Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 52]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

41

claims should be exhausted. Interest accruing on the additional $1,000,000 or on the unexpended balance thereof shall revert to the Medical Service Plan Unassigned Account. C. Workmen's Compensation Claims 1. State Appropriation: Workmen's compensation and public liability claims against the University which are within the scope of operations covered by this appropriation will be charged to this source. 2. Workmen's Compensation Reserve Fund: Workmen's compensation claims arising from the operations under State, Federal, and private grants and contract and auxiliary enterprises will be charged to the fund. D. Commercial Insurance T h e University will continue to be insured under the following liability insurance policies: Aviation and Airport Liability Automobile Liability Directors and Officers Liability Nuclear Reactor Liability Specific excess insurance (stop loss) will be sought which will limit the exposure for the payment on any single liability or workmen's compensation claim paid from the Reserve Funds to a stipulated amount. Insurance (annual aggregate excess) will also be sought which would limit the University's total liability for all claims incurred during a year. The market for this insurance is very limited and may not be immediately available at a reasonable cost. Loss Control Services The existing resources within the University will be applied to promote loss prevention and loss control programs. The physical facilities should be under rigid inspection for fire prevention, public safety, sanitation, radiation hazards, etc. T h e health professions peer review committees will continue actively to monitor the handling of patients and the medical practices within the University. T h e services of a professional loss prevention firm should be employed under a contract to audit the effectiveness of the University's loss control and loss prevention program. Investigation and Negotiation of Claims All incidents will be carefully reviewed to determine if there is any possibility of a future claim. Incidents which could result in any loss, even without apparent fault, will be thoroughly investigated to be certain an adequate defense can be maintained if the potential claimant should ever file a claim. All incidents which involve an error or negligence will be immediately investigated and the liability estimated. I t is recommended that a contract be entered into with: Employers Self Insurance Service, Inc. (ESIS, Inc.) Annual claims service fee: Minimum of $21,735 plus $295 for each claim after the first sixty-five claims. Deposit premium to a trust fund of $7,500. Loss Control Service: $9,475 — This fee includes twenty-five days of hospital malpractice services and six days facilities inspection service. This contract should provide for the services specified effective August 1, 1976, to August 1, 1977. T h e firm could also serve in the negotiation of the settlement of claims. T h e authorization for settlements would be subject to the recommendation of the Accident Compensation Committee with the approval of the Vice President for Administration or the Board of Trustees as applicable.