About the System

University Guidelines

Section 5 Appendix A - University Self-Insurance Program
Policies of the Board of Trustees

H.University Self-Insurance Program

1. The President of Southern Illinois University is authorized, pursuant to authority granted to the Board of Trustees by State law, to direct the development of a University Self-Insurance Program. Where appropriate, the Self-Insurance Program will replace the protections and administrative services historically provided to the University by commercial insurance companies.
   
   The Program will include:
   1. Retention of risks by the University within its financial capabilities through the establishment of self-insurance limits to be determined by normal loss levels.
   2. Creation by the university of a self-insurance reserve, funded within the University's financial capabilities, in those amounts necessary to insure against potential liabilities. Protection against potential liabilities in excess of funds held in reserve would be provided through other University resources or the purchase of insurance coverage for amounts in excess of self-insurance reserve funds.
   3. Solicitation by the University, as needed, of claims adjustment and legal services to be paid from available resources on a "fee for service" basis.
   4. Initiation of internal risk management programs intended to reduce the University's exposure to potential liabilities.
2. Guidelines promulgated by the President direct the functioning of the University Risk Management and Self-Insurance Program (3/13/03).
3. As to all claims, damages, losses, expenses and civil suits covered by insurance provided by the Board or as to which the Board has not provided insurance, to the extent permitted by law, sovereign Immunity shall apply and recourse shall be limited to the Court of Claims.
4. When permitted by law to enter into an agreement with any unit of government, institution of higher education, person, or corporation for the use of property or the performance of any function, service or act, the Board may agree to the sharing or allocation of liabilities and damages resulting from such use of property or performance of any function, service or act. Such agreement may provide for contribution or indemnification by any or all of the parties to the agreement upon any liability arising out of the performance of the agreement.