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CITY COUNCIL <br />CONSENT AGENDA ITEM 1G <br /> <br />STAFF ORIGINATOR: Sarah Cotton <br /> <br />MEETING DATE: June 10, 2019 <br /> <br />TOPIC: Consideration of Not Waiving Monetary Limits <br /> on Tort Liability per MN Statute 466.04 <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />INTRODUCTION <br /> <br />As a part of the annual insurance renewal process the City Council is being asked by the <br />League of Minnesota Cities Insurance Trust to update the Liability Coverage Waiver <br />Form. <br /> <br />BACKGROUND <br /> <br />Each year, the City has the option of waving its monetary limits on tort liability to the <br />extent of the coverage purchased. The decision to waive or not to waive the statutory <br />limits has the following effects: <br /> <br />If the city does not waive the statutory tort limits, an individual claimant would be able to <br />recover no more than $500,000 on any claim to which the statutory tort limits apply. The <br />total which all claimants would be able to recover for a single occurrence to which the <br />statutory tort limits apply would be limited to $1,500,000. These statutory tort limits <br />would apply regardless of whether or not the city purchases the optional excess liability <br />coverage. <br /> <br />If the city does waive the statutory tort limits and does not purchase excess liability <br />coverage, a single claimant could potentially recover up to $2,000,000 on a single <br />occurrence (under this option, the tort cap liability limits are waived to the extent of the <br />city’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The <br />total which all claimants would be able to recover for a single occurrence to which the <br />statutory limits apply would also be limited to $2,000,000, regardless of the number of <br />claimants. <br /> <br />If the city does waive the statutory tort limits and purchases excess liability coverage, a <br />single claimant could potentially recover an amount up to the limit of the coverage <br />purchased. The total which all claimants would be able to recover for a single occurrence <br />to which the statutory tort limits apply would also be limited to the amount of coverage <br />purchased, regardless of the number of claimants. <br />