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SEP-25-2003 16 28 ACORDIA 9528307355 P.05 also another option for cities in this situation. LMCIT can issue an endorsement to increase the city's coverage limit only for claims relating to shat particular coauact. There's'a snail charge for these "laser" endorsemenu.} 4. There may be more than one po{itical subdivision covered cruder the etty's coverage. An HRH, EDA, or port authority is itself a separau political subdivision, if the city EDA, for example, is named as a covered party on iht city's coverage sad a claim were made that involved both the eery and the EDA, theoretically the claimant might be able to recover uP to 51,400,000 from the city and another $ I,OOO,Ot10 from the EDA, since there are two political subdivisions involved Excess coverage is one way to provide enough coverage limits to address this situation. Another solation is for the HRH, EDA, or port authority to carry separate liability coverage in its own name. This issue of multiple covered parties can also arise is if the city has agreed by contract to name soothe: entity as a covered parry, or to defend and inden-.nif}~ another enrr~r. 5. Cities spmetimes choose to carry higher coverage limits because of a coucern that the courts might overturn the statutory liability limits. However, those limits have now been tested sad upheld several times in l~iinnesots. Wltiie it's always nvssibie that a future court might decide w throw out the statutory limits, this is now less of a concern. What ezcess liability coverage limits are available? Excess coverage is available in $1 million increments, up to a maximum of $5 million. We're just a small city. Isn't excess Liability coverage really just something that big cities mig)tt need'- Absolutely not. If anything, excess liability coverage is even mc*e important to a small city. H a city ends up with more liability than it bas coverage, the city will have m either draw on existing funds or go to its taxpayers to pay that judgment A large city faced with, say, a million dollars of liability over and above what its L1rICTT coverage gays might be able to spread that !: $ L million cast over several thousand taxpayers. The small city by contrast might be dividing that same $1 million cast among only a couple hundred taxpayers. $ 3 tuiilion divided among 5000 taxpayers is $200 apiece -annoying but probably at least manageable for most taxpayers. $1 million divided among 204 taxpayer is X5000 apiece -enough to be a real problem for many. How does excess coverage apply to uninsured/nndertnsnred matarist csvernge' ''; If the city carries excess liability coverage, the city has the option to have the excess coverage i also apply to un~ncnred or underinsured motorist (~Ul1+UUIlv1} claims. To do so, tine city must first increase its primary iTM/UIl41 limit ffom the basic 354,040 to $1,400,044, There are additional premium charges both to increase the primary UM/UIM limit and to apply the excess coverage to the ~m~t/iJIlvi exposure. The city needs to consider whether the benefit from having higher ~ limits is worth that costa 3