SUBJECT:

Campus General Liability Program Rates and Deductibles

Last year, the UC Office of the President mandated changes in the UC wide
funding process for campus general liability, resulting in a payroll
assessment of $0.51 per $100.00 of payroll cost. This assessment will
continue indefinitely and the rates are projected to increase dependent
upon UCSD's claims experience and actuarial analysis.

The FY 98/99 Campus General Liability Program rate per $100.00 of payroll
will remain the same as 97/98 as follows:

General Funds*: $0.51
All Other Funds**: $0.51

*General Funds charges will continue to be offset by an appropriation.
**Federal Funds will not be directly assessed.

These charges appear on the general ledger under the 637930 account:
"GENERAL LIABILITY PROGRAM." The data can be viewed and downloaded from
FinancialLink's (http://financiallink.ucsd.edu) Operating Ledger
Transaction Detail report. Departments will receive a report on the
calculations along with the Operating Ledger report.

With the long-term goals of reducing claims and program costs, effective
July 1, 1998, the following General Liability Program deductibles will be
implemented.

Auto Program:

· $500 deductible for damage to UCSD vehicles.
· A deductible for third party property damage and personal injury with a
per claim minimum of $500 and maximum of 20% of the claim cost up to
$25,000 unless a department is found to have contributed to a loss because
of gross negligence. In that case, a larger deductible will be negotiated
between Risk Management, the department, and campus officials.

General Liability (Non-Employment Related) Program:

· No deductible, unless there is clear indication of fault or negligence by
a UCSD department or employee. If such is indicated, the deductible will
be negotiated between Risk Management, the department, and campus officials.

Employment Practices Liability Program:
· Assessable to Departments via the Vice Chancellors as determined by Risk
Management, Human Resources, and Campus Counsel.
· Per claim minimum of $5,000 and a maximum of 20% of the claim cost up to
$50,000 unless a department is found to have contributed to a loss because
of gross negligence. In that case, a larger deductible will be negotiated
between Risk Management, the department, and campus officials.

In the coming fiscal year, Risk Management will present seminars regarding
these changes to the General Liability Program and practical steps
departments and individuals can take to minimize losses. If there are
questions regarding program rates or deductibles please contact Kenneth Jay
at extension 44237 or Van Jahnes-Smith at extension 43782.

Martha M. Mc Dougall Director