BUSINESS OFFICE
July 1, 1993
KEY ADMINISTRATORS/KEY SUPPORT STAFF
SUBJECT: Changes to UC BUS-28b Theft Buy-Down
Property Insurance Program
In an effort to greatly simplify insurance coverage and more
effectively administer programs, changes have been made to UC Property
Insurance Program BUS-28b. Effective July 1, 1993, departments may
purchase an amount of insurance to protect inventoried equipment. The
heart of this program change is ending the asset specific nature of
the coverage in BUS-28b. Key points of the program follow.
The Theft Buy-Down Deductible program is paid coverage lowering
deductibles and protects equipment purchased or possessed by The
Regents. The voluntary Theft Buy-Down program is intended to
provide additional coverage for equipment having a high probability
of theft. Cost for the coverage is $.65 per $100 value of
equipment with a yearly premium being assessed. The deductibles
for the program are $1,000 for non-forced entry and $250 for forced
entry.
Paper work is drastically reduced as no listing of equipment to be
insured need be prepared. Departments will decide on the amount of
coverage they wish to purchase and inform Risk Management on an
annual basis. Risk Management will track departmental expenditures
against the coverage fund and advise departments.
Risk Management will aid individual departments in determining
proper coverage amounts through statistical studies of loss
experience. Departmental premium charges for Theft Buy-Down
insurance may actually decrease as a result of close examination of
loss history and prudent purchasing.
Replacement equipment qualification will be based on a functional
standard rather than a like kind and quality test. Departments will
be able to replace with equipment performing a similar function
rather than with equipment exactly like that lost. This functional
test will greatly simplify the replacement process.
The renewal period for the Theft Buy-Down Deductible program will be
July and August. Notification to current users of the program for
renewal of equipment coverage for fiscal year 1993-94, was made June
29. No request for coverage may be honored after September 1, 1993.
There will be an information session on Wednesday, July 14 in
Conference Room 111A from 10:00 a.m. to 12:00 noon. Questions
regarding this program change should be directed to Kenneth Jay
(44237) or Diana Olson (43820).
Kenneth Jay
Manager,
Insurance & Risk Services