City Council Meeting Date: December 6, 2022
To: Mayor and City Council
City Administrator
From: Lynette Peterson, City Clerk
Subject:
TITLE
Consider Resolution Retaining Statutory Tort Limits for 2023.
BODY
Action Requested:
The Northfield City Council approves the attached Resolution retaining (not-waiving) statutory tort limits for 2023.
Summary Report:
The League of Minnesota Cities Insurance Trust (LMCIT) insures the City of Northfield for liability and property damage. Cities obtaining liability coverage from LMCIT must decide whether or not to waive the statutory tort limits 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 retains (does not waive) the statutory tort limits, an individual claimant would be able to recover no more than $500,000 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 $1,500,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage.
* If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 on a single occurrence. 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 $2,000,000, regardless of the number of claimants.
* If the city waives the statutory tort limits and 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...
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