Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 219]

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208

BOARD OF TRUSTEES

[March 21

fessional Liability Fund and the University of Illinois Hospital Trust Fund. Other professional liability claims, contractual and general Iiabilty claims, and claims for violation of civil and constitutional rights are payable from the General [and Contracts] Liability Fund. Moneys may be transferred between the Hospital and Medical Professional Liability Fund and the General [and Contracts] Liability Fund as may be necessary for the payment of claims which are payable from either fund. No transfer shall be made from the University of Illinois Hospital Trust Fund to either the Hospital Medical Professional Liability Fund or the General [and Contracts] Liability Fund. If the balance of a plan fund is not sufficient to pay all expenses, final judgments and executed settlements, claim payments will be made in the order that final judgments and executed settlements become payable, without regard to claim reserves previously established, date of incident, date of claim demand, or date on which the suit was filed. If final judgments which are entered simultaneously exceed the plan's limit of liability, the plan's limit of liability shall be apportioned pro rata to those simultaneous judgments. Any deficiency in a fund which would not permit full payment of any claim or suit judgment shall not impose any liability on the employer. Article IX. Limit of Liability The plan's limit of liability shall be the balance of the applicable plan funds at the time of execution of settlement or entry of final judgment, less obligations of the funds incurred through settlements previously executed and final judgments previously entered. The limit of liability shall not in any case exceed any constitutional, statutory, or other legal limitation imposed upon the University in the payment of funds for such purposes. Article X. Plan Funding The plan will be financed under the following guidelines: 1. The funding of the plan shall be determined by [the Board of Trustees upon the recommendation of] the vice president [for administration] with the advice of an independent actuary contracted by the employer. 2. [Prior to making a recommendation to the board, the] The vice president [for administration] shall ascertain appropriate funding levels for payment of actuarially projected costs of claims and expenses of the plan, including the costs of administration, claims adjustment, the purchase of commercial insurance, and legal defense. 3. T h e vice president [for administration] shall inform the board of the recommended level of funding, as determined above, and shall transfer [to] the proper amounts to accounts or plan funds, [such amounts as may be authorized by the board.] 4. The vice president [for administration] shall assess University units on an equitable basis for contributions to the plan funds. Article X L Funds 1. The plan funds or accounts shall exist as long as any claim or expense payable under the plan, or any amendments adopted thereto prior to its termination, is outstanding and may become payable from said funds. The money deposited in the plan funds shall be used solely for the purpose of payment of such claims and expenses and shall not be subject to diversion for any other purpose so long as the plan shall be in effect. 2. The plan funds shall be the sole source of all payments made pursuant to the plan; and in no circumstances shall any other funds of the employer, any officer or member of the Board of Trustees individually, any employee or any other covered person be liable or responsible for payment of any plan obligation.