07/12/1999 Council Packet - Laserfiche WebLink

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Agenda Item 3D STAFF ORIGINATOR: Dan Tesch, Director of Administration DATE: 7 July 1999 TOPIC: Consideration of waiving or not waiving monetary limits on tort liability per MN Statute 466.04 BACKGROUND Each year, the City has the option of waving it's monetary limits on tort liability to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $300,000 on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort Limits apply would be limited to $750,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. If the city does waive the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $750,000 on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory limits apply would also be limited to $750,000, regardless of the number of claimants. If the city does waive the statutory tort limits igg purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. The city carries $1,000,000 in excess liability coverage ($1,000,000 per occurrence and annual limit). The City of Lino Lakes has never waived it's monetary limits on tort liability.