Participation in the Trust is generally open to any city that’s a member of the League of Minnesota Cities. Certain other types of political subdivisions can also join the League and become eligible for Trust coverage. Several other types of city-related entities are also eligible for LMCIT coverage.
A joint powers entity is created by an agreement or contract among two or more political subdivisions. A joint powers entity is eligible for coverage if at least one of its constituent political subdivisions is a League member. A joint powers entity does not itself have to become a League member.
A special purpose political subdivision is created either directly by statute or by following a procedure specified in the statutes. It is eligible for coverage, but it must first become a subscribing member of the League.
The Trust can provide coverage for independent city boards, commissions, and authorities. These can be covered either under their city’s coverage (assuming their city’s already a Trust member) or by issuing separate coverage. If the board or commission’s city is a League member, it doesn’t also need to become a League member in order get coverage from the Trust.
The Trust can provide coverage to a private corporation only under limited circumstances:
If the nonprofit corporation qualifies as a city instrumentality, the Trust can provide coverage either by adding the corporation to the city’s coverage or by issuing separate coverage to the corporation. If the latter is preferred, the city must request the Trust provide coverage, and the city must agree to be secondarily responsible for any premiums or deductible reimbursements the corporation may owe to the Trust.
If the corporation’s city is a League member, the corporation doesn’t also need to become a member to get coverage from the Trust.
There are other entities that can qualify as instrumentalities of cities, and to whom the Trust can provide coverage. Examples include housing and redevelopment authorities, economic development authorities, and utility commissions. If the instrumentality’s city is a League member, the instrumentality doesn’t also need to become a member to get coverage from the Trust.
Associations of public officials are typically organized as nonprofit corporations. This type of association may be eligible to participate in the Trust if:
An association that qualifies does not need to become a League member if it is affiliated with a League member city.
The Trust does not have the legal authority to accept a Native American tribe as a member because tribes are sovereign nations and not political subdivisions of the state.
Any township is eligible to participate in the Trust’s workers’ compensation program, but not its property/casualty program. To be eligible, the township must pay an annual access charge to the League, which equals 75 percent of the League’s standard dues for a city of the same population. This entitles the township to participate in the workers’ compensation program, but the township does not receive any other League or Trust services.
An urban town is eligible to participate in any Trust coverage program if the town is a League member. League dues for an urban town are figured on the same sliding population-based schedule used for cities.
The Trust can provide coverage for a transit operation that is:
LMCIT can’t provide coverage for transit operations that are run solely by a county or by a for-profit corporation.