A. Statement of Risk Management Policy
1. The policy of the Board of Regents with respect to risks of property and liability loss is to:
a. Protect the Regent budgets and assets against large losses
b. Minimize and stabilize total risk management costs
c. Protect Regent employees against losses.
2. When risks of a catastrophic nature exist, they will be eliminated or reduced to the extent practical. Funding will be arranged when the potential loss is large. Funding will be obtained from:
a. The State General Fund,
b. Insurance, when it is available at a premium judged acceptable by the Board, or
c. Self-insurance, with appropriate reserves for incurred but unpaid claims.
3. The Board will not insure risks that do not present a significant loss potential unless the purchase is indicated by other factors, such as a need required by contract, bond or statute.
4. The Regent institutions shall work with the Board Office to develop appropriate protocols to implement Regent-wide risk management programs, in accordance with the Board’s policies and procedures.
B. Liability Coverage
1. Iowa Code Chapter 669, also known as the “Iowa Tort Claims Act” provides for the defense and indemnification of state employees, volunteers and agents for monetary claims for property damage, personal injury or death, caused by the negligent or wrongful act or omission of the covered individuals while acting within the scope of their authorized responsibilities.
2. Under the provisions of an interagency 28E Agreement for Settlement of Small Tort Liability Claims, the three Regent universities are authorized to settle small tort liability claims, subject to the financial responsibility limits within the 28E Agreement.
3. Motor Vehicle Self-Insurance Program
The Board has established a self-insurance program for automobile liability, including expanded coverage for comprehensive and collision for vehicles owned or rented by the institutions.
C. Property Program
1. Auxiliary and Self-Supporting Property
The Regent institutions shall purchase property insurance for self-supporting operations in accordance with the Risk Management Policy. (See Section 7.07A.)
2. General Fund Supported Property
a. The Regent institutions shall purchase catastrophic property insurance with a single incident deductible of $2 million for each university for general fund buildings and $1 million for each special school.
b. A Regent institution may seek reimbursement of General Fund property losses over $5,000 and under the insurance deductible, from the State of Iowa under the provisions of Iowa Code 29C.20 (see below). Money from the state contingent fund may be requested for repairing, rebuilding, or restoring state property injured, destroyed, or lost by fire, storm, theft, or unavoidable cause.
c. General Fund - State Property Loss Program
1) Iowa Code §29C.20, Contingent Fund-Disaster Aid provides for a contingent fund for the purpose of paying for repair, rebuilding, or restoring of state property injured, destroyed, or lost by fire, storm, theft, or unavoidable cause.
2) Losses in excess of $5,000 shall be promptly reported to the Board Office under procedures established administratively. Such notification shall occur no later than the next regular working day following the loss.
3) The institution should prepare immediately and submit to the Board Office within five working days of the loss, a preliminary loss report including cost estimates. Within 45 days of the loss, the institution should submit a formal loss report including proposed plans and specifications for repairs or replacement of equipment, and buildings
4) The Executive Council of Iowa’s Guidelines for Allocation of 29C.20 Funds prescribe the protocol for written notice and request for allocation of funds, required documentation for review by the State Auditor, the process for approval, payment, resolution of differences, and appeal.
3. Type of Coverage and Valuation Basis
a. To the extent practical and when available at a reasonable cost, property shall be insured for:
1) ‘All risk’ or perils of fire; windstorm; lightning; earthquake and flood and extended coverage including theft, vandalism, and malicious mischief.
2) Replacement cost or on a 90 percent coinsurance basis.
B. Purchase of Insurance
Purchasing terms and bid requirements are provided in 681 IAC 8.4.