Resolution No. 2021-126 Statutory Tort Limits
Resolution No. 2021-126
Accepting and Confirming Statutory Tort Limits
Whereas, the City of Fridley (City) maintains its insurance coverage through the League of
Minnesota Cities Insurance Trust; and
Whereas, the League of Minnesota Cities Insurance Trust requires the City Council to provide
direction regarding statutory tort limitations for the City; and
Whereas, under Minnesota Statute Section 466.04, if a City chooses to insure itself for an
amount in excess of the statutory limits provided by state law, it will be deemed to have waived
the protection of those statutory limits to the extent of any increase in the insured coverage
amount; and
Whereas, the current statutory limits are a maximum of $500,000 per claimant, and $1,500,000
per occurrence; and
Whereas, the City finds no reasonable basis to extend liability coverage beyond those amounts
provided for under Minnesota Statute Section 466.04; and
Whereas, the City finds it to be in the best interest to be insured to the full extent of liability
imposed by law, but not beyond those statutory limits.
Now, therefore be it resolved, that the City Council of the City of Fridley hereby confirms and
accepts up to and only to the extent of the statutory tort liability limits as provided under
Minnesota Statute Section 466.04; and
Be it further resolved that the City Council authorizes the City Manager, or their designee, to
submit the Liability Coverage Wavier Form to the League of Minnesota Cities Insurance Trust.
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Passed and adopted by the City Council of the City of Fridley this 13 day of December,
2021.
_______________________________________
Scott J. Lund – Mayor
Attest:
________________________________________
Melissa Moore – City Clerk
LIABILITY COVERAGE Î 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 memberÓs effective date of
coverage. Return completed form to your underwriter or email to pstech@lmc.org.
The decision to waive or not waive the statutory tort limits must be made annually by the
memberÓs 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 memberÓs 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.
LMCIT Member Name:
CityofFridley
__________________________________________________________________________
Check one:
o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn.
Stat. £ 466.04.
o 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.
December13,2021
Date of memberÓs governing body meeting: _____________________________________________
Signature: Position: ________________________________
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