Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 217]

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206

BOARD OF TRUSTEES

[March 21

3. Employees. 4. Agents. 5. Contracting party, but only as specified by written agreement with the University. The coverage afforded applies individually and separately to each covered person against whom claim is made or suit is brought Article IV. Coverage Statement The employer, based on the provisions of the plan and from the applicable plan fund, will pay on behalf of the covered person all damages to which this plan applies, which the covered person shall become legally obligated to pay for a claim first made while this plan is in effect: 1. because of injury or personal injury caused by an occurrence; or 2. arising out of the rendering of or failure to render [while the plan is in effect, professional] University services [by the covered person or by any person for whose statement, acts or omissions such covered person is legally responsible]. The employer shall have the right and duty to defend any suit seeking such damages against the covered person, even if any or all of the allegations of the suit are groundless, false, or fraudulent, and may make such investigation and such settlement or any claim or suit as it deems expedient; but the employer shall not be obligated to pay any claim or judgment or to defend any suit after the applicable plan fund has been exhausted by payment of judgments, settlements, and expenses. In the event that any covered person elects to employ his own legal counsel (see Article VI) and declines legal counsel provided by the employer, there is no obligation under the plan to pay any sum (including judgment and legal fees) such covered person may become legally obligated to pay. / / the covered person shall refuse to consent to any settlement recommended by the vice president and shall elect to contest the claim or continue any legal proceedings in connection with such claim, then the plan's liability for the claim shall not exceed the lesser of the limit of Article IX or the amount for which the claim could have been settled including costs, charges, and expenses incurred up to date of such refusal. Article V. Exclusions The plan does not apply: [1. To bodily injury to any employee of the employer arising out of and in the course of his employment by the employer.] 1. To any obligation for which the employer or any carrier as its insurer may be [2.] held liable under any workers' compensation law, occupational diseases law, unemployment compensation law or disability benefits law, or under any similar law. 2. To any obligation payable under the State Self-Insured Motor Vehicle Lia[3.] bility Plan. [4. To any obligation payable under Public Act 80-1078 (an act to provide for representation and indemnification in certain civil lawsuits).] 3. To any obligation payable under any insurance policy which has been pur[5.] chased by the employer. 4. To any occurrence, [professional] University service, or obligation which is [6.] within the provisions of the Federal Tort Claims Act as provided in 38 USC 4116 or is payable by the United States under any federal legislation or program. 5. To the physical damage to or destruction of tangible property owned or [7.] leased [by] by the University, [any covered person.]