Agenda Item No._________

Washburn University Board of Regents





SUBJECT: Rewrite of Insurance Policies





DESCRIPTION:



The renewal date for the majority of the University's insurance policies is January 1, which is the busiest time of year for commercial insurance underwriters. This frequently meant quotations were received many times too late for there to be adequate time to consider options. The administration recommends the primary date for the University insurance policies be changed to October 1. In order to do this, the current policies will need to be cancelled and rewritten effective October 1. The University will receive a refund for the prorata amount of current policies for the months of October, November, and December. We estimate this amount to be $85,000. Attached is a schedule of proposed October 1 insurance coverages and premiums compared with the January 1 coverages and premiums.



Prior to the January, 2001 renewal, the University's insurance agent reviewed the market and submitted applications to companies expressing an interest in writing coverage for Washburn. This review resulted in Washburn being able to consolidate some of its coverages. The agent did not perform another market assessment at this time since we are cancelling current coverages and rewriting these policies in order to change the University's annual renewal date from January 1 to October 1. The previous review resulted in United Educators Insurance Risk Retention Group's proposal being judged to be more advantageous for the University both in coverage and premium. Coverage for the package policy was moved to United Educators, who had written Washburn's Educators Legal Liability coverage for several years. The package policy includes property, general liability, auto, boiler and machinery, and educators legal liability.



United Educators, rated A: Excellent by A.M. Best, provides broad coverage created specifically for educational institutions. United Educators is a mutual insurance company owned by over 1,000 policyholder-members. United has become the standard of excellence for broad, tailored coverage and unmatched risk management and claims services for colleges and universities.



It is advantageous to have the general liability and educators legal liability written by the same insuror in the event of a claim since there is no question of which company is responsible.









FINANCIAL IMPLICATIONS:





1-1-01/02

10-1-01/02

General Fund

$239,050

$274,359

Tort Fund

117,049

124,839

Total

$356,099

$399,198











RECOMMENDATION:



President Farley recommends approval to purchase the policies as shown on the attached schedule.









_________________ ___________________________

Date Jerry B. Farley, President










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