Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 203]

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200

BOARD OF TRUSTEES

[January 13

also goes beyond the extent of the legal liability of the University but we believe should be provided. C. The Finance Committee recommends (as recommended by the Advisory Committee) that the following principles be followed in the procurement of insurance on risks which are to be covered by insurance: I. All insurance on University risks shall be placed only with companies having at least an A policyholders' rating and A A financial rating by Best's most recent manual. 1. In determining the amount of insurance to be allocated to any one company, consideration shall be given to the amount of insurance to be placed in comparison with the financial rating of the company. 2. All liability policies shall contain a legal immunity endorsement prohibiting the insurance company from taking advantage of any legal immunity to which the University as a public institution might be entitled. 3. T h e policies placed with mutual companies shall be of the nonassessable type. II. Fire and extended coverage on University risks shall be placed with stock and mutual companies at a ratio, as near as practicable, of 75-25 per cent respectively, except that individual risks which are under $50,000 may be placed completely with either stock or mutual companies. III. Competitive bids on all insurance shall be invited wherever practicable. Awards shall be made on the basis of the lowest gross bid. In the case of identically low bids, drawing by lots shall determine the placing of the coverage. I V . One renewal of coverage with an agent, broker, or company shall be permissible except when it would be advantageous to procure new bids and, if resulting in lower rates or premiums, the coverage shall be placed with the low bidder and, in case the bids are identical, the insurance may be placed with the present agent, broker, or company unless better service can be secured from some other source. D. If the foregoing recommendations of the Committee are approved, previous actions of the Board concerning insurance on the University's property will thereby be repealed: I. On October 5, 1926, the Board of Trustees authorized the Comptroller to renew insurance on nonfireproof buildings and contents in Chicago which expired during that year and to increase or decrease the insurance to keep it on an 80 per cent basis on valuation of buildings and contents. II. The Board of Trustees on April 27, 1935, informally referred to the policy of the University in this respect to carry insurance on buildings and structures which were distinctly nonfireproof. III. On June 15, 1935, the Board recommended that fire insurance be taken out on certain named buildings, including the old Medical Building, Dental Building, and Pharmacy Building, all located in Chicago; also farm buildings on the Carter-Pennell Farms, both north and south. IV. On July 26, 1935, the Board recommended that insurance be placed on the Chemistry Building and contents because of the extra-hazardous condition of the building, subject to 80 per cent coinsurance. The Board further recommended that insurance be placed on the glass in all greenhouses of the University. V. On February 20, 1943, the Board recommended that as all insurance policies expire, renewals for fire and extended coverage shall be made in suitable stock and mutual companies at a general ratio of 75-25 per cent; with not more than 25 per cent mutual on any one risk except that steam boiler insurance may be carried in full in mutual companies. (Replaced

by JNo. 11-2.; KENNEY E. WILLIAMSON,

CHESTER R. DAVIS F R A N K H . MCKELVEY

Chairman

On motion of Mr. Williamson, this report was adopted.