BPM-802 Purchasing Insurance
Revised July 1, 2009
The University may purchase the following insurance coverages subject to the stated conditions:
Property (Excluding Fidelity)
- 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; or
- On University property where required by bond indenture, condition of trust or agreement, federal or state law; or
- On University property where the premium to insure will be paid from sponsored gifts, grants or contracts (non-general operating funds); or
- On University property used by an Auxiliary Enterprise or Sales and Service facility functioning like an Auxiliary Enterprise; or
- On property of others where required by the donor, exhibitor or owner as a condition of use.
- Where required by bond indenture, condition of trust or agreement, or required by or voluntary acceptance of, federal or state law; or
- 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
- 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.
Fidelity and Other Bonds
- Where required by condition of trust or agreement, federal or state law; or
- Where the President determines the cash and securities of the University are or may be at risk.
Staff Benefits Coverages
- Upon recommendation of the President.
Student Insurance Programs
- When approved by the President and either funded by the students or for which University funds have been approved in the budget.
METHODS OF PURCHASE
Unless otherwise directed by the Board of Curators, the method of purchase of all property, casualty, fidelity, and student insurance shall be through competitive proposals solicited from three (3) brokers, which shall be selected through a University pre-qualification process, and with Board approval, or by a program of self-insurance, with the program having been approved by the Board of Curators.
The method of purchase of all Staff Benefits insurance shall be by proposal from brokers based on a University Request for Proposals; with the proposal having been selected with Board of Curators approval, and/or by a program of self-insurance, with the program having been approved by the Board of Curators.
AUTHORITY TO PURCHASE INSURANCE
The President is authorized to purchase any of the insurance coverages meeting the conditions and methods set forth above and for which funds are available for payment of premium without reporting to or requesting authority of the Board of Curators, provided, however, the authority of the Board of Curators is required for the purchase of:
- Any staff benefit program that was not covered by insurance as of the date of CRR 80.030 - Insurance or amendments thereto are approved by the Board of Curators; and
- Any change in coverage or conditions of staff benefit programs after the date of CRR 80.030 - Insurance or amendments thereto are approved by the Board of Curators, unless funds have been provided in the approved budget.
The President has the authority to determine the form of coverage; policy terms and conditions, the amount or limit of coverage; the amount of any deductible; the method of premium payment; and, when or if bids will be taken on University Request for Proposals.
RESPONSIBILITY FOR IMPLEMENTATION
The President has delegated the responsibility for implementing this policy to the Vice President for Finance and Administration, who in turn has delegated it to the Associate Vice President, Management Services.
PAYMENT OF PREMIUMS
Premiums are considered a cost of operations and are charged directly to the applicable Auxiliary Enterprise.
Academic and Administrative Departments
Premiums are charged to each campus' General Operating Budget and where applicable, further charged to each department.
Premium payment varies depending on insurance plan. See BPM 803 - Insurance Coverages for information regarding student insurance programs.