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UNIVERSITY POLICY

SUBJECT:

FINANCIAL AFFAIRS

TITLE:

INSURANCE: PROPERTY

CODING:

00-01-50-86:01

ADOPTED:

07/01/87

AMENDED:

05/11/93

I.       PURPOSE

To establish the Risk Management program as it relates to the handling of insurance claims relevant to:

a.    Property Insurance

b.    Boiler and Machinery Insurance

c.    Crime Insurance

d.    Special Research & Project Insurance

e.    All other losses in which a tangible object is adversely affected (excluding automobile
       claims); Business Interruption, if applicable.

Under the direction of the Senior Vice President for Administration and Finance, the Vice President for Finance and Treasurer is to ensure compliance with this policy. The Director of Risk and Claims Management is to implement this policy.

Definitions of Coverage: (Note: Detailed information is maintained in the Office of Risk and Claims Management):

A.    Property Insurance - all Risk Coverage, including but not limited to fire, theft,
        vandalism, mysterious disappearance.

B.    Boiler and Machinery Coverage - responds to occurrences including, but not
        limited to, losses involving all boilers and machinery, including structural damage loss,
        and, also, x-ray, MRI, CAT Scan, and Linear Accelerator equipment.

C.    Crime Insurance - comprehensive coverage including but not necessarily limited to
        losses resulting from fraudulent and dishonest acts of faculty or staff members, monies
        and securities coverage, and fidelity coverage.

D.    Special Research and Project Insurance - can insure specific research projects, as
        requested through the Office of Risk and Claims Management, on an individual rating
        basis; individual requests for coverage must be channeled through the office of the
        respective Dean and thereafter, to the Office of Risk and Claims Management for
        appropriate consideration.

1.     Reporting Procedure: In the event of a loss being sustained, the Director of Risk and
        Claims Management or designee will act as the sole authorized UMDNJ agent for the
        timely and accurate interface with the insurance carriers and/or third parties and the
        Attorney General's Office with respect to relevant risk management and claims
        management activities.

        a.     In all instances, the Office of Risk and Claims Management is to be notified of
                losses through the completion of an Incident Report-UMDNJ Form 70. This
                must be completed within 48 hours of the occurrence. The Office of Risk and
                Claims Management is available by telephone with respect to urgent reports of
                losses, particularly severe losses.

        b.    The Director of Risk and Claims Management or designee is responsible for the
                timely reporting of the adverse occurrence to the appropriate carrier, agency or
                party.

 
2.      Reimbursement and Recoveries

         a.    The Office of Risk and Claims Management will coordinate relevant data with the
                UMDNJ department and, in conjunction with the insurance carrier and/or the
                N.J. Department of Law and Public Safety, is responsible for the negotiation and
                recovery from carriers/third parties, etc. for all insurance recoveries, third party
                liens, etc.

         b.   The Director of Risk and Claims Management is responsible for recommending

     the equitable allocation of program costs to UMDNJ cost centers.


          c.   UMDNJ departments sustaining a loss, for which the Office of Risk and Claims
                Management achieves a recovery of the loss, may be eligible for reimbursement
                in accordance with procedures established by the Office of Risk and Claims
                Management for the maintenance and operation of the Insurance Recovery
                Account.

By Direction of the President:

________________________________________
Senior Vice President for Administration and Finance
 

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