Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 50]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

39

Summary

Amount to be paid to the University: Chicago Circle Medical Center Urbana-Champaign Total Amount to be paid by the University: Chicago Circle Medical Center Urbana-Champaign Toted f 293 799 771 SI 864 33 93 50 177 305 883 323 511 400 494 680 574

I t

This report was received for record. Self-Insurance of Public Liability, Professional Liability, and Workmen's Compensation History

(46) Tort liability claims against the University and its employees have been met principally through the University's purchase of liability insurance which provided coverage for both the University and its employees. T h e insurance policies covered the expense of claims investigation, legal defense, and the cost of settlements and awards of the courts, u p to policy limits. Currently, the premium on the policy which expires August 1, 1976, totals $605,850 with policy limits of $1,000,000 per occurrence for general liability coverage, and of $500,000 aggregate losses per year for medical malpractice coverage. Bids were requested in June 1976 for quotations on public and professional liability insurance, and only two bids were received. T h e bids were rejected because the cost was excessive and did not provide the required coverage. Prior to the purchase of general liability insurance in July 1967 all claims against the University were administered by the Committee on Accident Compensation which still exercises this authority except when insurance has been available to respond to the claims. The Committee on Accident Compensation is authorized to approve expenditures for public liability and workmen's compensation claims against the University from the Workmen's Compensation Reserve Fund and line-item State appropriation (s). T h e committee presently has no authority to act on questions of indemnification of University employees. State Appropriation A State appropriation has been made annually to the University for the purpose of covering University tort liabilities and workmen's compensation claims of employees paid through State appropriations. This appropriation will be used for claims against the University or for supplementation of the Workmen's Compensation Reserve Fund. Workmen's Compensation Reserve Fund T h e purpose of this fund is to cover the workmen's compensation liability the University incurs through performance of contracts with the state and federal governments, private gifts, grants, and the operations of auxiliary enterprises. The contracts and the operations of the auxiliary enterprises are assessed a percentage of the salaries paid to employees, and such assessments are deposited in the Workmen's Compensation Reserve Fund to cover current and future liabilities.

Proposal

With the exceptions identified below under the heading Commercial Insurance, it is proposed to expand the self-insurance program (now relating only to workmen's compensation) to provide for the administration and funding of workmen's compensation, public liability, and professional liability (malpractice) risks.