Risk Management Services (RMS)
Policy 1
Effective Date: 07/01/2003
Last Modified Date: 04/25/2005
This Policy is issued under the authority of Steve Kenny, Director of Risk Management Services, who reviewed and approved its contents as of April 26, 2005.
Introduction
The University's automobile insurance is part of a master policy issued to The State of North Carolina. All University-owned vehicles, trailers, and mobile equipment are covered under this policy. It is a retrospectively rated plan; that is, the premiums are determined based on claims filed in previous years. Claims service is provided by The Travelers Insurance Group.
The policy term runs from July 1st to June 30th each year. Two policy numbers are used to identfy coverage; contact Risk Management Services (RMS) for this information.
Jurisdiction and Regulation of Vehicle Operations
University-owned vehicles come under the jurisdiction of the North Carolina Department of Administration. Responsibility for establishing and administering vehicle operation regulations is assigned to their Motor Fleet Management Division. The Motor Fleet Management Division Regulations Manual describes all policies and procedures related to the assignment and use of University-owned vehicles.
Who May Operate University Vehicles
In order for University-owned vehicles, vehicles leased from Motor Fleet Management, or vehicles rented from private rental agencies for University use to be afforded coverage under UNC's auto policy, they should be operated only by State employees in the scope of University employment. (For purposes of vehicle assignment, a State employee is defined as "any individual working for the state of North Carolina for wages or salary.")
Graduate and professional students may also operate University vehicles under either of the following conditions:
- The student meets the definition of "State Employee" as described above; OR
- The student is enrolled in the University; his/her educational training requires the use of a State-owned vehicle; and his/her use of the State-owned vehicle is supervised and permitted by a University official.
Students and non-State employees may be passengers in University vehicles provided they are attending athletic events or other activities officially sanctioned by the University.
Vehicles Covered by the University's Automobile Insurance
This section describes the liability coverage for various vehicles. See table below for the definition of liability coverage and for other types of coverage available.
- University vehicles--All currently owned or newly acquired University vehicles, trailers, and mobile equipment are automatically insured for liability coverage. Liability coverage is automatically implemented or discontinued when a vehicle is acquired or disposed of by the University. Collision and comprehensive insurance is not automatically provided; departments desiring such coverage must request it and pay an annual premium. See the table below.
- Personal vehicles--Personal vehicles operated by University employees are provided with excess liability coverage under this policy as long as the vehicle is being used solely in the scope of the person's University employment at the time of the incident. This excess liability coverage does not become applicable until all primary liability coverage is exhausted or there is no primary liability coverage available. Collision and comprehensive insurance is not provided under the University's policy for personal vehicles.
- Rental vehicles--Vehicles rented by University employees are provided with excess liability coverage under this policy as long as the vehicle is being used solely in the scope of University employment at the time of the incident. This excess liability coverage does not become applicable until all primary liability coverage is exhausted or there is no primary liability coverage available. Unlike University-owned and personal vehicles, collision and comprehensive insurance is automatically provided for rental vehicles.
- Motor Fleet Management vehicles--Vehicles leased from Motor Fleet Management are covered for liability under the State's master insurance policy, while our monthly lease fee includes physical damage coverage. Therefore, departments do not need to consider purchasing additional insurance coverage.
- Foundation or dealership vehicles--Coverage under the State's insurance program is not afforded for vehicles provided to departments by foundations, automobile dealerships, or other sources not directly subject to the University. Obtain insurance for these vehicles through the providing foundations or other non-University funding sources. However, RMS will assist you with obtaining the necessary coverage.
Definition of Automobile Insurance Coverages
Type of Coverage Coverage Definition Limits Deductibles Additional Cost per Year Comments Liability Bodily injury or property damage when UNC affiliate is at fault. In-state accidents: $500,000 per person per accident; $5,000,000 maximum per accident None None; provided automatically Provided on an excess basis for rental or personal vehicles used for official University business. Out-of-state accidents: per-person limit increases to $1,000,000. Collision Loss to UNC's vehicle caused by its collision with another vehicle or object or by its upset, regardless of fault. Actual Cash Value* Standard $100, except for rental vehicles, for which the deductible is waived. Depends on the original cost of the vehicle; generally between $140 and $308; contact RMS for specifics. Does not cover bodily injury or property damage liability. Comprehensive Loss to UNC's vehicle caused by fire, theft, vandalism, falling objects, and various perils other than those covered by Collision. Actual Cash Value* Standard $50, except for rental vehicles, for which the deductible is waived. $46 per vehicle Medical Payments Reasonable and customary medical costs of persons injured in an insured auto, regardless of fault. $5,000 per occurrence per occupant None $18 per vehicle Consider only for vehicles transporting guests or passengers not employed by UNC; UNC employees injured in auto accidents during the scope of employment should be covered by workers' compensation benefits. *Actual Cash Value is the cost to repair the damage to the vehicle, or the fair market value of the vehicle, whichever is less. The fair market value is determined by the cost of comparable vehicles in the same geographic location.
Automobile Insurance for Travel outside the United States
The University's automobile policy restricts coverage to just the United States, its territories, and Canada. Employees operating vehicles in Canada must provide proof of vehicle liability insurance. Contact RMS at least thirty days prior to departure for liability insurance verification documentation to be presented at the Canadian border and to carry with you throughout your travel in Canada.
The University has no other existing insurance policies in force in any other countries. Departments should purchase insurance directly from the rental agency or from a local insurance agency. These expenses should be reimbursable. RMS will assist with arranging this foreign coverage. Additionally, for insurance requirements specific to particular countries to be visited, contact the US Embassy for those countries. The US Department of State also provides useful travel warnings and Consular Information Sheets to assist you with your foreign vehicle use.
Notification to Departments Purchasing New UNC Vehicles
When a new University vehicle is purchased, RMS will notify the custodial department (as named on the Purchase Order) of the optional insurance coverages available. See RMS Appendix 1, "Important Insurance Information Regarding Your New UNC Vehicle Purchase."
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