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''
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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.
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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
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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.