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33 <br /> ARTHUR J. GALLAGHER & CO. OF MINNESOTA, INC. <br /> October 18, 2001 <br /> Mr. Roger Larson <br /> City of St. Anthony <br /> 3301 Silver Lake Road <br /> St. Anthony, MN 55418 <br /> RE: LMCIT Policy No. CMC21585—No-fault Sewer Backup Coverage Option <br /> Dear Roger: <br /> The LMCIT quote and model resolution is attached. The premium quoted is 8.5% of the <br /> Municipal Liability premium. This year, the Municipal Liability premium is $40,923.00. <br /> The estimated annual no-fault sewer backup endorsement premium is $3,478.00, which <br /> would be pro-rated for the remainder of this policy year. <br /> An explanation of optional "no-fault" sewer backup coverage can be found in the <br /> enclosed LMC bulletin of November 28,2000. Brief highlights of this coverage are: <br /> 1) Coverage is $10,000 per building per year. All buildings served by a single <br /> connection are considered to be a single building. Covers clean-up costs and property <br /> damage caused by sanitary sewer backup, subject to conditions: <br /> a) the condition must be in the City's sanitary system, not a private line, <br /> b) FEMA assistance available, then no coverage, <br /> c) electric power interruption, 72 hours coverage limit, <br /> d) National Weather Service designated 100-year storm exclusion, <br /> e) National Flood Ins. Protection (NFIP) insurance coverage or el ibility, or <br /> property owner's own insurance with flood coverage, no "no-fault sewer" <br /> coverage. <br /> 2) The City's LMCIT policy deductible would be applicable: <br /> $10,000 each occurrence (ie: single condition in sewer system), <br /> $50,000 annual aggregate <br /> .$1,000 thereafter per loss, per line of coverage. <br /> 3) Non-sanitary sewer water claims (ground water) not covered under"no-fault sewer". <br /> 4) Historial sewer backup claims experience (see LMC letter of August 3, 2001): <br /> a) 9/2/00-Only three homes had claims in which the LMCIT offered a settlement, <br /> but all 13 of the claimants involved would have been entitled to the"No Fault <br /> Sewer Back Up Coverage", <br /> b) 12/4/00-a claimant settlement was paid to a claimant, and he would have been <br /> entitled to "No Fault Sewer Backup Coverage", <br /> Fax <br /> • <br />