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UNIVERSITY POLICY

I.        PURPOSE

To set authority to settle claims and litigation in accordance with the authorization of the Board of Trustees.

II.       ACCOUNTABILITY

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

III.      POLICY

A.       The attached EXHIBIT is the Board of Trustees Resolution pertaining to authority to settle claims and litigation.

1.     All proposed settlements between the amount of $50,000.01 and up to and including $100,000.00 shall require the approval of the Vice President for Legal Management.

2.     The settlement of claims and litigation of up to and including $50,000.01 shall require the approval of the Vice President for Legal Management, except that with respect to settlement of professional, general and automobile liability claims and litigation(tort claims) and Workers' Compensation claims of up to and including $50,000.00, and shall require the approval of only the Director of Risk and Claims Management.

3.     Settlements of professional, general and automobile liability claims and litigation of more than $25,000.00 shall be reported to the Claims Committee of the Board of Trustees.

B.       Notwithstanding the above, all settlements shall be approved by the Office of the Attorney General, State of New Jersey, when required by the provisions of N.J.S.A. 59:1-1 et seq., or other applicable law.

IV.     EXHIBIT

Board of Trustees Resolution, February 21, 2006

By Direction of the President:

_____________________________________________
Senior Vice President for Administration and Finance

 Resolution

WHEREAS, the Board of Trustees of the University of Medicine and Dentistry of New Jersey established a policy as the process for settlement of claims which is identified in the University policy manual (00-01-50-89:00), and

WHEREAS, a modification to the delegation of authority within this policy is desired based on the Finance Committee of the Board of Trustees discussion at the February 14, 2006 meeting, and

WHEREAS, the proposed modification eliminates the settlement adjustment authority delegated to the President and Senior Vice President for Administration and Finance,

NOW, THEREFORE, be it resolved that the Board of Trustees of the University of Medicine and Dentistry of New Jersey authorizes the settlement of claims and litigation in accordance with the delegation of its authority as reflected in the University Policy # 00-01-50-89:00.

February 21, 2006

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