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Property and Casualty Insurance and Surety Bonds
2. Rule and Regulation
Sec. 1 Authority to Purchase. The purchase or renewal of any insurance policies and surety bonds, other than life, disability, and health insurance policies for any U. T. System institution or for System Administration, shall be negotiated and approved by the Chief Compliance and Risk Officer or designee. The Executive Vice Chancellor for Business Affairs shall also approve the purchase or renewal of policies with premiums in excess of $500,000.
Sec. 2 Notice of Loss and Approval of Claims. At the time a loss occurs applicable to either Systemwide or individual insurance policies and surety bonds, the Chief Compliance and Risk Officer or designee shall be notified by the chief business officer of the institution. For all claims, other than life, disability and health claims, the Chief Compliance and Risk Officer or designee shall approve all loss claims and settlements under $250,000. The Executive Vice Chancellor for Business Affairs shall approve any settlement between $250,000 and $1,000,000, and any settlements under the University’s Comprehensive Property Protection Plan. Settlement of commercial insurance or surety bond claims in excess of $1,000,000 must have the approval of the Board of Regents.
Sec. 3 Settlement of Catastrophic Claims. In the case of a catastrophic occurrence where the loss is so extensive that partial commercial insurance payments in excess of $1,000,000 are necessary, the Chancellor is delegated authority to execute all documents related to the partial payment or adjustment. The Board of Regents will be notified by the Chancellor of all partial payments received in excess of $1,000,000. Final settlement of commercial insurance claims in excess of $1,000,000 will require approval from the Board.
4. Relevant Federal and State Statutes
5. Relevant System Policies, Procedures, and Forms
6. Who Should Know
Chief Business Officers
7. System Administration Office(s) Responsible for Rule
Office of Risk Management
8. Dates Approved or Amended
9. Contact Information
Questions or comments regarding this Rule should be directed to: