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<br />rei ---'\) <br />( ); <br />ttk~ <br /> <br /> <br />Item #5.1. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />March 22, 1999 <br /> <br />SUBJECT: April 1 Insurance Renewal <br /> <br />In past years the city's property, liability, and other general insurance policies <br />have renewed in October. Last year, in order to take advantage of additional <br />and broadened no cost coverage which was available only at renewal, the city <br />opted to renew in April thereby adding the new coverage six months early. <br />This renewal now coincides with the liquor liability renewal. <br /> <br />. <br /> <br />Each year quotes are requested from all companies writing municipal <br />insurance in Minnesota. Of the four companies contacted, only the League of <br />Minnesota Cities Insurance Trust (LMCIT) supplied a quote for all of the city's <br />coverage. The three other companies indicated that they were not interested <br />because of the city's current low premiums, the dividend program, and because <br />they could not offer coverage comparable to the LMCIT's. American States <br />Insurance Company submitted a quote for the liquor property and liability <br />coverage. <br /> <br />PrODertv. Liabilitv and Other General Coveraf!e <br /> <br />Attached is the quote submitted by the LMCIT for April 1, 1999, to April 1, <br />2000. Although the premium rates have not increased, the total premium has <br />increased due mainly to increased expenditures and revised property and <br />equipment values. More detailed information on the increases will be <br />available Monday. <br /> <br />The only real issue the Council should consider on the LMCIT renewal is <br />whether the city wants to purchase expanded Y2K coverage which is being <br />offered. This is a very unusual opportunity since most, if not all, other <br />companies are not offering this type of coverage. The current renewal will <br />include $25,000 of liability and $5,000 of extra expense coverage related to <br />Y2K claims. The expanded coverage would increase the liability coverage to <br />. $750,000 and $25,000 of extra expense coverage. All coverage is subject to a <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 <br />