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Here are answers to some common questions about the change in the statutory liability <br />limit and LMCIT's coverage limits. <br />Our coverage doesn't renew until after January 1. What do we have to do to get our <br />coverage endorsed to increase the coverage limits? <br />You don't have to do anything. LMCIT will issue the endorsements automatically. <br />How does this affect cities that carry excess liability coverage? <br />If your city carries excess liability coverage, after the switch you'll have $250,000 more <br />of coverage limits available. If you carry $1 million of excess coverage, you currently <br />have $1.75 million of total limits available - $750,000 under the primary coverage plus <br />$1,000,000 of excess coverage. After the change, you'll have $2 million of total limits - <br />$1,000,000 of primary coverage plus $1,000,000 of excess coverage. <br />How does this affect our decision to waive or not to waive the statutory liability Limits? <br />At each renewal, each LMCIT member city decides whether or not to waive the statutory <br />liability limits. The changes in LMCIT's coverage limits don't affect that decision. <br />Whatever your city decided at the last renewal remains in effect. <br />If you have chosen not to waive the statutory limits, the amount that claimants can <br />recover (assuming that it's a kind of claim that the statutory limits apply to) will vary <br />depending on the date of the occurrence. For "non- waiver" cities, even though you'll <br />now have $1,000,000 of coverage available, the $300,000/$750,000 statutory limit will <br />still apply to claims arising from events that occurred before 1/1/2000. For claims arising <br />from events that occur on or after 1/1/2000, the $300,000/$1,000,000 statutory limit <br />would apply. <br />However, if your city has chosen to waive the statutory limits, the amount that claimants <br />can recover will increase when the coverage limits change. For "waiver" cities, on any <br />claim that's made after January 1 (or after the city's renewal if earlier), one or more <br />claimants could now recover up to $1,000,000 per occurrence, regardless of whether the <br />occurrence was before or after January 1. <br />Page 32 <br />