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<br /> rmqm� AS"UPIRANCE GROLJ Okff'!z-f�- 292M 2-Fri,.,",L"L-z��I:�,�",,*,-'���,,',','A,.',-',. NORTHERN CAPITAL COMMERCIAL LINES,INC.
<br /> August 22, 2013 NORTHERN CAPITAL PERSONAL LINES,INC.
<br /> NORTHERN UNDERWRITERS,INC.
<br /> WAYNE MANN AGENCY,INC.
<br /> BUSINESS INSURANCE BROKERS,INC.
<br /> MCGOVERN AND FISHER INSURANCE AGENCY,INC.
<br /> Tim Simon GOODARD AND IVIANN AGENCY.LLC
<br /> Lori Ziemer
<br /> City of Elk River
<br /> 13065 Orono Parkway
<br /> Elk River, MN 55330
<br /> Dear Tim and Lori:
<br /> The LMCIT 2013 Insurance Renewals are enclosed. The coverage and premiums are:
<br /> Property and Casualty- Effective 7/1/2013
<br /> The renewal premium is $228,304 at your current $20,000 per occurrence/$40,000
<br /> annual aggregate deductible, except the Equipment Breakdown has a*separate $20,000
<br /> per accident deductible.
<br /> The City Hall/Utilities office building and contents coverage for both entities is included
<br /> for$3,159 building and $843 contents premium. The Utilities portion of the premium is:
<br /> Building $871 (27.6% or 12,488 sq. ft.), and Contents $184 ($380,000 coverage @
<br /> 0.04841/$100).
<br /> Other Annual Aggregate Deductible options are:
<br /> Deductibles Premium (Approximate)
<br /> $10,000/$20,000/$1,000 $258,619
<br /> $10,000/$30,000/$1,000 $255,762
<br /> $10,000/$40,000/$1,000 $254,246
<br /> $20,000/$60,000/$1,000 $224,183
<br /> Our Deductible Risk Retention Analysis based on 5 years historical claims experience is
<br /> enclosed. The $20,000/$40,000 annual aggregate option is still attractive, pending the
<br /> deductible cost related to the new Land Use claim.
<br /> There are several items that impacted the renewal premium:
<br /> 1. The property premium reflects the increased Replacement Cost Values based on
<br /> the 2012 LMCIT/HIRONS Appraisal and the 2013 LMCIT Renewal Inflation
<br /> Cost factors.
<br /> 2. Municipal/Auto Liability Experience Factor- renewal modifier of 1.219 for the
<br /> City (13% increase), impacted by two Land Use claims.
<br /> 3. The City elected this year not to waive the Minnesota Statutory Liability Limits,
<br /> resulting in a 3.5%municipal/auto liability premium savings.
<br /> 4. The Annual Aggregate Deductible surcharge factor decreased slightly from 1.075
<br /> to 1.073.
<br /> 5. The Annual Aggregate Deductible "Maintenance Deductible" for sewer damage
<br /> claims has been reduced from $2,500 to $1,000 effective 8/7/2013.
<br /> .0. 3ox 9396+ J\/INNEAPOLIS.MUNI 55440-9396
<br /> PHONF (9521) 996-8818 +TOLL.-=REF (8001, 676-887,8 �:- FAx (952)829-0482
<br />
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