsed onto this
covenant.
d. With respect to errors or omissions injury, a
negligent act, error, omission, or violation of any 7. Underlying carrier means any carrier who issues
rights, privileges, or immunities secured by the underlying coverage.
SECTION IV - CONDITIONS
If any of the following conditions are contrary to 2.BANKRUPTCY OF UNDERLYING CARRIER
Y g
conditions contained in the underlying coverage the
provisions contained in "this coverage" apply. In the event of bankruptcy or insolvency of any
underlying carrier, the coverage afforded by this
replace such underlying coverage,
covenant shall not re
1. APPEALS P
but shall apply as if the underlying coverage was valid
In the event the underlying carrier elects not to appeal and collectible.
a judgment in excess of the limits of the underlying
coverage, "we" may elect to make suc h a pp eal. If
"we" so elect, "we" shall be liable, in addition to the
applicable amount of coverage, for all defense 3. DUTIES IN THE EVENT OF OCCURRENCE,
expenses "we" incur. CLAIM OR SUIT
LMCIT MELC(11-86)(Rev.12-95)(Rev,1 1-96)
4 of 7
•
a. "You" must see to it that "we" are notified as soon (5) Notify "us" immediately of any judgment or
as practicable of an occurrence which may result in a settlement of any claim or suit brought against any
claim to which "this coverage" applies. To the extent covered party.
possible, notice should include:
d. No covered party will, except at its own cost,
(1) How, when and where the occurrence took voluntarily make a payment, assume any obligation,
place; or incur any expense, other than for first aid, without
"our" consent.
(2)The names and addresses of any injured person
and witnesses; and 4. MAINTENANCE OF UNDERLYING
COVERAGE
(3) The nature and location of any injury or
damage arising out of the occurrence. a. "You" agree to maintain the underlying coverage
in full force and effect during the term of this
Notice of an occurrence is not notice of a claim. covenant and with respect to any claims made
underlying coverage, during any extended reporting
b. If a claim is received by any covered party "you" period of this covenant, and to inform "us" within 30
must: days of any replacement of that underlying coverage
by the same or another company.
(1) Immediately record the specifics of the claim
and the date received; and b. "You" must notify "us" immediately:
(2) Notify "us" as soon as practicable. (1) Of any changes to the underlying coverage.
"We" may adjust "our" premium accordingly from
"You" must see to it that "we" receive written notice the effective date of the change to the underlying
of the claim as soon as practicable. coverage;
c. "You" and any other involved covered party must: (2) If any underlying coverage is cancelled or not
renewed and not replaced, "we" will not be liable
(1)Immediately send "us" copies of any demands, under this covenant for more than "we" would
notices, summonses or legal papers received in have been liable if that underlying coverage had
connection with the claim or suit; not terminated. Except as provided in paragraph
(3) below, "we" may cancel the portion of this
(2) Authorize "us" to obtain records and other covenant that applies to that underlying coverage as
information; of the date of termination of the underlying
coverage. If "we" cancel, and the underlying
(3) Cooperate with "us" in the investigation, coverage is on a claims made basis, "we" will:
settlement or defense of the claim or suit;
(a) Provide a basic extended reporting
(4) Assist "us", upon "our" request, in the period; and
enforcement of any right against any person or
organization which may be liable to the covered (b)Offer a supplemental extended reporting
party because of injury or damage to which "this period endorsement, but only if"you" obtain
coverage" may also apply; and a similar endorsement for the underlying
coverage, as provided in CONDITION 7 -
EXTENDED REPORTING PERIOD.
LMCIT MELC(11-86)(Rev.12-95)(Rev.11-96) 5 of 7
r -
(3) If the retroactive date of any underlying a. LMCIT will provide one or more extended
coverage is changed, "we may: re p ortin g periods, as described below if:
effective (1) SECTION I - LIABILITY COVERAGE is Alk
covenant as of the ffec 1
(a) Cancel this co ( )
date of the change in the retroactive date; and cancelled or not renewed; or
(b)
Offer to renew or rewrite this covenant (2) LMCIT renews or replaces SECTION I -
with the same retroactive date as the underlying LIABILITY COVERAGE with coverage that:
coverage.
(a) Has a retroactive date later than the date
of shown on the Declarations page;
c. Reduction or exhaustion of the aggregate limits
any underlying coverage by payments or judgments,
settlements or defense expense will not be a failure to (b) Does not apply to bodily injury, property
maintain underlying coverage in full force and effect. damage, personal injury, or errors or omissions
•injury on a claims made basis.
d. No statement contained in this condition limits
"our" right to cancel or not renew this covenant. b. A basic extended reporting period of 60 days from
the end of the coverage period is automatically
5. OTHER COVERAGE provided without additional charge.
"This coverage" is excess over any other valid and c. A supplemental extended reporting period of
collectible coverage whether primary, excess, unlimited duration is available, but only by an
contingent or any other basis, except other coverage endorsement and for an extra charge. The
written specifically to be excess over "this coverage". supplemental extended reporting period starts 60 days
after the end of the coverage period.
6. COVERAGE PERIOD
"You" must give "us" a written request for the
a. If the underlying coverage applies on a claims made endorsement within 60 days after the end of the
basis, "this coverage" will respond to injury or coverage period. The supplemental extended reporting
damage only if a claim for damages is first received period will not go into effect unless "you" pay the
and recorded, in the manner prescribed by the additional premium promptly when due.
underlying coverage, during the coverage period of
this covenant shown in the Declarations, including any The additional premium for the supplemental extended
extended reporting period applicable to this covenant, reporting period will be a percentage of the annual
regardless of any extended reporting period applicable expiring premium.
to underlying coverage.
Number of years
b. If the underlying coverage does not apply on a since retroactive
claims made basis, "this coverage" will respond to date shown on the
injury or damage that occurs or arises from an offense Declarations page Additional cost
committed, during the coverage period of this
covenant shown in the Declarations. 1 50%
2 70%
7. EXTENDED REPORTING PERIOD 3 80%
4 90%
With respect to coverage under this covenant that is 5
100%
excess over underlying coverage which applies on a 5+ 100%
claims made basis:
•
LMCIT MELC(11-86)(Rev.12-95)(Rev.11-96) 6 of 7
d. Extended reporting periods do not extend the
coverage period or change the scope of coverage period, if it is in effect) will be deemed to have been
provided. made on the last day of the coverage period. Once in
effect, extended reporting periods may not be
• They apply only to claims: cancelled, unless underlying coverage is not
maintained.
(1) For bodily injury or property damage which
occurs before the end of the coverage period; e. Extended reporting periods do not reinstate or
increase the limits of coverage applicable to any claim
(2) For personal injury caused by an offense to which "this coverage" applies.
which occurs before the end of the coverage
period; or 8.WAIVER OF IMMUNITY AND STATUTORY
(3) For errors or omissions injury caused by a LIABILITY LIMITATIONS
negligent act, error, omission, or violation that
occurs before the end of the coverage period; It is the express intent of the parties to this covenant
that the procurement of this covenant shall not waive
but not before the retroactive date shown in the the monetary limits of liability (commonly known as
Declarations. municipal damages "caps") imposed by or available
under statute or common law, which are applicable to
Claims for injury or damage which are first received any "covered party". If the monetary limits of liability
and recorded during the basic extended reporting imposed by statute do not apply to specific claims,
period(or during the supplemental extended reporting then the limits of coverage shown in the Declarations
and further described in Section II - Limits of
Coverage apply.
•
LMCIT MELC(11-86)(Rev.12-95)(Rev.11-96) 7 of 7
UNINSURED/UNDERINSURED MOTORISTS - FOLLOW FORM
• It is understood and agreed that in so far as coverage is provided in the underlying
coverage, uninsured and underinsured motorists coverage is on a follow form basis.
apply.
•
All other terms and conditions remain unchanged.
• LMCIT
UME-4 (01-95)
Page 1 of 1
CHILD MOLESTATION EXCLUSION,
• This coverage does not apply to damages arising out of or resulting from molesting of
minors.
•
All other terms and conditions remain unchanged.
• LMCIT
UME-23 (01-95)
Page 1 of 1
ELECTRIC UTILITIES EXCLUSION
This coverage does not apply to damages arising out of ownership, maintenance or
operations of an Electric Utility.
•
All other terms and conditions remain unchanged.
• LMCIT
UME-29 (01-95)
Page 1 of
EXTENDED REPORTING PERIOD - LIMITED POLLUTION EXCEPTION
• With respect to Limited Pollution Coverage under this Covenant, which is excess over
underlying coverage, the basic extended reporting period and the supplemental
extended reporting periods under Section IV - Conditions are not available.
•
All other terms and conditions remain unchanged.
• LMCIT
UME-43 (01-95)
Page 1 of 1
WAIVER OF STATUTORY MONETARY LIABILITY LIMITS
In consideration of the additional premium charged the "city" in procuring excess
liability coverage under the above stated covenant expressly waives its statutory
monetary liability limits (commonly known as municipal damages "caps")to the extent
of the limits of coverage shown in the Declarations and further described in Section
II - Limits of Coverage.
•
All other terms and conditions remain unchanged.
LMCIT
UME-45 (01-95)
Page 1 of 1
EXTENDED REPORTING PERIOD - LAND USE LIABILITY EXCEPTION
• With respect to Land Use Liability Coverage under this Covenant, which is excess over
underlying coverage, the basic extended reporting period and the supplemental
extended reporting periods under Section IV - Conditions are not available.
•
All other terms and conditions remain unchanged.
• LMCIT
UME-46 (01-95)
Page 1 of 1
Covenant Number: MUNICIPAL LIABILITY DECLARATIONS
CMC 17704 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST = =
(Herein called LMCIT)
Item 1. CITY: OAK PARK HEIGHTS League of Minnesota Cities
•
Item 2. COVERAGE PERIOD: One Year
From: 07/07/97 To: 07/07/98 12:01 A.M. Standard Time
at Mailing Address Indicated
on Common Coverage Declarations
Item 3. THE COVERED PARTY IS: CITY "CLAIMS-MADE"
Item 4. COVERAGE: V v
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS
OF THIS COVENANT,LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE
THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING
LIMITS:
EACH OCCURRENCE LIMIT $ 600,000
PRODUCTS & COMPLETED OPERATIONS
ANNUAL AGGREGATE LIMIT $ 600,000
FAILURE TO SUPPLY
ANNUAL AGGREGATE LIMIT $ 600,000
EMF ANNUAL AGGREGATE LIMIT $ 1,200,000
FIRE DAMAGE LIMIT $ 50,000
MEDICAL EXPENSE LIMIT $ 1,000 1$10,000 occurrence/aggregate
LIMITED POLLUTION LIABILITY *$ 600,000 per "sudden occurrence"/
•
$600,000 annual aggregate
LEAD OR ASBESTOS CLAIM LIMIT *$ 200,000 per claim/$200,000 annual aggregate
LAND USE OR *$ 1,000,000 annual aggregate
DEVELOPMENT LITIGATION
*Limit includes loss, loss adjustment expense, and legal defense costs
Item 5. MUNICIPAL LIABILITY DEDUCTIBLE: (Subject to General Annual Aggregate Deductible,
if any, shown on Common Coverage Declarations)
$ 500 Per Occurrence
Item 6. RETROACTIVE DATES:
MUNICIPAL LIABILITY RETROACTIVE DATE: 07/07/87
LIMITED POLLUTION LIABILITY CLAIM RETROACTIVE DATE: 05/24/88
LEAD OR ASBESTOS CLAIM RETROACTIVE DATE: 07/07/93
Item 7. ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
MGL-1(01-95)
•
LMCIT DEC-013(11-96)
MUNICIPAL LIABILITY
League of Minnesota Cities
lir OAK PARK HEIGHTS COVENANT NUMBER CMC 17704
HAZARD : PREMIUM BASIS :ADVANCED PREMIUM:
1 L- -
Premises Operations Code Basis
OPERATING EXPENDITURES A 2, 343,985 PREMIUM INCLUDED
FOR ALL HAZARDS
WATERWORKS D 51 ,050 WHERE A PREMIUM
BASIS IS SHOWN
STREETS B 12
0
Independent Contractors
G 434,225
Products/Completed Operations
411ATERWORKS H 164,000 ,000
1 L
LMCIT
MGL-1 (01-95)
Page 1 of 2
M NICIPAL LIABILITY
(Cont'd.l
•
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 gross 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 (remuneration) 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 (01-95)
Page 2 of 2
•
z
!ia
LMC
MUNICIPAL EXCESS 4 League of Minnesota Cities
Cities promoting excellence
LIABILITY COVERAGE
PREPARED ESPECIALLY FOR
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
P.O. BOX 2007
STILLWATER, MN 55082
07/07/05 - 07/07/06
Agent:
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SVCS
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025-2605
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Phone: (651) 281-1200
Fax: (651) 281-1298
Web Site: http://www.lmnc.org
**IMPORTANT**
PLEASE READ YOUR AGREEMENT
1
MUNICIPAL EXCESS LIABILITY DECLARATIONS
Covenant Number: Coverage is Provided by: ' r�
MEL 5291 THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST
Previous Covenant Number: (Herein called LMCIT) Cities omotMinnesota
in esocellenes
( ) Cities promoting excellence
MEL 4932
Item 1. CITY and MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BLVD
P.O. BOX 2007
STILLWATER, MN 55082
Item 2. COVERAGE PERIOD:
From: 07/07/05 To: 07/07/06 12:01 AM Standard Time at Mailing
Address Indicated on Item 1.
Claims Made
Item 3. RETROACTIVE DATE: July 07, 1987
Item 4. THE COVERED PARTY IS: CITY
Item 5. LIMITS OF COVERAGE:
Aggregate Limit $ 1,000,000.
Item 6. PREMIUM: $ 7,871.
Item7. FORM NUMBERS AND/OR ENDORSEMENTS FORMING A PART OF THE AGREEMENT AT ISSUE:
MELC(11/04) UME-4(11/03)
acp),
Executive Director, LMCIT
LMCIT DEC-017(11/96)(Rev. 11/02)
UNINSURED/UNDERINSURED MOTORISTS - FOLLOW FORM
It is understood and agreed that in so far as coverage is provided in the underlying
coverage, uninsured and underinsured motorists coverage is on a follow form basis.
All other terms and conditions remain unchanged.
LMCIT
UME-4 (01-95) (Rev. 11-03) Page 1 of 1
Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS
CMC 26394 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST
(Herein called LMCIT)
League of Minnesota Cities
Cities promoting excellence
J
Item 1. CITY: OAK PARK HEIGHTS, CITY OF
Item 2. COVERAGE PERIOD:
From: 07/07/05 To: 07/07/06 12:01 AM Standard Time at Mailing Address
Indicated on Common Coverage Declarations
Item 3. THE COVERED PARTY IS: CITY
Item 4. COVERAGE:
IN RETURN FOR THE PAYMENT OF PREMIUM AND SUBJECT TO ALL OF THE TERMS OF THIS COVENANT, LMCIT
AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT,
SUBJECT TO THE FOLLOWING LIMITS:
COVERAGE: LIMIT:
AUTOMOBILE LIABILITY $1,000,000 Per Occurrence
BASIC ECONOMIC LOSS BENEFITS Basic Minnesota Statutory Coverage
UNINSURED&UNDERINSURED MOTORISTS Basic Minnesota Statutory Coverage
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 occurrence
Item 6. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
A0010(11-03) CM C(11-04) MA082(11-03) MA083(11-03)
M A084(11-03) MA085(11-03) M E063(11-01) M E066(11-02)
ME073(11-01) ME079(11-03)
LMCIT DEC-016(1 1/86)(Rev,11/03)
MUNICIPAL AUTOMOBILE
PHYSICAL DAMAGE COVERAGE
Various provisions in this covenant restrict coverage.Read The word you and your refer to the city shown in the
the entire covenant carefully to determine rights,duties and Declarations. The words we, us and our refer to LMCIT
Y
what is or is not covered. Throughout this covenant, the providing this covenant
word city refers to the first city shown in the Declarations.
The word LMCIT refers to the League of Minnesota Cities Other words and phrases that appear in italics have special
Insurance Trust. meaning, as given in SECTION IV—DEFINITIONS.
SECTION I - COVERAGE AGREEMENT
We will pay for direct and accidental t 1 a e loss to a not covered as described under SECTION II— CAUSES
damage o r to s
covered automobile unless the cause of loss or damage is OF LOSS AND DAMAGES NOT COVERED.
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED
1. CAUSES OF LOSS NOT COVERED 2. DAMAGES NOT COVERED
We will not pay for loss or damage caused directly or We will not pay for the following damages:
PY g
indirectly by any of the following.Such loss or damage
is excluded regardless of any other cause or event that a. Damages caused by;
contributes concurrently or in any sequence to the loss.
(1) Wear and tear;
a. War.
(2) Freezing;except freezing of the pumping apparatus of a
(1) War,including undeclared or civil war; fire truck or similar emergency or other utility truck; or
(2) Warlike action by a military force, including (3) Mechanical or electrical breakdowns.
action in hindering or defending against an actual
or expected attack by any government, sovereign This exclusion does not apply if the above damage results
or other authority using military personnel or other from other loss or damage covered by this Coverage Part.
agents; or
b. Blowouts,punctures, or other road damage to tires.
(3) Insurrection, rebellion, revolution, usurped
power or action taken by governmental authority in This exclusion does not apply if the above damage results
hindering or defending against any of these. from other loss or damage covered by this Coverage Part.
SECTION III - LIMITS OF COVERAGE AND VALUATION
1. LIMITS OF COVERAGE b. We will not pay for loss or damage in any one
occurrence until the amount of loss or damage exceeds
a. The most we will pay for loss or damage is the smaller the Deductible in Item 5 of the Declarations, and the
of the following amounts: amount of loss will be reduced by the deductible
amount.
(1) The actual cash value of the damaged or stolen
property at the time of the loss or damage; or The deductible applies against the total loss incurred by
you from any one occurrence,regardless of the number
(2) The cost of repairing or replacing the damaged or of covered automobiles involved.
stolen property with other like kind and quality.
LMCIT A0010(I 1189)(Rev. 11-03) Page 1 of 3
2. LOSS VALUATION competent and disinterested umpire. If they cannot
agree, either may request that selection be made by a
a. At our option we may: judge of court having jurisdiction. The appraisers will
state separately the actual cash value and the amount of
P Y
(1) Pay for, repair, or replace damaged or stolen the loss or damage. If the appraisers fail to agree,they
property; will submit their differences to the umpire. An award
agreed to by any two will be binding.
(2) Return the stolen property at our expense. We will
pay any damage for dama e that results to the covered Each party will:
automobile from the theft; or
(1) Pay its chosen appraiser and;
(3) Take all or any part of the damaged or stolen
property at an agreed or appraised value. (2) Bear the other expenses of the appraisal and
umpire equally.
b. If you and we fail to agree as to the amount of loss or
damage,either may demand an appraisal of the loss or We shall not be held to have waived any of our rights
damage. In such event,you and we shall each select a by any act relating to appraisal.
competent appraiser. The two appraisers will select a
SECTION IV - DEFINITIONS
1. Automobile means a land motor vehicle,trailer or semi- 3. City means governmental body or entity first named in
trailer designed for travel on public roads. the Declarations. For purposes of this coverage, city
includes relief associations.Unless specifically named
2. Covered automobile means: in the Declarations,city shall not include:
a. Any automobile that you own; a. Gas, electrical or steam utilities commission;
b. Any automobile that you rent or lease for a period of b. Port authority, housing and redevelopment authority,
more than 30 days; economic development authority, area or municipal
redevelopment authority or similar agency;
c. Any automobile that you borrow;
c. Municipal power agency;
d. Any automobile that you rent or lease from a person or
organization that is not in the business of renting or d. Municipal gas agency;
leasing automobiles; or
e. Hospital or nursing home board or commission;
e. Any automobile that you or a city official,employee,or
volunteer rents for city business for less than 30 days f. Airport commission;
from a person or organization in the business of renting
automobiles if the rental agreement requires you or the g. Welfare or public relief agency;
individual renting the automobile to pay for loss or
damage to the automobile. h. School board;
However,the following automobiles are not a covered i. Joint powers entity.
automobile while used in the business of the city:
4. Joint powers entity means an operating entity created
a. Any automobile which is owned or leased by a city by two or more governmental units entering into an
official, employee or volunteer; or agreement as provided by statute for the joint exercise
of governmental powers. An intergovernmental
b. Any automobile which is owned or leased by a agreement will be deemed to create a joint powers
member of the city official's,employee's or volunteer's entity if the agreement establishes a board with the
household. effective power to do any of the following,regardless
LMCIT A0010(11/89)(Rev. 11-03) Page 2 of 3
of whether the specific consent of the constituent c. To hire employees;
governmental units may be required:
d. To purchase or otherwise acquire or hold real or
a. To receive and expend funds; personal property; or
b. To enter into contacts; e. To sue or be sued.
SECTION V - CONDITIONS
1. COVERAGE UNDER TWO OR MORE 3. LOSS CONDITIONS
COVERAGES
Duties in the event of loss:
If two or more of this covenant's coverage's apply to the
same loss or damage,we will not pay more than the actual a. You must promptly notify us of any loss.
amount of the loss or damage.
b. You must tell us how, when, and where the loss
2. COVERAGE PERIOD, COVERAGE happened. You must assist in obtaining the names and
TERRITORY addresses of any witnesses.
Under this Coverage Part: c. You must do what is reasonably necessary after the loss
at our expense to protect the covered automobile from
a. We cover loss or damage commencing: further loss. You must submit a proof of loss when
required by us.
(1) During the coverage period shown in the
Declarations; and d. You must promptly notify the police if the covered
automobile or any of its equipment is stolen.
(2) Within the coverage territory.
b. The coverage territory is:
(1) The United States of America (including its
territories and possessions);
(2) Puerto Rico; and
(3) Canada
LMCIT A0010(11/89)(Rev. 11-03) Page 3 of 3
BASIC ECONOMIC LOSS BENEFITS AND UNINSURED AND
UNDERINSURED MOTORISTS COVERAGE
LMCIT agrees to provide Basic Economic Loss Benefits and Uninsured and
Underinsured Motorists Coverage in such minimum amounts, and for such motor
vehicles, as are required by the Minnesota No-Fault Automobile Insurance Act,
q Y
Minnesota Statutes Section 65B.41 to 65B.71.
The Comprehensive Municipal Coverage Common Conditions also apply unless they
are in conflict with the Minnesota No-Fault Automobile Insurance Act. In that event, the
Minnesota No-Fault Automobile Insurance Act shall govern.
LMCIT
MA082(11/03) Page 1 of 1
SCHEDULED BASIC ECONOMIC LOSS BENEFITS FOR
UNREGISTERED MOTOR VEHICLE ENDORSEMENT
It is agreed that with respect to coverage afforded for Basic Economic Loss Benefits,
coverage is amended to add coverage for motor vehicles that are not required to be
registered pursuant to Minnesota Statute Chapter 168.
LMCIT
MA083(11/03) Page 1 of 1
UNINSURED AND UNDERINSURED MOTORISTS COVERAGE
INCREASED LIMITS OF COVERAGE
It is agreed that with respect to coverage afforded for Uninsured and Underinsured
Motorists Coverage, the limit of coverage as stated on DEC-016 is amended to read
$1,000,000.
LMCIT
MA084(11/03) Page 1 of 1
SCHEDULED UNINSURED AND UNDERINSURED MOTORISTS
COVERAGE FOR UNREGISTERED MOTOR VEHICLE ENDORSEMENT
It is agreed that with respect to coverage afforded for Uninsured and Underinsured
Motorists Coverage, coverage is amended to add coverage for motor vehicles that are
not required to be registered pursuant to Minnesota Statute Chapter 168.
LMCIT
MA085(11/03) Page 1 of 1
Definition of City Endorsement
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHORITY
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
ME063(11/95)(Rev. 11/01)
COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE
® Coverage A Municipal Liability
❑ Coverage A Municipal Liability, but only for Bodily Injury,
Property Damage or Personal Injury
El 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 or Franchise 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 07, 1998.
for all coverage where ❑ is X'd above.
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
ME066(11/96) (Rev. 11/02)
w League of Minnesota Cities
L] '1 Insurance Trust
DEC 145 University Avenue West,St.Paul,MN 55103-2044
of Minnesota Meg EC ' (651)281-1200 • (800)925-1122
League cbe# tinswnwN � Fax (651)281-1298 • TDD: (651)2811290
_ www.lmnc.org
December 7, 2005
To: LMCIT Members and Agents
From: Pete Tritz
Re: Coverage Changes for 2005-2006
Here's a summary of coverage changes that cities will see for the coming year. These changes
apply to property/casualty coverage written or renewed on or after November 15, 2005.
Land use coverage
Coverage added under land use section for regulation of refuse collection and challenges to
certain city enterprise operations. The "land use" section of the LMCIT liability coverage covers
three types of litigation: litigation related to land use regulation; litigation related to
development or redevelopment, and litigation related to franchising and regulation of private
utilities. There are two changes in this coverage for the coming year:
• Litigation involving city regulation of refuse collection will be covered in the same way as
litigation involving franchising or regulation of utilities.
• Litigating challenging cities' authority to engage in enterprise operations such as internet
service will be covered under the land use coverage.
Property
Property in the open coverage clay f ed: The definition of property in the open has been
modified to reduce ambiguity. In addition, LMCIT is replacing it's single add/subtract
endorsement with two new endorsement forms. One will be for use in adding property to
property in the open coverage. The other will be for specifying property that will not be covered
under this coverage.
Bond coverage
Minimum bond coverage increased from $25,000 to $50,000. All bond coverage in LMCIT will
now be written with a minimum coverage limit of$50,000. Members who have carried lower
limits in the past will automatically be increased to $50,000 at no additional cost to the city.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
HIPAA
Defense coverage added for HIPAA data claims. LMCIT liability coverage will now cover
defense costs in administrative actions charging violations of HIPAA data privacy and data
security regulations, even if there is no explicit claim for damages.
Petrofund
Petrofund coverage automatically provided. All member cities will now automatically have
Petrofund Supplement coverage for petroleum tank leaks and spills. This has been an optional,
extra-cost coverage in the past. The coverage applies only to tanks that are in compliance with
MPCA regulations and are eligible for reimbursement from the state Petrofund, but the city will
no longer have to schedule coverage for each individual tank. This coverage reimburses the
city's share of damages and clean-up costs for tank leaks and spills, along with legal defense
costs, subject to an aggregate limit of$250,000.
Tenants and Users Liability Insurance Policy (TULIP)
TULIP coverage being made available. Many cities allow private individuals to use or rent
municipally owned facilities for various kinds of meetings and banquets and events. There is
risk that goes along with allowing private use of city facilities;there is always a possibility that a
guest may be injured and bring a claim. To counter this risk,many cities require users to have
liability insurance and to name the city as an additional insured.
The LMCIT Board has approved development of a Tenant and Users Liability Insurance Policy
(TULIP)program. This will provide an streamlined, low-cost way for users of city facilities to
obtain insurance that meets city insurance requirements. The TULIP program will be offered in
cooperation with Bene-Marc, Inc., and Clarendon Insurance Company, and will take effect in
early 2006. Cities and agents will receive detailed information on costs, coverage, and
procedures at that time.
League of Minnesota Cities
f Insurance Trust
! 145 University Avenue West,St. Paul,MN 55103-2044
1 (651)281-1200 • (800)925-1122
League of Minnesota Cities
Cities promoting excellence Fax:(651)281-1298 • TDD:(651)2814290
www.lmnc.org
December 7,2005
To: LMCIT Members and Agents
From: LMCIT Board of Trustees
Re: 2006 Property/Casualty and Workers' Compensation Rates and Dividend
•
Property/casualty rates for 2005-2006
Here are the premium rate changes LMCIT members will see at their next renewal. The
property/casualty rate changes apply to renewals on or after November 15, 2005.
• Municipal liability rates will decrease 4%.
• Property rates will decrease 3%.
• Auto liability rates will decrease 2%.
• Auto physical damage will increase 2%
• Open meeting law defense will decrease 10%
There are no changes for excess liability, machinery breakdown, liquor liability, or bond rates
(minimum available bond coverage was increased from $25,000 to $50,000 without a rate
change). The rate changes are primarily driven by changes in loss experience. The decreases
listed above do not mean that your city's actual premium will necessarily decrease by the same
amounts. Although rates do indeed influence premiums, an individual city's actual premiums
will also be affected by changes in its expenditures,property values,payrolls, and other exposure
measures, and also by changes in the city's experience rating.
Work comp rates for 2006
The Board voted to approve a 5% increase in work comp rates for 2006, and also to approve a
continuation of the 3% credit for managed care. For the past two years, two main patterns have
shaped LMCIT work comp costs. First, medical costs have continued to increase sharply, and
there is no sound basis for predicting any kind of significant change in this trend. Medical
benefits have become the biggest single component of work comp costs, and now cost LMCIT
nearly twice as much as wage replacement benefits for lost time. Second, indemnity costs have
been stable and generally less than projections and have partially offset the increases in medical
costs.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
Dividends
Property/casualty program members will share a $12 million dividend this year. This is greater
than the $9 million amount we returned in 2002, 2003, and 2004. Attesting to a very successful
year of operations, it is indeed the largest dividend we've returned since 1997. As in the past,
we'll distribute the dividend in mid-December. The dividend formula will be the same as we've
used for several years. Under that formula, each city's share is proportionate to the difference
between the city's total earned premiums and total incurred losses for all years the city has been
a member, with large individual losses capped for purposes of the formula.
The work comp program will not return a dividend this year.
What's behind the rate changes?
Property/casualty
Overall,the liability and property loss picture doesn't look much different than it has in the
recent past, and we don't see any new trends or alarming patterns. Liability losses make up not
quite half of our total loss cost and have been remarkably stable for the past few years. Actual
loss costs have been coming in below our projections. Property makes up about a third of our
loss cost. Property losses tend to be more variable and are directly influenced by things like
storms, floods, and fires. From '03 on,property loss rates have been low, in large part because
the last three summers have produced very little storm loss.
. Despite the stability, litigation relating to land use regulation and development continues to be a
concern. Land use litigation costs average over$2 million a year—about 20% of the total
liability loss cost—and they can vary a great deal from year to year.
There are a couple of other factors also contributing to our ability to reduce property/casualty
rates:
• While dollar loss costs have remained pretty stable, city expenditures have generally
continued to grow. In simplest of terms, this means that a relatively smaller percentage of
city dollars are needed to fund projected and actual losses. This enables a reduction in
premium rates.
• Last year,the LMCIT Board decided to significantly increase the amount of risk LMCIT
retains on liability claims, from $500,000 to $1,000,000 per occurrence. We also increased
LMCIT's retention on property losses,but by a smaller proportion. Keeping more risk
means that we'll be paying more of the losses directly and that our loss costs will vary more
from year to year, but it also significantly reduces our reinsurance costs. In the long run, we
expect that the increased retention will produce a significant net savings for LMCIT
members. LMCIT's strong fund balance makes it possible to handle that variability,but it
may very well mean that cities will also see more variability in dividends from year to year
as well.
2
Work comp
If this section seems very familiar to what you read last year,the reason is that the news hasn't
changed much or gotten any better. The main factor driving the work comp rate increase for
2006 is once again rising medical costs. Medical costs for work comp injuries are projected to
continue increasing at a rate of about 9% a year. Medical costs now make up just about half of
work comp loss costs—about as much as indemnity benefits, Special Compensation Fund
assessments, and defense costs combined.
As noted above, our indemnity costs have been generally stable and less than projections. While
this is good and helps offset the increase in medical costs, we also need to keep an eye on injury
frequency. It was up very slightly in 2004 and the first half of 2005. We don't know if this is a
blip on the radar screen or the beginning of a trend, but we will want to monitor it. Nonetheless,
we are able to keep our rate increase down to 5%—the smallest increase in four years—and this
modest increase also includes a small contingency margin built into the rates. Hopefully cities
can continue reducing the numbers of employee injuries; that's really the best tool we have to
control future premium costs.
Investment income remains a very important element in the LMCIT work comp program,though
not quite as significant as it was a few years ago. Investment income now produces about a fifth
of the program's total revenue; a few years ago, it was over a third. Nevertheless, investment
income is still very important. Premiums alone would not quite cover projected losses, let alone
administrative and reinsurance costs.
How was the dividend amount determined?
Most LMCIT members are very familiar with LMCIT's approach to rate-setting. Briefly, the
premium rates incorporate a safety margin. That is, the premiums plus investment income are
designed to produce enough revenue to cover losses and expenses even if losses turn out to be
greater than projections. If losses turn out to be at projections,that margin isn't needed to pay
for losses and is available either to be returned to members as a dividend or used to strengthen
LMCIT's fund balance. If losses turn out to be lower than projections, that additional savings
also becomes available to be returned to members.
One fact of life in any insurance operation is that it can take several years until claims are finally
settled and we know for sure what the actual loss costs were. For this reason, we have to work
with estimates, which are continually revised and updated. The program's results and the
amount of dividend we can return in any one year therefore don't just depend on what happened
during that year; the year's financial results are also affected by changes in our estimates of what
prior year losses will ultimately cost.
Here's a summary of what makes this year's $12 million dividend possible:
• The losses we incurred during the past year were lower than projected. They did not reach
into the safety margin or even use up all of the funds earmarked for loss payments.
3
• The current estimate of what losses from prior years will ultimately cost is less than our
earlier projections. The funds previously set aside for those losses are therefore freed up.
• Both earned premiums and investment income were somewhat higher than projections.
The LMCIT Board also again used a small part of this year's net income to further strengthen the
program's fund balance. The Board concluded that this was appropriate in light of the continued
growth in the property/casualty program's premium volume and the increased amount of risk
LMCIT will now be retaining.
If you have any questions or comments, please feel free to contact Pete Tritz at the League
office, or any of the members of the LMCIT Board.
4
i . S
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
PROPERTY/CASUALTY
2005 DIVIDEND CALCULATION
AT MAY 31, 2005
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SVCS
232 S LAKE ST
FOREST LAKE MN 550252
OAK PARK HEIGHTS
14168 OAK PARK BLVD
P.O. BOX 2007
STILL WA TER MN 55082
GROSS EARNED PREMIUM $ 846,067
ADJUSTED LOSSES $ 111,612
MEMBERS DIVIDEND PERCENTAGE .00156962842
DIVIDEND AMOUNT $ 18,836
League of Minnesota Cities Insurance Trust
Property/Casualty Program
OAK PARK HEIGHTS
Premium and Dividend History
1
$50,000 - -
}
'°s ,,..:
$40,000- - - - -
$30,000
vvt :'::,,.:',:::
''°q° i s , vv,
$20,000 t - - - - -
$10,000 - --
I
<
$0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
El Premiums $45,311 $43,126 $43,126 $48,711 $51,199 $49,224 $50,034 1 $56791 $52,398 $53,282
■Dividends $20,700 $19,969 $15,430 $11,209 $7,858 $12,729 $14,393 $14,331 $14,235 $18,836
OAK PARK HEIGHTS
Premiums and Dividends Since 1987
$900,000
$800,000 H $$41,073
$700,000 -
$600,000 -
$500,000 -
$400,000 -
$300,000 -
$200,000 - 234,210
$100,000 -
$0 - I
Premiums Dividends
•
League of Minnesota Cities
Insurance Trust
LMC 145 University Avenue West,St.Paul,MN 55103-2044
Cities (651)281-1200 • (800)925-1122
League°Minnesota Cidas ng woaaH�� Fax:(651)281-1298 • TDD: (651)281-1290
www.lmnc.org
December 15, 2005
To: City Officials
From: LMCIT Board of Trustees
Re: 2005 Property/Casualty Dividend
We are very pleased to enclose a check for your city's share of the $12 million dividend which
the LMCIT property/casualty program is returning to member cities. Also included in this
mailing are the following:
• A data sheet showing the premium and loss data used to calculate your city's dividend; and
• A memo explaining in detail how your city's dividend is calculated.
We've also enclosed two other items, which we'd ask you to share with the city council:
• A memo to elected officials with some background information on the dividend; and
• Graphs showing your city's premium and dividend history.
Please feel free to call Pete Tritz at 651-281-1265, if you have any questions or need any
additional information.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
League of Minnesota Cities
L 141C Insurance Trust
145 University Avenue West,St. Paul,MN 55103-2044
(651)281-1200 • (800)925-1122
Loug"°of Mim seofa Cities Fax:(651)281-1298 • TDD:(651)281-1290
Cities promoting excellence
www.lmnc.org
December 13, 2005
To: LMCIT cities and agents
From: LMCIT Board of Trustees
Re: 2005 LMCIT property/casualty dividend—calculations and outlook
Members of the LMCIT property/casualty program are sharing this year in a$12 million
dividend. This memo will give you some information on the dividend, how your city's share is
calculated, and what you might expect as far as future dividends.
How does LMCIT determine your city's dividend?
The first step is for the LMCIT Board to determine how much surplus funds are available and
not needed for losses, expenses, or reserves. This year the Trustees determined that$12 million
could be returned to our member cities.
The next step is to allocate that$12 million among the members. The surplus that LMCIT has at
any one time is the cumulative result of all of the cities' premiums and losses since LMCIT
began. Cities that have been members the longest, that have contributed the most in premiums,
and that have had fewer losses have in effect contributed more to creating the surplus. The
dividend formula is designed to return a proportionally greater share of the total dividend to
those cities.
Each city's share is proportionate to the difference between that city's total earned premiums and
total incurred losses for all the years the city has participated in LMCIT. The formula also
incorporates a"loss limiting factor"to temper the effect of a single large "shock" loss on the
city's dividend. Without this kind of limitation, a small or mid-sized city that happened to be hit
by a single catastrophically large loss might not receive any dividend for many years.
The dividend calculation
The enclosed sheet shows the premium and loss figures that were used to calculate your city's
dividend. The premium figure is your city's total of all earned premiums through May 31, 2005,
for all of the years the city has been an LMCIT member. The "adjusted loss" figure is your city's
losses for all years of participation, minus applicable deductibles, and after capping each
individual large loss. For purposes of the dividend formula, each individual loss is capped at the
lesser of either the city's earned premium for that year or$100,000.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
To calculate the dividend, we subtract your city's adjusted losses from your earned premiums.
The remainder represents your city's contribution to the surplus. We do that same calculation for
all of the member cities, add up all of those remainders, and then calculate your city's remainder
as a percentage of that total. Your city receives that percentage of the $12 million total that's
available this year. This is the same formula we've used for many years.
What's behind this year's dividend?
Dividends and premium rates are very closely tied together. Most LMCIT members are very
familiar with LMCIT's approach to rate-setting. Briefly, the premium rates incorporate a safety
margin. That is, the premiums plus investment income are designed to produce enough revenue
to cover losses and expenses even if losses turn out to be greater than projections. If losses turn
out to be at the same level we projected, then the margin isn't needed to pay for losses and is
available either to be returned to members as a dividend or used to strengthen LMCIT's fund
balance. If losses turn out to be lower than projected,those additional savings also become
available to be returned to members.
One fact of life in any insurance operation is that it can take several years until claims are finally
settled and we know for sure what the actual loss costs were. For this reason, we have to work
with estimates, which are continually revised and updated. The program's results and the
amount of dividend we can return in any one year therefore don't just depend on what happened
during that year;the year's financial results are also affected by changes in our estimates of what
losses from earlier years will ultimately cost.
Here's a summary of what makes this year's dividend possible:
• The losses we incurred during the past year were lower than projected. They did not
reach into the safety margin or even use up all of the funds earmarked for loss payments.
• The current estimate of what losses from prior years will ultimately cost is less than our
earlier projections. The funds previously set aside for those losses are therefore freed up.
• Both earned premiums and investment income were somewhat higher than projections.
Should we expect similar dividends in the future?
Because LMCIT has been able to return sizable dividends for many years in a row, some cities
have begun to build those amounts into their budgets. If your city does so, make sure you have a
plan for what you'd do if there is no 2006 dividend or if it's substantially smaller.
Whether there will be dividends in the future depends on the interplay of premiums and losses.
Because we can never know what losses we'll have from tornadoes or lawsuits or fires or car
accidents or sewer backups or whatever, we can never know whether there will be dividends in
the future either. The most important thing to keep in mind is that there's never a guarantee.
2
As a very general comment,we would look for future dividend amounts to be more variable
from year to year, and for future dividends to be smaller on the average. Here's why:
• Increased risk retention. Last year,the LMCIT Board decided to increase the amount of
risk we retain on liability claims, from $500,000 to $1,000,000 per occurrence. We also
increased LMCIT's retention on property losses, but by a smaller proportion. Retaining
more risk reduces LMCIT's reinsurance costs and we expect it will produce a significant net
savings in the long run, even though we'll now be paying more of the losses directly. The
higher retention also means that our net loss costs will probably be more variable from one
year to the next, which could translate into more variability in future dividends as well.
To put it another way, with the higher retention we expect on the average to save money for
cities, but it means we'll do a little better financially in the good loss years and a little worse
financially in the bad years.
• Smaller margins. In recent years, we've been building a smaller safety margin into the
rates, and instead relying more heavily on the accumulated fund balance for the needed
contingency funding. All else being equal, the result would be smaller average dividends.
We'll do our best to run the program as economically as we can, and LMCIT will continue to
return to the members any funds that aren't needed for losses, expenses, or reserves. But we can't
guarantee that there will always be a sizable dividend, or any dividend at all. It's important to
keep that in mind when you're doing your financial planning.
In short, here are the two key points to remember:
1. Don't rely on there being future dividends.
2. At the end of the day, it all depends on what the losses are.
But regardless of what the future may hold, we want to congratulate member cities on another
successful year. The record shows that the basic idea of LMCIT—cooperative risk management
by cities—really works. The reason it works is because of cities' commitment to cooperation
and to controlling losses. It's a record that Minnesota cities should be very proud of.
If you have any questions or comments,please feel free to contact Pete Tritz at the League
office, or any of the members of the LMCIT Board.
3
League of Minnesota Cities
LW Insurance Trust
145 University Avenue West,St.Paul,MN 55103-2044
League of M;.,„� Cities (651)281-1200 • (800)925-1122
Cities promot;ng excellence Fax (651)281-1298 • TDD:(651)281-1290
.1 www.lmnc.org
December 15, 2005
To: Mayors and council members of LMCIT member cities
From: LMCIT Board of Trustees
Les Heitke, Mayor, Willmar Sherry Butcher, City Council, Eden Prairie
Joel Hanson, City Administrator, Little Canada Brenda Johnson, City Council, Chatfield
Todd Prafke, City Administrator, St. Peter Jim Miller, Executive Director, LMC
Paul Sparks, Executive Director, Albert Lea Port Authority
The LMCIT property/casualty program is returning $12 million this year to member cities as a
dividend. This is the nineteenth straight year that LMCIT has been able to return a dividend,
and it brings the sum of the dividends returned to $187 million since 1987. We are very pleased
and proud that our community of efforts has resulted in another successful year and a
property/casualty dividend that equals the largest in the history of our program.
LMCIT Dividends
$187 Million Since 1987
$25,000,000 --$20,000,000 - --- F$15,000,000
$10,000,000
$5,000,000
I i
$0 .
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
[• Property/casualty JWork Comp 1
The reason LMCIT is able to return a substantial dividend is simple: Member cities have kept
losses below the level that the premiums were designed to fund. That's paid off not only in
dividends but in lower premiums as well. Liability premium rates are now about a third lower
than they were ten years ago. Property premium rates are about the same as they were in 1992,
and the coverage is now much broader. Our program is a tremendous success story, and as
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
Minnesota city officials you should all be very proud of what you've accomplished by working
together through LMCIT.
We've enclosed a chart showing your city's share of this year's LMCIT property/casualty
dividend, how that compares with your premiums, and what your city's past premiums and
dividends have been. Each city's share of the total dividend depends on the city's total premiums
and losses for all the years the city has been a member of LMCIT. The longer your city has been
a member and the more successful you've been in avoiding losses, the greater your city's
dividend.
Why doesn't LMCIT just reduce premiums instead of returning dividends?
LMCIT embraces a conservative financial approach; the dividends are a by-product of that
approach. LMCIT's premium rates are designed with a safety margin, so they'd cover losses and
expenses even if the losses turn out to be greater than projected. If losses turn out to be at or
below projections, that safety margin isn't needed and can be returned to the members. This
year, losses were lower than projections, freeing up the"unused"portion of the projections—as
well as the additional safety margin—to be returned to members as dividends.
Unlike a private insurance company, LMCIT is owned and controlled by its member cities.
Because it's a non-profit cooperative organization, if LMCIT has funds that aren't needed for
losses, expenses, or reserves, the only place those funds can go is back to the member cities.
What about 2006?
Property/casualty premium rates
will be lower for 2006. Through LMCIT property and liability premium rates
our collective efforts, we have
been successful in keeping dollar $20.00 –.....___ _ $0.20
loss costs relatively stable over
the years. At the same time, city X $15.00 �-- -♦ - -• -� $0.15
expenditures have generally y $10.00 - . •-•' -- $0.10 a
continued to grow. In simplest
of terms, this means that a $5.00 $0.05
relatively smaller percentage of d $0.00 i + i i i + i + + + + + $0.0o a
city dollars are needed to fund '92'93'94'95'96'97'98'99'00'01 02 '03'04'05'06
projected and actual losses,
enabling LMCIT to reduce ■ Liability - -•—Property
Property
premium rates. We've also
—
reduced reinsurance costs by increasing the amount of risk LMCIT retains. This should save
money in the long run,but it could also result in more variability in LMCIT's loss costs and in
dividends in the future.
Work comp premium rates will increase 5%. While this news isn't quite as good as a reduction
in rates, it is noteworthy that this is our smallest rate increase in the past four years. Once again,
the main factor driving the increase is medical costs. They've been rising sharply for several
2
years, and there's little
reason to expect that trend LMCIT Work Comp Injuries
to change soon. On the Average Medical Cost per Claim
other hand, lower than
projected loss costs for $6,000 ._
indemnity have partially $5,000
offset the increase in $4,000
medical costs. One note of $3,000 -
concern is that we've seen
very slight increases in the $2,000
frequency of employee $1,000
injuries during 2004 and $o ,
the first part of 2005. '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
We're not sure if that's
just a blip on the radar screen or the first signs of a trend. In any event, it bears watching.
At the end of the day of course,premium rates and dividends both depend on how many losses
we have and how big they are. There is very real value to be found in working earnestly to
prevent and control losses. Effective loss control requires both the support of the city's elected
officials and the conscientious daily efforts of your city staff. The rate and dividend outlook this
year attests to the fact that LMCIT member cities have been doing an outstanding job at this!
Thank you and congratulations.
Questions
If you have any questions about your city's share of LMCIT dividends or our premium rates for
2006,please call Pete Tritz at 651-281 4265, or any of the members of the LMCIT Board.
3
OPEN MEETING LAW
LMC
League of Minnesota Cities
DEFENSE COST Cities promoting excellence
REIMBURSEMENT AGREEMENT
PREPARED ESPECIALLY FOR
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
P.O. BOX 2007
STILLWATER, MN 55082
07/07/05 - 07/07/06
Agent:
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SVCS
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025-2605 League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Phone: (651) 281-1200
Fax: (651) 281-1298
Web Site http://www.lmnc.org
a
**IMPORTANT**
PLEASE READ YOUR AGREEMENT
AGREEMENT DECLARATIONS
C'ovenartt Number: OPEN MEETING LAW DEFENSE COST
OML 3726 REIMBURSEMENT AGREEMENT
Coverage Is Provided By: LMC
Previous Covenant Number: THE LEAGUE OF MINNESOTA CITIES
OML 3375 INSURANCE TRUST League of Minnesota Cities
(Herein called LMCIT) Cities promoting excellence
Item 1. COVERED PARTY and MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BLVD
P.O. BOX 2007
STILLWATER, MN 55082
Item 2. COVERAGE PERIOD: 12:01 AM Standard Time at
Mailing Address Indicated Above.
From: 07/07/05 To: 07/07/06
Claims Made
Item 3. RETROACTIVE DATE: November 09, 1994
Item4. THE COVERED PARTY IS:
X City Joint Powers Entity Other(Describe)
Item 5. REIMBURSEMENT LIMITS:
A. "Reimbursable Costs": MAXIMUM
1. Defense Costs Per Lawsuit Per Official: $50,000.
2. Agreement Term Aggregate Per Official: $50,000.
Item6. PREMIUM: $459.
Item7. FORMS AND ENDORSEMENTS APPLICABLE TO AGREEMENT:
OMLRA-1(11/04) OML-001(11/97) ME063(11/01)
cut a Director,LM T
LMCIT DEC-019(11-93)(Rev.11/99) Administered by:Berkley Risk Administrators Company,LLC
OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
I. OPEN MEETING LAW DEFENSE COST 4. The city and the city official shall at all times
COVERAGE cooperate with and promptly respond to LMCIT's
requests for information, investigative data, records,
LMCIT will reimburse a city official for 80 percent of the or any other material documentation.
defense costs incurred by the city official in defending an
Open Meeting Law lawsuit, if the following conditions 5. The city official will be reimbursed only for defense
are met: costs incurred with respect to legal services actually
rendered and expenses actually incurred.
1. The date on which the Open Meeting Law
lawsuit 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 Law lawsuit is deemed to be waive any immunities, defenses, or limitations on
commenced on the date the city official is 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 fully
will reimburse any one city official for defense costs for reimbursed for his/her 20% share of the defense
Open 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 by mailing 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 the charge for this
1. The term of this Agreement shall be one year Agreement; or
beginning with the effective date stated in the
Declarations. Subsequent renewals of this b. Thirty (30) days before the effective date of
Agreement shall be treated as separate terms. cancellation for any other reason.
2. LMCIT shall have no duty to provide a defense to a If LMCIT decides not to renew this Agreement,
city official with respect to a legal action against that LMCIT will mail or deliver to the city written
city official seeking penalties based upon an alleged notice of non-renewal not less than thirty 30
violation of the Minnesota Open Meeting Law; days before the expiration date.
however, LMCIT shall have the right to intervene at
its expense in the investigation or defense of such 10. It is mutually understood and agreed that the city and
legal action. all other LMCIT pool participants are jointly and
severally liable for all claims and expenses of the
3. The city or the city official shall give prompt notice pool. The amount of any liabilities in excess of
to LMCIT of any actual or threatened legal action assets may be assessed to LMCIT pool participants
against the city official seeking penalties against the when a deficiency is identified.
city official for an alleged violation of the Minnesota
Open Meeting Law.
LMCIT OMLRA-I(11/93)(Rev.]1/04) Page 1 of2
p
IV.DEFINITIONS 6. "Open Meeting Law lawsuit" means a lawsuit
seeking penalties against a city official based on an
1. "City" means the city or other governmental body or allegation that the city official has violated
entity first named in the Declarations. Unless M.S.13D.01- 13D.07, commonly known as the
specifically named in the Declarations, city shall not Minnesota Open Meeting Law.
include a gas, electrical, or steam utilities
commission; port authority, housing and
redevelopment authority, economic development
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
joint powers entity.
2. "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;
c. To hire employees;
d. To purchase or otherwise acquire and hold real or
personal property; or
e. To sue or be sued.
5. "LMCIT' means the League of Minnesota Cities
Insurance Trust.
LMCIT OMLRA-1(1 1/93)(Rev.11/04) Page 2 of 2
OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
REIMBURSEMENT PARTICIPATION ENDORSEMENT
It is understood and agreed that Section I. Open Meeting Law Defense
Cost Coverage is amended to modify the percentage of reimbursement
of a "defense costs" from 80% to 100%.
This modification does not change the maximum amount of
reimbursement as specified in Section II. Limits and as shown in the
Agreement Declarations.
All other terms and conditions remain unchanged.
OML-001(11/97)
Definition of City Endorsement
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHORITY
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
ME063(11/95)(Rev. 11/01)
]L aun (dlhnnlanrk l[Inl sTunra]n c e Sery ti c e
232 South Lake Street•Forest Lake,MN 55025 • Phone: (651)464-3333 •FAX: (651)464-7596
Since 1903
October 8,2004
City of Oak Park Heights
Eric Johnson, City Admin.
14168 Oak Park Blvd PO Bx 2007
Oak Park Heights,MN 55082-6476
RE: CMC25101; MEL4932; & OML3375
Dear Eric and Judy,
LMCIT has completed the renewal of your Commercial Package, Excess Liability and Open
Meeting Law Liability policies. This renewal extends coverage from 07/01/04 to 07/01/05. I
would ask you to place this renewal with your other insurance documents.
C Please take a moment to review your policy. Should you
lop)
have any questions or changes in coverage(s) please
contact me at 464-3333, and I would be happy to review
■ the information with you My extension is shown below.
J
All claim information should be reported to Landmark Insurance Services.
Your premium will be billed as follows: Direct billed by Company, invoices enclosed.
I would like to take this time to say thank you for continuing your business insurance with
our agency.
Landmark Insurance Services handles a full line of Property, Casualty, Life and Health Insurance
for both individuals and businesses. Our agency would be happy to provide a no obligation
quotation should you have any additional insurance needs.
Sincerely,
1-4M2---- ----___
Kate Tipping
Landmark Insurance Services
Enclosure: 6
iO 71 6 7/ 7/0,"' 07
INVOICE #: 17364
lit_1 2 J
LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE ,
C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/21/04
222 SOUTH NINTH STREET Due Date: 10/20/04
SUITE 1300
MINNEAPOLIS MN 55402-3332
612-766-3000 FAX: 612-766-3281
Bill To Agent 00874
OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY
14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS
P.O. BOX 2007 232 S LAKE ST
STILLWATER MN 55082 FOREST LAKE MN 55025-2605
Type of Coverage: MUNICIPALITY
Convenant Number CMC 25101 Coverage Period: 7/07/04 To 7/07/05
Covered Party: OAK PARK HEIGHTS, CITY OF
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
10/20/04 45,802.00 PREMIUM
Total : $45,802.00
Payment/Adjustment
Applied: $.00
Total : $45,802.00
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:
LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17364
C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458-1517
612-766-3000 FAX: 612-766-3281
Type of Coverage: MUNICIPALITY
Covenant Number: CMC 25101 DUE DATE: 10/20/04
Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 45,802.00
Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 45,802.00
INVOICE #: 17338
LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE
C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/16/04
222 SOUTH NINTH STREET Due Date: 10/15/04
SUITE 1300
MINNEAPOLIS MN 55402-3332
612-766-3000 FAX: 612-766-3281
Bill To Agent 00874
OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY
14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS
P.O. BOX 2007 232 S LAKE ST
STILLWATER MN 55082 FOREST LAKE MN 55025-2605
Type of Coverage: MUNICIPALITY
Convenant Number MEL 4932 Coverage Period: 7/07/04 To 7/07/05
Covered Party: OAK PARK HEIGHTS, CITY OF
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
10/15/04 7,021.00 PREMIUM
Total : $7,021.00
Payment/Adjustment
Applied: $.00
Total : $7,021.00
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:
LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17338
C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458-1517
612-766-3000 FAX: 612-766-3281
Type of Coverage: MUNICIPALITY
Covenant Number: MEL 4932 DUE DATE: 10/15/04
Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 7,021.00
Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 7,021.00
INVOICE #: 17339
LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE
C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/16/04
222 SOUTH NINTH STREET Due Date: 10/15/04
SUITE 1300
MINNEAPOLIS MN 55402-3332
612-766-3000 FAX: 612-766-3281
Bill To Agent 00874
OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY
14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS
P.O. BOX 2007 232 S LAKE ST
STILLWATER MN 55082 FOREST LAKE MN 55025-2605
Type of Coverage: MUNICIPALITY
Convenant Number OML 3375 Coverage Period: 7/07/04 To 7/07/05
Covered Party: OAK PARK HEIGHTS, CITY OF
Payment Plan Selected: ANNUAL PAY PLAN
DUE DATE AMOUNT DUE END.DATE DESCRIPTION
10/15/04 459.00 PREMIUM
Total : $459.00
Payment/Adjustment
Applied: $.00
Total : $459.00
PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO:
LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17339
C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC
P.O. BOX 581517
MINNEAPOLIS MN 55458-1517
612-766-3000 FAX: 612-766-3281
Type of Coverage: MUNICIPALITY
Covenant Number: OML 3375 DUE DATE: 10/15/04
Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 459.00
Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 459.00
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
PROPERTY/CASUALTY
2004 DIVIDEND CALCULATION
AT MAY 31, 2004
DEC I 2004
FOREST LAKE INSURANCE AGENCY
DBA LANDMARK INSURANCE SVCS
232 S LAKE ST
FOREST LAKE MN 550252
OAK PARK HEIGHTS
14168 OAK PARK BLVD
P.O. BOX 2007
STILL WA TER MN 55082
GROSS EARNED PREMIUM $ 792,901
ADJUSTED LOSSES $ 108,668
MEMBERS DIVIDEND PERCENTAGE .00158171677
DIVIDEND AMOUNT $ 14,235
League of Minnesota Cities Insurance Trust
Property/Casualty Program
OAK PARK HEIGHTS
Premium and Dividend History
$60,000
$50,000
$40,000
•$30,000 €
$10,000 a g
'95 '96 '97 '98 '99 I '00 '01 1 '02 '03 '04
▪premium $45,352 $45,311 $43,126 $43,126 $48,711 $51,199 $49,224 $50,034 $56,791 $52,398
■Dividends $15,150 $20,700 $18,969 $15,430 $11,209 $7,858 $12,729 $14,393 $14,331 $14,235
OAK PARK HEIGHTS
Premiums and Dividends since 1987
$900,000
$800,000 -
$700,000 - •
$600,000
$500,000 -
$400,000
$300,000
$200,000
$100,000 - z3
$0 P,v
Premiums 4 Dividends
League of Minnesota Cities
Insurance Trust
145 University Avenue West,St Paul,MN 55103-2044
rogue ta Cures (651)281-1200 • (800)925-1122
excellence
Fax:(651)281-1298 • TDD:(651)281-1290
www.lmnc.org
December 15, 2004
To: Mayors and council members of LMCIT member cities
From: LMCIT Board of Trustees
Les Heitke, Mayor, Willmar Sherry Butcher, City Council, Eden Prairie
Joel Hanson, City Administrator, Little Canada Brenda Johnson, City Council, Chatfield
Todd Prafke, City Administrator, St. Peter Jim Miller, Executive Director, LMC
Paul Sparks, Executive Director, Albert Lea Port Authority
The LMCIT property/casualty program is again this year returning $9 million to member cities
as a dividend. This is the eighteenth straight year that LMCIT has been able to return a dividend
to member cities, and it brings the total to $175 million since 1987.
LMCIT Dividends
$175 Million Since 1987
$25,000,000
$20,000,000 1
$15,000,000
$10,000,000
111 11
$5,000,000
$0 —1 ,-
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
IN Property/casualty M Work Comp
The reason LMCIT is able to return a dividend is simple: Member cities have kept losses below
the level that the premiums were designed to fund. That's paid off not only in dividends but in
lower premiums as well. Liability premium rates are now a third lower than they were ten years
ago. Property premium rates are about the same as they were in 1992, and the coverage is now
much broader. It's a tremendous success story, and as Minnesota city officials you should all be
very proud of what you've accomplished by working together through LMCIT.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
We've enclosed a chart showing your city's share of this year's LMCIT property/casualty
dividend, how that compares with your premiums, and what your city's past premiums and
dividends have been. Each city's share of the total dividend depends on the city's total premiums
and losses for all the years the city has been a member of LMCIT. The longer your city has been
a member and the more successful you've been in avoiding losses, the greater your city's
dividend.
Why does LMCIT keep returning dividends? Why not just reduce the premiums further?
The dividends are a by-product of LMCIT's conservative financial approach. LMCIT's
premium rates are designed with a safety margin, so they'd cover losses and expenses even if the
losses turn out to be greater than projected. If losses turn out to be at or below projections, that
safety margin isn't needed and can be returned to the members.
Unlike a private insurance company, LMCIT is owned and controlled by its member cities.
Because it's a non-profit cooperative organization, if LMCIT has funds that aren't needed for
losses, expenses, or reserves,the only place those funds can go is back to the member cities.
What about 2005? LMCIT property and liability premium rates
Property/casualty premium rates will 2 $20.00 —._..._......._____.._....___..____________.._�_�.____._.__..._.__.._.....__ $0.20
be lower for 2005. Losses have j
$15.00
generally been stable, but we've x t- -■--+�,. . •-*. •' `_• $0.15
reduced reinsurance costs by $10.00 -.- . ""`—`�*--;_, $0.10 e
increasing the amount of risk LMCIT + a 8
retains. That should save money in $5.00 $0.05
the long run, but it could mean more $o.00 ! moo
variability in LMCIT's loss costs and '92'93'94'95'96'97'98'99'00'01 02 '03'04'05
in dividends in the future. - --
Liability - -•- -Property
Work comp premium rates will increase 7%. The driving factor is medical costs. They've been
rising sharply for several years, and there's little reason to expect that trend to change soon. One
positive sign is that the numbers of employee injuries have been down in the past couple years.
If that continues, it will help hold future premiums down.
At the end of the day of course, both premium rates and dividends both depend on one basic
factor: what the losses are. LMCIT's member cities have been doing an outstanding job of
controlling and avoiding losses. That takes both the support of the city's elected officials and
the efforts of your city staff. Your commitment to controlling losses pays off for all of us—
thank you and congratulations.
Questions
If you have any questions about your city's share of LMCIT dividends or our premium rates for
2005, please call Pete Tritz at 651-281-1265, or any of the members of the LMCIT Board.
2
League of Minnesota Cities
Insurance Trust
L
1IC 145 University Avenue West,St.Paul,MN 55103-2044
(651)2811200 • (800)925-1122
League of Minnesota Cities Fax (651)281-1298 • TDD:(651)281-1290
Cities promoting=salience
www.lmnc.org
December 13, 2004
To: LMCIT cities and agents
From: LMCIT Board of Trustees
Re: 2004 LMCIT property/casualty dividend—calculations and outlook
Members of the LMCIT property/casualty program are sharing again this year in a$9 million
dividend. This memo will give you some information on the dividend, how your city's share is
calculated, and what you might expect as far as future dividends.
How does LMCIT determine your city's dividend?
The first step is for the LMCIT Board to determine how much surplus funds are available and
not needed for losses, expenses, or reserves. This year the Trustees determined that $9 million
could be returned to our member cities.
The next step is to allocate that total among the members. The surplus that LMCIT has at any
one time is the cumulative result of all of the cities' premiums and losses since LMCIT began.
Cities that have been members the longest, that have contributed the most in premiums, and that
have had fewer losses have in effect contributed more to creating the surplus. The dividend
formula is designed to return a proportionally greater share of the total dividend to those cities.
Each city's share is proportionate to the difference between that city's total earned premiums and
total incurred losses for all the years the city has participated in LMCIT. The formula also
incorporates a "loss limiting factor" to temper the effect of a single large "shock" loss on the
city's dividend. Without this kind of limitation, a small or mid-sized city that happened to be hit
by a single catastrophically large loss might not receive any dividend for many years.
The dividend calculation
The enclosed sheet shows the premium and loss figures that were used to calculate your city's
dividend. The premium figure is your city's total of all earned premiums through May 31, 2004,
for all of the years the city has been an LMCIT member. The "adjusted loss" figure is your city's
losses for all years of participation, minus applicable deductibles, and after capping each
individual large loss. For purposes of the dividend formula, each individual loss is capped at the
lesser of either the city's earned premium for that year or$100,000.
To calculate the dividend, we subtract your city's adjusted losses from your earned premiums.
The remainder represents your city's contribution to the surplus. We do that same calculation for
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
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As a very general comment, we would look for future dividend amounts to be more variable
from year to year, and for future dividends to be smaller on the average. Here's why:
• Increased risk retention. The LMCIT Board has decided to increase the amount of risk we
retain on liability claims, from $500,000 to $1,000,000 per occurrence. We're also
increasing LMCIT's retention on property losses, but by a smaller proportion. Retaining
more risk reduces LMCIT's reinsurance costs and we expect it will produce a significant net
savings in the long run, even though we'll now be paying more of the losses directly. The
higher retention also means that our net loss costs will probably be more variable from one
year to the next, which could translate into more variability in future dividends as well.
To put it another way, with the higher retention we expect on the average to save money for
cities, but it means we'll do a little better financially in the good loss years and a little worse
financially in the bad years.
• Smaller margins. In recent years, we've been building a smaller safety margin into the
rates, and instead relying more heavily on the accumulated fund balance for the needed
contingency funding. All else being equal, the result would be smaller average dividends.
We'll do our best to run the program as economically as we can, and LMCIT will continue to
return to the members any funds that aren't needed for losses, expenses, or reserves. But we can't
guarantee that there will always be a sizable dividend, or any dividend at all. It's important to
keep that in mind when you're doing your financial planning.
The LMCIT work comp program's recent history is a good illustration. Work comp members
received dividends each year from 1997 through 2000. But in 2001,we began to see loss costs
rising sharply, mostly because of increasing medical costs. With the very tight budget situation
cities have been dealing with for the past few years, the LMCIT Board felt it was important keep
the year-to-year premium increases as low as possible. To do so, we squeezed the safety margin
in the work comp rates down to nearly zero. As a result, the work comp program has essentially
been breaking even for the past few years—which means that no excess funds have been
available to be returned as a dividend to work comp members.
In short, here are the two key points to remember:
1. Don't rely on there being future dividends.
2. At the end of the day, it all depends on what the losses are.
But regardless of what the future may hold, we want to congratulate member cities on another
o erative risk management
successful year. The record shows that the basic idea of LMCIT cop g
by cities—really works. The reason it works is because of cities' commitment to cooperation
and to controlling losses. It's a record that Minnesota cities should be very proud of
If you have any questions or comments, please feel free to contact Pete Tritz at the League
office, or any of the members of the LMCIT Board.
3
League of Minnesota Cities
LMC Insurance Trust
145 University Avenue West,St. Paul, MN 55103-2044
(651)281.1200 • (800)925-1122
League of Minnesota Cities Fax:(651)281-1298 • TDD: (651)281-1290
Cities promoting excellence
www.lmnc.org
December 15, 2004
To: City Officials
From: LMCIT Board of Trustees
Re: 2004 Property/Casualty Dividend
We are very pleased to enclose a check for your city's share of the $9 million dividend which the
LMCIT property/casualty program is returning to member cities. Also included in this mailing
are the following:
• A data sheet showing the premium and loss data used to calculate your city's dividend; and
• A memo explaining in detail how your city's dividend is calculated.
We've also enclosed two other items which we'd ask you to share with the city council:
• A memo to elected officials with some background information on the dividend; and
• Graphs showing your city's premium and dividend history.
Please feel free to call Pete Tritz at 651-281-1265, if you have any questions or need any
additional information.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
0
Comprehensive
LMC
League of Minnesota Cities
Cities promoting excellence
Municipal J
Property and
Casualty Coverage
PREPARED ESPECIALLY FOR
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
P.O. BOX 2007
STILLWATER, MN 55082
07/07/04 - 07/07/05
Agent:
LANDMARK INSURANCE SERVICES
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025-2605
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
Phone: (651) 281-1200
Fax: (651) 281-1298
Web Site http://www.lmnc.org
1 is
**IMPORTANT**
PLEASE READ YOUR AGREEMENT
Covenant Number: COMMON COVERAGE DECLARATIONS
CMC 25101 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
Previous Covenant Number: INSURANCE TRUST CMC 24118 (Herein called LMCIT) IL ] '1 C
Item 1. CITY and MAILING ADDRESS: League of Minnesota Cities
Cities promoting excel%nce
OAK PARK HEIGHTS, CITY OF
14168 OAK PARK BLVD
P.O. BOX 2007
STILLWATER MN 55082
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/04 To: 07/07/05 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 AND BOND Premium
Property $ 17,161
Additional Covered Loss or Damages INCLUDED
Water and Supplemental Flood Coverage INCLUDED
Crime INCLUDED
Bond-Employee Dishonesty NOT COVERED
Bond - Faithful Performance NOT COVERED
EQUIPMENT BREAKDOWN NOT COVERED
MUNICIPAL LIABILITY $ 23,059
Medical and Related Expense INCLUDED
AUTOMOBILE LIABILITY $ 3,557
AUTOMOBILE PHYSICAL DAMAGE $ 2,025
TOTAL $ 45,802
Item 5. GENERAL ANNUAL AGGREGATE DEDUCTIBLE: DOES NOT APPLY
Item 6. PREMIUM IS DUE AND PAYABLE: ANNUAL - IN ADVANCE
Item 7. FORMS APPLICABLE TO ALL COVERAGE PARTS: CCM(11-01)
Item 8. DECLARATIONS APPLICABLE:
DEC-011(11-03) DEC-012(11-03) DEC-013(11-03) DEC-016(11-03)
Executive Director,LMCIT
LMCIT DEC-011(11/86)(Rev.1 I/03)
COMMMON CONDITIONS
ALL COVERAGE PARTS INCLUDED IN THIS COVENANT
ARE SUBJECT TO THE FOLLOWING CONDITIONS:
1. CANCELLATION AND NON-RENEWAL 3. RATING AUTHORITY AND EXAMINATION
OF THE CITY'S BOOKS AND RECORDS
a. The city shown in the Declarations may cancel
this covenant by mailing or delivering to LMCIT LMCIT shall have full discretionary authority to
advance written notice of cancellation. promulgate rates and establish the premium to be
charged for the coverage period under this covenant.
b. LMCIT may cancel this covenant by mailing or LMCIT may, at its discretion or at the city's request,
delivering to the city shown in the Declarations examine and audit the city's books as they relate to
written notice of cancellation at least: this covenant during the coverage period and up to
one year thereafter and, accordingly, make any
(1) 10 days before the effective date of the necessary adjustments in premium. No premium
cancellation if LMCIT cancels for nonpayment of adjustments will be made after one year following the
premium; or expiration of the coverage period.
(2) 30 days before the effective date of the 4. INSPECTIONS AND SURVEYS
cancellation if LMCIT cancels for any other
reason. LMCIT has the right, but it is not obligated to:
c. LMCIT will mail or deliver its notice to the city a. Make inspections and surveys at any time.
shown in the Declarations last mailing address
known to LMCIT. b. Give the city reports on the conditions it finds; and
d. Notice of cancellation will state the effective date c. Recommend changes.
of cancellation. The coverage period will end on
that date. Neither LMCIT's right to make inspections nor its
making any report thereon shall constitute any
e. If this covenant is canceled, LMCIT will send the undertaking on behalf of or for the benefit of the city or
city shown in the Declarations any premium others to determine or warrant that such property or
refund due. If LMCIT cancels, the refund will be operations are safe or healthful or free from hazard or
pro-rata. If the city cancels, the refund may be are in compliance with any law, rule or regulation.
less than the pro-rata. The cancellation will be
effective even if LMCIT has not made or offered These conditions apply not only to LMCIT, but also to
a refund. any rating advisory, rate service, or similar
organization which makes inspections, surveys,
f. If LMCIT decides not to renew this covenant, reports, or recommendations.
LMCIT will mail or deliver to the city shown in
the Declaration written notice of the non-renewal 5. PREMIUMS
not less than 30 days before the expiration date.
The city shown in the Declarations:
g. If notice is mailed, proof of mailing will be
sufficient proof of notice. a. Is responsible for the payment of all premiums;
and
2. CHANGES
b. Will be the payee for any return premiums.
This covenant contains all the agreements between
LMCIT and the city concerning the coverage 6. TRANSFER OF THE CITY'S RIGHTS AND
afforded. DUTIES UNDER THIS COVENANT
The city shown in the Declarations is authorized to
make changes in the terms of this coverage The city's rights and duties under this covenant may
agreement with the consent of LMCIT. The not be transferred without the written consent of
coverage terms can be amended or waived only by LMCIT.
endorsement issued by LMCIT and made a part of
this covenant or by acknowledgment by LMCIT that
an endorsement will be issued at a later date.
LMCIT CCM (11-89)(Rev.11-01) Page 1 of 2
7. OVERLAP OF COVERAGE b. This coverage is primary for any of the following
losses:
In the event of a dispute between LMCIT and one or
more insurers as to which policy or coverage (1) A covered loss of business personal effects,
agreement applies to a covered loss, LMCIT shall with respect to any coverage provided under the
indemnify the city for any legal or other expenses employee's homeowners' insurance or similar
which are necessarily incurred by the city in coverage.
determining whether LMCIT or the insurer(s)shall
bear the loss. Such indemnification shall be made (2) A covered loss of contents or mobile property
only if it is determined that payment of the loss shall in the city's care, custody and control that is used
be made under this covenant. If the loss is shared to maintain the operations of the city, with respect
by LMCIT and one or more insurers, indemnification to coverage provided under an insurance policy of
shall be made in the same proportion as the loss the owner covering that property.
payment. The city and LMCIT shall cooperate in the
development and execution of reasonable (3) A covered loss resulting from the city's
procedures to resolve the dispute. maintenance or use, including loading or
unloading, of any owned automobile that is not a
8. ASSESSIBILITY trailer.
All cities in the joint coverage pool are jointly and (4) A covered loss resulting from the city's
severally liable for all claims and expenses of the maintenance or use, including loading or
pool. The amount of any liabilities in excess of unloading, of any trailer the city does not own but
assets may be assessed to the members of the pool which is connected to an owned automobile.
when a deficiency is identified.
(5) Any covered liability claim against a party who
9. NUCLEAR HAZARD has been added by endorsement as an additional
covered party under this covenant, unless that
LMCIT, under this covenant, does not cover any loss endorsement specifically provides that this
or claim for damage that is caused in part or in total covenant is excess.
by nuclear reaction or radiation, or radioactive
contamination, however caused. (6) A covered loss to a covered automobile as
provided by the Municipal Automobile Physical
10. CONCEALMENT OR FRAUD Damage Coverage.
This covenant is void if the city has intentionally (7) A covered loss to a builders risk property as
provided by Buildings in the or misrepresented any material fact or p Y gs he Course of
circumstance relating to this covenant. Construction, Alteration or Repair Coverage.
11. OTHER COVERAGE
a. Except as provided in paragraph b., this
coverage is excess over the following:
(1) Any liability insurance policy of another party
on which the covered party is an additional
insured or additional named insured.
(2) Any other valid and collectible insurance
policy or other coverage,whether such other
policy or coverage is primary, excess,
contingent, or any other basis, unless that policy
or coverage is specifically written to be excess
over this covenant.
LMCIT CCM (11-89)(Rev.11-01) Page 2 of 2
Covenant Number: MUNICIPAL PROPERTY,CRIME,BOND and
CMC 25101 EQUIPMENT BREAKDOWN DECLARATIONS
Coverage is provided C LMC
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST
(Herein called LMCIT) League of Minnesota cities
Cities promoting excellence
Item 1. CITY: OAK PARK HEIGHTS, CITY OF
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/04 To: 07/07/05 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 $ 7,328,130
This general limit is subject to the sublimits as described in Section VI,
Limits of Coverage and Valuation, and the specific property limit.
Terrorism Activity Annual Aggregate Limit $ 1,000,000
Section II- Additional Covered Loss or Damage
1 . Asbestos Clean up, Abatement and Removal $ 250,000 Per Location
2. Loss of Revenue, Extra Expense and Expediting Expense $5,000,000 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 $ 10,000 Per Location
6. Errors $ 500,000 Per Occurrence
7. Rental Reimbursement $ 25,000 Annual Aggregate
8. Arson Reward $ 5,000 Per Fire Loss
9. Accounts Receivable $ 500,000 Per Location
10. Valuable Papers & Records $ 500,000 Per Location
11 . Extraordinary Expense $ 100,000 Annual Aggregate
12. Utility Services $ 100,000 Per Occurrence
Section IV - Water and Supplemental Flood Coverage $ 500,000 Per Occurrence/
500,000 Annual Aggregate
LMCIT DEC-012(11-86)(Rev.11/03) Page 1 of 3
f
MC
League o{Minnesota Cities
Cities promoting excellence
J
' Item 6. REFER TO SCHEDULE OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN
THE SECTION I COVERAGE; THE SCHEDULE OF COVERED MOBILE PROPERTY FOR THE
MOBILE PROPERTY INCLUDED IN THE SECTION I COVERAGE AND THE SCHEDULE OF
OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN SECTION IV COVERAGE.
Item 7. DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate
Deductible, if any, shown on Common Coverage Declarations):
COVERAGE PART ONE - PROPERTY $ 500 Per Occurrence
Item 8. COVERAGE PARTS,FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE.
ME063(11-01) ME079(11-03) MPCB(11-03) MPCB-110(11-02)
PM-100(11-03) PM-109(11-02)
Item 9. MORTGAGE HOLDER (if applicable)
Item 10. COVERAGE PART TWO - CRIME
LIMIT OF COVERAGE PER OCCURRENCE $ 100,000
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
Item 12. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APLICABLE TO THIS
COVERAGE.
ME063(11-01) MPCB(11-03)
LMCIT DEC-012(11-86)(Rev,11l03) Page 2 of 3
LMC
League of Minnesota Cities
Cities promoting excellence
J
Item 13. COVERAGE PART THREE - BOND
Item 13A. BOND - EMPLOYEE DISHONESTY COVERAGE
LIMIT OF COVERAGE PER OCCURRENCE $
DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate
Deductible, if any, shown on Common Coverage Declarations):
DEDUCTIBLE- EMPLOYEE DISHONESTY COVERAGE $ Per Occurrence
Item 13B. BOND - FAITHFUL PERFORMANCE COVERAGE
LIMIT OF COVERAGE PER OCCURRENCE $
DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate
Deductible, if any, shown on Common Coverage Declarations):
DEDUCTIBLE- FAITHFUL PERFORMANCE COVERAGE $ Per Occurrence
Item 14. COVERAGE PARTS,FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE.
Item 15. EQUIPMENT BREAKDOWN COVERAGE
EQUIPMENT BREAKDOWN LIMIT: $
DEDUCTIBLE: $ ANY ONE ACCIDENT
Item 16. COVERAGE PARTS,FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS
COVERAGE.
LMCIT DEC-012(11-86)(Rev.11/03) Page 3 of 3
Definition of City Endorsement
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHORITY
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
ME063(11/95)(Rev. 11/01)
Terrorism Losses.Annual Aggregate Limit Endorsement
This Endorsement modifies coverage provided under the Municipal Property
Coverage and the Municipal Automobile Physical Damage Coverage.
LMCIT will not pay more than $1,000,000 for losses, costs or expenses arising
out of or related to, either directly or indirectly, any terrorist activity during the
annual coverage period, regardless of the number of occurrences. This limit is
part of and not in addition to the general limit per occurrence.
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. tncludes, involves, or is associated with the use or-threatened use of
force, violence or harm against any person, tangible or intangible property,
the environment, or any natural resources, where the act or threatened act
is intended, in whole or in part, to:
(1) Promote or further any political, ideological, philosophical, racial,
ethnic, social or religious cause or objective of the perpetrator or any
organization, association or group affiliated with the perpetrator; or
(2) Influence, disrupt or interfere with any government related operations,
activities or policies; or
(3) Intimidate, coerce or frighten the general public or any segment of the
general public; or
(4) Disrupt or interfere with a national economy or any segment of a
national economy; or
•
c. Includes, involves, or is associated with, in whole or in part, any of the
following activities, or the threat thereof:
(1) Hijacking or sabotage of any form of transportation or conveyance,
including but not limited to spacecraft, satellite, aircraft, train, vessel, or
motor vehicle; or
(2) Hostage taking or kidnapping; or
LMCIT
ME079(11/01)(Rev.11/03) Page 1 of 2
(3) The use of any biological, chemical, radioactive, or nuclear agent,
material, device or weapon; or
(4) The use of any bomb, incendiary device, explosive or firearm; or
(5) The interference with or disruption of basic public or commercial
services and systems, including but not limited to the following services
or systems: electricity, natural gas, power, postal, communications,
telecommunications, information, public transportation, water, fuel,
sewer or waste disposal; or
(6) The injuring or assassination of any elected or appointed government
official or any government employee; or
(7) The seizure, blockage, interference with, disruption of, or damage to
any government buildings, institutions, functions, events, tangible or
intangible property or other assets; or
(8) The seizure, blockage, interference with, disruption of, or damage to
tunnels, roads, streets, highways, or other places of public
transportation or conveyance.
2. Any of the activities listed in section 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.
LMCIT
ME079(11/01)(Rev.11/03) Page 2 of 2
LMC
League of Minnesota Cities
Cities promoting excellence
•
MUNICIPAL PROPERTY, CRIME AND BOND
COVERAGE
•
LMCIT MPCB(11-99)(Rev. 11-03)
LmC
League of Minnesota Cities
Cities promoting excellence
J
MUNICIPAL PROPERTY COVERAGE
PART ONE
•
LMCIT MPCB(11-99)(Rev.11-03)
MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE
H>HAT IT IS AND WHERE YOU CAN FIND IT INDEX
•
PROPERTY COVERAGE - PART ONE
Laagna of Minnesota Cthar
Cities promoting ex anx
J
PAGE
SECTION I- PROPERTY COVERAGE 1-2
1. COVERAGE AGREEMENT 1
a. COVERED PROPERTY 1
b. PROPERTY NOT COVERED 1-2
SECTION II-ADDITIONAL 2-4
NAL COVERED LOSS OR DAMAGE
1. COVERAGE AGREEMENT 2
a. LOSS OF REVENUE,EXTRA EXPENSE AND EXPEDITING EXPENSE 2
b. DEMOLITION AND DEBRIS REMOVAL 2
c. LEASEHOLD INTEREST 2-3
d. ACCOUNTS RECEIVABLE 3
e. VALUABLE PAPERS AND RECORDS 3
f. UTILITY SERVICES 3
2. COVERAGE AGREEMENT 3
a. ASBESTOS CLEANUP,ABATEMENT AND REMOVAL 3
b. POLLUTANT CLEANUP AND REMOVAL 3
c. ERRORS 3
d. RENTAL REIMBURSEMENT 3-4
e. ARSON REWARD 4
f. EXTRAORDINARY EXPENSE 4
SECTION III- CAUSES OF LOSS AND DAMAGES NOT COVERED - 4-6 .
SECTION IV-WATER AND SUPPLEMENTAL FLOOD COVERAGE 6-7
SECTION V-BUILDINGS IN THE COURSE OF CONSTRUCTION,
ALTERATION OR REPAIR COVERAGE 7
SECTION VI-LIMITS OF COVERAGE AND VALUATION 8-12
SECTION VII-DEFINITIONS 12-17
SECTION VIII- CONDITIONS 17-20
•
LMCIT MFCB(11-99)(Rev.11-03)
MUNICIPAL PROPERTY COVERAGE
PART ONE
Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special
Read the entire covenant carefully to determine rights, meaning,as given in SECTION VII-DEFINITIONS,
duties and what is or is not covered.
SECTION I - PROPERTY COVERAGE
1. COVERAGE AGREEMENT (5) We will pay for loss to covered property that is
temporarily at an unscheduled location that you
We will pay for direct physical loss of or damage to do not own, lease or operate, as described in
your covered property unless the cause of loss or SECTION VI-LIMITS OF COVERAGE AND
damage is not covered,as described under SECTION VALUATION.
IlI - CAUSES OF LOSS AND DAMAGES NOT
COVERED. The amount we will pay for loss or b. PROPERTY NOT COVERED
damage is limited as described in SECTION VI -
LIMITS OF COVERAGE AND VALUATION. We will not cover the following types of property:
a. COVERED PROPERTY (1) Aircraft;
(1) We will cover the following types of property: (2) Animals(except for police dogs);
(a) Building/contents described in the Schedule (3) Automobiles, vehicles, or self-propelled
of Covered Property. machines that are licensed for use on public
roads;
(b) Property in the open described in the
Schedule of Covered Property. (4) Bills,currency,deeds,evidences of debt,money,
notes or securities;
(c) Mobile property valued at $25,000
replacement cost or less if identified as covered (5) Builders risk property;
on the Schedule of Covered Mobile Property;and
mobile property valued at greater than $25,000 (6) Bridges,roadways, walks,patios or other paved
replacement cost and is listed on the Schedule of surfaces, except golf course property;
Covered Mobile Property.
(7) Contraband or property in the course of illegal
(2). We will pay for loss to newly acquired or transportation or trade;
constructed building/contents or property in the
open at any one location as described in (8) Cost of excavations, grading, backfilling or
SECTION VI- LIMITS OF COVERAGE AND filling;
VALUATION.
(9) Land,subsoil,crops or lawns,except golf course
(3) We will pay for loss to newly acquired or property;
constructed mobile property as described in
SECTION VI- LIMITS OF COVERAGE AND (10) Pilings,piers, wharves or docks;
VALUATION.
(11) Underground and buried pipes,flues or drains;
(4) We will pay for loss to covered property in transit
as described in SECTION VI - LIMITS OF (12) Foundations of buildings, structures, machinery
COVERAGE AND VALUATION. or boilers if their foundations are below:
LMCIT MPCB(11-99)(Rev. 11-03) Page 1 of 20
(a) The lowest basement floor; or (14) Transmission and distribution lines and poles and
equipment that are usual to the transmission of
(b) The surface of the ground, if there is no electricity. This does not include substations and
basement; transformers.
' (13) Retaining walls that are not part of the covered (15) Trees and shrubs that are not within 100 feet of
property; a building.
SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE
1. COVERAGE AGREEMENT (a) The excess of the fair rental value of similar
premises over the actual rent payable by you as
We will provide coverage for the following loss or. lessee (including any maintenance or operating
damage unless the cause of loss or damage is not charges paid by the lessee)during the unexpired
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 expense specified in the lease
between you and the lessor.
a. LOSS OF REVENUE, EXTRA EXPENSE
AND EXPEDITING EXPENSE (3) When covered property is rendered wholly or
partially untenantable by a direct physical loss or
We will pay for the actual loss of revenue, extra damage and the lease is canceled by the lessor in
expense or expediting expense sustained by you due to accordance with the conditions of the lease or by
the necessary suspension of your operations during statutory requirements of the state in which the
the period of recovery caused by direct physical loss damaged or destroyed covered property is located,
or damage to any covered property. we will cover the pro rata proportion from 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: (a) Improvements and betterments to covered
property during the unexpired term of the lease
that is not covered under any other section of Part
(1) The cost of necessary demolition and removal of One of the covenant; or
debris of covered property and non-covered .
property from a covered location resulting from (b) The amount of advance rental paid byyou and
direct physical loss or damage to covered not recoverable under the terms of the lease for
property; or
the unexpired term of the lease.
(2) The cost of removal of debris of non-covered (4)' We will cover your leasehold interest when your
property from your covered location which results covered property is rendered wholly or partially
from a specified cause of loss.
untenantable and the lease is canceled by the lease
LEASEHOLD INTEREST or by statutory requirements of the state in which
the damaged or destroyed covered property is
:1) We will provide coverage for leasehold interest located;
resulting from direct physical loss or damage to (5) We will cover your leasehold interest for the first
covered property, three months succeeding the date of the loss and
:2) Leasehold interest means: the net lease interest for the remaining months of
the unexpired lease. We will not be liable,for any .
-MCIT MPCB(11-99)(Rev. 11-03) Page 2 of 20
increase of loss that may be occasioned by the of direct physical loss or damage.
suspension, lapse,or cancellation of any license,
or by the exercising of any option to cancel the b. POLLUTANT CLEANUP AND
lease. REMOVAL
d. ACCOUNTS RECEIVABLE (1) We will provide coverage for pollutant cleanup
and removal resulting from direct physical loss or
We will pay for loss or damage to your accounts damage to covered property,
receivable caused by direct physical loss or damage to
your accounts receivable. (2) We will cover the costs of testing that are incurred
in the course of extracting pollutants from land or
e. VALUABLE PAPERS AND RECORDS water and any expense incurred to test for,
monitor,or assess the existence,concentration,or
We will pay for loss or damage to valuable papers and effects of pollutants.
records caused by direct physical loss or damage to
your valuable papers and records. c. ERRORS
f. UTILITY SERVICES We will pay for loss to any covered property if the loss
is not covered solely because of:
(1) We will pay for loss or damage to covered
property caused by an interruption of a utility (1) Any inadvertent error in the description or
service to your covered property. location of the building/contents,property in the
open, mobile property, or builders risk property
(2) We will pay for the actual loss of revenue, extra covered by the covenant,which inadvertent error
expense or expediting expense sustained by you existed at the inception date of the covenant; or
due to the necessary suspension of your
operations during the period of recovery caused (2) Any inadvertent error in the description or
by an interruption of a utility service to your location of the building/contents,property in the
covered property. open, mobile property, or builders risk property
in endorsements to the covenant; or
This interruption must be caused by direct physical
loss or damage to utility service property. (3) Failing through an inadvertent error to schedule
(a) any building/contents,property in the open,
2. COVERAGE AGREEMENT mobile property, or builders risk property owned
by the city at the inception of the covenant,or(b)
We will provide coverage for the following loss or any newly acquired or constructed building/
damage. The amount we will pay for loss or damage contents,property in the open,mobile property or
is limited as described in SECTION VI- LIMITS OF builders risk property during the term of the
COVERAGE AND VALUATION. coverage document.
a. ASBESTOS CLEANUP, ABATEMENT (4) It is a condition of this coverage that such
AND REMOVAL inadvertent error shall be reported and corrected
when discovered.
(1) We will pay for your expense to clean up,abate or
remove from covered property asbestos particles d. RENTAL REIMBURSEMENT
that are discharged, dispersed, or released.
We will pay for rental reimbursement expenses
(2) The expenses to clean up, abate or remove incurred by you for the rental of mobile property that
asbestos particles will be paid only if such was a result of a covered loss to your mobile property.
expenses are incurred within 90 days of the date
-cl) No deductibles apply to this coverage.
•
LMCIT MPCB(11-99)(Rev.11-03) Page 3 of 20
(2) This coverage does not apply while there is spare (3) Reimbursement of extraordinary expense
or reserve equipment available to you for your payment:
operations.
For any claims for extraordinary expense which
e. ARSON REWARD are paid under this section, the city must
reimburse LMCIT as provided in this paragraph.
In the event that a covered fire loss was the result of The amount to be paid to LMCIT will equal the
an act of arson,we will reimburse you for rewards you amount needed to reimburse LMCIT for the full
pay for information leading to convictions for that act amount of any claims that LMCIT pays under this
of arson. section. The city may,at its discretion, reimburse
LMCIT through payment of equal annual
f. EXTRAORDINARY EXPENSE installments over a period of up to five years from
the date the claim is paid. Each installment will
(1) Extraordinary expense payment: be billed and payable at the same time as the city's
annual renewal premium for LMCIT property/
As a benefit associated with being a member of casualty coverage. If the city ceases to be a
LMCIT's property/casualty program, upon member of the LMClTproperty/casualty pro gram,
submission of a claim LMCIT will pay for any the full amount, together with any accrued
extraordinary and unanticipated cost or expense interest,will be immediately due and payable on
the city incurs which: the date that the city ceases to be a member.
(a) Is necessary for the purpose of protecting the No interest will apply if reimbursement is made
public health and safety,protecting city property, within one year of the date the cost or expense
or meeting the city's legal obligations; and was incurred. If the city elects to pay the
reimbursement in more than one annual
(b) Is not covered by any other provision of this installment, interest at the rate of 3% annually
covenant,any other LMCIT coverage covenant,or shall be included in the amount owed beginning
any insurance policy, one year from the date the cost or expense was
incurred.
The city mast provide to LMCIT any information
or documentation needed or requested in order to (4) Termination of benefits:
determine if these conditions are met. The
determination of whether these conditions are met The LMCIT Board of Trustees may terminate the
will be at LMCIT's sole discretion. benefit provided under this section at any time
upon 10 days written notice to the city, if the
(2) Limit: Board-determines that it is necessary to protect the
interests of LMCIT or its member cities.
LMCIT will not pay more than $100,000 for
claims under this section during the coverage Termination of this coverage shall not affect any
year, regardless of the number of claims, claims that the city has submitted to LMCIT
occurrences or incidents. before the effective date of termination of
coverage.
SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED
1. CAUSES OF LOSS NOT COVERED damage is excluded regardless of any other cause or
event that contributes concurrently or in any sequence
We will not pay for loss or damage caused directly or to the loss.
.ndirectly by any of the following. Such loss or
-MOT MPCB(1/-99)(Rev. 11-03) Page 4 of 20
•
a. WATER 2. DAMAGES NOT COVERED
(1) Flood, surface water, waves, tides, tidal waves, We will not pay for the following damages:
overflow of any body of water,or their spray, all
whether driven by wind or not; a. Damage to your electrical devices, appliances or
wires caused by artificially generated electric
(2) Mudslide or mudflow; current including electric arcing.
(3) Water that backs up or overflows from a sewer, This exclusion does not apply to computer •
drain or sump; or equipment data and media.
(4) Water under the ground surface pressing on, or b. Damage from the discharge, dispersal, seepage,
flowing or seeping through: migration,release or escape of pollutants.
(a) Foundations,walls, floors or paved surfaces; This exclusion does not apply if the discharge,
dispersal, seepage,migration,release or escape of
(b) Basements, whether paved or not; or pollutants is itself caused by a specked cause of
loss.
(c) Door, windows or other openings;
This exclusion does not apply to pollutant cleanup
except for coverage that is provided by water and and removal as provided in SECTION II, 2.b.
supplemental flood coverage as described in
SECTION IV-WATER AND SUPPLEMENTAL c. Damages caused by dishonest or criminal acts by
FLOOD COVERAGE. you, or your employees:
But if loss or damage by fire, explosion or (1) Acting alone or in collusion with others; or
sprinkler leakage results, we will pay for that
resulting loss or damage. (2) Whether or not occurring during the hours of
employment.
This exclusion does not apply to mobile property.
This exclusion does not apply to acts of destruction
b. NUCLEAR HAZARD by your employees; but theft by employees is not
covered.
Nuclear reaction or radiation, or radioactive
contamination,however caused. d. Damages caused by explosion of steam boilers,
steam pipes, steam engines or steam turbines
But if loss or damage by fire results, we will pay for owned or leased by you, or operated under your
that resulting loss or damage, control.
c. WAR But if loss or damage by fire or combustion
explosion results,we will pay for that resulting loss
(1) War, including undeclared or civil war; or damage.
(2) Warlike action by a military force, including We will also pay for loss or damage caused by or
action in hindering or defending against an actual resulting from the explosion of gases or fuel within
or expected attack,by any government, sovereign the flues or passages through which the gases of
or other authority using military personnel or other combustion pass.
agents; or
e. The cost to repair or replace faulty workmanship,
(3) Insurrection, rebellion, revolution, usurped materials, construction or design.
power,or action taken by governmental authority
in hindering or defending against any of these,
LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 20
This exclusion does not apply to computer (4) Wear and tear.
equipment data and media.
This exclusion does not apply if the above damage
f. The cost to repair or replace. mechanical results from a specified cause of loss.
breakdown,including rupture or bursting caused by
centrifugal force. The exclusion for damages caused by disease does
not apply to police dogs.
This exclusion does not apply to computer
equipment data and media. h. Unexplained loss, mysterious disappearance, or
shortage disclosed upon taking inventory.
g. Damages caused by:
i. Seizure or destruction of property by order of
(1) Rust, corrosion, decay, deterioration, disease, governmental authority.
hidden or latent defect, or any quality in property
that causes it to damage or destroy itself; But we also will pay for acts of destruction ordered
by governmental authority and taken at the time of
(2) Mold or other fungus or fungi,fungal spores,or a fire to prevent its spread, if the fire would be
fungal fragments or metabolites, such as covered under this coverage part.
rnycotoxins or volatile organic components;
j. The cost of fire department service charges that the
(3) Settling, shrinking or expanding; or city is legally obligated to pay.
SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE
1. COVERAGE AGREEMENT (d) Water under the ground surface pressing
on,or flowing or seeping through:
a. For your building/contents,property in the open,or
builders riskproperty subject to the exclusions and i) Foundations, walls, floors or paved
limitations in paragraph b. below, we will pay for: surfaces;
(1) Direct physical loss of or damage to your ii) Basements, whether paved or not; or
building/contents,property in the open,or builders
riskproperty described in the Schedule of Covered iii) Doors,windows or other openings.
Property; and
But if loss or damage by fire, explosion or
(2) Any additional covered losses or damages as sprinkler leakage results, we will not pay for that
described in SECTION II - ADDITIONAL resulting loss or damage under this SECTION IV.
COVERED LOSS OR DAMAGE as a result of
direct physical loss of or damage to your building/ b. (1) For any building/contents, property in the
contents, property in the open, or builders risk open, or builders risk property for which Code A
property which are caused by: is shown on the Schedule of Covered Property,no
additional exclusions apply to the coverage
(a) Flood, surface water, waves, tides, tidal provided under this section.
waves, overflow of any body of water,or their
spray,all weather driven by wind or not; (2) For any building/contents, property in the
open, or builders riskproperty for which Code B is
(b) Mudslide or mudflow; shown on the Schedule of Covered Property, the
coverage provided by this section is specifically in
(c) Water that backs up or overflows from a addition to and in excess of the applicable National
sewer, drain or sump; or Flood Insurance Program coverage.
•
.MCIT MPCB(11-99)(Rev.11-03) Page 6 of 20
(3) For any building/contents, property in the ALTERATION, OR REPAIR COVERAGE, that
open,or builders riskproperty for which Code C is are not shown on the Schedule of Covered
shown on the Schedule of Covered Property, we Property, we will pay any loss or any damage as if
will not pay for any loss or damage resulting from the water and supplemental flood coverage was
any occurrence which would be considered a flood shown as Code C on the Schedule of Covered
for the purpose of the National Flood Insurance Property.
Program.
(4) For any newly acquired or constructed covered Z. LIMITS OF COVERAGE
property, covered property in transit, or covered The maximum amount we will pay for all losses or
property that is temporarily at an unscheduled damages covered under this SECTION IV is limited as
location, as provided by SECTION I, 1.a., described in SECTION VI-LIMITS OF COVERAGE
COVERED PROPERTY;or builders riskproperty AND VALUATION.
as provided by SECTION V, 1.,BUILDINGS IN
THE COURSE OF CONSTRUCTION,
SECTION V - BUILDINGS IN THE COURSE OF
CONSTRUCTION, ALTERATION, OR REPAIR COVERAGE
1. COVERAGE AGREEMENT 2. PROPERTY NOT COVERED
a. We will pay for direct physical loss of or damage to We will not cover the following types of property:
your builders risk property unless the cause of loss
or damage is not covered, as described under a. Any builders risk property if the approved
SECTION III - CAUSES OF LOSS AND estimated total project cost exceeds $2,000,000 as
• DAMAGES NOT COVERED. The amount we of the date construction commenced.
will pay for loss or damage is limited as described
in SECTION VI-LIMITS OF COVERAGE AND b. Land, subsoil, crops or lawns.
VALUATION.
3. ADDITIONAL COVERED LOSS OR
b. We will pay for loss to builders risk property in DAMAGE
transit as described in SECTION VI-LIMITS OF
COVERAGE AND VALUATION. We will pay for covered losses and damages as
described in SECTION II - ADDITIONAL
c. We will pay for loss to builders risk property that COVERED LOSS OR DAMAGE as a result of direct
is at a temporary location other than the physical damage to your builders risk property.
construction location as described in SECTION VI
-LIMITS OF COVERAGE AND VALUATION. 4. WATER AND SUPPLEMENTAL
d. We will also cover the interest of contractors and FLOOD COVERAGE
subcontractors in builders risk property during
construction to the extent of the city's obligation We will pay for loss or damage to your builders risk
for a covered physical loss or damage to such property as described in SECTION IV - WATER
covered property as specified in the applicable AND SUPPLEMENTAL FLOOD COVERAGE.
contract. Such interest of contractors and
subcontractors is limited to the property for which 5. ADDITIONAL DEFINITIONS
they have been hired to perform such work and
such interest will not extend to any loss of revenue, Project cost means the cost of construction,materials,
extra expense, or expediting expense sustained by and architectural, legal, financial and other
the contractor and subcontractors as provided by professional services relating to the construction,
this covenant. alteration of repair project.
LMC1T MPCB(11-99)(Rev. 11-03) Page 7 of 20
SECTION VI - LIMITS OF COVERAGE AND VALUATION
1. LIMITS OF COVERAGE (3) Golf course property: $100,000 per
occurrence for direct damage to golf course
a. We will not pay for more than the general limit per property and debris removal of covered property
occurrence specified in Item 5 of the Declarations. and non-covered property.
b. We will not pay for more than the specific property f. The sublimits stated below are in addition to the
limit for loss or damage to any buildings/contents, general limit per occurrence:
property in the open or builders risk property in
any one occurrence. (1) Newly acquired or constructed building/
contents or property in the open at any one
c. We will not pay for loss or damage in any one location: $5,000,000
occurrence until the amount of loss or damage
exceeds the Deductible in Item 7 of the (2) Newly acquired or constructed mobile
Declarations. We will then pay the amount of loss property: $250,000 per unit
or damage in excess of the Deductible, up to the
applicable limits of coverage: g. The limits for the additional covered loss or
damage are specified in Item 5 of the Declarations
(1) The Deductible applies against the total loss and are listed below. The limits are in addition to
- incurred by you from any one occurrence, the general limit per occurrence and the specific
regardless of the number of locations involved. property limit:
(2) If two or more deductibles in Item 7 of the (1) Asbestos clean-up, abatement and removal:
Declarations for property coverage apply to one $250,000 per location
occurrence for you, the total to be deducted will
not exceed the largest deductible applicable. (2) Loss of revenue, extra expense and expediting
expense: $5,000,000 per occurrence
d. The sublimits stated below are per occurrence and
are part of and not in addition to the specific (3) Demolition and debris removal: For each
property limit: occurrence,. an amount equal to 25% of the
estimated replacement cost of the covered property
(1) Computer equipment data and media: as stated in the Schedule of Covered Property.
$1,000,000 However, if there is no direct physical loss or
damage to covered property, the most we will pay
(2) Fine arts: $500,000 is $50,000 per occurrence.
(3) Personal effects: $25,000 per occurrence,but These limits do not apply to golf course property.
not to exceed$2,500 per employee
(4) Extraordinary expense: $100,000 per annual
(4) Business personal effects: $25,000 per aggregate
occurrence,but not to exceed$5,000 per employee
(5) Leasehold interest: $500,000 per location
The sublimits stated below are per occurrence and
are part of and not in addition to the general limit (6) Pollutant cleanup and removal: $10,000 per
per occurrence: location
(1) Covered property in transit: $250,000 (7) Errors: 90%of the loss,subject to $500,000
per occurrence
(2) Unscheduled location: $500,000
(8) Rental reimbursement: $25,000 per annual
aggregate
..MOOT MPCB(11-99)(Rev. 11-03) Page 8 of 20
(9) Arson reward: $5,000 per fire loss (b) Replacement cost means the cost to repair or
replace covered property that is damaged or
(10)Accounts receivable: $500,000 per location destroyed,using new materials of equivalent size,
kind and quality. Replacement cost includes any
(11) Valuable papers and records: $500,000 per additional costs necessary to comply with
location building codes.
(12) Utility Services: $100,000 per occurrence (2) Adjustment:
h. The limits for water and supplemental flood Except as provided in b. below, in the event of
coverage are specified in Item 5 of the Declarations direct physical loss of or damage to your covered
g P PY g Y
and are stated below: property, the basis of adjustment will be as
follows:
(1) $500,000 per occurrence.
(a) If the covered property is destroyed and is
(2) The water and supplemental flood coverage replaced or rebuilt,LMCIT will pay the following:
annual aggregate is the most we will pay for water
and supplemental flood coverage loss during the (i) If,the covered property is replaced or
annual coverage period, rebuilt at the same location, the replacement
cost of the covered property with similar size
(3) The sublimits stated below are per occurrence and construction;
and are part of and-not in addition to the per
occurrence limit: -- - (ii) If the covered property is replaced or
rebuilt at a different location,the replacement
(a) Golf course property: $100,000 cost cannot be greater than if you would have
rebuilt at the same location with similar size
(b) Property in transit: $250,000 and construction; or
is The limits for Buildings in the Course of (iii) If the covered property is replaced or
Construction,Alteration,or Repair Coverage are: rebuilt at the same location with different size
or construction, the replacement cost cannot
(1) Any one location: $2,000,000 be greater than if you would have rebuilt at
the same location with similar size and
(2) The limits stated below are part of and not in construction.
addition to the any one location limit:
(b) If the covered property is destroyed and is not
(a) Property in transit: $250,000 replaced or rebuilt, LMCIT will pay the fair
market value of the property at the time of the
(b) Temporary location: $500,000 loss.
2. LOSS VALUATION (c) If the covered property is damaged but not
destroyed and is repaired, LMCIT will pay the
a. GENERAL PROVISIONS actual replacement cost to repair the property plus
the amount of the reduction, if any, in the fair
(1) Definitions: market value of the repaired property.
(a) Covered property is deemed to be destroyed (d) If the covered property is damaged but not
if the replacement cost to rebuild or replace the destroyed and remains in service without being
property is less than the sum of the replacement repaired, LMCIT will pay the amount of the
cost to repair the property plus the reduction, if reduction, if any, in the fair market value of the
any, in the fair market value of the repaired damaged property.
property.
•
LMCIT MPCB(11-99)(Rev.11-03) Page 9 of 20
(e) If the covered property is damaged but not required to offset amounts you are unable to
destroyed and the city elects not to repair it but to collect pending our payment of these amounts;
raze or otherwise dispose of the property,LMCIT collection expenses in excess of your normal
will pay to the city the estimated replacement cost collection expenses that are made necessary by
to repair the property. the loss; and other reasonable expenses you incur
to re-establish your accounts receivable. If you
LMCIT will not pay you more than your financial • are unable to establish the amount of accounts
interest in the covered property. receivable outstanding at the time of the loss, we
will use the average monthly amounts of accounts
(3) Limitations: receivable for the 12 months immediately
preceding the month in which the loss occurs,
In any event,LMCIT will not pay you more than adjusting to reflect the normal business during the
the following: loss month.
(a) Your financial interest in the covered (4) Fine arts:
property; or
For fine arts which are destroyed,LMCIT will pay
(b) The fair market value of the covered property, the fair market value, regardless of whether the
if the covered property is vacant property, covered property is replaced or not.
b. SPECIAL PROVISIONS (5) Mobile property:
(1) Valuable papers and records: For mobile property that is damaged or destroyed,
LMCIT will not pay for more than the amount you
For valuable papers and records,LMCIT will pay actually spent to repair or replace the damaged
the cost of blank materials for reproducing the mobile property;or 200%of the fair market value
records, plus the cost of labor to transcribe or of the damaged property,whichever is less.
copy the records when there is a duplicate, or to
reproduce the data of records. (6) Police dogs:
(2) Computer equipment, data and media: A police dog is considered to be destroyed if
because of injury or disease the dog is not able to
For computer equipment, data, or media,LMCIT perform the dog's normal functions and there is no
will pay the cost to replace destroyed equipment reasonable prospect that the dog will be able to do
with equipment of greater processing ability; the SO.
cost to reproduce or restore the data; and the cost •
to repair or replace media with the same kind and (a) For police dogs that are destroyed, LMCIT
quality of material. Any replacement equipment will pay for the cost to replace the dog and the
must be able to perform the same function as the cost of any necessary training.
destroyed equipment.
(b) If a police dog is injured as a result of an
Unauthorized intrusive codes or programming, accident or an intentional act,LMCIT will pay the
commonly known as a computer virus or hacking cost of necessary treatment and care to enable the
intrusion, that are entered into your computer dog to resume performing the dog's normal
equipment, data and media,are considered direct functions. But LMCIT will not pay the cost of
physical loss of or damage to your covered treatment and care to treat or prevent disease.
property.
For any single occurrence,LMCIT will not pay
:3) Accounts receivable: more than the amount you actually spend to
replace the police dog or for care and treatment of
For accounts receivable,LMCIT will pay-for all the-police dog, or 200% of the fair market value
amounts due from your customers that you are of the police dog,whichever is less.
unable to collect; interest charges on any loan
.MCIT MPCB(11-99)(Rev.11-03) Page 1 0 of 20
(7) Trees and shrubs: iii) Deeds, liens or contracts.
(a) For a tree or shrub which is destroyed,LMCIT (2) The amount of extra expense loss LMCIT will pay
will pay the actual cost to replace it with a tree or will be determined based on:
shrub of similar type and of a size that is normally
considered to be reasonable and practical to (a) All expenses that exceed the normal operating
transplant,regardless of whether the tree or shrub expenses that would have been incurred by
is replaced or not. operations during the period of recovery if no
direct physical loss or damage had occurred. We
(b) For a tree or shrub that is damaged but not will deduct from the total of such expenses:
destroyed,LMCIT will pay the actual cost of any
service, treatment, or repair that is actually i) The salvage value that remains of any
performed. property bought for temporary use during the
period of recovery once operations are
But, we will not pay more than the actual cost to resumed;
replace it with a tree or shrub of similar type and
of a size that is normally considered to be ii) Any extra expense that is paid for by other
reasonable and practical to transplant. insurance,except for insurance that is written
subject to the same plan,terms and conditions
(8) Business personal effects: and provisions as this insurance; and
Notwithstanding the provisions of paragraph 11. (b) All necessary expenses that reduce the
of the Coiruuon Conditions,LMCIT coverage for business income loss that otherwise would have
business personal effects is primary with respect been incurred.
to any coverage provided under the employee's
homeowner's insurance or similar coverage. (3) We will reduce the amount of your:
c. LOSS OF REVENUE, EXTRA EXPENSE (a) Loss of revenue loss,other than extra expense
AND EXPEDIT1NGEXPENSE PROVISIONS or expediting expense to the extent you can
resume your operations, in whole or in part, by
(1) The amount of loss of revenue loss LMCIT will using damaged or undamaged property(including
pay, will be determined based on: merchandise or stock)at the described location or
elsewhere.
(a) The gross revenue of the city before the direct
physical loss or damage occurred; (b) Extra expense or expediting expense loss to
the extent you can return your operations to
(b) The likely gross revenue of the city if no normal and discontinue such extra expense or
physical loss or damage had occurred; expediting expense.
(c) The operating expenses, including payroll However, if you do not resume operations, or do
expenses,necessary to resume operations with the not resume operations as quickly as possible,we
same quality of service that existed just before the will pay based on the length of time it would have
direct physical loss or damage; and taken to resume operations as quickly as possible.
(d) Other relevant sources of information, d. APPRAISAL AND ARBITRATION
including:
Either party may make a written demand for
i) Your financial records and accounting arbitration if the city and LMCIT disagree on any of
procedures; the following:
ii) Bills, invoices and other vouchers; and (1) The fair market value of covered property prior to
the loss or damage;
LMCIT MPCB(11-99)(Rev.11-03) Page 11 of 20
(2) The fair market value of covered property after appointees will each separately state their
the loss or damage; respective estimates of the value or cost which is
in question. If they fail to agree,they will submit
(3) The fair market value of covered property after their differences to the umpire. A decision agreed
repair; or to by any two will be binding.
(4) The estimated cost to repair the covered property. Each party will:
In this event, each party will select a competent
and impartial person. Each appointee shall be a (a) Pay the cost of its own appointee; and
professional appraiser or `other person with
appropriate professional expertise. The two (b) Share equally the expense of the umpire and
appointees will select an umpire. If they cannot any other expenses related to the arbitration
agree, either may request that selection be made process.
by a judge of a court having jurisdiction. The two
SECTION VII - DEFINITIONS
1. Accounts receivable means: (2) Alterations or repair of the city's existing
building, or
a. All amounts due from your customers that you
are unable to collect and there is a loss; (3) Addition to the city's existing building.
b. Interest charges on any loan required to offset (4) Builders risk property also includes:
amounts you are unable to collect pending our
payment of these accounts; (a) Foundation of the building or structure in
the course of construction or an addition to the
c. Collection expenses in excess of your normal city s existing building;
collection expenses that are made necessary by
the loss; and (b) Materials, equipment, and supplies used
for construction,alteration or repair,provided
d. Other reasonable expenses thatyou incur to re- such property is intended to be permanently in
establish your records of accounts receivable. or on the builders risk property; and
e. Accounts receivable does not include: (c) Temporary structures built or assembled
on location, including cribbing, scaffolding
(1) The amount of the accounts that you are and construction forms used in the course of
able to re-establish or collect; construction or alterations or repair of the
builders risk property.
(2) An amount to allow for probable bad debts
that you are normally unable to collect; and 4. Building means the building or structure including:
(3) All unearned interest and service charges. a. Completed additions;
2. Automobile means a land motor vehicle, trailer or b. Permanently installed fixtures, machinery and
semi-trailer designed for travel on public roads. equipment;
3. Builders risk property means: c. Outdoor fixtures;
(1) Building or structure in the course of d. Contents owned by you that are used to
construction; maintain or service the building or structure or its
premises, including:
•
LMCIT MPCB(11-99)(Rev.11-03) Page 12 of 20
(1) Fire extinguishing equipment; accepting information, processing it according to
plan and producing the desired results. It includes:
(2) Outdoor furniture;
a. Air conditioning,fire protection equipment and
(3) Floor coverings; and electrical equipment used exclusively in your
computer operations;
(4) Appliances used for refrigerating,
ventilating,cooking,dishwashing or laundering; b. Facts,concepts or instructions in a form usable
or for communications;
5. Building/contents, as described in the Schedule of c. Interpretation or processing by automatic
Covered Property,means the following: means; or
a. Building; or d. Computer programs and materials on which the
data is recorded.
b. Contents.
9. Contents means property located in or on the
6. Business personal effects means personal property building described in the Declarations or in the
of your employees that is used to maintain the open (or in a vehicle) within 140 feet of the
operations of the city. described building, consisting of the following:
7. City means governmental body or entity first a. Furniture and fixtures;
named in the Declarations. For purposes of this - -
coverage,city includes relief associations. b. Machinery and equipment;
Unless specifically named in the Declarations,city c. Stock;
shall not include:
d. All other contents owned by you and used in
a. Gas, electrical, or steam utilities commission; your municipal operations;
b. Port authority, housing and redevelopment e. Labor, materials or services furnished or
authority,economic development authority,area or arranged by you on contents of others;
municipal redevelopment authority, or similar
agency; f. Your use interest as tenant in improvements
and betterments. Improvements and betterments
c. Municipal power agency; are fixtures,alterations,installations or additions:
d. Municipal gas agency; _ (1) Made a part of the building or structure
you occupy but do not own; and
e. Hospital or nursing home board or commission;
(2) You acquired or made at your expense but
f. Airport commission; cannot legally remove.
g. Welfare or public relief agency; g. Contents of others that are in your care,
custody and control.
h. School board; or
However, our payment for loss or damage to
i. Joint powers entity. contents will be for the account of the owner of
the property.
8. Computer equipment, data and media means a
network of machine components capable of h. Trees and shrubs;
•
LMCIT MPCB(11-99)(Rev.11-03) Page 13 of 20
i. Accounts receivable; cost of temporary repair and expediting the repair
of damaged covered property, overtime and
j. Computer equipment data or media; express freight or other rapid means of
transportation.
k. Valuable papers and records;
12. Extra expense means the excess total cost
1. Personal effects; or necessarily incurred to continue your operations
as reasonably as practicable during the period of
m.Fine arts. recovery that is over and above the cost that
would normally have been incurred to conduct the
But,contents does not mean mobile property. operations during the same period had no loss or
damage occurred. It includes:
10. Employee means:
a. Extra expense to avoid or minimize the
a. A person whom you compensate directly by suspension of business and to continue
salary, wages or commissions, and who you have operations:
the right to direct or control while performing
duties for you; (1) At the described location; or
b. Member of the city council; (2) At a replacement location or at temporary
locations, including:
c. Member of a city board,-commission, or
committee which is not excluded by the definition (a) .Relocation expenses; and
of city;
(b) Costs to equip and operate the
d. Elected or appointed official of the city; replacement or temporary locations.
e. Volunteer person or organization while acting b. Extra expense to minimize the suspension of
on behalf of the city and subject to the city's business if you cannot continue operations.
direction and control;
c. Extra expense to:
f. Other authorized person or agent of the city
while acting on behalf of the city, but excludes (1) Repair or replace any covered property;or
independent contractors;
(2) Research, replace or restore the lost
g. City relief association members, officers, and information on damaged valuable papers and
employees; or records;
h. Any natural person employed by an to the extent it reduces the amount of loss that
employment contractor while that person is otherwise would have been payable under this
subject to your direction and control and covenant.
performing services for you excluding, however,
any such person while having care and custody of 13. Fine arts means property or articles of artistic or
property outside the premises. historical value including paintings, etchings,
pictures, tapestries, statuary, marbles, bronzes,
But employee does not mean any agent, broker, porcelain,rare glass, antique silver,china,books
factor, commission merchant, consignee, and manuscripts,rugs and similar articles.
independent contractor or representative of the
same general character. 14. Golf course property means bridges, paved
roadways, paved cart paths and other paved
11. Expediting expense means the reasonable extra surfaces, shelters, restrooms, ball washers,
•
I LMCIT MPCB(11-99)(Rev.11-03) Page 14 of 20
screens, flags,markers, signs, tees, fairways and d. Vehicles and its equipment whether self-
greens. propelled or not,maintained primarily to provide
mobility to permanently mounted equipment;
15. Joint powers entity means an operating entity •
created by two or more governmental units e. Tools,including protective clothing and gear,
entering into an agreement as provided by statute and other similar property;
for the joint exercise of governmental powers.An
intergovernmental agreement will be deemed to f. Business personal effects; or
create a joint powers entity if the agreement
establishes a board with the effective power to do g. Mobile property in your care, custody and
any of the following, regardless of whether the control.
specific consent of the constituent governmental
units may also be required: 20. Newly acquired or constructed means that the city
has acquired or taken possession of the property
a. To receive and expend funds; during the current covenant period.
b. To enter into contracts; 21. Occurrence means an accident or event that
causes a direct physical loss or damage to covered
c. To hire employees; property. Any continuous accident or event that
causes more than one direct physical loss or
d. To purchase or otherwise acquire or hold real damage to covered property during a 72 hour
or personal property; or period constitutes an accident or event as a single
occurrence.
e. To sue or be sued.
22. Operations means:
16. LMCIT means the League of Minnesota Cities
Insurance Trust. a. Your city activities occurring at the described
location;or
17. Location means:
b. The tenantability of the described location.
a. The site of any covered building/contents,
property in the open,or builders risk property;or 23. Our means the League of Minnesota Cities
Insurance Trust.
b. The site of any covered newly acquired or
constructed building/contents or property in the 24. Period of recovery means the period of time that:
open;
a. Begins immediately after the time Of direct
18. Loss of revenue means gross revenue, including physical loss or damage to covered property.
rental value,less charges and expenses that do not
necessarily continue. b. Ends on the earlier of:
19. Mobile property means: (1) The date covered property is actually
repaired,rebuilt or replaced and operations are
a. Machinery or equipment designed for use resumed; and your operations would generate
principally off public roads; the loss of revenue amount that would have
existed if no direct physical or damage had
b. Police dogs; occurred; or
c. Vehicles maintained for use solely on or next (2) 60 consecutive days after the date when
to locations owned or rented by you and not the covered property is actually repaired,
licensed for highway use; rebuilt or replaced and operations are resumed.
LMCIT MPCB(11-99)(Rev.11-03) Page 15 of 20
However the
expiration date of the covenant rrant will (1) The cost of filling sinkholes; or
not cut short the .f recovery.
o
P ry.
(2) Sinking or collapse of land into man-made
25. Personal effects means personal property ofyour underground cavities.
employees, other than business personal effects.
b. Falling object does not include loss or damage
26. Pollutants means any solid, liquid, gaseous or to:
thermal irritant or contaminant,including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and (1) Property in the open; or
waste. Waste includes materials to be recycled,
reconditioned or reclaimed. (2) The interior of a building or structure, or
property inside a building or structure, unless
27. Property in the open means: the roof or an outside wall of the building or
structure is first damaged by a falling object.
a. Equipment such as,but not limited to,benches,
fences,light poles,playground equipment,statues, c. Water damage means accidental discharge or
scoreboards,traffic signals or signs that are in the leakage of water or steam from any part of a
open and are not part of a building, or system or appliance containing water or steam.
b. Golf course property. 31. Stock means merchandise held in storage or for
sale, raw materials and in process or finished
28. Rental value means the sum of: goods,including supplies used in their packing or
shipping.
a. The total anticipated gross rental income from
tenant occupancy of the covered property as 32. Us means the League of Minnesota Cities
furnished and equipped by you; and Insurance Trust.
b. The amount of all continuing charges that are 33. Utility service property means any of the
the legal obligation of the tenant and that would following types of property supplying water,
otherwise be your obligation; and communication service or power to covered
property:
c. The fair rental value of any portion of the
covered property that you occupy. a. Pumping stations or water mains supplying
water;
29. Specific property limit means 150% of the
estimated replacement cost of the covered b. Equipment supplying communication services;
property as stated in the Schedule of Covered or
Property.
c. Utility generation plants, switching plants,
30. Specified causes of loss means fire; lightning; substations,transformers, and transmission lines
explosion; windstorm or hail; smoke; aircraft or supplying electricity, steam or gas.
vehicles; riot or civil commotion; vandalism;
leakage discharge from fire extinguishing 34. Vacant property means:
equipment; sinkhole collapse; volcanic action;
falling objects; weight of snow,ice or sleet; or a. Property owned by the city is deemed to be
water damage: vacant property if for a period of 60 consecutive
days less than 31% of the building's total square
a. Sinkhole collapse means the sudden sinking or footage is either used by the city for customary
collapse of land into underground empty spaces operations or is leased out.
created by the action of water on limestone or
dolomite.This cause of loss does not include:
•
.MCIT MPCB(11-99)(Rev. 11-03) Page 16 of 20
b. Property rented or leased to the city is deemed printed or written documents, manuscripts or
to be vacant property if for a period of 60 records, including abstracts, books, deeds,
consecutive days the property does not contain drawings, films,maps and mortgages.
enough contents to conduct customary operations.
But valuable papers and records does not mean
However,the following are not considered vacant money or securities, converted data,programs or
property: instructions used in your data processing
operations, including the materials on which the
(1) Builders risk property; or data is recorded.
(2) A building or structure which is used and 36. We means the League of Minnesota Cities
occupied,and which is designed to be used and Insurance Trust.
occupied, on an occasional, intermittent, or
seasonal basis. 37. You means the city shown in the Declarations.
35. Valuable papers and records means inscribed, 38. Your means the city shown in the Declarations.
SECTION VIII - CONDITIONS
1. CONTROL OF PROPERTY 4. NO BENEFIT TO BAILEE
- Any act or neglect of any person other than you - No person or organization, other than you, having
beyond your direction or control will not affect this custody of covered property will benefit from this
coverage. coverage.
The breach of any condition of this coverage part at 5. COVERAGE PERIOD, COVERAGE
any one or more locations will not affect coverage at TERRITORY
any location where,at the time of loss or damage,the
• ,breach of condition does not exist. Under this coverage part:
2. COVERAGE UNDER TWO OR MORE a. We cover loss or damage commencing:
COVERAGES
(1) During the coverage period shown in the
If two or more of this covenant's coverages apply to Declarations; and
the same loss or damage, we will not pay more than
the actual amount of the loss or damage. (2) Within the coverage territory.
3. LEGAL ACTION AGAINST US b. The coverage territory is:
No one may bring legal action against us under this (1) The United States of America (including its
coverage part unless: territories and possessions);
a. There has been full compliance with all of the (2) Puerto Rico; and
terms of the coverage part;and
(3) Canada.
b. The action is brought within 2 years after the date
on which the direct physical loss or damage 6. LOSS CONDITIONS
occurred.
a. Abandonment:
You cannot abandon your property to us.
•
LMCIT MPCB(11-99)(Rev.11-03) Page 17 of 20
•
b. Duties in the event of loss or damage: or damaged property if other than you. If we pay
the owners, such payments will satisfy your
You must see that the following are done in the claims against us for the owners' property. We
event of loss or damage to covered property: will not pay the owners more than their financial
interest in the covered property.
(1) Notify the police if a law May have been
broken. d. Recovered Property:
(2) Give us prompt notice of the loss or damage. If either you or we recover any property after loss
Include a description of the property involved. settlement, that party must give the other prompt
notice. At your option, the property will be
(3) As soon as possible, give us a description of returned to you. You must then return to us the
how, when and where the loss or damage amount we paid to you for the property. We will
occurred. pay recovery expenses and the expenses to repair
the recovered property, subject to the amount
(4) Take all reasonable steps to protect the applying under this covenant.
covered property from further damage. If feasible,
set the damaged property aside and in the best 7. PREMIUMS AND PREMIUM
possible order for examination. Also keep record ADJUSTMENTS
of your expenses, for consideration in the
settlement of the claim. a. You agree to furnish us with a schedule of
(5) At our request, give us complete inventories - buildings/contents, property in the open and
of the damaged and undamaged property. Include mobile property valued at greater than $25,000,
quantities, costs,values,and amount claim of loss and builders risk property prior to the beginning
demand. of each covenant period.
b. These schedules must include all buildings/
(6) Permit us to inspect the property and records contents, property in the open and mobile
proving the loss or damage.
property valued at greater than $25,000, and
(7) If requested, permit us to question you under builders risk property that was covered by your
oath at such times as may be reasonably required prior covenant but was not described in the prior
about any matter relating to this covenant or your covenant's Schedule of Covered Property or
claim, Schedule of Covered Mobile Property.
m, including your books and records. In such
event,your answers must be signed. c. The initial annual premiums will be based upon
these schedules and the appropriate replacement
(8) Send us'a signed, sworn statement of loss cost values.
containing the information we request to settle the -
claim. You must do this within 60 days after our d. You will pay us additional premium if the
request. We will supply you with the necessary following property is added during the covenant
forms. period:
(9) Cooperate with us in the investigation or (1) Building/contents or property in the open
settlement of the claim. with a replacement cost value of greater than
Loss Payment: $5,000,000;
(2) Mobile property with a replacement cost
(1) We will give notice of our intentions within 30 value of greater than $250,000;
days after we receive the sworn statement of loss.
(2) We may adjust losses with the owners of lost (3) Builders risk property with a project cost of
greater than$2,000,000;or
MCIT MPCB(11-99)(Rev.11-03) Page 18 of 20
(4) Additional covered loss or damage limits, or buildings or structures to each mortgage holder
property sublimits. shown in the Declarations in their order of
precedence,as interests may appear.
e. We will return premium to you if the following
property is deleted during the covenant period: c. The mortgage holder has the right to receive loss
payment even if the mortgage holder has started
(2) Building/contents or property in the open with foreclosure or similar action on the building or
a replacement cost value of greater than structure.
$5,000,000;
d. If we deny your claim because of your acts or
(2) Mobile property with a replacement cost value because you have failed to comply with the terms
of greater than$250,000; of this coverage part, the mortgage holder will
still have the right to receive loss payment if the
(3) Builders risk property with a project cost of mortgage holder:
greater than$2,000,000; or
(1) Pays any premium due under this coverage
(4) Additional covered loss or damage limits, or part at our request if you have failed to do so;
property sublimits.
(2) Submits a signed, sworn proof of loss within
8. CANCELLATION 60 days after receiving notice from us of your
failure to do so; and
a. You-may cancel Part One of this covenant. You
must mail or deliver not fewer than 30 days •(3) Has notified us of any change in ownership,
advance written notice to us stating when the occupancy or substantial change in risk known to
cancellation is to take effect. the mortgage holder.
b. We may cancel Part One of this covenant. We must All of the terms of this coverage part will then
mail or deliver to you not fewer than 30 days apply to the mortgage holder.
advance written notice stating when the
cancellation is to take effect. Mailing that notice e. If we pay the mortgage holder for any loss or
to you at your mailing address shown in the damage and deny payment to you because of your
Declarations will be sufficient to prove notice. acts or because you have failed to comply with
However, we may cancel with 10 days written the terms of this coverage part:
notice for nonpayment of premium.
(1) The mortgage holder's rights under the
c. The covenant period will end on the day and hour mortgage will be transferred to us to the extent of
stated in the cancellation notice. - the amount we pay; and
d. If Part One of this covenant is canceled, we will (2) The mortgage holder's right to recover the
send you any premium refund due. If we cancel, full amount of the mortgage holder's claim will
the refund will be pro rata. If you cancel, the not be impaired. At our option, we may pay to
refund may be less than pro rata, computed in the mortgage holder the whole principal on the
accordance with our current cancellation rules. mortgage plus any accrued interest. In this event,
The cancellation will be effective even if we have your mortgage and note will be transferred to us
not made or offered a refund. and you will pay your remaining mortgage debt to
us.
9. MORTGAGE HOLDERS
f. If we cancel this covenant, we will give written
a. The term mortgage holder includes trustee. notice to the mortgage holder at least:
b. We will pay for covered loss of or damage to (1) 10 days before the effective date of
•
LMCIT MPCB(11-99)(Rev.11-03) Page 19 of 20
cancellation if we cancel for your nonpayment of (2) A business firm:
premium; or
(a) Owned or controlled by you; or
(2) 30 days before the effective date of
cancellation if we cancel for any other reason. (b) That owns or controls you; or
g. If we do not renew this covenant, we will give (c) Your tenant.
written notice to the mortgage holder at least 10
days before the expiration date of this covenant. This will not restrict your covenant.
10. TRANSFER OF RIGHTS OF 11. DEDUCTIBLES
RECOVERY AGAINST OTHERS TO US
a. The Limits of Coverage shown in the
If any person or organization to or for whom we make Declarations apply to the amount of loss or
payment under this coverage part has rights to damages in excess of the Municipal Property
recover damages from another, those rights are Deductible shown in the Municipal Property,
transferred to us to the extent of our payment. That Crime, Bond and Equipment , Breakdown
person or organization must do everything necessary Declarations or the General Annual Aggregate
to secure our rights and must do nothing after loss to Deductible, if any, shown in the Common
impair them. But you may waive your rights against Coverage Declarations, and the Limits of
another party in writing: Coverage will not be reduced by the Deductible
amount.
a. Prior to a loss to your covered property or loss of
revenue. b. LMCIT shall be liable to the city or to others on
behalf of the city only to the amount of loss or
b. After a loss to your covered property or loss of damages in excess of any deductible amounts.
revenue,only if at time of loss that party is one of
the following: We will then pay the amount of loss up to the
applicable limit of coverage.
(1) Someone insured by this covenant;
LMCIT MPCB(11-99)(Rev. 11-03) Page 20 of 20
League of Minnesota Cities
Cities 'promoting excellence
MUNICIPAL, CRIME COVERAGE
PART TWO
LMCIT MPCB(11-99)(Rev.11-03)
MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE
• WHAT IT IS AND WHERE YOU CAN FIND IT INDEX
CRIME COVERAGE - PART TWO LMC
League of Minnamota Cifiar
Cities promoting exaaIanao
PAGE
SECTION I-COVERAGE AGREEMENT 1
SECTION II- CAUSES OF LOSS AND DAMAGES NOT COVERED 1-2
SECTION III- LINIITS OF COVERAGE 2
SECTION IV-DEFINITIONS 2-4
SECTION V- CONDITIONS 4-6
LMCIT MPCB(11-99)(Rev. 11-03)
MUNICIPAL CRIME COVERAGE
PART TWO
Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special
Read the entire covenant carefully to determine rights, meaning, as given in SECTION IV-DEFINITIONS.
duties and what is or is not covered.
SECTION I - COVERAGE AGREEMENT
1.. THEFT, DISAPPEARANCE, AND We will pay for loss of money and securities resulting
DESTRUCTION-INSIDE THE PREMISES directly from the theft, disappearance, or destruction
outside the premises in the care,custody and control
We will pay for loss of money and securities resulting of a messenger or an armored motor vehicle.
directly from theft, disappearance, or destruction
inside the premises or banking premises. 3. FORGERY OR ALTERATION
We will pay the loss of, and Ioss from damage to, the We will pay for loss involving instruments ofpayment
property that contains the money and securities; and resulting directly from the forgery or alteration of,on
loss from damage to the premises resulting directly or in any instruments ofpayment.
from the theft or attempted theft.
If you are sued for refusing to pay any instrument of
2. THEFT, DISAPPEARANCE, AND payment, we will pay any reasonable legal expenses
DESTRUCTION - OUTSIDE THE thatyou incur and pay in that defense.The amount we
PREMISES pay will be in addition to the applicable limit of
coverage.
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED
We will not pay for loss or damages as specified 4. GOVERNMENTAL ACTION
below:
Loss resulting from seizure or destruction of property
1. ACCOUNTING OR ARITHMETICAL by order of governmental authority.
ERRORS OR OMISSIONS
5. INDIRECT LOSS
Loss resulting from accounting or arithmetical errors
and omissions. - Loss that is an indirect result of any act or occurrence
covered by this covenant including,but not limited to,
2. ACTS OF EMPLOYEES loss resulting from:
Loss resulting from any dishonest or criminal act a. Your inability to realize income that you would
committed by any of your employees: have realized had there been no loss of, or loss
from damage to, money and securities; or
a. Acting alone or in collusion with other persons; or instruments of payment.
b. While performing services for you or otherwise. b. Payment of damages of any type for which you are
legally liable.
3. FIRE
But, we will pay compensatory damages arising
Loss or damage to the premises resulting from fire, directly from a,loss covered under this covenant.
however caused.
L MCIT MPCB(11-99)(Rev.11-03) Page 1 of 6
c. Payment of costs,fees,or other expenses you incur malicious mischief.
in establishing either the existence or the amount of
loss under this covenant. 9. WAR
•
6. LEGAL EXPENSES Loss resulting from:
Expenses related to any legal action. a. War, including undeclared or civil war;
7. NUCLEAR HAZARD b. Warlike action by a military force,including action
in hindering or defending against an actual or
Loss resulting from nuclear reaction or radiation, or expected attack,by any government, sovereign or
radioactive contamination,however caused. other authority using military personnel or other
agents; or
8. VANDALISM
c. Insurrection,rebellion,revolution,usurped power,
Loss from damage to the premises or its exterior or to or action taken by governmental authority in
containers of money and securities by vandalism or hindering or defending against any of these.
SECTION III - LIMITS OF COVERAGE
1. The most we will pay in any one occurrence is the unless the amount of loss exceeds the Deductible
applicable limit of coverage shown in the amount shown in the Declarations. We will then
Declarations. pay the amount of loss in excess of the Deductible
amount,up to the limit of coverage.
2. We will not pay for loss in any one occurrence
SECTION IV - DEFINITIONS
1. Bankingpremises means the interior of that portion f. Welfare or public relief agency;
of any building occupied by a banking institution
or similar safe depository. g. School board;
2. City means the governmental body or entity first h. Airport commission; or
named in the Declarations. For purposes of this
coverage,city includes relief associations. Unless i. Joint powers entity.
specifically named in the Declarations, city shall
not include: 3. Employee means:
a. Gas, electrical, or steam utilities commission; a. A person whom you compensate directly by
salary, wages or commissions and who you have
b. Port authority, housing and redevelopment the right to direct or control while performing
authority,economic development authority,area or duties for you;
municipal redevelopment authority, or similar
agency, b. Member of the city council;
c. Municipal power agency; c. Member of a city board, commission, or
committee which is not excluded by the definition
d. Municipal gas agency; of city;
e. Hospital or nursing home board or commission; d. Elected or appointed official of the city;
.MCIT MPCB(11-99)(Rev. 11-03) Page 2 of 6
7. LOSS COVERED UNDER THIS 10. OTTNFRINSURANCE
COVENANT AND PRIOR COVENANT
ISSUED 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 loss, this covenant will apply to that part of the
b. Partly by the prior canceled or terminated covenant loss, other than that falling within any Deductible
that we had issued to you or any predecessor in amount,not recoverable or recovered under the other
interest, the most we will pay is the larger of the insurance or indemnity. However, this covenant will
amount recoverable under this covenant or the not apply to the amount of loss that is more than the
prior covenant. applicable limit of coverage shown in the
Declarations.
8. LOSS SUSTAINED DURING PRIOR
INSURANCE 11. RECORDS
a. If you or any predecessor in interest sustained loss You must keep records of all money and securities;
during the period of any prior insurance thatyou or and instruments of payment, so we can verify the
the predecessor in interest could have recovered amount of any loss.
under that insurance, except that the time within
which to discover loss had expired,we will pay for 12. RECOVERIES
it under this covenant provided:
a. Any recoveries, less the cost of obtaining them,
(1) This covenant became effective at the time of made after settlement of loss covered by this
cancellation or termination of the prior insurance; covenant,will be distributed as follows:
and
(1) To you, until you are reimbursed for any loss
(2) The loss would have been covered by this that you sustain that exceeds the limit of coverage
covenant had it been in effect when the acts or and the Deductible amount,if any;
events causing the loss were committed or
occurred. (2) Then to us until we are reimbursed for the
settlement made;
b. The coverage under this condition is part of,not in (3) Then to you until you are reimbursed for that
addition to,the limits of coverage applying to this part of the loss equal to the Deductible amount, if
covenant and is limited to the lesser of the amount any
recoverable under: -
b. Recoveries do not include any recovery:
(1) This covenant as of its effective date; or
(1) From insurance, suretyship, reinsurance,
(2) The prior insurance had it remained in effect. security or indemnity taken for our benefit; or
9. NON-CUMULATION OF LIMIT OF (2) Of original securities after duplicates of them
COVERAGE have been issued.
Regardless of the number of years this covenant 13. TERRITORY
remains in force or the number of premiums paid,no
limit of coverage cumulates from year to year or a. This covenant covers theft, disappearance, or
period to period. destruction of money or securities only from acts
committed or events occurring within the United
LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 6
States of America, U.S. Virgin Islands, Puerto having a penalty not exceeding the lesser of
Rico, Canal Zone, or Canada, and while the:
temporarily outside this territory for a period of not
more than 90 days. i) Value of the securities at the close of
business on the day the loss was
b. This covenant covers loss you sustain from forgery discovered; or
or alteration anywhere in the world.
ii)Limit of coverage.
14. TRANSFER OF YOUR RIGHTS OF
RECOVERY AGAINST OTHERS TO US (3) Loss from damages to property or premises, as
described under SECTION I - COVERAGE
You must transfer to us all your rights of recovery AGREEMENT, 1.,for not more than the:
against any person or organization for any loss you
sustained and for which we have paid or settled. You (a) Actual cash value of the property on the
must also do everything necessary to secure those day the loss was discovered;
rights and do nothing after loss to impair them.
(b) Cost of repairing the property or premises;
15. VALUATION- SETTLEMENT or
a. Subject to the applicable limit of coverage (c) Cost of replacing the property with
provision, we wiI1.pay for: property of like kind and quality.
(1) Loss of money,but only up to and including its We may,at our option,pay the actual cash value of
face value. We may,at our option, pay for loss of the property or repair or replace it.
money issued by any country other than the United
States of America: If we cannot agree with you upon the actual cash
value or the cost of repair or replacement,the value
(a) At face value in the money issued by that or cost will be determined by arbitration.
country; or
b. We may,at our option,pay for loss of,or loss from
(b) In the United States of America dollar damage to,property other than money:
equivalent determined by the rate of exchange
on the day the loss was discovered. (1) In the money of the country in which the loss
occurred; or
(2) Loss of securities,but only up to and including
their value at the close of business on the day the (2) In the United States of America dollar
loss was discovered,we may, at our option: equivalent of the money of the country in which the
loss occurred determined by the rate of exchange
(a) Pay the value of such securities or replace on the day the loss was discovered. -
them in kind, in which event you must assign
to us all your rights,title and interest in and to c. Any property that we pay for or replace becomes
those securities; our property.
(b) Pay the cost of any Lost Securities Bond 16. FACSIMILE SIGNATURES:
required in connection with issuing duplicates
of the securities. However, we will be liable We will treat mechanically reproduced facsimile
only for the payment of so much of the cost of signatures the same as handwritten signatures.
the bond as would be charged for a bond
..MCIT MPCB(11-99)(Rev. 11-03) Page 6 of 6
e. Volunteer person or organization while acting e. To sue or be sued.
on behalf of the city and subject to the city's
direction and control; 6. LMCIT means the League of Minnesota Cities
Insurance Trust.
f. Other authorized person or agent of the city
while acting on behalf of the city, but excludes 7. Messenger means you, or any of your employees,
independent contractors; while having care and custody of the money and
securities outside the premises.
g. City relief association members, officers, and
employees; or 8. Money means:
h. Any natural person employed by an employment a. Currency, coins, and bank notes in current use
contractor while that person is subject to your and having a face value; and
direction and control and performing services for
you, excluding, however, any such person while b. Travelers checks, register checks and money
having care and custody of property outside the orders held for sale to the public.
premises.
9. Occurrence means:
But employee does not mean any agent, broker;
factor, commission merchant, consignee, a. With respect to SECTION I - COVERAGE
independent contractor or representative of the AGREEMENT, 1. and 2.:
same general character. _
— - (1) Act or series ofrelated acts involving one or
4. Instruments of payment means checks, drafts, more persons; or
promissory notes or similar written promises,
orders or directions to pay a sum certain in money, (2) Act or event, or series of related acts or
that are: events not involving any person.
a. Made or drawn by or drawn upon you; or b. With respect to SECTION I - COVERAGE
AGREEMENT,3.,all loss caused by any person or
b. Made or drawn by one acting as your agent; or in which that person is involved, whether the loss
that are purported to have been so made or drawn. involves one or more instruments of payment.
5. Joint powers entity means an operating entity The date of the occurrence is the date on which the
created by two or more governmental units entering act,event or loss is alleged to have taken place. If
into an agreement as provided by statute for the the loss or damages are alleged to have arisen from
joint exercise of governmental powers. An a series of acts or events,the date of occurrence is
intergovernmental agreement will be deemed to deemed to be the date when the first such wrongful
create a joint powers entity if the agreement act or event took place or is alleged to have taken
establishes a board with the effective power to do place.
any of the following, regardless of whether the
specific consent of the constituent governmental 10. Our means the League of Minnesota Cities
units may also be required: Insurance Trust.
a. To receive and expend funds; 11. Premises means the interior of that portion of any
building you occupy in conducting your business.
b. To enter into contracts;
12. Securities means negotiable and nonnegotiable
c. To hire employees; instruments or contracts representing either money
or other property and includes:
d. To purchase or otherwise acquire and hold real
or personal property; or a. Tokens, tickets, revenue and other stamps
LMCIT MPCB(11-99)(Rev. 11-03) Page 3 of 6
(whether represented by actual stamps or unused 14. Us means the League of Minnesota Cities
value in a meter) in current use;and Insurance Trust.
b. Evidences of debt issued in connection with 15. We means the League of Minnesota Cities
credit or charge cards,which cards are not issued Insurance Trust.
by you;
16. You means the city shown in the Declarations.
but does not include money.
17. Your means the city shown in the Declarations.
13. Theft means any act of stealing.
SECTION V - CONDITIONS
1. COVENANT PERIOD 4. INTERESTS COVERED
a. The covenant period is shown in the Declarations. Coverage provided by this covenant is limited to
money andsecurities;and instruments ofpayment;and
b. Subject to the loss sustained during prior insurance damages to property or premises, as described under
condition,we will pay only for loss that you sustain SECTION I-COVERAGE AGREEMENT, 1., that:
through acts committed or events occurring during
the covenant period. a. You own or hold; or
2. DISCOVERY PERIOD FOR LOSS b. For which you are legally liable.
We will pay only for covered loss discovered no later However, this covenant is for your benefit only. It
than one year from the end of the covenant period. provides no rights or benefits to any other person or
organization.
3. DUTIES IN THE EVENT OF LOSS
5. LEGAL ACTION AGAINST US
After you discover a loss or a situation that may result
in loss of, or loss from damage to, money and You may not bring any legal 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 this
covenant; and
b. Submit to examination under oath at our request
and give us a signed statement of your answers. b. Until 90 days after you have filed proof of Ioss
with us; and -
c. Give us a detailed, sworn proof of loss within 120
days. If the loss was due to forgery or alteration, c. Unless brought within 2 years from the date you
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 forth,.Y � g h 6. LOSS COVERED UNDER.MORE THAN
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 covenant apply to the
settlement of any claim. same loss,we will pay the lesser of:
e. If you have reason to believe that any loss of, or
Y � a. The actual amount of loss; or
loss 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 to that
loss.
.MCIT MPCB(11-99)(Rev.11-03) Page 4 of 6
•
MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE
WHAT IT IS AND WHERE YOU CAN FIND IT INDEX
BOND COVERAGE - PART THREE M
League of Minnesota Cities
Can promoting axoo/lance
PAGE
SECTION I- COVERAGE AGREEMENT 1
SECTION II- CAUSES OF LOSS AND DAMAGES NOT COVERED 1
SECTION III-LIMITS OF COVERAGE 2
SECTION IV- DEFINrTIONS 2-3
SECTION V- CONDITIONS 3-6
•
LMCfT MPCB(11-99)(Rev. 11-03)
MUNICIPAL BOND COVERAGE
PART THREE
Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special
Read the entire covenant carefully to determine rights, meaning,as given in SECTION IV-DEFINITIONS.
duties and what is or is not covered.
SECTION I - COVERAGE AGREEMENT
We will pay for loss as provided by each coverage Declarations or endorsement,the following causes of
form that is designated in the Declarations. loss and rismages not covered, limits of coverage,
definitions,and conditions,apply to all bond coverage
Unless stated otherwise in any bond coverage form, forms forming part of this covenant.
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED
We will not pay for loss damages as specified below: b. A profit and loss computation.
1. GOVERNMENTAL ACTION However,whereyou establish wholly apart from such
computations that you have sustained a loss,then you
Loss resulting from seizure or destruction of property- may offer your inventory records and actual physical
by order of governmental authority. count of inventory in support of the amount of loss
claimed.
2. INDIRECT LOSS
4. LEGAL EXPENSES
Loss that is an indirect result of any act or occurrence
covered by this covenant including,but not limited to, Expenses related to any legal action.
loss resulting from:
S. NUCLEAR
a. Your inability to realize income that you would
have realized had there been no loss as provided by Loss resulting from nuclear reaction or radiation, or
each bond coverage form that is designated in the radioactive contamination,however caused.
Declarations.
6. WAR
b. Payment of damages of any type for which you are
legally liable. But, we will pay compensatory - Loss resulting from:
damages arising directly from a loss covered under
this covenant. a. War, including undeclared or civil war;
c. Payment of costs,fees or other expenses you incur b. Warlike action by a military force,including action
in establishing either the existence or the amount of in hindering or defending against an actual or
loss under this covenant. expected attack,by any government, sovereign or
other authority using military personnel or other
3. INVENTORY SHORTAGES agents; or
Loss, or that part of any loss,the proof of which as to c. Insurrection,rebellion,revolution,usurped power,
its existence or amount is dependent upon: or action taken by governmental authority in
• hindering or defending against any of these.
a. An inventory computation;or
LMCIT MPCB(11-99)(Rev.11-03) Page 1 of 6
•
SECTION III - LIMITS OF COVERAGE
The most we will pay for loss is described in SECTION II, LIMITS OF COVERAGE, of the bond coverage form.
•
SECTION IV - DEFINITIONS
1. Bond coverage form means the following bond b. Member of the city council;
forms:
c. Member of a city board, commission, or
a. Bond -Employee Dishonesty Coverage Form committee which is not excluded by the definition
MPCB 203; and of city;
b. Bond - Employee Faithful Performance d. Elected or appointed official of the city;
Coverage Form MPCB 204.
e. Volunteer person or organization while acting
2. City means the governmental body or entity first on behalf of the city and subject to the city's.
named in the Declarations. For purposes of this direction and control;
coverage,city includes relief associations. Unless
specifically named in the Declarations, city shall f. Other authorized person or agent of the city
not include: while acting on behalf of the city, but excludes
- - independent contractors;
a. Gas, electrical,or steam utilities commission;
g. City relief association members, officers, and
b. Port authority, housing and redevelopment employees; or
authority,economic development authority,area or
municipal redevelopment authority, or similar h. Any natural person employed by an employment
agency; contractor while that person is subject to your
direction and control and performing services for
c. Municipal power agency; you, excluding, however, any such person while
having care and custody of property outside the
d. Municipal gas agency; premises.
e. Hospital or nursing home board or commission; But employee does not mean any agent, broker,
factor, commission merchant, consignee,
f. Welfare or public relief agency; independent contractor or representative of the
same general character.
g. School board;
4. Joint powers entity means an operating entity
h. Airport commission; or created by two or more governmental units entering
into an agreement as provided by statute for the
i. Joint powers entity. joint exercise of governmental powers. An
intergovernmental agreement will be deemed to
3. Employee means: create a joint powers entity if the agreement
establishes a board with the effective power to do
a. A person whom you compensate directly by any of the following, regardless of whether the
salary, wages or commissions and who you have specific consent of the constituent governmental
the right to direct or control while performing units may also be required:
duties for you;
a. To receive and expend funds;
-MCIT MPCB(11-99)(Rev.11-03) Page 2 of 6
b. To enter into contracts; 8. Our means the League of Minnesota Cities •
Insurance Trust.
c. To hire employees;
9. Property other than money and securities means
d. To purchase or otherwise acquire and hold real any tangible property that has intrinsic value.
or personal property; or
10. Securities means negotiable and nonnegotiable
e. To sue or be sued. instruments or contracts representing either money
or other property and includes:
S. LMCIT means the League of Minnesota Cities
Insurance Trust. a. Tokens, tickets, revenue and other stamps
(whether represented by actual stamps or unused
6. Money means: value in a meter)in current use; and
•
a. Currency, coins, and bank notes in current use b. Evidences of debt issued in connection with
and having a face value; and credit or charge cards,which cards are not issued
by you;
b. Travelers checks, register checks and money
orders held for sale to the public. but does not include money.
7. Occurrence means all loss caused by an employee, 11. Us means the League of Minnesota Cities
whether the result of a single act or series of acts. •Insurance Trust.
The date of the occurrence is the date on which the 12. We means the League of Minnesota Cities
single act is alleged to have taken place. If the loss Insurance Trust.
or damages are alleged to have arisen from a series
of acts, the date of occurrence is deemed to be the 13. You means the city shown in the Declarations.
date when the first such wrongful act took place or
is alleged to have taken place. 14. Your means.the city shown in the Declarations.
SECTION V - CONDITIONS
1. CANCELLATION AS TO ANY The mailing of notice to you at the Iast mailing
EMPLOYEE address known to us will be sufficient proof of
notice. Delivery of notice is the same as mailing.
We reserve the right to cancel the covenant as to any
employee: 2. COVENANT PERIOD
a. Immediately upon discovery by you or any official a. The covenant period is shown in the Declarations.
or employee authorized to manage, govern or
control your employee,of any act on the part of an b. Subject to the loss sustained during prior insurance
employee whether before or after becoming condition,we will pay only for loss that you sustain
employed by you which would constitute a loss through acts committed or events occurring during
covered under the terms of this covenant. the covenant period.
b. On the date specified in a notice mailed to you. 3. DISCOVERY PERIOD FOR LOSS
That date will be at least 30 days after the date of We will pay only for covered loss discovered no later
mailing. than one year from the end of the covenant period.
LivICrr MPCB(11-99)(Rev.11-03) Page 3 of 6
4. DUTIES IN THE EVENT OF LOSS 8. LOSS COVERED UNDER THIS
COVENANT AND PRIOR COVENANT
After you discover a loss or a situation that may result ISSUED BY US
in loss as provided by each bond coverage form that is
designated in the Declarations,you must: If any loss is covered:
a. Notify us as soon as possible. a. Partly by this covenant, and
b. Submit to examination under oath at our request b. Partly by the prior canceled or terminated covenant
and give us a signed statement of your answers. that we had issued to you or any predecessor in
interest, the most we will pay is the larger of the
c. Give us a detailed, sworn proof of loss within 120 amount recoverable under this covenant or the
days. prior covenant.
d. Cooperate with us in .the investigation and 9. LOSS SUSTAINED DURING PRIOR
settlement of any claim. INSURANCE
5. INDEPENDENT RIGHT OF RECOVERY a. If you or any predecessor in interest sustained loss
during the period of any prior insurance that you or
We have an independent right of recovery against any the predecessor in interest could have recovered
employee for any loss due to the employee's under that insurance, except that the time within
malfeasance, willful neglect of duty or bad faith.- which to discover loss had expired,we will pay for
it under this covenant provided:
6. LEGAL ACTION AGAINST US
(1) This covenant became effective at the time of
You may not bring any legal action against us cancellation or termination of the prior insurance,
involving loss: and;
a. Unless you have complied with all the terms of this (2) The loss would have been covered by this
covenant;and covenant had it been in effect when the acts or
events causing the loss were committed or
b. Until 90 days after you have filed proof of loss occurred.
with us; and
b. The coverage under this condition is part of,not in
c. Unless brought within 2 years from the date you addition to,the limits of coverage applying to this
discover the loss. covenant and is limited to the lesser of the amount
recoverable under:
7. LOSS COVERED UNDER MORE THAN
ONE COVERAGE OF THIS COVENANT (1) This covenant as of its effective date; or
If two or more coverages of this covenant apply to the (2) The prior insurance had it remained in effect.
>ame loss, we will pay the lesser of:
10. NON-CUMULATION OF LIMIT OF
i. The actual amount of loss; or COVERAGE
). The sum of the limits of coverage applicable to that Regardless of the number of years this covenant
loss. remains in force or the number of premiums paid,no
limit of coverage cumulates from year to year or
period to period.
•
MCIT MPCB(11-99)(Rev. 11-03) Page 4 of 6
11. OTHER INSURANCE occurring within the United States of America, U.S.
Virgin Islands, Puerto Rico, Canal Zone, or Canada
This covenant does not apply to loss recoverable or and while temporarily outside this territory for a
recovered under other insurance or indemnity, period not more than 90 days.
However, if the limit of the other insurance or
indemnity is insufficient to cover the entire amount of 15. TRANSFER OF YOUR RIGHTS OF
the loss, this covenant will apply to that part of the RECOVERY AGAINST OTHERS TO US
loss, other than that falling within any Deductible
amount,not recoverable or recovered under the other You must transfer to us all your rights of recovery
insurance or indemnity. However,this covenant will against any person or organization for any loss you
not apply to the amount of loss that is more than the sustained and for which we have paid or settled. You
applicable limit of coverage shown in the must also do everything necessary to secure those
Declarations. rights and do nothing after loss to impair them.
12. RECORDS 16. VALUATION- SETTLEMENT
You must keep records of all money, securities, and a. Subject to the applicable limit of coverage
property other than money and securities;and provide provision,we will pay for:
any otherreasonably obtainable information so we can
verify the amount of any loss. (1) Loss of money,but only up to and including its
face value. We may, at our option,pay for loss of
13. RECOVERIES money issued.by any country other than the United
States of America:
a. Any recoveries, less the cost of obtaining them,
made after settlement of loss covered by this (a) At face value in the money issued by that
covenant,will be distributed as follows: country; or
(1) To you, until you are reimbursed for any loss (b) In the United States of America dollar
that you sustain that exceeds the limit of coverage equivalent determined by the rate of exchange
and the Deductible amount, if any; on the day the loss was discovered.
(2) Then to us until we are reimbursed for the (2) Loss of securities,but only up to and including
settlement made; their value at the close of business on the day the
loss was discovered, we may, at our option:
(3) Then to you until you are reimbursed for that
part of the loss equal to the Deductible amount, if (a) Pay the value of such securities or replace
any. them in kind, in which event you must assign
to us all your-rights,title and interest in and to
b. Recoveries do not include any recovery: those securities;
(1) From insurance, suretyship, reinsurance, (b) Pay the cost of any Lost Securities Bond
security or indemnity taken for our benefit; or required in connection with issuing duplicates
of the securities.
(2) Of original securities after duplicates of them
have been issued. However, we will be liable. only for the
payment of so much of the cost of the bond as
14. TERRITORY would be charged for a bond having a penalty
not exceeding the lesser of the:
This covenant covers only acts committed or events
•
LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 6
i) Value of the securities at the close of We may,at our option,pay the actual cash value of
business on the day the loss was the property or repair or replace it.
discovered; or
If we cannot agree with you upon the actual cash
ii) Limit of coverage. value or the cost of repair orre replacement,the value
eP P �
or cost will be determined by arbitration.
(c) Loss of, or loss from damage to,property
other than money and securities, or loss from b. We may,at our option,pay for loss of,or loss from
damage to the premises for not more than the: damage to,property other than money:
•
i) Actual cash value of the property on (1) In the money of the country in which the loss
the day the Ioss was discovered; occurred; or
ii) Cost of repairing the property or (2) In the United States of America dollar
premises; or equivalent of the money of the country in which the
loss occurred determined by the rate of exchange
iii) Cost of replacing the property with on the day the loss was discovered.
property of like kind and quality.
c. Any property that we pay for or replace becomes
our property.
•
•
•
MCIT MPCB(11-99)(Rev. 11-03) Page 6 of 6
PROPERTY IN THE OPEN ENDORSEMENT
This Endorsement modifies coverage provided under the Municipal Property Coverage.
Loc. # Location Occupancy Property in the Open
18 CITY WIDE VARIOUS OUTDOOR SIRENS
1
I!I
A. Section VII —DEFINITIONS property in the open is amended to read as described above for each location.
All other terms and conditions remain unchanged.
LMCIT
MPCB-110(11-01)(Rev.1 1-02)
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED PROPERTY
Covenant Number:
CMC 25101 LMC
CITY OAK PARK HEIGHTS, CITY OF League Minnesota l �Cilne
COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/ = ./
PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE
*SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED.
THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE
SPECIFIC PROPERTY LIMIT.
**Type of ***Section IV Wate! Estimated
Covered and Supplemental Replacement
Loc# Location Occupancy Property _Flood Coverage Cost
1 14168 OAK PARK BLVD N CITY HALL/GARAGE B CODE C $2,140,859
2 58TH&NORELL WATER TOWER B CODE C $1,706,976
3 14168 OAK PARK BLVD N WATER TOWER B CODE C $1,422,480
4 BREKKE PARK SHELTER B CODE C $208,095
5 13425 60TH STREET LIFT STATION B CODE C $126,162
•
6 14168 OAK PARK BLVD N PUMP HOUSE#1 B CODE C $120,138
7 SWAGER PARK SHELTER B CODE C $8,366
8 COVER PARK RECREATION BUILDING B CODE C $47,135
9 VALLEY VIEW PARK SHELTER B CODE C $82,028
10 BEADETTE ON LOOKOUT TRAIL LIFT STATION B CODE C $91,176
11 SUNYSIDE MARINA LIFT STATION B CODE C $91,176
12 14200 53RD STREET LIFT STATION B CODE C $91,176
•
13 14168 OAK PARK BLVD N CITY HALL PIO CODE C $3,400
14 SWAGER PARK PARK PIO CODE C $66,806
*The limit of coverage for Section IV-Water and Supplemental Coverage is$500,000 per occurrence 1 500,000 Annual Aggregate
**Type of Covered Property
B = Building/Contents
PIO = Property in the Open
BR = Builders Risk Property
***Section IV-Water and Supplemental Flood Coverage
CODE A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions.
CODE B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable
National Flood Insurance Program Coverage.
CODE C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss
or any damage would be payable under a National Flood Insurance Program Coverage,
PM-100(11/95)(Rev.11/03)
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED PROPERTY
Covenant Number:
Jjj CMC 25101 C
CITY OAK PARK HEIGHTS, CITY OF League of Minnesota Cities
Cities promoting excellence
COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/ = • :1
PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE
*SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED.
THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE
SPECIFIC PROPERTY LIMIT.
**Type of ***Section IV Watei Estimated
Covered and Supplemental Replacement
Loc# Location Occupancy Property Flood Coverage Cost
15 COVER PARK PARK PIO CODE C $75,758
16 VALLEY VIEW PARK PARK PIO CODE C $40,643
17 BREKKE PARK PARK PIO CODE C $146,260
18 CITY WIDE VARIOUS NO CODE C $66,290
19 14290 58TH ST N PUMPHOUSE #2 B CODE C $113,798
20 KERN CENTER,5500 STILLWATER BLVD LIFT STATION&FORCE MAIN B CODE C $222,469
21 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $210,697
*The limit of coverage for Section IV-Water and Supplemental Coverage is$500,000 per occurrence /500,000 Annual Aggregate
**Type of Covered Property
B = Building/Contents
PIO = Property in the Open
BR = Builders Risk Property
***Section IV-Water and Supplemental Flood Coverage
CODE A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions.
CODE B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable
National Flood Insurance Program Coverage.
CODE C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss
or any damage would be payable under a National Flood Insurance Program Coverage.
PM-100(11/95)(Rev.11/03)
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SCHEDULE OF COVERED MOBILE PROPERTY
Covenant#: CMC 25101 L MC
League of Minnesota Cities
CITY: OAK PARK HEIGHTS Cities promoting excenence
COVERAGE APPLIES TO MOBILE PROPERTY VALUED AT REPLACEMENT COST VALUES OF
$25,000 OR LESS PER ITEM IF IDENTIFIED AS COVERED AND TO MOBILE PROPERTY THAT
HAVE REPLACEMENT COST VALUES GREATER THAN $25,000 PER ITEM THAT ARE LISTED.
COVERED/NOT COVERED
A. MOBILE PROPERTY VALUED AT $25,000 OR LESS COVERED
B. MOBILE PROPERTY VALUED AT GREATER THAN $25,000
Description of Mobile Property
(Make, Model and Year) Serial No
1 1995 CATERPILLAR XQ225 PORTABLE GENERATOR SET 8JJ00226
2 2000 CASE 621 WHEEL LOADER 112822 JEE0123895
3 2003 KUBOTA TRACTOR WITH PLOW 20224-TRACTOR
2029087 - HITCH
4
5
6
7
8
9
10
11
12
13
14
15
LMCIT
PM-109(11/97)(Rev.11/02)
Covenant Number: MUNICIPAL LIABILITY DECLARATIONS
CMC 25101 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST ] vf�
(Herein called LMCIT)
Item 1. CITY: OAK PARK HEIGHTS, CITY OF League of Minnesota Cities
Cities promoting excellence
Item 2. COVERAGE PERIOD: One Year
From: 07/07/04 To: 07/07/05 12:01 A.M. Standard Time at Mailing Address
on Common Coverage Declarations
Item 3. THE COVERED PARTY IS: CITY Claims Made
Item 4. COVERAGE PARTS:
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS
OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE
THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING LIMITS:
EACH OCCURRENCE LIMIT $ 1,000,000
PRODUCTS & COMPLETED OPERATIONS
LIMIT $ 1,000,000 Annual Aggregate
FAILURE TO SUPPLY CLAIM LIMIT $ 1,000,000 Annual Aggregate
EMF CLAIM LIMIT $ 1,500,000 Annual Aggregate
MOLD CLAIM LIMIT $ 1,500,000 Annual Aggregate
FIRE DAMAGE LIMIT $ 50,000 Any One Fire
MEDICAL AND RELATED EXPENSE LIMIT $ 1,000/$10,000 Any One Person/Occurrence
LIMITED POLLUTION LIABILITY CLAIM *$ 1,000,000 Per Sudden Occurrence/
LIMIT $1,000,000 Annual Aggregate
LEAD OR ASBESTOS CLAIM LIMIT *$ 200,000 Per Claim/$200,000 Annual Aggregate
LAND USE, DEVELOPMENT OR FRANCHISE
LITIGATION LIMIT **$ 1,000,000 Annual Aggregate
*LIMIT includes damages, loss adjustment expense, defense costs and supplementary payments.
**LIMIT includes litigation costs.
Item 5. MUNICIPAL LIABILITY DEDUCTIBLE: (Subject to General Annual Aggregate Deductible,
if any, shown on Common Coverage Declarations)
$ 500 Per Occurrence
Item 6. RETROACTIVE DATES:
MUNICIPAL LIABILITY RETROACTIVE DATE: 07/07/87
LIMITED POLLUTION LIABILITY CLAIM RETROACTIVE DATE: 05/24/88
LEAD OR ASBESTOS CLAIM RETROACTIVE DATE: 07/07/93
Item 7. ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
CM C(11-03) M E066(11-02) M E073(11-01) M G L-1(01-95)
LMCIT DEC-013(11/86)(Rev.11/03)
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 Other words and phrases that appear in italics have
covered. special meaning, as given in SECTION N -
DEFINITIONS.
The words city and covered party are defined under
SECTION I - COVERAGES
COVERAGE A. MUNICIPAL LIABILITY (1) For claims for bodily injury or property
COVERAGE (CLAIMS MADE BASIS) damage,the date of the occurrence is the date on
which the bodily injury or property damage first
1. COVERAGE AGREEMENT took place or is alleged to have taken place.
a. Except as otherwise provided in this agreement, (2) For any other claim for damages,the date of
LMCIT will pay on behalf of the covered party the occurrence is the date on which the wrongful
all sums which the covered party shall become act giving rise to the claim for damages took
legally obligated to pay as damages as a result of place or is alleged to have taken place. If the
an occurrence, if the following conditions are damages are alleged to have arisen from a series
met: of wrongful acts, the date of the occurrence is
deemed to be the date when the first such
(1) The claim for such damages must be first wrongful act took place or is alleged to have
made against the covered party during the. taken place.
coverage period; and -
If both(1) and (2) apply to claims for damages
(2) The date of the occurrence giving rise to the arising from a single occurrence, the date of the
claim for damages must be on or after the occurrence is the earlier of the dates defined by
retroactive date, if any, shown in the (1) and (2),respectively.
Declarations; and
b. For any claim for damages,the date the claim is
(3) The occurrence must have taken place in the made is deemed to be as follows:
coverage territory.
(1) For any employment liability claim, the
b. LMCIT will have the right and duty to defend claim is deemed to have been made on the
-
any such claim or suit seeking damages.LMCIT earliest of:
may, at its discretion, investigate any actual or
potential claim; and unless the city has given (a) The date the claimant files a charge with
notice as provided in SECTION VI - the Federal Equal Employment Opportunity
CONDITIONS, 7.,LMCIT may settle any claim Commission, the Commissioner of the
or suit. Minnesota Department of Human Rights, or
a local Human Rights Commission as
c. The amount LMCIT will pay for damages is defined in Minnesota Statute §363.01, subd.
un
limited as described in SECTION III - LIMITS 23, whichever comes first; or
OF COVERAGE.
(b) The date when notice of claim for
2. CLAIM AND OCCURRENCE DATES damages is received by any covered party or
by LMCIT, whichever comes first.
a. For any claim for damages, the date of the
occurrence shall be aeemed to be as follows: (2)-1For any other claim for damages, the claim
LMCIT CMC(11-86)(Rev. 11-03) Page 1 of 21
is deemed to have been made when notice of such d. Any loss, cost, or expense arising out of any
claim is received and recorded by any covered direction demand, or request by the government
party or by LMCIT, whichever comes first. or any other entity that the city or any other entity
test for,monitor,clean up,remove, contain,treat,
(3) All claims for damages arising from a single detoxify or neutralize pollutants; or
occurrence will be deemed to have been made at
the time the first of those claims is made against Damages arising out of the actual, alleged or
any covered party. threatened discharge, dispersal, seepage,
migration,release or escape of pollutants:
3. EXCLUSIONS
(1) At or from premises the city owns, rents,
This coverage does not apply to: leases,uses, or occupies,and premises the city no
longer owns, rents, leases, uses, or occupies;
a. Damages for which the covered party is liable by
reason of the assumption of liability in a contract (2) At or from any landfill,dump,or other site or
or agreement. This exclusion does not apply to location presently or formerly used by or for the
liability for damages: city or others for the handling, storage, disposal,
processing or treatment of pollutants;
(1) Assumed in a contract or agreement that is a
covered contract; or (3) Which are or were at any time transported,
handled,stored,treated,disposed of,or processed
(2) The covered party would have in the absence as waste by or for the city or any person or
of the contract or agreement. organization for whom the city may be legally
responsible; or
b. Damages for which the covered party may be
liable by reason of the Minnesota Civil Damages (4) At or from any site or location on which the
Act(M.S.340A.801-340A.802),or any other law city or any contractors or subcontractors working
governing liability for illegal sales of alcoholic directly or indirectly on the city's behalf are or
beverages. have been performing operations:
c. Bodily injury to: (a) If the pollutants are brought on or to the
site or location in connection with such
(1) An employee of the city arising out of and in operations; or
the course of employment by the city; or
(b) If the operations are to test for, monitor,
(2) Damages to the spouse,child,parent,brother clean up, remove, contain, treat, detoxify or
or sister of that employee as a consequence of(l) neutralize the pollutants.
above. -
This exclusion does not apply to any of the
This exclusion applies: following:
(1) Whether the city may be liable as an employer (1) Any limited pollution liability claim.
or in any other capacity; and
(2) Any claim arising out of the discharge or
(2) To any obligation to share damages with or dispersal of mace, tear gas or similar agent, if
repay someone else who must pay damages such discharge was for the purpose of protecting
because of the injury. - persons or property or incident to an arrest.
This exclusion does not apply to liability assumed (3) Any lead claim or asbestos claim, unless the
by the covered party under a covered contract. actual,alleged,or threatened discharge,dispersal,
release, escape, use, distribution, or handling of
LMCIT CMC(11-86)(Rev. 11-03) Page 2 of 21
lead or asbestos took place at or from any landfill, (4) Work performed by or on behalf of the city
dump, or other site or location presently or arising out of your work or any portion thereof,or
formerly used by or for the city or others for the out of materials,parts or equipment furnished in
handling, storage, disposal, processing or connection therewith.
treatment of pollutants.
(5) Your product arising out of it or any part of it.
(4) Any damages arising out of heat, smoke, or
fumes from a hostile fire. A hostile fire is a fire Paragraphs (3) and (4) of this exclusion do not
which becomes uncontrollable or breaks out from apply to liability assumed under a sidetrack
where it was intended to be. agreement.
e. Damages arising out of the ownership, This exclusion does not apply to property damage
maintenance, use or entrustment to others of any by fire to premises rented to the city. A separate
aircraft,auto or watercraft owned or operated by limit of coverage applies to this coverage as
or rented or loaned to any covered party. Use described in SECTION III - LIMITS OF
includes operation and loading or unloading. COVERAGE.
This exclusion does not apply to: h. Damages claimed for any loss, cost or expense
incurred by the city or others for the loss of use,
(1) A watercraft while ashore on premises the withdrawal, recall, inspection, repair,
city owns or rents; replacement, adjustment,removal or disposal of:
(2) A watercraft that is: (1) Your product;
(a) Less than 26 feet long; and (2) Your work; or
(b) Not being used to carry persons or (3) Impaired property;
property for a charge;
if such product,work,or property is withdrawn or
(3) Parking an auto on, or on the ways next to, recalled from the market or from use by any
premises the city owns or rents,provided the auto person or organization because of a known or
is not owned by or rented or loaned to the covered suspected defect, deficiency, inadequacy or
party. dangerous condition in it.
f. Damages due to war,whether or not declared, or i. Bodily injury to any volunteer while acting on
any act or condition incident to war.War includes behalf of the city if the volunteer is an employee
civil war, insurrection, rebellion or revolution. within the meaning of a workers' compensation
law or similar law, or is covered under a
g. Property damage to: voluntary endorsement to a workers'
compensation insurance policy.
(1) Property the city owns,rents, or occupies;
j. Damages for bodily injury,property damage or
(2) Premises the city sells, gives away or personal injury arising out of the city's
abandons, if the property damage arises out of ownership, operation or maintenance of any
any part of those premises; airport.
(3) That particular part of real property on which k. Damages for bodily injury,property damage, or
the city or any contractors or subcontractors personal injury arising out of the city's
working directly or indirectly on the city's behalf ownership, operation or maintenance of any:
are performing operations,if the property damage
arises out of those operations; or (1) Medical clinic;
LMCIT CMC(11-86)(Rev. 11-03) Page 3 of21
a
(2) Licensed hospital, boarding care home, (1) Class I or Class II dam as classified by the
outpatient surgical center, or supervised living Commissioner of the Department of Natural
facility; Resources pursuant to Minnesota Rules
§6115.0340; or
(3) Licensed psychiatric hospital;
(2) Any dike, levee or similar structure.
(4) Mental health clinic;
n. Damages arising out of the city's ownership,
(5) Licensed nursing home or home care sponsorship or operation of:
providers; or
(1) Motorized amusement devices, if the power
(6) Registered housing with services supply motor is rated at greater than 5
establishments. horsepower;
1. Damages arising out of the rendering of or failure (2) Any mobile equipment, automobile,
to render professional services. by any snowmobile or motorcycle in any racing,pulling,
professional listed below: pushing, speed, or demolition contest or in any
stunting activity;
(1) Attorney, unless the attorney is an employee
of the city and not an independent contractor,and (3) Rodeos; or
the professional services are within the scope of
the attorney's duties as a city employee,including (4) Fireworks displays or exhibitions.
professional services performed for any of the
city's boards, commissions, authorities or o. Damages arising from or relating to the detention
agencies,orjoint powers entities in which the city or confinement of any person(s) in any jail,
participates. holding cell or similar detention facility, which
the city owns,operates or maintains,if the date of
(2) Architect. the occurrence causing such damages takes place
after a continuous detention or confinement
(3) Doctor of medicine. period of 30 days, or in any detention facility
which is intended and regularly used for
(4) Dentist. confinement of persons for periods in excess of
30 days.
(5) Nurse, except that this exclusion shall not
apply to: p. Damages arising out of the activities of any of the
following city boards, commissions, or agencies:
(a) Claims arising from the nurse's activities
in the capacity of an emergency medical (1) Gas,electrical or steam utilities commission;
technician,paramedic or first responder; or
(2) Port authority, housing and redevelopment
(b) Claims arising from the nurse's activities authority, economic development authority, area
in administering vaccinations or or municipal redevelopment authority, or similar
immunizations to city employees or agency;
volunteers.
(3) Municipal power agency; or
(6) Pharmacist.
(4) Municipal gas agency,
(7) Psychologist.
unless such board, commission, authority, or
rn. Damages arising out of the failure or bursting of agency is named in the Declarations, in which
any: case the city will also be covered to the extent of
LMCIT CMC(11-86)(Rev. 11-03) Page 4 of 21
coverage provided under this covenant to the b. Included within the products-completed
named board,commission,authority or agency for operations hazard;
damages arising out of the activities of the
respective named board,commission,authority or c. Arising out of operations performed for the city
agency. by an independent contractor other than:
q. Damages arising out of the activities of a joint (1) Maintenance and repair of the covered
powers entity in which the city is a member unless premises; or
the joint powers entity is named in the
Declarations. (2) Structural alterations at such premises which
do not involve changing the size of or moving
r. Damages arising out of condemnation, inverse buildings or other structures;
condemnation,adverse possession, or dedication
by adverse use. This exclusion does not apply to d. To any tenant or other person regularly residing
any claim for taking of property wherein the on the covered premises;
taking of property is incident to an arrest or for
the purpose of protecting persons or property in e. To any other tenant if the bodily injury occurs on
an emergency. that part of the covered premises rented from the
city;
s. Any criminal proceedings or proceedings under
the open meeting law against any covered party. f. To any person while engaged in maintenance and
repair of the covered premises or alteration,
t. Damages with respect to any claim(s) made by demolition or new construction at such premises;
LMCIT or the city against any other covered
party. g. To any person practicing, instructing or
participating in any physical training, sport,
u. Any claim for damages asserted in any land use, athletic activity or contest whether on a formal or
development or franchise litigation. informal basis;
COVERAGE B. MEDICAL AND h. To a member or guest of any club,tourist court or
RELATED EXPENSE trailer park operated or owned by the city; or
1. COVERAGE AGREEMENT i. For any injury for which the injured party has
received or is entitled to receive workers'
a. LMCIT will pay to or for each person who compensation benefits.
sustains bodily injury caused by accident all
reasonable medical and related expense incurred The exclusions of the MUNICIPAL LIABILITY
within one year from the date of the accident as a COVERAGE PART (COVERAGE A) also apply to
result of such bodily injury,provided such bodily this Coverage Part as respects bodily injury.
injury arises out of a condition in the covered
premises. 3. ADDITIONAL DEFINITIONS
b. The amount LMCIT will pay for medical and When used herein:
related expense is limited as described in
SECTION III-LIMITS OF COVERAGE. Covered premises means all premises owned or
rented to the city with respect to which the city is
2. EXCLUSIONS afforded coverage for bodily injury liability under
this covenant, and includes the ways immediately
LMCIT will not pay expenses for bodily injury: adjoining on land; however, covered premises does
not include streets, sidewalks, or boulevards that do
a. Arising out of the operation or use of-any not abut a city owned building or city owned parking
snowmobile or trailer designed for use therewith; lot.
LMCIT CMC(11-86)(Rev.11-03) Page 5 of21
•
Medical and related expense means expenses for occurrence and settle any claim or suit that may
necessary medical, surgical, x-ray and dental result.
services, including prosthetic devices, necessary
ambulance, hospital, professional nursing and 2. EXCLUSIONS
funeral services, and replacement or repair of
damaged eye glasses or clothing. This coverage does not apply to:
4. ADDITIONAL CONDITION MEDICAL a. Any obligation for which the covered party or any
REPORTS; PROOF AND PAYMENT OF carrier as his insurer maybe held liable under any
CLAIM workers' compensation, unemployment
compensation or disability benefits law, or under
As soon as practicable, the injured person or any similar law.
someone on his behalf shall give to LMCIT written
proof of claim,under oath if required,and shall,after b. Any liability the city may have for bodily injury
each request from LMCIT, execute authorization to to:
enable LMCIT to obtain medical reports and copies
of records. The injured person shall submit to (1) An employee of the city arising out of and in
physical examination by physicians selected by the course of employment by the city; or
LMCIT when and as often as LMCIT may reasonably
require. LMCIT may pay the injured person or any (2) Damages to the spouse,child,parent,brother
person or organization rendering the services, and or sister of that employee as a consequence of(1)
the payment shall reduce the amount payable above.
hereunder for such injury. Payment hereunder shall
not constitute an admission of liability of any This exclusion applies:
covered party or of LMCIT.
(1) Whether the city may be liable as an employer
COVERAGE C. AUTOMOBILE or in any other capacity; and
LIABILITY - BODILY INJURY AND (2) To any obligation to share damages with or
PROPERTY DAMAGE repay someone else who must pay damages
1. COVERAGE AGREEMENT because of the injury.
This exclusion does not apply to liability assumed
LMCIT will pay on behalf of the covered party all by the covered party under a covered contract.
sums which the covered party shall become legally
obligated to pay as damages because of bodily injury c. Property damage to property owned by the
or property damage to which this coverage applies, covered party.
caused by an occurrence and arising out of the
ownership,maintenance or use,including loading or d. Bodily injury due to war,whether or not declared,
unloading,of any automobile.This coverage applies civil war, insurrection,rebellion or revolution or
only to bodily injury or property damage which to any act or condition incident to any of the
occurs during the coverage period and within the foregoing;
covered territory.
e. Any loss, cost, or expense arising out of any
LMCIT will have the right and duty to defend any direction, demand, or request by the government
suit seeking those damages. However: or any other entity that the city or any other entity
test for,monitor, clean up,remove,contain, treat,
a. The amount LMCIT will pay for damages is detoxify or neutralize P ollutants; or
limited as described in SECTION III - LIMITS
OF COVERAGE. Damages arising out of the actual, alleged or
may, at its discretiqn, threatened discharge, dispersal, seepage,
b. LMCIT ma
y qn, investigate any migration, release or escape of pollutants:
LMCIT CMC(11-86)(Rev. 11-03) Page 6 of 21
(1) At or from premises the city owns, rents, f. Liability assumed under any contract or
leases,uses,or occupies,and premises the city no agreement, but this exclusion does not apply to
longer owns,rents, leases, uses, or occupies; liability assumed under a covered contract.
(2) At or from any landfill,dump, or other site or 3. ADDITIONAL DEFINITIONS
location presently or formerly used by or for the
city or others for the handling, storage, disposal, These additional definitions apply for purposes of
processing or treatment of pollutants; COVERAGE C:
(3) Which are or were at any time transported, Automobile business means the business or
handled,stored,treated,disposed of,or processed occupation of selling,repairing,servicing,storing or
as waste by or for the city or any person or parking automobiles.
organization for whom the city may be legally
responsible; or Hired automobile means an automobile not owned
by the city which is used under contract on behalf
(4) At or from any site or location on which the of, or Ioaned to, the city.
city or any contractors or subcontractors working
directly or indirectly on the city's behalf are or Owned automobile means an automobile owned by
have been performing operations; the city.
(a) If the pollutants are brought on or to the Trailer includes semi-trailer but does not include
site or location in connection with such mobile equipment.
operations; or
COVERAGE D . LAND USE,
(b) If the operations are to test for, monitor, DEVELOPMENT OR FRANCHISE
clean up, remove, contain, treat, detoxify or LITIGATION
neutralize the pollutants.
This exclusion does not apply to any of the
1. COVERAGE AGREEMENT
following: Except as provided below, for any land use,
(1) Any limited pollution liability claim. development or franchise litigation which is first
filed or served by or against the city or a city officer
(2) Any claim arising out of the discharge or or employee during the annual coverage period of
this agreement,LMCIT will pay the following on the
dispersal of mace, tear gas or similar agent, if city's behalf:
such discharge was for the purpose of protecting
persons or property or incident to an arrest. a. 100% of the first $25,000 of litigation costs
which are incurred after the litigation has been
(3) Any lead or asbestos claim unless the actual, reported to LMCIT; 85% of the next$225,000 of
alleged, or threatened discharge, dispersal, litigation costs incurred after the litigation has
release, escape, use, distribution, or handling of been reported to LMCIT; and 60% of any
lead or asbestos took place at or from any landfill, litigation costs in excess of$250,000 which are
dump, or other site or location presently or
formerly used by or for the city or others for the incurred after the litigation has been reported to
handling, storage, disposal, processing or LMCIT; and
treatment of pollutants. b. 50% of any necessary legal fees for counsel to
represent the city which the city incurs prior to
(4) Any damages arising out of heat, smoke, or reporting the litigation to LMCIT.
fumes from a hostile fire. A hostile fire is a fire
which becomes uncontrollable or breaks out from This coverage shall not apply to any land use,
where it was intended to be.
development or franchise litigation which is first
LMCIT CMC(11-86)(Rev.11-03) Page 7 of 21
reported to LMCIT more than one year after the date b. Necessary legal fees for counsel to represent the
on which the litigation was first filed or served by or city which the city incurs prior to reporting the
against the city or a city officer or employee. litigation to LMCIT;
The amount LMCIT will pay for litigation costs for c. Necessary litigation expenses other than legal
land use,development or franchise litigation covered fees;
under this section is limited as described in
SECTION III-LIMITS OF COVERAGE. d. Damages which the city is required to pay; and
The amountLMClTpays for litigation costs for land e. Supplementary payments made or incurred as
use, development or franchise litigation is subject to defined in SECTION V - SUPPLEMENTARY
the Municipal Liability Deductible shown in the PAYMENTS.
Municipal Liability Declarations or the General
Annual Aggregate Deductible, if any, shown in the 4. SPECIAL PROVISIONS - INTER-CITY
Common Coverage Declarations. LITIGATION
2. LITIGATION MANAGEMENT The following special provisions shall apply only to
• coverage for any land use, development or franchise
For any land use, development or franchise litigation in which: 1)An opposing litigant is also a
litigation, legal counsel will be selected by mutual member of the LMCIT property/casualty program;
agreement of the city and LMCIT. and 2) The litigation is also a covered claim for the
opposing litigant under COVERAGE D of the
If LMCIT and the city are not able to agree on opposing litigant's LMCIT municipal liability
selection of counsel, LMCIT will provide a list of coverage:
five attorneys experienced in land use, development
or franchise litigation matters; and the city will a. Legal counsel will be selected as provided above,
select legal counsel from that list. but LMCIT will not otherwise participate in the
management of the litigation.
A land use, development or franchise litigation suit
may not be settled without the approval of both b. Any settlement of the litigation involving a
LMCIT and the city. payment of damages must be approved by
LMCIT.
3. ADDITIONAL DEFINITIONS
c. The percentage LMCIT will pay of any litigation
This additional definition applies for the purpose of costs will be one-half of the percentages specified
COVERAGE D. in COVERAGE D. 1. COVERAGE
AGREEMENT.
Litigation costs means:
d. LMCITs total liability to the city for litigation
a. Legal fees for counsel appointed pursuant to 2. costs for the litigation shall not exceed$500,000.
LITIGATION MANAGEMENT, above; This does not increase the annual aggregate limit
as described in SECTION III - LIMITS OF
COVERAGE, 11.
SECTION II - WHO IS COVERED
1. City means the city or other governmental body or a. Gas, electrical or steam utilities commission;
entity first named in the Declarations. Unless
specifically named in the Declarations, city shall b. Port authority, housing and redevelopment
not include any of the following: authority, economic development authority, area
or municipal redevelopment authority or similar
agency;
LMCIT CMC(11-86)(Rev.11-03) Page 8 of 21
c. Municipal power agency; the activities of the joint powers entity, any
present or former:
d. Municipal gas agency;
(a) Governmental member of the joint
e. Welfare or public relief agency; powers entity;
f. School board; or (b) Elected or appointed official of the
governmental member;
g. Joint powers entity.
(c) Employee of the governmental
2. For purposes of COVERAGE A and COVERAGE member; or
D, covered party means:
(d) Other authorized person or agent of
a. The city, and any other entity named in the the governmental member, but excluding
Declarations; independent contractors.
b. For actions within his duties as such, any 3. For purposes of COVERAGE C, covered party
present or former: means:
(1) Member of the city council; a. The city, and any other entity named in the
Declarations with respect to any automobile;
(2) Member of a city board, commission, or
committee which is not excluded by the b. Any present or former elected or appointed
definition of city; official, employee or volunteer of the city with
respect to any automobile while such automobile
(3) Elected or appointed official of the city; is or was being used in the business of the city;
(4) Employee of the city; c. Any person or organization from whom a
covered party hires or borrows a trailer which is
(5) Volunteer person or organization while connected to an owned automobile;
acting on behalf of the city and subject to the
city's direction and control; d. Any person while using an owned automobile
or hired automobile only while such automobile
(6) Other authorized person or agent of the is or was used with the city's permission.
city while acting on behalf of the city, but
excluding independent contractors; e. Any other person or organization but only with
respect to his or its liability because of acts or
(7) City relief association and its members, omissions of a covered party under a.,b., c. or d.
officers, and employees; or above.
(8) Person while acting in the administrative For purposes of COVERAGE C, none of the
capacity of medical director or medical advisor following is a covered party:
to the city ambulance service.
a. Any person or organization from whom a
c. With respect to a joint powers entity named in covered party hires or borrows an automobile that
the Declarations: is not a trailer.
(1) The joint powers entity; b. Any person while employed in or otherwise
engaged in duties in connection with an
(2) While acting on behalf of the joint powers automobile business, other than an automobile
entity,or with respect to liability arising out of business operated by the city.
LMCIT CMC(11-86)(Rev.11-03) Page 9 of 21
c. Any person while loading or unloading an (2) A lessee or borrower of an owned
automobile,other than: automobile or their employees.
(1) A city officer, employee, or volunteer; or
SECTION III - LIMITS OF COVERAGE
1. The Limits of Coverage shown in the of bodily injury to two or more persons resulting
Declarations and the rules below fix the most from one occurrence.
LMCIT will pay as damages under each coverage
part regardless of the number of: 7. The Limited Pollution Liability Claim Annual
Aggregate Limit is the most LMCIT will pay for
a. Covered parties; limited pollution liability claims during the
annual coverage period. The Limited Pollution
b. Claims made or suits brought; or Liability Claim Annual Aggregate Limit applies
to the sum of damages and loss adjustment
c. Persons or organizations making claims or expense, including defense costs and
bringing suits. supplementary payments as defined in SECTION
V - SUPPLEMENTARY PAYMENTS.
2. LMCITs maximum limit of liability for
COVERAGES A and C combined shall be the per 8. The Lead or Asbestos Claim Annual Aggregate
occurrence or sudden occurrence limit shown in Limit is the most LMCIT will pay for all lead .
the Declarations whether the claim or claims fall claims or asbestos claims during the annual
under COVERAGE A, COVERAGE C, or both. coverage period. The Lead or Asbestos Claim
Annual Aggregate Limit applies to the sum of
3. The Limits of Coverage shown in the damages, loss adjustment expense, defense
Declarations, except as otherwise described, costs,and supplementary payments as defined in
apply only to the damages under each Coverage SECTION V -SUPPLEMENTARY PAYMENTS.
Part in excess of the Municipal Liability
Deductible shown in the Municipal Liability 9. The Failure to Supply Claim Annual Aggregate
Declarations or the General Annual Aggregate Limit is the most LMCIT will pay for damages
Deductible, if any, shown in the Common for failure to supply claims during the annual
Coverage Declarations, and the Limits of coverage period.
Coverage will be reduced by the Deductible
amount. 10. The EMF Claim Annual Aggregate Limit is the
most LMCIT will pay for damages for EMF
4. The Products-Completed Operations Annual claims during the annual coverage period.
Aggregate Limit is the most LMCIT will pay
under COVERAGE A for damages included in 11. LMCIT's total liability for litigation costs, as
the products-completed operations hazard. defined in SECTION I-COVERAGE D,LAND
USE, DEVELOPMENT OR FRANCHISE
5. The Fire Damage Limit is the most LMCIT will LITIGATION, for all land use, development or
pay under COVERAGE A for damages because franchise litigation which is first filed or served
of property damage to premises rented to the city against the city during the annual coverage
arising out of any one fire. period of this agreement shall not exceed
$1,000,000, regardless of the number of suits,
6. The Medical and Related Expense Limit is the defendants, or claimants.
most LMCIT will pay under COVERAGE B for
all medical expenses because of bodily injury 12. The Mold Claim Annual Aggregate Limit is the
sustained by any one person, and the occurrence most LMCIT will pay for damages for mold
limit is the most LMCIT will pay under claims during the annual coverage period.
COVERAGE B for all medical expenses because
LMCIT CMC(11-86)(Rev.11-03) Page 10 of 21
•
13. LMCIT shall not be obligated under this remaining period of less than 12 months,starting
covenant to pay any claim or judgment or to with the beginning of the coverage period shown
defend any suit after the applicable limit of in the Declarations,unless the coverage period is
LMCITs coverage has been exhausted or by extended after issuance for an additional period
tender to any excess carrier or excess coverage of less than 12 months. In that case, the
including excess coverage provided by LMCIT. additional period will be deemed part of the last
preceding period for purposes of determining the
14. For any Annual Aggregate Limit shown in the limits of coverage.
Declarations, the limit shall apply separately to
each consecutive annual period and to any
SECTION IV - DEFINITIONS
1. Advertisement means a notice that is broadcast or 4. Automobile (auto) means a land motor vehicle,
published to the general public or specific market trailer or semi-trailer designed for travel on
segments about the city's goods, products or public roads,including any attached machinery or
services for the purpose of attracting customers or equipment. But automobile does not include
supporters. mobile equipment.
2. Aircraft means any aircraft, including engines, 5. Bodily injury means bodily injury, sickness or
propellers, operating and navigating instruments disease sustained by a person, including death
and radio equipment attached to or usually resulting from any of these at any time.
attached to or carried on the aircraft, including
component parts detached and not replaced by 6. Coverage territory means:
other similar parts and tools therein which are
standard for the make and type of aircraft. a. The United States of America (including its
territories and possessions), Puerto Rico and
3. Asbestos claim means damages arising directly or Canada;
indirectly out of, resulting from, caused by or
contributed to by: b. International waters or airspace,provided the
injury or damages do not occur in the course of
a. The use of,sale of,installation of,removal of, travel or transportation to or from any place not
abatement of, distribution of, containment of, or included in a. above; or
exposure to asbestos,asbestos products,asbestos-
containing material, asbestos fibers, or asbestos c. All parts of the world if:
dust;
(1) The injury or damage arises out of:
b. The actual or threatened abatement,mitigation,
removal or disposal of asbestos, asbestos (a) Goods or products made or sold by the
products, asbestos-containing material, asbestos city in the territory described in a. above;
fibers, or asbestos dust; or
c. Any supervision, instructions, (b) The activities of a person whose home
recommendations, warnings or advice given or is in the territory described in a.above,but
which should have been given in connection with is away for a short time on the city's
subparagraphs a. and b. above; or business; and
d. Any obligation of the covered party to (2) The covered party's responsibility to pay
indemnify any party in connection with damages is determined in a suit on the merits,
subparagraphs a., b. or c. above. in the territory described in a. above or in a
settlement LMCIT agrees to.
LMCITCMC(11-86)(Rev. 11-03) Page 11 of21
7. Covered contract means an indemnification of a a. Any obligation of a covered party under a
municipality as required by ordinance,or that part workers' compensation, disability benefits, or
o f any contract or agreement pertaining to the unemployment compensation law or an y similar
city's business under which the city assumes the law.
tort liability of another to pay damages to a third
person or organization, if the contract or b. Exemplary damages or punitive damages
agreement is made prior to the date of the except punitive damages claimed or levied
occurrence giving rise to the damages. Tort against an officer, employee or volunteer of the
liability means a liability that would be imposed city, provided that the officer, employee or
by law in the absence of any contract or volunteer:
agreement.
(1) Was acting in the performance of the
Covered contract does not include that part of any duties of the position; and
contract or agreement:
(2) Was not guilty of malfeasance in office,
a. That indemnifies an architect, engineer or willful neglect of duty, or bad faith.
surveyor for injury or damages arising out of:
c. Fines or penalties imposed by law.
(1) Preparing, approving or failing to prepare
or approve maps, drawings, opinions,reports, d. Injunctive or equitable relief,or quasi-judicial
surveys, change orders, designs or or administrative orders.
specifications; or
e. Repayment of any tax, assessment, fee, or
(2) Giving directions or instructions,or failing other charge that was wrongfully obtained,or any
to give the same,if that is the primary cause of interest on, or any other amount claimed for loss
the injury or damages; of use of, such tax, assessment, fee, or other
charge.
b. Under which the city's architect, engineer or
surveyor assumes liability for injury or damages f. Amounts paid or payable for the purchase or
arising out of the city's rendering or failing to permanent acquisition of property or property
render professional services, including those rights, or for the right to permanently enforce an
listed in a. above, and supervisory, ins ection or ordinance,regulation,ulation or restriction on the use of
inspection
engineering services; or property.
c. That indemnifies any person or organization g. Amounts due under the terms of any
for damages by fire to premises rented or loaned contractual obligation, except for liability:
to the city.
(1) Assumed in a covered contract; or
8. Damages means money damages, and includes
awards for attorneys' fees with respect to federal (2) Assumed in an employment contract
civil rights suits and state human rights suits. between the city and its employees.
With respect to any land use, development or h. Any wages and employment benefits for work
franchise litigation, damages also includes that has been performed by the employee making
amounts the city is obligated to pay for loss of use the claim, or any claimed increases in such
of property during the time prior to a final wages and employment benefits for work that is
determination by the court that enforcement of a hereafter performed by the employee making the
land use, zoning, subdivision, or similar claim.
ordinance or regulation constitutes a taking of
private property. 9. EMF claim means any claim for damages arising
out of the actual or alleged exposure to
Damages does not include any of the following: electromagnetic fields,electromagnetic radiation
or stray voltage.
LMCIT CMC(11-86)(Rev. 11-03) Page 12 of 21
10. Failure to supply claim means any claim for subdivision, or similar ordinance or regulation;
-
damages arising out of the complete or partial or
failure to supply water, electricity,gas or steam.
b. Any litigation relating to the city's
11. Fungus(es) includes, but is not limited to, any involvement in the financing or approval of any
form or type of mold, mushroom or mildew. development or redevelopment project.
12. Impaired property means tangible property, c. Any litigation relating to the granting,refusal,
other than your product or your work, that interpretation, or enforcement of any franchise,
cannot be used or is less useful because: ordinance, permit, license, or other mechanism
through which the city authorizes or regulates
a. It incorporates your product or your work that the provision of cable communications,
is known or thought to be defective, deficient, electricity, gas, heat, telephone, or other public
inadequate or dangerous; or utilities within the city.
b. The city has failed to fulfill the terms of a Any litigation meeting the criteria listed above
contract or agreement; will be considered to be land use, development
or franchise litigation in its entirety, regardless
if such property can be restored to use by: of whether the litigation may assert other claims
as well.
(1) The repair, replacement, adjustment or
removal of your product or your work, or But land use,development or franchise litigation
does not include litigation:
(2) The city's fulfilling the terms of the
contract or agreement. a. That seeks only compensation or other relief
for an actual or alleged physical occupation,
13. Joint powers entity means an operating entity invasion, or use of property by the city;
created by two or more governmental units
entering into an agreement as provided by statute b. That seeks only a reduction or invalidation of
for the joint exercise of governmental powers. a special assessment;
An intergovernmental agreement will be deemed
to create a joint powers entity if the agreement c. That seeks only compensation for damages
establishes a board with the effective power to based on the city's actual or alleged negligent
do any of the following, regardless of whether inspection or enforcement of the state building,
the specific consent of the constituent plumbing, electrical, fire, or similar codes;
governmental units may also be required:
d. That seeks only amounts due under contract,
a. To receive and expend funds; including any city bonds or other obligation; or
b. To enter contracts; e. That was initiated by the city to enforce a
building, zoning, subdivision, or similar
c. To hire employees; ordinance or regulation related to the use of
property, unless that litigation also involves a
d. To purchase or otherwise acquire and hold challenge to the constitutionality of the
real or personal property; or ordinance or regulation or to the legal authority
of the city to enact it.
e. To sue or be sued.
15. Lead claim means damages arising directly or
14. Land use, development or franchise litigation indirectly out of, resulting from, caused by or
means: contributed to by:
a. Any litigation relating to the application or a. The toxic-9r pathological properties of lead,
interpretation of a city's land use, zoning, lead compounds or lead contained in any
LMC1T CMC(11-86)(Rev.11-03) Page 13 of 21
materials; mechanical device, other than a hand truck, that
is not attached to the aircraft,watercraft or auto.
b. The actual or threatened abatement,
mitigation, removal or disposal of lead, lead 19. Mobile equipment means any of the following
compounds or materials containing lead; types of land vehicles, including any attached
machinery or equipment:
c. Any supervision, instructions,
recommendations, warnings or advice given or a. Bulldozers, farm machinery, forklifts and
which should have been given in connection with other vehicles designed for use principally off
subparagraphs a. or b. above; or public roads;
d. Any obligation of the covered party to b. Vehicles that travel on crawler treads;
indemnify any party in connection with
subparagraphs a., b. or c. above. c. Vehicles, whether self-propelled or not,
maintained primarily to provide mobility to
16. Limited pollution liability claim means any claim permanently mounted:
for damages which resulted from a sudden
occurrence which took place on or after the (1) Power cranes,shovels,loaders,diggers or
retroactive date shown in the Declarations and drills; or
prior to the expiration date of this covenant, and
which: (2) Road construction or resurfacing
equipment such as graders, scrapers or
a. Was caused by an actual, alleged, or rollers;
threatened discharge, dispersal, release, or
escape of pollutants which took place entirely d. Vehicles not described in a., b., or c. above
above ground and not within or on the surface of that are not self-propelled and are maintained
any lake, stream,surface water,or other body of primarily to provide mobility to permanently
water, and in which any resulting damages attached equipment of the following types:
occurred entirely above ground and not within or
on the surface of any lake,stream,surface water, (1) Air compressors, pumps and generators,
or other body of water; or including spraying, welding, building
cleaning, geophysical exploration, lighting
b. Arises from the accidental rupture,backup or and well-servicing equipment; or
overflow of the city's sanitary sewer, storm
sewer, or water supply systems. (2) Cherry pickers and similar devices used
to raise or lower workers;
17. LMCIT means the League of Minnesota Cities
Insurance Trust. e. Vehicles not described in a., b., or c. above
maintained primarily for purposes other than the
18. Loading or unloading means the handling of transportation of persons or cargo.
property:
20. Mold claim means any claim for damages arising
a. After it is moved from the place where it is directly or indirectly out of, resulting from,
accepted for movement into or onto an aircraft, caused by, or contributed to by:
watercraft or auto;
a. Any fungus(es) or spore(s);
b. While it is in or on an aircraft, watercraft or
auto; or b. Any solid, liquid, vapor, or gas produced by
or arising out of any funguses) or spore(s);
c. While it is being moved from an aircraft,
watercraft or auto to the place where it is finally c. Any material, product, building component,
delivered; but loading or unloading does not or building structure that contains, harbors,
include the movement of property by means of a nurtures or acts as a medium for any fungus(es)
LMCIT CMC(11-86)(Rev. 11-03) Page 14 of 21
or spore(s); d. Assault or battery committed for the purpose
of protecting persons or property or incident to
d. Any intrusion, leakage, or accumulation of an arrest.
water or any other liquid that contains, harbors,
nurtures or acts as a medium for fungus(es) or e. The use of another's advertising idea in your
spore(s); advertisement.
e. The actual or threatened abatement, f. Infringing upon another's copyright, trade
mitigation,removal or disposal of fungus(es) or dress or slogan in your advertisement.
spore(s) or any material, product, building
component, or building structure that contains, 23. Pollutants means any solid, liquid, gaseous or
harbors, nurtures or acts as a medium for any thermal irritant or contaminant,including smoke,
fungus(es) or spore(s); vapor, soot,fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
f. Any supervision, instructions, reconditioned or reclaimed.
recommendations, warnings or advice given or
which should have been given in connection with 24. Products-completed operations hazard includes
subparagraphs a.,b., c., d., or e. above; or all bodily injury and property damage occurring
away from premises the city owns or rents and
g. Any obligation of the covered party to arising out of your product or your work except:
indemnify any party in connection with
subparagraphs a.,b., c., d., e., or f. above. a. Products that are still in the city's physical
possession; or
21. Occurrence means:
b. Work that has not yet been completed or
a. With respect to COVERAGE A, a wrongful abandoned.
act or a series of related wrongful acts.
Your work will be deemed completed at the
b. With respect to COVERAGE C, an accident, earliest of the following times:
including continuous or repeated exposure to
substantially the same general harmful condition. a. When all of the work called for in the city's
contract has been completed;
Provided that for purposes of SECTION III -
LIMITS OF COVERAGE, occurrence shall be b. When all of the work to be done at the site
given the same meaning as given in the has been completed if the city's contract calls for
applicable statute establishing monetary limits work at more than one site;
on the city's tort liability.
c. When that part of the work done at a job site
22. Personal injury means injury other than bodily had been put to its intended use by any person or
injury, arising out of one or more of the organization other than another contractor or
following offenses: subcontractor working on the same project.
a. False arrest, detention, or imprisonment, or Work that may need service, maintenance,
malicious prosecution. correction, repair or replacement, but which is
otherwise complete, will be treated as
b. The publication or utterance of a libel or completed.
slander or other defamatory or disparaging
material, or a publication or utterance in 25. Property damage means:
violation of an individual's right of privacy.
a. Physical injury to tangible property,including
c. Wrongful entry or eviction, or other invasion all resulting loss of use of that property; or
of the right of private occupancy.
b. Loss of use of tangible property that is not
LMCIT CMC(11-86)(Rev. 11-03) Page 15 of21
physically injured. 30. Your product means:
26. Spore(s)include any reproductive body produced a. Any goods or products, other than real
by or arising out of any fungus(es). property, manufactured, sold, handled,
distributed or disposed of by:
27. Sudden occurrence means an accident or a
related series of accidents and the release of (1) The city;
pollutants resulting therefrom,all of which begin
and end within 72 hours; except that each (2) Others trading under the city's name; or
incident in which the city's sanitary sewer backs
up into a building is deemed to be a separate (3) A person or organization whose business
sudden occurrence. In the case of a related or assets the city has acquired; and
series of accidents, the sudden occurrence will
be deemed to have taken place when the first b. Containers (other than vehicles), materials,
accident in the related series of such accidents parts or equipment furnished in connection with
took place. such goods or products.
28. Suit means a civil proceeding in which damages. Your product includes warranties or
to which this coverage applies are alleged. Suit representations made at any time with respect to
includes an arbitration proceeding alleging such the fitness,quality, durability or performance of
damages to which the city must submit or submit any of the items included in a. and b. above.
with LMCITs consent. Suit does not mean any
criminal proceeding against any covered party or Your product does not include vending machines
any open meeting law proceeding, unless or other property rented to or located for the use
damages are also alleged in that proceeding. A of others but not sold.
charge of employment discrimination filed with
the Federal Equal Employment Opportunity 31. Your work means:
Commission, the Commissioner of the
Minnesota Department of Human Rights, or a a. Work or operations performed by the city or
local human rights commission as defined in on the city's behalf; and
Minnesota Statute §363.01, subd. 23, shall be
deemed to be a suit alleging damages. b. Materials, parts or equipment furnished'in
connection with such work or operations.
29. Wrongful act means any actual or alleged error,
statement, act, omission, offense, neglect, Your work includes warranties or representations
accident, or violation. Violation includes made at any time with respect to the fitness,
violation of any rights,immunities,or privileges quality, durability, or performance of any of the
secured by the Constitution and Laws of the items included in a. or b. above.
United States of America.
SECTION V - SUPPLEMENTARY PAYMENTS
With respect to any claim or suit LMCIT defends coverage applies.LMCIT does not have to furnish
under COVERAGES A, C,AND D,LMCIT will pay these bonds.
supplementary payments.
3. The cost of bonds to release attachments,but only
Supplementary payments means: for bond amount within the applicable limit of
coverage. LMCIT does not have to furnish these
1. All expenses LMCIT incurs. bonds.
2. Up to $250 for cost of bail bonds required 4. All reasonable expenses incurred by the covered
because of accidents or traffic law violations party at LMCITs request,to assist it in the:
arising out of the use of any vehicle to which the
LMCIT CMC(11-86)(Rev. 11-03) Page 16 of 21
a. Investigation or defense of the claim or suit,or 7. All interest on the full amount of any judgment
that accrues after entry of the judgment and
b. Litigation of any land use, development or before LMCIT has paid, offered to pay, or
franchise litigation which is filed or served. deposited in court the part of the judgment that is
within the applicable limits of coverage.
Reasonable expenses include the actual loss of
earnings up to $100 a day because of time off 8. Up to$200,000 for all awards for attorneys' fees
from work. pursuant to a statute, but this supplementary
payment does not include:
5. All costs taxed against the covered party in the
suit. a. Awards for attorneys' fees with respect to
federal civil rights suits and state human rights
6. Prejudgment interest awarded against the covered suits; or
party on that part of the judgment LMCIT pays.
If LMCIT makes an offer to pay the applicable b. Attorneys' fees awarded for an act, error,
limit of coverage, LMCIT will not pay any omission or violation which LMCIT does not
prejudgment interest based on that period of time have a duty to indemnify pursuant to
after the offer. SECTION VI- CONDITIONS, 1.
SECTION VI - CONDITIONS
1. LIMITATIONS ON LMCIT'S DUTY TO 2. FINANCIAL RESPONSIBILITY LAW
INDEMNIFY
When this covenant is certified as proof of financial
LMCITs duty to pay on behalf of or to indemnify a responsibility for the future under the provisions of
covered party other than the city shall not apply to any motor vehicle financial responsibility law, such
any act, error, omission, or violation: coverage as is afforded by this covenant shall comply
with the provisions of such law to the extent of the
a. Which constitutes malfeasance in office; or coverage and limits of liability required by such law.
b. Which constitutes willful neglect of duty; or 3. COVERED PARTY'S DUTIES IN THE
EVENT OF OCCURRENCE, CLAIM OR
c. Which constitutes bad faith; or SUIT
d. For which the city is not authorized to indemnify a. In the event of a claim or suit, notice containing
any person by statute; or particulars sufficient to identify the covered party
and also reasonably obtainable information with
e. Which constitutes dishonesty on the part of a respect to the time, place and circumstances
covered party; or thereof, and the names and addresses of the
injured and of available witnesses, shall be given
f. Which constitutes the willful violation of a statute by or for the covered party to LMCIT or any of its
or ordinance by any official, employee, or agent authorized agents as soon as practicable.
of the city.
The city shall promptly take, at its own expense,
The terms "malfeasance", "willful neglect of duty", all reasonable steps to prevent damages from
and "bad faith" shall be given the same meaning in arising out of the same or similar conditions;
this covenant as given in the applicable statute with provided that:
respect to the city's duty to defend or indemnify its
officers, employees or agents. (1) A failure to take such preventative measures
shall not constitute a breach of this condition
LMCIT CMC(11-86)(Rev.11-03) Page 17 of21
unless LMCIT has requested the city in writing to (b) Does not apply on a claims made basis.
undertake such preventative measures; and
b. A basic extended reporting period of 60 days
(2) Such expense shall not be recoverable under from the end of the coverage period is
this covenant. automatically provided without additional charge.
Notice of damages or injury is not notice of a c. A supplemental extended reporting period of
claim. unlimited duration is available, but only by an
endorsement and for an extra charge. The
b. If claim is made or suit is brought against the supplemental extended reporting period starts 60
covered party, the covered party shall days after the end of the coverage period.
immediately forward to LMCIT every demand,
notice,summons or other process received by him The city must give LMCIT a written request for
or his representative. the endorsement within 60 days after the end of
the coverage period. The supplemental extended
c. The covered party shall cooperate with LMCIT reporting period will not go into effect unless the
and, upon LMCITs request, assist in making city pays the additional premium promptly when
settlements, assist in the conduct of suits and due.
assist in enforcing any right of contribution or
indemnity against any person or organization who The additional premium for the supplemental
may be liable to the covered party because of extended reporting period will be a percentage of
damages for which coverage is afforded under the annual expiring premium for COVERAGE
this covenant; and the covered party shall attend PART A.
hearings and trials and assist in securing and
getting evidence and obtaining the attendance of Number of Years Since
witnesses. The covered party shall not, except at Retroactive Date Shown
his own cost, voluntarily make any payment, on Declarations Page Additional Cost
assume any obligation or incur any expense other
than for first aid to others at the time of accident. 1 55.0%
2 57.0%
d. With respect to any incident or occurrence for 3 60.3%
which no claim for damages has been made but 4 65.9%
that might result in a covered claim for damages 5 70.8%
under this covenant,LMCIT shall have the right, 5+ 70.8%
at its discretion and at its expense, to associate
with the covered party in the investigation, d. An extended reporting period does not extend the
handling and defense of such matter, in which coverage period or change the scope of coverage
event LMCIT and the covered party shall provided. It applies only if the date of the
mutually cooperate. occurrence giving rise to the claim for damages
is after the retroactive date and before the end of
4. EXTENDED REPORTING PERIOD the coverage period.
a. LMCIT will provide one or more extended Claims for damages which are first received and
reporting periods, as described below, if: recorded during the basic extended reporting
period (or during the supplemental extended
(1) COVERAGE A is canceled or not renewed; reporting period, if it is in effect) will be deemed
or to have been made on the last day of the coverage
period.
(2) LMCIT renews or replaces COVERAGE A
with coverage that: Once in effect, extended reporting periods may
not be canceled.
(a) Has a retroactive date later than the date
shown on the Declarations page; or
LMCIT CMC(11-86)(Rev. 11-03) Page 18 of 21
e. Extended reporting periods do not reinstate or the extent that it may apply to claims covered
increase the limits of coverage applicable to any under this covenant.
claim to which this coverage part applies.
b. It is the express intent of the city and of LMCIT
f. Neither the basic extended reporting period nor that the procurement of this covenant shall not
the supplemental extended reporting period is waive any other immunities, limitations, or
applicable to,and no extended reporting period is defenses imposed by or available under any
provided for, the following: statute or common law which is applicable to any
covered party.
(1) Any limited pollution liability claim;
7. CONSENT TO SETTLE
(2) Any land use, development or franchise
litigation; or The city may prohibit LMCIT from settling any claim
or suit against a covered party without the city's
(3) Any lead claim or asbestos claim. consent, as provided below:
5. ACTION AGAINST LMCIT a. At any time before LMCIT has offered or made a
settlement of a claim or suit, the city may notify
No action shall lie against LMCIT unless, as a LMCIT that LMCIT may not settle the claim or
condition precedent thereto, there shall have been suit without the city's consent.The city must give
full compliance with all of the terms of this a separate notice for each claim or suit which the
covenant,nor until the amount of the covered party's city intends to prohibit LMCIT from settling
obligation to pay shall have been fully determined without the city's consent.
either by judgment against the covered party after
actual trial or by written agreement of the covered b. If the city notifies LMCIT that the claim or suit
party, the claimant and LMCIT. may not be settled without the city's consent, the
city must designate an individual authorized to
Any person or organization or the legal give or refuse consent on the city's behalf. The
representative thereof who has secured such city's notice must include the name, address, and
judgment or written agreement shall thereafter be telephone number of the individual authorized to
entitled to recover under this covenant to the extent give or refuse consent on the city's behalf
of the coverage afforded by this covenant.No person
or organization shall have any right under this c. If the city has notified LMCIT that the claim or
covenant to join LMCIT as a party to any action suit may not be settled without the city's consent,
against the covered party to determine the covered LMCIT will notify the city of the terms and
party's Iiability, nor shall LMCIT be impleaded by conditions of any proposed settlement. If the city
the covered party or his legal representative. does not consent to the proposed settlement, the
city must notify LMCIT within 14 days of the date
Bankruptcy or insolvency of the covered party or of the city receives notice of the proposed
the covered party's estate shall not relieve LMCIT of settlement, unless the city and LMCIT have
any of its obligations hereunder. mutually agreed to a longer or shorter period. If
within that time the city does not notify LMCIT
6. WAIVER OF STATUTORY LIABILITY that the city does not consent to the settlement,
LIMITATIONS the city will be deemed to have consented to the
settlement.
a. It is the express intent of the city and of LMCIT
that the procurement of this covenant shall not d. If the city refuses to consent to a settlement
waive any monetary limits of liability provided by recommended by LMCIT, LMCIT will not be
Minnesota Statute §466.04 by any comparable or liable for any excess amount. Excess amount
successor statute, or by common law, which may means the sum of all damages and legal defense
be applicable to any covered party; and that any costs for the claim or suit minus the sum of:
previous waiver of liability limits is revoked to
LMCIT CMC(11-86)(Rev. 11-03) Page 19 of 21
(1) The amount of the settlement proposed by damages and loss adjustment expenses, including
LMCIT; and defense costs, for all claims to which the coverage
applies.
(2) Any costs of defense incurred before the date
of the city's refusal.Any excess amount shall not Coverage issued pursuant to this section will be
be included in the calculation of damages for issued with the same inception date and the same
purposes of any applicable Municipal Liability retroactive date as this covenant.
Deductible or General Annual Aggregate
Deductible. The premium must be paid to LMCIT before the
coverage goes into effect. The premium for coverage
e. If the city refuses to consent to a settlement issued pursuant to this section shall be equal to the
recommended by LMCIT,LMCIT may, at its sole greater of$5,000 or the premium the joint powers
discretion, exercise either of the following entity would otherwise pay for coverage at LMCITs
options: current rates.
(1) LMCIT may pay to the city an amount equal 9. NO DUPLICATION OF COVERAGE
to the amount of the recommended settlement,
minus any applicable deductible. If LMCIT This covenant shall not apply to any claim or claims
makes such payment,LMCIT has no further duty arising out of an occurrence, if any claim or claims
to defend or to indemnify the city or any other arising out of that occurrence were covered under
covered party for this claim or suit, and the city any prior covenant issued by LMCIT to the city.
--assumes any duty which LMCIT would otherwise
have had to defend and to indemnify any other 10. OTHER COVERAGE
covered party.
If,pursuant to the COMMON CONDITIONS, 11.a.,
(2) LMCIT may continue to defend the claim or a covered party has primary liability coverage as an
suit. If LMCIT elects to continue to defend the additional insured or additional named insured on
claim or suit, the city must reimburse LMCIT for another party's coverage, and that insurer fails to
any excess amount. defend or indemnify the covered party,LMCIT will
do so under this covenant.
f. If the city refuses to consent to a settlement
recommended by LMCIT, the city must defend In any case in which LMCIT incurs costs for a claim
and indemnify LMCIT for any claim or suit which is also covered under any other liability
arising out of the failure to settle the original coverage or insurance,LMCIT shall be entitled to the
claim or suit. covered party's rights to recover those costs from
that insurer. The covered party shall cooperate with
8. RETROACTIVE JOINT POWERS and assist LMCIT as requested in enforcing any
COVERAGE rights against that insurer.
LMCIT will,upon the city's request,issue retroactive 11. SEPARATION OF COVERED PARTIES
comprehensive municipal coverage to any joint
powers entity in which the city is a member and As respects the particulars and statements contained
which is not named as a covered party under any in the application for this coverage and the exclusion
other LMCIT coverage. set forth herein, this coverage shall be construed as
a separate agreement with each covered party.
Pursuant to this section, LMCIT will issue its Nothing in this paragraph shall be construed to
standard Comprehensive Municipal Coverage increase LMCITs maximum liability set forth in the
document to the joint powers entity, but coverage Declarations and as described in SECTION III -
shall be subject to an annual aggregate limit of LIMITS OF COVERAGE.
$200,000. This limit shall apply to the sum of
LMCIT CMC(11-86)(Rev. 11-03) Page 20 of21
12. DEDUCTIBLES (2)The covered party's duties, in the event of an
occurrence, apply irrespective of the application
a. For purposes of deductibles under this coverage, of the deductible amount.
the deductible applies to the sum of the damages,
loss adjustment expense, defense costs and c. LMCIT may pay any part or all of the deductible
supplementary payments as defined in SECTION amount to effect settlement of any claim or suit,
V-SUPPLEMENTARY PAYMENTS. and upon notification of the action taken,the city
shall promptly reimburse LMCIT for such part of
b. The terms of the covenant, including those with the deductible amount as has been paid by
respect to: LMCIT.
(1)The LMCITs rights and duties with respect to
the defense of suits; and
LMCIT CMC(11-86)(Rev.11-03) Page 21 of21
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
►1 Coverage D Land Use, Development or Franchise 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 Page 1 of 1
ME066(11/96) (Rev. 11/02)
COMPREHENSIVE MUNICIPAL COVERAGE
WAIVER OF STATUTORY LIABILITY
LIMITATIONS ENDORSEMENT
In consideration of the additional premium paid by the city, Section VI-
Conditions, paragraph 6, is deleted and is replaced by the following:
6. STATUTORY LIABILITY LIMITATIONS AND IMMUNITIES
a. It is the express intent of the city and of LMCIT that for
any claim to which this covenant applies, the monetary
limits of liability provided by Minnesota Statute 466.04
are waived to the extent of the limits of coverage shown
in the declarations and further described in Section III -
Limits of Coverage. This waiver shall not apply to any
claim not covered under this covenant, and shall not
affect any limitations which may apply by virtue of any
other statute or common law.
b. It is the express intent of the city and of LMCIT that the
procurement of this covenant shall not waive any other
immunities, limitations, or defenses imposed by or
available under any statute or common law which is
applicable to any covered party.
All other terms and conditions remain unchanged.
LMCIT
ME073 (11/97)(Rev. 11/01)
MUNICIPAL LIABILITY
LMC
League of Minnesota Cities
Cities promoting excellence
CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 25101 1
HAZARD PREMIUM BASIS ADVANCED PREMIUM
Premises Operations Code Basis
OPERATING EXPENDITURES A 2,099,475 PREMIUM INCLUDED
FOR ALL HAZARDS
WATERWORKS D 120,540 WHERE A PREMIUM
BASIS IS SHOWN
STREETS B 20
Independent Contractors
G 1,496,153
Products/Completed Operations
WATERWORKS H 235,000,000
LMCIT
MGL-1(01-95)
Page 1 of 2
MUNICIPAL LIABILITY
(Cont'd.)
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 gross 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 (remuneration) 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 (01-95) Page 2 of 2
Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS
CMC 25101 Coverage is Provided by:
THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST
(Herein called LMCIT)
League of Minnesota Cities
Cities promoting excellence
J
Item 1. CITY: OAK PARK HEIGHTS, CITY OF
Item 2. COVERAGE PERIOD:
From: 07/07/04 To: 07/07/05 12:01 AM Standard Time at Mailing Address
Indicated on Common Coverage Declarations
Item 3. THE COVERED PARTY IS: CITY
Item 4. COVERAGE:
IN RETURN FOR THE PAYMENT OF PREMIUM AND SUBJECT TO ALL OF THE TERMS OF THIS COVENANT, LMCIT
AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT,
SUBJECT TO THE FOLLOWING LIMITS:
COVERAGE: LIMIT:
AUTOMOBILE LIABILITY $1,000,000 Per Occurrence
BASIC ECONOMIC LOSS BENEFITS Basic Minnesota Statutory Coverage
UNINSURED&UNDERINSURED MOTORISTS Basic Minnesota Statutory Coverage
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 occurrence
Item 6. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART:
A0010(11-03) CM C(11-03) MA082(11-03) MA083(11-03)
MA084(11-03) MA085(11-03) ME063(11-01) ME066(11-02)
M E073(11-01) M E079(11-03)
LMCIT DEC-016(1186)(Rev.11/03)
MUNICIPAL AUTOMOBILE
PHYSICAL DAMAGE COVERAGE
Various provisions in this covenant restrict coverage. The word you and your refer to the city shown in the
Read the entire covenant carefully to determine rights, Declarations. The words we, us and our refer to
duties,and what is or is not covered. Throughout this LMCIT providing this covenant.
covenant,the word city refers to the first city shown in
the Declarations. The word LMCIT refers to the Other words and phrases that appear in italics have
League of Minnesota Cities Insurance Trust. special meaning, as given in SECTION IV -
DEFINITIONS.
SECTION I - COVERAGE AGREEMENT
We will pay for direct and accidental damage or loss II - CAUSES OF LOSS AND DAMAGES NOT
to a covered automobile unless the cause of loss or COVERED.
damage is not covered as described under SECTION
SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED
1. CAUSES OF LOSS NOT COVERED 2. DAMAGES NOT COVERED
We will not pay for loss or damage caused directly or We will not pay for the following damages:
indirectly by any of the following. Such loss or
damage is excluded regardless of any other cause or a. Damages caused by:
event that contributes concurrently or in any sequence
to the loss. (1) Wear and tear;
a. War. (2) Freezing, except freezing of the pumping
apparatus of a fire truck or similar emergency or
(1) War, including undeclared or civil war; other utility truck; or
(2) Warlike action by a military force, including (3) Mechanical or electrical breakdowns.
action in hindering or defending against an actual
or expected attack by any government,sovereign or This exclusion does not apply if the above damage
other authority using military personnel or other results from other loss or damage covered by this
agents; or Coverage Part.
(3) Insurrection, rebellion, revolution, usurped b. Blowouts,punctures,or other road damage to tires.
power or action taken by governmental authority in
hindering 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 (1) The actual cash value of the damaged or stolen
property at the time of the loss or damage; or
a. The most we will pay for loss or damage is the
smaller of the following amounts: (2) The cost of repairing or replacing the damaged
or stolen property with other like kind and quality.
LMCITA0010(11-89)(Rev.11-03) Page 1 of3
b. We will not pay for loss or damage in any one b. If you and we fail to agree as to the amount of loss
occurrence until the amount of loss or damage or damage, either may demand an appraisal of the
exceeds the Deductible in Item 5 of the loss or damage. In such event,you and we shall
Declarations, and the amount of loss will be each select a competent appraiser. The two
reduced by the Deductible amount. appraisers will select a competent and disinterested
umpire. If they cannot agree, either may request
The Deductible applies against the total loss that selection be made by a judge of court having
incurred by you from any one occurrence, jurisdiction. The appraisers will state separately
regardless of the number of covered automobiles the actual cash value and the amount of the loss or
involved. damage. If the appraisers fail to agree, they will
submit their differences to the umpire. An award
2. LOSS VALUATION agreed to by any two will be binding.
a. At our option,we may: Each party will:
(1) Pay for, repair, or replace damaged or stolen (1) Pay its chosen appraiser; and
property;
(2) Bear the other expenses of the appraisal and
(2) Return the stolen property at our expense. We umpire equally.
will pay for any damage that results to the covered
automobile from the theft; or We shall not be held to have waived any of our
rights by any act relating to appraisal.
(3) Take all or any part of the damaged or stolen
property at an agreed or appraised value.
SECTION IV - DEFINITIONS
1. Automobile means a land motor vehicle, trailer or However, the following automobiles are not a
semi-trailer designed for travel on public roads. covered automobile while used in the business of
the city:
2. Covered automobile means:
a. Any automobile which is owned or leased by a
a. Any automobile that you own; city official, employee or volunteer; or
b. Any automobile that you rent or lease for a b. Any automobile which is owned or leased by a
period of more than 30 days; member of the city official's, employee's or
volunteer's household.
c. Any automobile that you borrow;
3. City means governmental body or entity first
d. Any automobile that you rent or lease from a named in the Declarations. For purposes of this
person or organization that is not in the business of coverage,city includes relief associations. Unless
renting or leasing automobiles; or specifically named in the Declarations, city shall
not include:
e. Any automobile that you or a city official,
employee, or volunteer rents for city business for a. Gas, electrical or steam utilities commission;
less than 30 days from a person or organization in
the business of renting automobiles if the rental b. Port authority, housing and redevelopment
agreement requires you or the individual renting authority,economic development authority,area or
the automobile to pay for loss or damage to the municipal redevelopment authority or similar
automobile. agency;
LMCIT A0010(11-89)(Rev.11-03) Page 2 of 3
c. Municipal power agency; intergovernmental agreement will be deemed to
create a joint powers entity if the agreement
d. Municipal gas agency; establishes a board with the effective power to do
any of the following, regardless of whether the
e. Hospital or nursing home board or commission; specific consent of the constituent governmental
units may be required:
f. Airport commission;
a. To receive and expend funds;
g. Welfare or public relief agency;
b. To enter into contracts;
h. School board;
c. To hire employees;
i. Joint powers entity.
d. To purchase or otherwise acquire or hold real or
4. Joint powers entity means an operating entity personal property; or
created by two or more governmental units entering
into an agreement as provided by statute for the e. To sue or be sued.
joint exercise of governmental powers. An
SECTION V - CONDITIONS
(2) Puerto Rico; and
1. COVERAGE UNDER TWO OR'MORE ( ) P erto ,
COVERAGES
(3) Canada.
If two or more of this covenant's coverages apply to
the same loss or damage, we will not pay more than 3. LOSS CONDITIONS
the actual amount of the loss or damage.
Duties in the event of loss:
2. COVERAGE PERIOD, COVERAGE
TERRITORY a. You must promptly notify us of any loss.
Under this Coverage Part: b. You must tell us how, when, and where the loss
happened. You must assist in obtaining the names
a. We cover loss or damage commencing: and addresses of any witnesses.
(1) During the coverage period shown in the c. You must do what is reasonably necessary after the
Declarations; and loss at our expense to protect the covered
automobile from further loss. You must submit a
(2) Within the coverage territory, proof of loss when required by us.
b. The coverage territory is: d. You must promptly notify the police if the covered
automobile or any of its equipment is stolen.
(1) The United States of America (including its
territories and possessions);
LMCIT A0010(11-89)(Rev.11-03) Page 3 of 3
BASIC ECONOMIC LOSS BENEFITS AND UNINSURED AND
UNDERINSURED MOTORISTS COVERAGE
LMC1T agrees to provide Basic Economic Loss Benefits and Uninsured and
Underinsured Motorists Coverage in such minimum amounts, and for such motor
vehicles, as are required by the Minnesota No-Fault Automobile Insurance Act,
Minnesota Statutes Section 65B.41 to 65B.71.
The Comprehensive Municipal Coverage Common Conditions also apply unless they
are in conflict with the Minnesota No-Fault Automobile Insurance Act. In that event, the
Minnesota No-Fault Automobile Insurance Act shall govern.
LMCIT
MA082(11/03) Page 1 of 1
SCHEDULED BASIC ECONOMIC LOSS BENEFITS FOR
UNREGISTERED MOTOR VEHICLE ENDORSEMENT
It is agreed that with respect to coverage afforded for Basic Economic Loss Benefits,
coverage is amended to add coverage for motor vehicles that are not required to be
registered pursuant to Minnesota Statute Chapter 168.
LMCIT
MA083(11/03) Page 1 of 1
UNINSURED AND UNDERINSURED MOTORISTS COVERAGE
INCREASED LIMITS OF COVERAGE
It is agreed that with respect to coverage afforded for Uninsured and Underinsured
Motorists Coverage, the limit of coverage as stated on DEC-016 is amended to read
$1,000,000.
LMCIT
MA084(11/03) Page 1 of 1
SCHEDULED UNINSURED AND UNDERINSURED MOTORISTS
COVERAGE FOR UNREGISTERED MOTOR VEHICLE ENDORSEMENT
It is agreed that with respect to coverage afforded for Uninsured and Underinsured
Motorists Coverage, coverage is amended to add coverage for motor vehicles that are
not required to be registered pursuant to Minnesota Statute Chapter 168.
LMCIT
MA085(11/03) Page 1 of 1
Definition of City Endorsement
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHORITY
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
ME063(11/95)(Rev. 11/01)
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
►1 Coverage D Land Use, Development or Franchise 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 Page 1 of 1
M E066(11/96) (Rev. 11/02)
r: 4
t.
A
f LMC
1
1
League of Minnesota Cities
Municipal Excess cihe9promoting escenenae
Liability Coverage
i
PREPARED ESPECIALLY FOR
V
CITY OF OAK PARK HEIGHTS
t
14168 OAK PARK HEIGHTS BLVD
P.O. BOX 2007
STILLWATER, MN 55082
07/07/04 - 07/07/05 z
i
Agent: _,
LANDMARK INSURANCE if
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025
League of Minnesota Cities
Es
1 145 University Avenue West
St. Paul, MN 55103-2044
Phone: (651) 281-1200
a Fax: (651) 281-1298
Web Site http://www.lmnc.org
1
f
**IMPORTANT**
PLEASE READ YOUR AGREEMENT 4
{
MUNICIPAL EXCESS LIABILITY DECLARATIONS
Covenant Number: Coverage is Provided by:
MEL 4932 THE LEAGUE OF MINNESOTA CITIES LMC
INSURANCE TRUST
Previous Covenant Number: (Herein called LMCIT) Chen of otinesotaGlee
( � Cities promoting excellence
MEL 4660 —'
Item 1, CITY and MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK HEIGHTS BLVD.
P.O. BOX 2007
STILLWATER, MN 55082 •
Item 2. COVERAGE PERIOD: ONE YEAR
From: 07/07/04 To: 07/07/05 12:01 AM Standard Time at Mailing
Address Indicated on Item 1.
Claims Made
Item 3. RETROACTIVE DATE:July 07, 1987
Item4. THE COVERED PARTY IS:CITY
Item 5. LIMITS OF COVERAGE:
Aggregate Limit $ 1,000,000.
Item 6. PREMIUM: $7,021.
Item 7. FORM NUMBERS AND/OR ENDORSEMENTS FORMING A PART OF THE AGREEMENT AT ISSUE:
MELC(11/02) UME-4(11/03)
Executive Director, LMCIT
LMCIT DEC-017(11/96)(Rev. 11/02)
•
MUNICIPAL EXCESS LIABILITY COVERAGE
Various provisions in this covenant restrict that appear in italics have special meaning, as
coverage. Read the entire coverage agreement given in given in SECTION III -DEFINITIONS,or
carefully to determine rights, duties, and what is in the underlying coverage.
covered and not covered. Words and phrases
SECTION I - LIABILITY COVERAGE
1. COVERAGE AGREEMENT 2. EXCLUSIONS
a. Subject to the terms, conditions, limitations, In addition to the exclusions contained in the
and exclusions contained herein, LMCIT will underlying coverage, the following exclusions
pay amounts in excess of what LMCIT is apply to this coverage:
obligated to pay under the terms of the
underlying coverage. a. Any obligation to pay expenses under any
medical payments coverage.
b. The amount that LMCIT will pay is limited as
described in SECTION II - LIMITS OF b. Any obligation imposed by law under any
COVERAGE. automobile no-fault, uninsured motorist,
underinsured motorist, workers'
c. LMCIT will only pay if the date of the claim is compensation, disability benefits, or
on or after the retroactive date, if any, unemployment compensation or any similar
shown in the Declarations. law.
d. Except as otherwise provided herein, this c. Any lead or asbestos claim.
coverage is subject to the same terms,
definitions, conditions and exclusions of the d. Any failure to supply claim.
underlying coverage.
e. Any mold claim.
f. Awards for attorney's fees pursuant to
statute, except for attorney's fees with
respect to federal civil rights suits or state
human rights suits.
SECTION II - LIMITS OF COVERAGE
1. The Limits of Coverage shown in Item 5. of b. Claims made or suits brought;
the Declarations and the rules below fix the
most LMCIT will pay under the terms of this c. Persons or organizations making claims
covenant regardless of the number of: or suits.
a. Covered parties;
LMCIT MELC(11/86)(Rev. 11/02) Page 1 of 2
2. The Aggregate Limit is the most LMCIT will 3. Each payment, including defense expenses
pay under this covenant. The Aggregate and supplementary payments, LMCIT
Limit includes defense expenses and makes under this covenant reduces, by the
supplementary payments. amount of the payment, the Aggregate
Limit.
SECTION III - DEFINITIONS
Underlying coverage means the the Workers Compensation and Employers
Comprehensive Municipal Coverage and Liability Coverage as provided by LMCIT.
Part Two- Employers Liability Coverage of
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%
2 70%
3 80%
4 90%
5 100%
5+ 100%
LMCIT MELC (11/86)(Rev. 11/02) Page 2 of 2
UNINSURED/UNDERINSURED MOTORISTS - FOLLOW FORM
It is understood and agreed that in so far as coverage is provided in the underlying
coverage, uninsured and underinsured motorists coverage is on a follow form basis.
All other terms and conditions remain unchanged.
LMCIT
UME-4 (01-95) (Rev. 11-03) Page 1 of 1
rt„.7
Open Meeting Law
LMC
League of Minnesota Cities
Cities promoting excellence
Defense Cost
Reimbursement
Agreement
PREPARED ESPECIALLY FOR
CITY OF OAK PARK HEIGHTS
14168 OAK PARK BOULEVARD
P.O. BOX 2007
STILLWATER, MN 55082
07/07/04 - 07/07/05
Agent:
LANDMARK INSURANCE SERVICES
232 SOUTH LAKE STREET
FOREST LAKE, MN 55025-2605 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.lmnc.org
4
**IMPORTANT**
PLEASE READ YOUR AGREEMENT
AGREEMENT DECLARATIONS
Covenant Number: OPEN MEETING LAW DEFENSE COST
OML 3375 REIMBURSEMENT AGREEMENT
Coverage Is Provided By: LMC
Previous Covenant Number: THE LEAGUE OF MINNESOTA CITIES
OML 2855 INSURANCE TRUST League of Minnesota Cities
(Herein called LMCIT) Cities promoting excellence
Item 1. COVERED PARTY and MAILING ADDRESS:
CITY OF OAK PARK HEIGHTS
14168 OAK PARK HEIGHTS BLVD.
P.O. BOX 2007
STILLWATER, MN 55082
Item2. COVERAGE PERIOD: ONE YEAR 12:01 AM Standard Time at
Mailing Address Indicated Above.
From: 07/07/04 To: 07/07/05 Claims Made
Rem 3. RETROACTIVE DATE: November 09, 1994
Item4. THE COVERED PARTY IS:
X City Joint Powers Entity Other(Describe)
Item 5. REIMBURSEMENT LIMITS:
A. "Reimbursable Costs": MAXIMUM
1. Defense Costs Per Lawsuit Per Official: $50,000.
2. Agreement Term Aggregate Per Official: $50,000.
Items. PREMIUM: $ 459.
Item 7. FORMS AND ENDORSEMENTS APPLICABLE TO AGREEMENT:
OMLRA-1(11/99) OML-001(11/97) ME063(11/01)
iarP))
Executive Director,LMCIT
LMCIT DEC-019(11-93)(Rev.11/99) Administered by:Berkley Risk Administrators Company,LLC
OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
I. OPEN MEETING LAW DEFENSE 2. LMCIT shall have no duty to provide
COST COVERAGE a defense to a city official with
respect to a legal action against that
LMCIT will reimburse a city official for 80 city official seeking penalties based
percent of the defense costs incurred by upon an alleged violation of the
the city official in defending an Open Minnesota Open Meeting Law;
Meeting Law lawsuit, if the following however, LMCIT shall have the right
conditions are met: to intervene at its expense in the
investigation or defense of such
1. The date on which the Open legal action.
Meeting Law lawsuit is
commenced must be within the 3. The city or the city official shall give
term of this agreement; and; prompt notice to LMCIT of any
actual or threatened legal action
2. The date on which the violation against the city official seeking
took place or is alleged to have penalties against the city official for
taken place must be on or after an alleged violation of the Minnesota
the retroactive date, if any, Open Meeting Law. - -
shown in the Declarations.
4. The city and the city official shall at
An Open Meeting Law lawsuit is all times cooperate with and
deemed to be commenced on the date promptly respond to LMCIT's
the city official is served notice of the requests for information,
lawsuit. investigative data, records, or any
other material documentation.
H. LIMITS
5. The city official will be reimbursed
The Open Meeting Law Defense Cost only for defense costs incurred with
Reimbursement Agreement Limit is respect to legal services actually
$50,000. This is the most LMCIT will rendered and expenses actually
reimburse any one city official for incurred.
defense costs for Open Meeting Law
lawsuits commenced during the term of 6. The city official shall have complete
this agreement, regardless of the freedom to choose an attorney -
number of lawsuits, the number of licensed in the State of Minnesota to
actual or alleged violations, or the date provide the city official with legal
the defense costs are actually incurred. services with respect to which
defense costs are reimbursable
III. CONDITIONS AND EXCLUSIONS under this Agreement.
1. The term of this Agreement shall 7. It is the express intent of the parties
be one year beginning with the to this Agreement that, neither the
effective date stated in the city nor the city official, waive any
Declarations. Subsequent immunities, defenses, or limitations
renewals of this Agreement shall on liability available under Minnesota
be treated as separate terms. statutes or common law.
LMCIT
OMLRA-1(11/93)(Rev.11/99) Page 1 of 2
8. In the event that a city official makes a
recovery of defense costs from any third 2. "City official' means any former or
party, LMCIT shall be reimbursed for present elected or appointed official of
any payment it has made under this the city or any present or former
Agreement after the city official has employee of the city.
been fully reimbursed for his/her 20%
share of the defense costs. 3. "Defense costs" means reasonable and
necessary attorney fees, court costs,
9. LMCIT may cancel this Agreement by court reporter and transcript fees,
mailing or delivering written notice to the general witness and expert witness fees
city at least: and expense, and similar defense
related costs. Defense costs does not
a. Ten (10) days before the effective include any fines or penalties, or any
date of cancellation for nonpayment attorney's fees awarded to a plaintiff in a
of the charge for this Agreement; or suit charging a violation of the Open
Meeting Law.
b. Thirty (30)days before the effective
date of cancellation for any other 4. "Joint powers entity' means an
reason. operating entity created by two or more
governmental units entering into an
If LMCIT decides not to renew this agreement as provided by statute for the
Agreement, LMCIT will mail or joint exercise of governmental powers.
deliver to the city written notice of An intergovernmental agreement will be
non-renewal not less than thirty 30 deemed to create a joint powers entity if
days before the expiration date. the agreement establishes a board with
the effective power to do any of the
10. It is mutually understood and agreed following, regardless of whether the
that the city and all other LMCIT pool specific consent of the constituent
participants are jointly and severally governmental units may also be
liable for all claims and expenses of the required:
pool. The amount of any liabilities in
excess of assets may be assessed to a. To receive and expend funds;
LMCIT pool participants when a
deficiency is identified. b. To enter into contracts;
IV. DEFINITIONS c. To hire employees;
1. "City means the city or other d. To purchase or otherwise acquire
governmental body or entity first named and hold real or personal property; or
in the Declarations. Unless specifically
named in the Declarations, city shall not e. To sue or be sued.
include a gas, electrical, or steam
utilities commission; port authority, 5. "LMCIT' means the League of
housing and redevelopment authority, Minnesota Cities Insurance Trust.
economic development authority, area
or municipal redevelopment authority, or 6. "Open Meeting Law lawsuit" means a
similar agency; municipal power agency; lawsuit seeking penalties against a city
municipal gas agency; hospital or official based on an allegation that the
nursing home board or commission; city official has violated M.S. '471.705,
airport commission; welfare or public commonly known as the Minnesota
relief agency; school board; or joint Open Meeting Law.
powers entity.
LMCIT
OMLRA-1(11/93)(Rev.11/99) Page 2 of 2
OPEN MEETING LAW DEFENSE COST
REIMBURSEMENT AGREEMENT
REIMBURSEMENT PARTICIPATION ENDORSEMENT
It is understood and agreed that Section I. Open Meeting Law Defense
Cost Coverage is amended to modify the percentage of reimbursement
of a "defense costs" from 80% to 100%.
This modification does not change the maximum amount of
reimbursement as specified in Section II. Limits and as shown in the
Agreement Declarations.
All other terms and conditions remain unchanged.
OML-001(11/97)
Definition of City Endorsement
It is understood and agreed that city is amended to include:
ECONOMIC DEVELOPMENT AUTHORITY
All other terms and conditions remain unchanged.
LMCIT Page 1 of 1
M E063(11/95)(Rev. 11/01)