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How do.city deductibles work in conjunction-with the co-payment provision?
<br /> If the city's liability coverage is written with a ddductibld,the deductible is applied to the
<br /> percentage of the costs that would otherwise be paid by LMCIT. The"city's co-pay amounts (i.e.,
<br /> the percentages of litigation-costs and damages for which the city is responsible, as outlined above)
<br /> do not count toward satisfying the city's deductible.
<br /> For example, if the litigation costs on a case are$75,000 and the city carries a$10,000 deductible,
<br /> the city's share of the$75,000 is determined as follows:
<br /> Members that participate in incentive Members that don't participate in
<br /> incentive
<br /> LMCIT's share $57,500 (100%of the first$25,000 $53,750(85%of the first$250,000,
<br /> plus 85%of the next$225,000, less less the $10,000 deductible)
<br /> the$10,000 deductible
<br /> City's share $17,500(15%of the amount in $21,250 (15%of the first$250,000,
<br /> excess of$25,000, plus the $10,000 plus the$10,000 deductible)
<br /> deductible
<br /> What is the coverage limit?
<br /> The primary LMCIT coverage provides a$1,000,000 annual aggregate limit for all "Coverage D"
<br /> litigation filed during the city's coverage year. This is the maximum amount of litigation cost and
<br /> damages that LMCIT will pay regardless of the number of claims or occurrences in any given
<br /> year. By purchasing LMCTT's optional excess liability coverage,the city can increase the total
<br /> available limit in $1,000,000 increments up to $6,000,000.
<br /> In calculating whether the aggregate limit has been met, city co-payments are not included, but
<br /> city deductible obligations are. For example, in order to exhaust the$1,000,000 aggregate limit a
<br /> city would have to incur total litigation costs of$1,556,250. If the city's coverage was subject to a
<br /> $25,000 deductible, the maximum amount LMCIT would actually pay would be$975,000:
<br /> For litigation between LMCIT members,the coverage is subject to a limit of$500,000 for that
<br /> claim. This limit is within— i.e., not in addition to—the$1,000,000 annual aggregate limit(the
<br /> coverage percentages for this type of litigation are also reduced by one-half).
<br /> When should the city report a land use regulation, development, franchising, or
<br /> enterprise authority dispute to LMCIT?
<br /> Under Coverage D, coverage for this type of litigation is
<br /> triggered when the litigation is first filed or served on Something to Think About
<br /> the city. You should report the litigation to LMCIT All land use regulation,
<br /> immediately upon filing or being served with the
<br /> summons and complaint that formally commences the development,franchising, or
<br /> litigation. You must report the litigation to LMCIT no enterprise authority disputes
<br /> later than one year after the litigation commences in should be reported to LMCIT
<br /> order for the coverage to apply. immediately upon filing or being
<br /> served with the summons and
<br /> If you're involved in a land use regulation, complaint that formally
<br /> development, franchising, or enterprise authority dispute commences the litigation.
<br /> you think is likely to lead to litigation, we strongly
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<br /> Small Cities Track-2011
<br /> Planning&Zoning 101-22
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