SUBJECT: Renewal of Insurance Policies

BACKGROUND:

For many years, the renewal date for the majority of the University's insurance policies was January 1, which is the busiest time of year for commercial insurance underwriters. This frequently meant quotations were received too late for there to be adequate time to consider options. As a result, in December 2000 when approval was requested for renewal of insurance coverage, we discussed changing the renewal date from January 1 to October 1. After consulting with Topeka Insurers and others, it was decided to make that change. Consequently, in September 2001 the Board of Regents approved the cancellation of the University's insurance policies and rewriting the policies with and October 1 effective date. This change will give insurance companies more time to respond to the University's requests for coverage.

DESCRIPTION:

Prior to the October 2002 renewal, the University's insurance agent reviewed the market and submitted applications to companies expressing an interest in writing coverage for Washburn. The previous review conducted prior to the January 2001 renewal, resulted in Washburn being able to consolidate some of its coverages. United Educators Insurance Risk Retention Group's proposal continues to be judged to be more advantageous for the University both in coverage and premium. Coverage for the general liability policy was moved to United Educators in 2000, who had written Washburn's Educators Legal Liability coverage for several years.

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.

Attached is a schedule of proposed October 1 insurance coverages and premiums compared with last year's coverages and premiums. All the quotations are firm, except for the Worker's Compensation coverage. We are still working with the agent to determine if there is a way to reduce the increase reflected on the attached schedule. The amount shown on the schedule is the maximum amount Washburn might have to pay for coverage.

FINANCIAL IMPLICATIONS:

RECOMMENDATION:

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

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Date Jerry B. Farley, President