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The IMCIT Board of <br />Trustees is expected <br />to decide upon Y2k <br />coverage issues at <br />its November 1998 <br />meeting. <br />League of Minnesota Cities <br />LMCIT Coverage <br />resulted in a fire or similar loss.There also may be a small amount of coverage <br />(around $5,000 per occurrence and per year) for extra expenses the city may <br />incur related to theY2k problem. <br />Expanded Coverage <br />Cities that meet underwriting criteria would be able to obtain expanded <br />coverage. The coverage amount would be much higher than the basic coverage <br />(possibly $750,000 per incident per year, which would cover damages and <br />defense costs).As under basic coverage, coverage for damages to the city's <br />property would be limited to situations where theY2k- related failure or mal- <br />function resulted in a fire or similar loss. Under expanded coverage, there would <br />be coverage for extra expenses with a limit of around $25,000 per occurrence <br />per year.This would not cover costs related to identifying or eliminadngY2k <br />problems, but instead would cover extra expenses, such as extra police officers to <br />direct traffic if the city's stoplights don't work, or personnel to operate the water <br />system manually if its automatic controls fail. <br />All coverage for Y2k problems would be on a co-pay basis, meaning that <br />LMCIT would pay most of the damages, but the city would contribute some <br />amount (e.g. 75% LMCIT / 25% City). <br />Every !MGT member city should contact its underwriter with information on <br />what the city is doing in regard to the Year 2000. issues. The underwriters <br />will look ac the city's Y2k policy, actions recorded on the Y2k Assessment <br />Worksheet (found in Chapter 4 of this guide), and ocher similar documentation. <br />From this type of information, the underwriters will determine if or when the <br />city would be eligible for the proposed expandedY2k coverage. <br />Cost <br />The basic coverage would be under the city's present liability premium. The <br />cost of the expanded coverage has not yet been determined. <br />Timeframe for Y2k coverage changes <br />Any coverage changes related to theY2k problem will be implemented for <br />policies written or renewed after November 15, 1998. <br />If you have any questions about 1MCIT's proposed coverage for Y2k issues, <br />please contact Peter Tritz, Uv1CIT Administrator, or the city's underwriter, at <br />(65 i1 281 -1200 or 1-800-925-1122. <br />t <br />PAGE 229 <br />A Year 2000 Action Guide <br />( <br />