Agenda Item No._________

Washburn University Board of Regents

SUBJECT: Renewal of Insurance Policies

DESCRIPTION:

The renewal date for ten of the University's insurance policies is January. An additional policy, comprehensive blanket fidelity bond coverage, began the third year of a three year policy on November 12, but is included in this report to reflect the premium obligation. This policy is Item 10 of the attached Schedule of Proposed Insurance Coverage. Item 6 of the Schedule summarizes the Worker's Compensation policy information. This is the only policy which will be provided by a company different from the current year and the change is being made because of more favorable pricing. The other nine policies are various property and liability coverages.



A firm price has not yet been received for the renewal of the aviation liability insurance.

FINANCIAL IMPLICATIONS:



1999 2000 2000 2001
General Fund $165,943 $192,553
Tort Fund* $118,000** $113,207
Total $283,943 $305,760

*Premiums do not include aviation liability insurance premium which is expected to remain stable at $4,500.



**Last year's Tort Fund premium does not include the one-time prior acts premium of $37,738.

RECOMMENDATION:


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



_________________ ___________________________

Date Jerry B. Farley, President

SCHEDULE OF PROPOSED INSURANCE COVERAGE FOR 2000 AND COMPARISONS WITH 1999
Renewal Date for Policies is January 1, 2000*
      1999 2000 1999 PREMIUMS 2000 PROPOSED PREMIUMS % CHANGE FROM 1999 PREMIUMS
1 Package Policy - Royal Insurance Company            
    Property Coverage Limit $126,252,232 $129,261,039 $46,551 $48,609 4.4%
    Deductible $25,000 Same      
    Comprehensive General Liability          
    Bodily Injury $1,000,000/2,000,000 Same $25,154 $18,612 -34.2%
    Property Damage $1,000,000/2,000,000 Same      
    Personal Injury $1,000,000/2,000,000 Same      
    Earthquake          
    Per Occurrence $25,000,000 Same      
    Aggregate $25,000,000 Same      
    Deductible $25,000 Same      
               
    TOTAL ONE YEAR PREMIUM THIS POLICY     $71,705 $67,221 -6.2%
               
2 Excess Indemnity Policy (Umbrella) - Chubb Insurance Company            
    Excess of Base Limits of Liability Sections of Comprehensive General Liability Which Includes Auto Liability        
    Limits of Liability $5,000,000 Same $15,727 $16,250 3.3%
               
3 Auto Liability/Comprehensive/Collision - Royal Insurance Company            
    Limits of Liability     $13,071 $13,477 3.1%
    *Per Accident $1,000,000 Same      
    *Property Damage $1,000,000 Same      
    Medical Payments $5,000 Same      
    Uninsured Motorist $1,000,000 Same      
    Comprehensive/Collision Per Schedule Per Schedule $4,997 $5,786 15.8%
               
    TOTAL ONE YEAR PREMIUM THIS POLICY     $18,068 $19,263 6.6%
    *Combined Single Limit          
               
*Item 10 is an exception              
               
      1999 2000 1999 PREMIUMS 2000 PROPOSED PREMIUMS % CHANGE FROM 1999 PREMIUMS
               
4 Non-Owned Aircraft Liability - Insurance Co. of North America            
    Limit of Liability $5,000,000 Same $4,500 $ %
               
5 Boiler Machinery Policy - Hartford Steam Boiler            
  The limit has been increased in recognition of value of property. This limit has not been increased in over 15 years.        
    Limits Per Accident $5,250,000 $10,250,000 $6,170 $7,185 16.5%
    Expediting Expense Limit $10,000 Same      
    Water Damage/Ammonia Contamination $25,000 Same      
    Deductible $1,000 Same      
    Extra Expense Coverage $250,000 Same      
               
6 Workers Compensation - Superior National Insurance Company            
  Coverages are to remain the same as for 1999. Increases in payroll and rates account for premium increase.        
    Payroll Amounts          
    Professional Employees          
    Teachers & Clerical $25,800,000 $25,500,000 $96,710 $119,588 23.6%
    All Other Employees $2,200,000 $3,080,000      
    Radio or TV Broadcasting          
    Professional & Other $920,000 $1,286,000      
    Security/Police $400,000 $425,000      
    Total $29,320,000 $30,291,000      
               
7 Fine Arts Floater - St. Paul Insurance            
    Limit Per Schedule $3,589,455 $3,298,965 $6,068 $5,938 -2.9%
               
8 Educator Legal Liability - United Educators Risk Retention Group            
    Limits of Liability $1,000,000 Per Incident Same $28,620 $28,620 0.0%
      $1,000,000 Aggregate        
    Deductibles          
    Discrimination, Hiring and Firing $75,000 Per Claim Same      
    Other $75,000 Per Claim Same      
               
      1999 2000 1999 PREMIUMS 2000 PROPOSED PREMIUMS % CHANGE FROM 1999 PREMIUMS
               
9 Student Professional Liability Policy - Maginnis & Associates            
    The prior acts coverage is still applicable, but only a one time premium payment was required        
    Limit of Liability $1,000,000 Per Person Same $16,143 $16,143 0.0%
      $3,000,000 Aggregate Same      
    Deductibles $25,000 Per Person Same      
    $100,000/300,000 Per Incident        
    Prior Acts     $37,738 0 N/A
               
    TOTAL ONE YEAR PREMIUM THIS POLICY     $53,881 $16,143 0.0%
               
10 Comprehensive Blanket Fidelity Bond - Hartford Insurance            
    Renewed 11-12-97 for a three year period. Cost of this policy is shared with Washburn Endowment Association and the Law Foundation.        
    Limits:          
    Employee Dishonesty $2,000,000 Same $1,637 $1,637 0.0%
    Inside Premises $810,000 Same $2,484 $2,484 0.0%
    Outside Premises $720,000 Same Included Included 0.0%
    Forgery $500,000 Same $350 $350 0.0%
    Safe Deposit Boxes $10,000 Same $6 $6 0.0%
    Computer & Elec. Transfer Fraud $1,000,000 Same $970 $970 0.0%
               
      Total for University   $5,447 $5,447 0.0%
      Total Including WEA/Law Foundation   $6,008 $6,008 0.0%
               
11 Security Guard Liability - Scottsdale Insurance            
    Limit of Liability $2,000,000 Same $19,285 $20,105 -4.3%
               
          Total General Fund Tort Claim Fund Total Both Funds
Orders to Be Issued To:              
    01-72067 01-75082 01-70066 07-75630 Total
  Topeka Insurers, LLC          
    $67,518 $119,588 $5,447 $192,553 $113,207 $305,760


Last Updated on 1/25/2000
By Sue Palmer
Email: pdskp@washburn.edu


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