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League of Minnesota Cities <br />June 26, 1989 <br />To: City officials <br />From: Peter Tritz <br />183 University Ave. East <br />St. Paul, MN 55101.2526 <br />(612) 227.5600 (FAX: 221.0986) <br />Re: Accident coverage for members of boards and commissions <br />Early in 1989, LMCIT announced the availability of an <br />Early this year, LMCIT announced the availability of a accident <br />coverage for elected officials. In response to inquiries from a <br />number of cities, program guidelines have now been amended so <br />that members of other city boards, commissions, and committees <br />are now eligible for coverage. Also, the enrollment period has <br />now been reopened through August 1. <br />This accident coverage is provided by CIGNA, and was intended as <br />a lower -cost alternative to workers compensation coverage for <br />elected officials. By statute, elected officials and officers <br />appointed for a fixed term of office are covered by workers <br />compensation only if the city has passed an ordinance or <br />resolution to that effect. <br />The accident coverage applies while the individual is traveling <br />to or from a committee meeting, or while conducting other <br />official committee business on behalf of and at the request of <br />the committee. The coverage provides a provides a $100,000 <br />death benefit and a $400 /week short -term benefit for total <br />disability. <br />While this accident policy was developed as a lower -cost <br />alternative to providing workers compensation coverage, it is <br />important to understand that the benefits are not equivalent to <br />those of workers compensation. Some of the most important <br />differences are it does not include medical, rehabilitation, or <br />retraining benefits; disability and death benefits are according <br />to a fixed schedule. rather than being based on the individual's <br />actual earnings; disability benefits are paid only for total <br />disability, and for a maximum of 26 weeks; and the accident <br />policy disability benefits may be taxable income to the <br />individual. <br />The city may provide coverage for any city boards, commissions, <br />or committees it designates. However, all members of the <br />respective board or commission must be covered; that is, the <br />coverage cannot be offered on an individual choice basis. <br />- OVER - <br />Page 6 <br />