2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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2. Coverage limits, co-pays and deductibles See Section II.D,Coverage There is a$1 million annual aggregate limit for land use and special risk limits. litigation claims. Coverage for litigation costs is based on a sliding scale and Lana Use Incentive also based on whether members participate in the land use incentive program. Program. (Please note, for litigation between LMCIT members,the coverage pays only one-half of the percentages described below, subject to a$500,000 maximum.) Coverage for members participating Coverage for members not in land use incentive program participating in land use incentive program • 100% of first$25,000 • 85%of first$250,000 • 85% of next $225,000 • 60%of amounts above • 60% of amounts above $250,000 $250,000 • 50%of necessary legal fees • 50% of necessary legal fees members incur prior to members incur prior to reporting litigation to LMCIT reporting litigation to LMCIT • $1 million annual aggregate • $1 million annual aggregate limit limit If the city's liability coverage is written with a deductible, the deductible is applied to the percentage of the costs that would otherwise be paid by LMCIT. The city's co-pay amounts (that is, the percentages of litigation costs and damages for which the city is responsible, as outlined above) do not count toward satisfying the city's deductible. For example, if the litigation costs on a case are $75,000, and the city carries a $10,000 deductible,the city's share of the$75,000 is determined as follows: Members participating in Members not land use incentive participating in land use program incentive program LMCIT's share $57,500 (100%of the first $53,750 (85%of the first $25,000 plus 85%of the $250,000, less the next$225,000, less the $10,000 deductible) $10,000 deductible) City's share $17,500 (15%of the $21,250 (15%of the first amount in excess of $250,000,plus the $25,000,plus the $10,000 $10,000 deductible) deductible) 81