Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 202]

EXTRACTED TEXT FROM PAGE:

1949]

U N I V E R S I T Y OF

ILLINOIS

199

I. Fire and extended coverage insurance is not recommended on University buildings or contents except: 1. Where required by contract to which the University is a party. 2. Where express or implied trusts are involved which place an obligation upon the University to carry insurance as a legal requirement of good trusteeship. 3. Where the rental charge or other income is set on the basis of current rates and normally includes the cost of insurance. 4. Where funds are provided voluntarily from outside sources to be used in the payment of insurance premiums. II. Casualty insurance coverage is not recommended on University risks except: 1. Where required by contract to which the University is a party. 2. Where it is expedient to protect University employee interests. 3. Where it is expedient to have competent inspection service for the prevention of accidents. III. Burglary, robbery, and theft insurance coverage is not recommended on University risks except: 1. Where it is expedient to protect the University against loss in the handling of all cash and securities. 2. Where the rental charge or other income is set on the basis of current rates and normally includes the cost of insurance. IV. Bond coverage is not recommended on University risks except: 1. Where required by law. 2. Where it is expedient to protect the University against fidelity loss in the handling of property. V. Insurance is recommended for the hospital and medical service program for students under the special fee required of them and available to staff members. (The foregoing recommendations are as proposed by the Advisory Committee except that the Advisory Committee recommended against insurance of hospital and medical service. The Finance Committee does not concur in that recommendation.) VI. Coinsurance is recommended: 1. Where a loan agreement or contract requires coverage to at least 80 per cent of the value of the property (fire and extended coverage). 2. Where it is required by insurance contract in order to obtain the coverage desired. 3. Where insurance is carried on income producing properties insured to at least 80 per cent of their value. 4. The amount of coinsurance shall be determined as follows: a. The requirements of a given contract. b . Otherwise, 80 per cent shall be considered as standard. 5. The insurable values of University property insured subject to coinsurance shall be determined and maintained as follows: a. Valuation on buildings shall be determined and maintained by the Architectural Department of the Physical Plant except in those instances where the Physical Plant and the Business Office may feel outside valuations necessary. b. Valuation of contents shall be determined by outside appraisals. The frequency or need for any upkeep service of such appraisals shall be left to the discretion of the Business Office. B. The foregoing recommendations include (No. II-2) insurance in excess of the legal liability of the University ($2,500 in each instance) for bodily injury and property damage in connection with automotive and aircraft equipment and protection of the operators of such equipment. This practice is followed by other departments of the State and we think that public policy dictates the continuation of this policy. The Finance Committee further concurs in the recommendation of the Vice-President of the Professional Colleges and the Dean of the College of Medicine that malpractice insurance be carried on the full-time staff engaged in the direct treatment and care of patients. This