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Policy on Purchasing Insurance

Bd. Min. 6-30-78; Amended Bd. Min. 10-15-82; 12-1-97.

80.030 INSURANCE

A. Types of Insurance Coverages

The University may purchase the following insurance coverages under the following conditions:

  1. Property (excluding Fidelity)
    1. On specific or groups of University properties when the potential loss could be so large that the ability of the University to repair or replace the loss on a timely basis through state appropriations or other sources would be questionable.
    2. On University property where required by bond indenture, condition of trust or agreement, Federal or State Law; or
    3. On University property where the premium to insure will be paid from sponsored gifts, grants or contracts (non-general operating funds); or
    4. On University property used by an Auxiliary Enterprise or Sales and Service facility functioning like an Auxiliary Enterprise; or
    5. On property of others where required by the donor, exhibitor or owner as a condition of use.
  2. Casualty
    1. Where required by bond indenture, condition of trust or agreement, or required by or voluntary acceptance of, Federal or State law; or
    2. Where the President determines that it is in the best interest of the University to provide insurance as an incident of employment for University employees who may become liable for their actions resulting from and directly related to, their position as an employee of the University; or
    3. Where the President determines, because of particular circumstances, that it is in the best interest of the University to provide insurance against its liability from its operation, maintenance or use of specific buildings, premises or other property owned or controlled by it.
  3. Fidelity and Other Bonds
    1. Where required by condition of trust or agreement, Federal or State law; or
    2. Where the President determines the cash and securities of the University are or may be at risk.
  4. Staff Benefits coverages upon recommendation of the President.
  5. Student insurance programs approved by the President and either funded by the students or for which University funds have been approved in the Budget.
B. Methods of Purchase
  1. Until otherwise directed by the Board of Curators (Board), the method of purchase of all property, casualty, fidelity and student insurance shall be:
    1. Through competitive proposals solicited from three brokers, which shall be selected through a University pre-qualification process, and with Board approval; or
    2. By a program of self-insurance, with the program having been approved by the Board.
  2. The method of purchase of all Staff Benefit insurance shall be:
    1. By proposal from Brokers based on a University Request for Proposals; with the proposal having been selected with Board approval; and/or
    2. By a program of self-insurance, with the program having been approved by the Board.
C. Delegation and Authority to Purchase

The President is authorized to purchase any of the insurance coverages authorized in Section 80.030 A meeting the conditions thereof, by the methods outlined in Section 80.030 B and for which funds are available for payment of premium, without reporting to or requesting authority of the Board; provided, however, the authority of the Board will be required for the purchase of insurance for:

  1. Any Staff Benefit program that was not covered by insurance as of the date this Policy or amendments thereto are approved by the Board; and
  2. Any change in coverage or conditions of Staff Benefit programs subsequent to the date this Policy or amendments thereto are approved by the Board unless funds therefore have been provided in the approved Budget.

NOTE: The President shall have the authority to determine the form of coverage, policy terms and conditions, the amount of coverage or limits of liability, the amount of any deductible, method of premium payment, and when or if proposals will be received based on University Request for Proposals.

Reviewed 2011-01-24.

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