HomeMy WebLinkAboutResolution 7625 Decision not to Waive Statutory Tort Limits CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
< , No.7625
'kEsH013'
A RESOLUTION MAKING A SELECTION NOT TO WAIVE THE STATUTORY TORT
LIMITS FOR LIABILITY INSURANCE COVERAGE
WHEREAS,pursuant to previous action taken,the League of Minnesota Cities Insurance
Trust has asked the City to make an election with regards to waiving or not waiving its tort liability
established by Minnesota Statutes 466.04; and
WHEREAS,the choices available are as follows: to not waive the statutory tort limit,to
waive the limit but to keep insurance coverage at the statutory limit, and to waive the limit and to
add insurance to a new level.
NOW,THEREFORE, BE IT RESOLVED that the Orono City Council does hereby
elect not to waive the statutory tort liability limit established by Minnesota Statutes 466.04.
Adopted by the City Council of the City of Orono, Minnesota, at a regular meeting held
October 13, 2025.
ATTEStif
Chris larrian, OM Clerk Bob Tunheim, Mayor
LMCLEAGUE
MINNESOTA
CITIES
LIABILITY COVERAGE —WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust
(LMCIT) must complete and return this form to LMCIT before the member's effective date of
coverage. Return completed form to your underwriter or email to pstech a,lmc.org.
The decision to waive or not waive the statutory tort limits must be made annually by the
member's governing body, in consultation with its attorney if necessary.
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort
liability limits to the extent of the coverage purchased. The decision has the following effects:
• If the member does not waive the statutory tort limits, an individual claimant could recover no more
than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could
recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000.
These statutory tort limits would apply regardless of whether the member purchases the optional
LMCIT excess liability coverage.
• If the member waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could recover up to $2,000,000 for a single occurrence (under the waive option,the tort cap
liability limits are only waived to the extent of the member's liability coverage limits, and the LMCIT
per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to
which the statutory tort limits apply would also be limited to $2,000,000,regardless of the number of
claimants.
• If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total all claimants
could recover for a single occurrence to which the statutory tort limits apply would also be limited to
the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
LEAGUE OF MINNESOTA CITIES 145 University Avenue West PH: (651) 281-1200 FX: (651) 281-1298
INSURANCE TRUST St. Paul, Minnesota 55103 TF: (800)925-1122 www.lmc.org
LMCIT Member Name:
City of Orono
Check one:
ElThe member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn.
Stat. § 466.04.
The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. §
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of member' verning body meeting: October 13,2025 l
Signature: Position: /t 1-R.Li a-r
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