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a. Additional covered party on city's coverage <br /> Unlike an HRA, EDA or port authority, a utilities commission is normally not <br /> a separate political subdivision or separate corporation. Thus,there normally <br /> is not the same problem with diluting limits that arises if a city HRA, EDA or <br /> port authority is added as a covered party under the city's LMCIT coverage. <br /> However, there are very few utilities commissions created under city charters <br /> See Section III.Q.I.a, which are in fact separate political subdivisions. For these few cases, the <br /> Additional covered party on coverage issues are the same as those that arise with an HRA, EDA or port <br /> city's coverage. <br /> authority. <br /> b. Separate coverage <br /> If separate LMCIT coverage is issued to a utilities commission for the utilities <br /> operations, that covenant responds to claims arising out of the utilities <br /> operations, regardless of whether the claim names the city,the commission, or <br /> any city or commission officers or employees as defendants. <br /> If the utilities commission chooses to purchase coverage separately from a <br /> private insurer,the city and the utilities commission need to carefully review <br /> the arrangements to assure adequate coverage. Remember that LMCIT does <br /> not automatically provide coverage to the city for these activities. If the <br /> utilities commission purchases separate private insurance,the city can't just <br /> assume the city's LMCIT liability coverage will protect the city and fill any <br /> gaps that the utilities commission's insurance leaves. Here are some important <br /> questions to consider about separate private insurance. <br /> • What type of coverage is being provided? <br /> • Is the coverage as broad as provided by LMCIT? <br /> • Is public officials' errors and omissions coverage included? <br /> • Does it cover employment-related liability? <br /> • Does it cover claims for failure to supply utilities? <br /> • Does the carrier understand the city and the utilities commission aren't <br /> two separate legal entities? <br /> One possible way the city could clarify the last question is by having the <br /> private carrier issue the coverage in the name of, for example, "City of <br /> Mosquito Heights, dba Mosquito Heights Utilities Commission."Another <br /> solution might be for the carrier to simply name the city as a covered party. <br /> The important thing is to make sure that the carrier is covering the liability <br /> arising from the utilities operations. <br /> 95 <br />