HomeMy WebLinkAboutUntitled 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
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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.
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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
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• 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
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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
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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;
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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;
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v. Any claim for damages asserted in any land use
or development litigation.
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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
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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:
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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.
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LMCIT CMC(11-86)(Rev. 11-96) 8 of 20
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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
•