Repository: UIHistories Project: Board of Trustees Minutes - 1928 [PAGE 749]

EXTRACTED TEXT FROM PAGE:

746

BOARD OF TRUSTEES

[June 2 9

icies protecting those of its employees w h o operate motor vehicles as a part of their duties against personal liability arising out of collisions on the highways, provided the Board has the power to adopt this policy. I think the question m a y be submitted with a fair degree of accuracy as follows: "Does the Board of Trustees have the power, under the charter, by bylaws, or regulation in any form, to expend any portion of the public funds under its control, to pay premiums on a group insurance policy for the protection of members of the faculty and staff against liability to third parties, due to collisions, or other cause arising out of the operation of motor vehicles, when these persons are required, as a part of their duties, to operate such vehicles, and to add the cost of such premium as a part of the salaries of or compensation to such employees? "Upon close analysis of the problem, the question will possibly seem to you to narrow itself d o w n to an inquiry whether the purchase of such insurance can be considered a University purpose, and, therefore, a legitimate or authorized expenditure of public funds." I have also received your letter of the 8th instant, which supplements your other letter, and is as follows: "With further reference to the request for an opinion from your office made by this office on M a y 16, 1928, it has seemed advisable to outline in somewhat more detail the reasons which actuated the Board in adopting a plan of liability insurance, and the theory on which such plan will be constructed, if deemed within the power of the Board. If you would be kind enough to give this matter your consideration and advise m e of your views on the law, it would be a distinct public service, and at the same time a very material help to the Board of Trustees. "The Board of Trustees in adopting a plan of liability insurance do so, in part, for the following reasons and upon the following theory. "The necessary use of motor vehicles by the University, as a part of its equipment as an educational agency, is steadily increasing; the use of motor vehicles by the public is growing apace; consequently, the possibilities of accidents, resulting in damage to persons and property, multiply. A s a result the Board is informed and advised that members of the faculty and employees of the University, whose duties require an occasional incidental operation of a motor vehicle, in some instances, refuse and in others are reluctant to operate such vehicles because of the hazards connected with the work. Members of the staff are conscious of the ever present possibility that as a result of a collision they m a y become involved in expensive litigation, no matter h o w carefully they operate the vehicles; this hazard they do not care to incur without protection through insurance. Consequently the Board has reached the conclusion that if it has the power to provide such protection, the expenditure of public money for the premium has a substantial relation to the operation of the University, and tends directly to promote stability and efficiency and to improve the quality of the service. "The theory on which the plan will be executed is briefly as follows. In the instances where a m e m b e r of the staff operates a motor vehicle merely as an incident to his employment and upon occasion, as well as when he is employed primarily for the purpose of driving a motor vehicle, the premium upon the policy, pro rata, will be charged against his salary account by the Business Office, and will be retained by the Office in order to discharge the premium and insure that the protection will, at all times, be maintained in force. T h e amount charged against each individual will be pro rated in accordance with the extent to which such individual is exposed to the hazard due to the operation of a motor vehicle. That is to say, if A operates a vehicleduringtwoquitechauffeur incident toif year, largerpurposethat say a is emmotor only regular nominal; during times as a A.the or three an whereas,willB for the employment, his dozen accountvehicle, the chargetimesand him thehis be the charge against or salary ployed will be year as against primarily regular a vehicle, operating a of operates than of against the