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1. Covered parties <br /> Any elected or appointed official or employee of the city is covered. Excluded <br /> from the coverage,unless specifically named in the coverage document, are <br /> officials or employees of a utilities commission,port authority,HRA, EDA, <br /> redevelopment authority, municipal power or gas agency, hospital or nursing <br /> home board, airport commission, or joint powers board. <br /> 2. Coverage limits and terms <br /> The most LMCIT will reimburse any one city official for defense costs <br /> commenced during the coverage term is $50,000, regardless of the number of <br /> suits or the number of actual alleged violations. It covers defense costs <br /> incurred by the city official in defending two types of lawsuits: <br /> • An OML lawsuit. <br /> • A lawsuit against a city official that arises from the actual,pending, or <br /> threatened bankruptcy of the city. <br /> There is also an aggregate limit of$250,000. This is the most LMCIT will pay <br /> for defense costs for all the city's officials for lawsuits commenced within the <br /> coverage term. <br /> The coverage protects a city official who is accused of attending not only an <br /> illegal meeting of the city council but the meeting of some other board or <br /> commission as well. For example, suppose a city official is accused of <br /> violating the OML at a meeting of a joint powers board the official serves on. <br /> The city's OML coverage would apply to that charge,but it would not pay for <br /> defending the other members of the board. Unless the joint powers board has <br /> OML coverage itself,the other members would only be covered if their own <br /> cities have OML defense coverage. <br /> This coverage will not cover any legal costs the city might incur if the city <br /> itself were somehow made a party to the OML or city bankruptcy litigation; <br /> unless, of course, it was part of a suit that included a covered claim for <br /> damages. It will also not reimburse to the official any fine or penalty for <br /> violating the OML or any award that orders the city official to pay for the <br /> opposing party's attorney's fees in an OML lawsuit. <br /> The coverage is triggered when an OML or city bankruptcy lawsuit is served <br /> on the city official. If a lawsuit is filed during the term of the agreement, the <br /> city official needs to immediately notify LMCIT of the litigation. The city <br /> official retains the ability to select a lawyer of his or her choosing. <br /> 90 <br />