Insurance Coverages and Purchasing Insurance

Scope

Operational policy to define how insurance is purchased, what categories and under what conditions.

Reason for Policy

The purpose of this policy is to define how insurance is purchased, what categories and under what conditions.

Policy Statement

The University purchases many different types of insurance coverages to protect its wide variety of assets.  The major categories of coverages are listed on the Risk & Insurance Management website under Insurance Coverages.  These coverages are presented in summary form for the purpose of information only and should not be interpreted as being the exact provisions of the policies. 

• Commercial Insurance:  coverage purchased from an outside, unaffiliated insurer
• Self-Funding:  University funds set aside for protection against loss

The University may purchase insurance coverages subject to the stated conditions, please see CRR 80.030 – Insurance for detail.

No Waiver of Immunity
By authorizing the purchase of insurance pursuant to this policy, the Board of Curators does not intend to waive and does not waive sovereign immunity, governmental immunity or any other immunity enjoyed by The Curators of the University of Missouri, its Board of Curators, its officers, administrators or employees and no language contained in any insurance policy purchased pursuant to this policy shall be construed to constitute a waiver of sovereign immunity, governmental immunity or any other immunity enjoyed by The Curators of the University of Missouri, its Board of Curators, its officers, administrators or employees.

By approving the establishment of a program of self-insurance, the Board of Curators does not intend to waive and does not waive sovereign immunity, governmental immunity or any other immunity enjoyed by The Curators of the University of Missouri, its Board of Curators, its officers, administrators or employees and no language contained in any program of self-insurance approved by the Board of Curators shall be construed to constitute a waiver of sovereign immunity, governmental immunity or any other immunity enjoyed by The Curators of the University of Missouri, its Board of Curators, its officers, administrators or employees.

Definitions

Accountabilities

The President is authorized to purchase any of the insurance coverages meeting the conditions and methods set forth above and for which funds are available for payment of premium without reporting to or requesting authority of the Board of Curators, provided, however, the authority of the Board of Curators is required for the purchase of:

• Any staff benefit program that was not covered by insurance as of the date of CRR 80.030 – Insurance or amendments thereto are approved by the Board of Curators; and
• Any change in coverage or conditions of staff benefit programs after the date of CRR 80.030 – Insurance or amendments thereto are approved by the Board of Curators, unless funds have been provided in the approved budget.

The President has the authority to determine the form of coverage; policy terms and conditions, the amount or limit of coverage; the amount of any deductible; the method of premium payment; and, when or if bids will be taken on University Request for Proposals.

Additional Details

Forms

Related Information

Methods of Purchase
Unless otherwise directed by the Board of Curators, the method of purchase of all property, casualty, fidelity, and student insurance shall be through competitive proposals solicited from two (2) or more brokers, which shall be selected through a University pre-qualification process, and with Board approval, or by a program of self-insurance, with the program having been approved by the Board of Curators.  Specialty markets may be accessed via a specialty broker.

The method of purchase of all Staff Benefits insurance shall be by proposal from brokers based on a University Request for Proposals; with the proposal having been selected with Board of Curators approval, and/or by a program of self-insurance, with the program having been approved by the Board of Curators.

Payment of Premiums
Premiums are charged to each campus' General Operating Budget and where applicable, may further be charged to each department. These costs for Auxiliary Enterprises should be considered a cost of operations. Student premium payment varies depending on insurance plan.

History

This policy combines the following former policies:

• Business Policy Manual 802 – Purchasing Insurance (revised 3/23/2015)
• Business Policy Manual 803 – Insurance Coverages (revised 4/11/2013)

Procedure