Repository: UIHistories Project: Board of Trustees Minutes - 1928 [PAGE 748]

EXTRACTED TEXT FROM PAGE:

1928]

UNIVERSITY OF ILLINOIS

745

OPINION O F A T T O R N E Y G E N E R A L O N VALIDITY O F INSURANCE COMPENSATION (12) In accordance with the direction of the Board (April 12, 1928, p. 576) I report as follows on the question whether the action of the Board of Trustees in taking out liability insurance against automobile accidents involving its employees and property is within its power (March 13, 1928, p. 567). Last March, Judge Johnson expressed the opinion, which I transmitted to you, that the Board had power to protect its employees and property by taking out automobile accident insurance. I submitted the matter to him again, and on May 16 he reiterated his view that i was within the power of t the Board to purchase group insurance for the protection of members of the staff who were required to operate motor vehicles. I requested him to secure the opinion of the Attorney General also. H e took the matter up with that officer and presented his point of view, with the result that the Attorney General has expressed an opinion in the affirmative. The following correspondence would seem to close the matter: June 20, 1928. President David Kinley, 355 Administration Building M y dear President Kinley : I hand you herewith the opinion of the Attorney General, theirfilenumber 1524, received by me this afternoon, upholding the validity of the liability insurance compensation scheme heretofore submitted to the Board of Trustees. It would seem that with the receipt of this opinion, and the action heretofore taken by the Board, this business is closed. M y impression is that the Board has already approved and adopted the plan. Sincerely yours, Sveinbjorn Johnson Legal Counsel June 18, 1928. File No. 1524. INSURANCE: Liability, Employees— University of Illinois Hon. Sveinbjorn Johnson, Legal Counsel, University of Illinois, Urbana, III. Dear Sir: I have received your letter of the 16th ultimo, which is as follows: "Will you kindly l t me have, at your convenience, an opinion upon the e following proposition of law. "The Board of Trustees has found i necessary, in the proper discharge t of its duties in managing and operating the University of Illinois, to acquire a large number of motor vehicles. Most of these are driven upon the highways of the State, and the drivers are necessarily exposed to the hazards of the sort of civil proceedings which may follow upon a collision, and consequent personal injury and property damages. With the increasing number of vehicles not only operated by the University, but among the people, this hazard has become noticeably great until i constitutes a serious problem from t the standpoint of the Board, and of efficient operation of the University. Capable and responsible individuals demur, and in some instances decline to operate motor vehicles upon the public highways, because of the very real hazard to which I have referred. As a result, and after prolonged consideration of the subject, the Board has decided to purchase group insurance pol-