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HomeMy WebLinkAboutMMIA - Liability coverageMontana Municipal Insurance Authority Memorandum TO: FROM: DATE: RE: ALL MMIA PARTICIPANTS ALAN W. HULSE, RISK MANAGER March 11, 2002 I I I' Q'' ?r, l U ??. MRR 1 2 2002 i LIABILITY COVERAGE FOR BOARDS/COMMISSIONS The MMIA is currently in the process of evaluating exposures that may not be covered by the Memorandum of Liability Coverage. One question that we continually field relates to coverage for governmental or intergovernmental agencies, boards or commissions which include one or more city members, but fall outside the realm or control of the city (external boards or commissions with city membership). The MMIA does not provide coverage to these agencies, boards or commissions unless a majority of members represent, or are appointed by, the city. If the city employee is serving on this agency, board or commission at the city's request, then the employee would be covered individually as they are acting in course and scope of employment. However, non-city members and the agency, board or commission as a whole would not be covered by the MMIA. This is an important distinction because if a lawsuit were filed against this board, it is very possible that the board and all of it's members could be named defendants in the suit. The city employees would be defended and indemnified by the MMIA pursuant to the limits, terms and conditions of the Memorandum of Liability Coverage. Absent other insurance, the non-city members, and the agency, board or commission would be uninsured for the loss. In order to develop a better understanding of this issue, we are surveying our membership to determine the number and composition of external boards, commissions or agencies with city membership. We would also like to determine if those boards are currently insured or not. Please take a moment to complete the enclosed survey and return it to the MMIA. Your cooperation is appreciated. lkdc-11officefiles?AHulseIRMRecommlMemoboardscommiss. doc ah P.O. Box 6669, Helena, Montana 59604-6669 (406) 443-0907 In MT: 1-800-635-3089 Fax (406) 449-7440 Questionnaire City: City of Laurel Examples of boards, agencies or commissions which may exist in your community. Library Board Airport Board City/County Health Board Parks Board Drug Task Force City County Planning Chamber of Commerce Local Development Organization Summer/Winter Festival Sports/Recreation Board Emergency Services District Irrigation Districts Utility Districts Downtown Business Agencies ah 2. Please identify any boards, commissions, or agencies in your community that are city controlled (majority of the members represent or are appointed by the city). Please use the back or additional paper if necessary. 3. Please identify or provide a list of which boards, commissions, or agencies are not city controlled (majority of the members do not represent or are not appointed by the city). Please identify the organizational makeup of these boards, commissions or agencies. 4. For those boards commissions or agencies that are not city controlled (majority of the members do not represent or are not appointed by the city), please identify if they are covered by other liability or D&O insurance.