5.1. SR 09-05-1995 - Laserfiche WebLink

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ti- A final comment We think LMCIT has done a pretty good job of meeting cities' coverage needs since 1980. We also recognize that there is still plenty of room for LMCIT to improve and to do an even better job for cities in the future. For along time, cities didn't have many options for their risk management needs. Few insurance companies would even consider writing insurance for cities, and those that did charged steep premiums. That's changed over the past year or so. Cities are beginning to see private insurance companies offering some very attractive-looking premiums. Whether those companies will keep rates as stable over time as LMCIT has remains to be seen. Whether. they'll also match LMCIT's record of returning unneeded funds to member cities as dividends seems doubtful. Another point to keep in mind is that with a closer look those low premiums may not be quite the good deal they seem. We've looked at the actual policy forms that some of the private insurance companies are offering to cities. What we've found is a list of exclusions, restrictive language, and coverage limits that add up to a lot less coverage than what LMCIT gives cities. If you're considering an insurance quote from a commercial insurance company, feel free to give the LMCIT staff a call. We'll be glad to help you identify in detail how their coverage differs from what you have with LMCIT. • But the real question we'd like you to think about is this: Which alternative is more ikely to produce the results for you in the future - a private insurance company or LMCIT? LMCIT is anon-profit cooperative organization of cities, formed by cities, and governed by city officials, whose sole purpose is to meet cities' coverage and risk management needs. LMCIT is not going to suddenly decide to stop covering cities in order to get into some other line of business that might be more profitable. A private insurance company's basic goal and purpose is to make a profit by selling insurance. We think the choice is obvious.