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0 0 <br /> EAGUE OF CONNECTING & INNOVATING <br /> MINNESOTA SINCE I913 <br /> CITIES • <br /> • <br /> November 10,2008 <br /> To: LMCIT members and agents <br /> From: Pete Tritz <br /> Re: LMCIT premium rates and dividends <br /> The following is a summary of premium rate changes LMCIT members will see at their next <br /> renewal. The property/casualty rate changes will to renewals on or after November 15,2008. The <br /> work comp rate change will apply to renewals on or after January 1,2009. <br /> Coverage Rate change <br /> Liability +3% <br /> Property No change <br /> Auto liability -3% <br /> Auto physical damage -10% <br /> UM/UIM +5% • <br /> `.. Excess liability No change <br /> Machinery breakdown -15% <br /> Liquor liability No change <br /> Bond No change <br /> Open meeting law defense -10% <br /> Workers compensation +2% <br /> The rate changes do not mean your city's actual premium will increase or decrease by these exact <br /> amounts. Each city's actual premium is affected by changes in city expenditures,property values, <br /> payrolls,other exposure measures,and experience rating. <br /> 2008 Property/Casualty Dividend <br /> Property/Casualty Program members will share a$4 million dividend this year to be distributed <br /> after Dec. 1. That's equivalent to about 8 percent of premiums, and is the same amount as the <br /> Property/Casualty program returned in 2006. The 2007 dividend was $7 million. <br /> Property/Casualty program members can expect to receive their dividends during mid-December. <br /> What's behind the property/casualty rate changes? <br /> The increase in liability premium rates for the coming year reflects the increases we're seeing in <br /> liability loss costs. Those increased loss costs stem from a couple different factors. The cost of <br /> liability claims from some previous years is turning out to be greater than what we'd previously <br /> 1 <br />