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114.. <br />M <br />Date: November 23, 2011 <br />To: LMCIT Members and Agents <br />From: Pete Tritz, LMCIT Administrator <br />CONNECTING & INNOVATING <br />SINCE 1913 <br />RE: 2011 -12 Coverage Changes, Rates, and Dividends <br />The League of Minnesota Cities Insurance Trust ( LMCIT) Board has approved rates and several coverage <br />changes for the 2011 -12 underwriting year. In addition, members of the property/casualty program will <br />share in a $12 million dividend this year; workers' compensation members will share in a $6 million <br />dividend. Following is a summary. <br />Property/Casualty Premium Rates, Effective November 15, 2011 <br />• Property rates will increase 3 percent. <br />• All other coverages remain the same as 2010. <br />Workers' Compensation Premium Rates, Effective January 1, 2011, <br />• Overall premium rates will increase 2 percent. <br />• Rates for volunteer firefighters will increase an additional 2 percent. These rates are based on <br />population served, rather than payroll, and therefore lag all other class rates essentially by the amount <br />of annual wage inflation. This slight increase will allow volunteer firefighter rates to stay in line with <br />other job classes. <br />• Volunteer accident coverage rates will decrease 13 percent. <br />Dividends <br />• Property/casualty members will share in a $12 million dividend. The dividend will be distributed <br />during mid - December 2011 to those who are property/casualty members as of December 1, 2011. <br />• Workers' compensation members will share in a $6 million dividend. The dividend will be distributed <br />during mid -April 2012 to those who are workers' compensation members as of April 1, 2012. <br />Coverage Changes <br />There are a number of changes in LMCIT's liability, property, and other coverages for the 2011 -12 <br />underwriting year. Changes will be effective for property/casualty coverage written or renewed on or after <br />November 15, 2011. Please see page four for more information. <br />LEAGUE OF MINNESOTA CITIES 145 UNIVERSITY AVE. WEST PHONE: (651) 281 -1200 FAx: (651) 281 -1298 <br />INSURANCE TRUST ST PAUL. MN 55103 -2044 TOLL FREE: (800) 92S -1122 WEB:wwwLMC.mo <br />