Risk Management Services (RMS)
Policy 7
Effective Date: 07/01/2003
Last Modified Date: 01/21/2004
Introduction
To ensure proper insurance coverage, Risk Management Services (RMS) must be made aware of the acquisition or surplus of University property and must report these activities to our respective insurance carriers. This process requires effective communication within the University as well as with external partners such as the State Property Office (SPO), the State Property Fire Insurance Fund (the Fund), and our insurance broker.
- The SPO maintains records on the acquisition and disposition of all State-owned land or any interest therein by deed, lease, easement, or allocation; oversees the allocation and re-allocation of land, buildings, and space in buildings by and between various units of State government; and provides relocation assistance to persons displaced by State construction projects.
- The Fund, a division of the NC Department of Insurance, insures all State-owned buildings and contents. New assets must be reported to the Fund within 60 days of acquisition.
- Our insurance broker assists with the placement of various other insurance coverages.
It is the University's responsibility to notify these offices as property is acquired, constructed, or surplused. See RMS Procedure 3, Reporting Assets for Insurance Purposes.
Special Types of Property
Leased Space Occupied by the University
Certain departments, particularly those located off campus, occupy leased space that is not owned by the University. The UNC Property Office oversees most lease agreements and is responsible for notifying the SPO of these properties. RMS corresponds with the UNC Property Office to identify the current status of these leases and their occupants, and with the occupants to determine the contents values at these leased locations. RMS then reports those values to the Fund.
Non-Leased/Non-Owned Space Occupied by the University
Certain departments will occupy space or have property at locations that are neither owned nor leased by the University. For example, another State agency might share space with a University department, or lab equipment might be stored and used at a research site out of state. These departments should also notify RMS so that the appropriate insurance can be reported for the contents.
Vacant or Undeveloped Land
The University's property insurance policies have very limited, if any, coverage for land. The Fund's General Property Coverage Policy excludes land (including land on which the property is located), trees, shrubs, and plants. Therefore, it is not necessary to report for insurance purposes the acquisition of vacant or undeveloped land. Liability claims that may arise out of this land ownership are potentially covered under the State Torts Act.
University-Owned Contents
RMS determines the insurance value of a building's contents by a formula that includes the size of the space and the type of use. Both factors, as well as the rates charged, are reviewed annually for accuracy. The results of the formula can be overridden by the department. See RMS Procedure 3, Reporting Assets for Insurance Purposes.
Computers, Peripherals, and Miscellaneous Business Equipment
University-owned computers, peripherals, and other business equipment are insured only against fire and lightning losses unless the custodial department specifically requests additional insurance. The department must specifically identify those items to be insured and must pay the additional insurance premium.
To request such coverage, complete an AR-4 form (RMS Appendix 3) and submit it to RMS. The current rate is $0.28 per $100 of coverage. Departments may request this coverage at any time during the policy period (July 1 to June 30). RMS will continue this coverage until notified otherwise by the custodial department.
Leased Equipment
The Fund will not cover leased equipment unless we specifically notify them of its leased status and they agree to insure it. The Fund charges the premium to the leasing department. To insure leased equipment,complete an AR-4 form (RMS Appendix 3) and submit it to RMS. The current rates for this coverage are as follows.
Type of equipment Cost per $100 of coverage Leased or on-loan computers, related equipment, and software $0.45 Owned or non-owned miscellaneous equipment $0.50 Fine Arts
The University's fine arts coverage is part of a master policy issued for the entire State of North Carolina. For the purposes of this policy, fine arts are defined as "paintings, etchings, drawings, rare books, manuscripts, rugs, tapestries, statuary, and other bona fide works of art, or rarity, historic value, or artistic merit."
The policy is written on a blanket basis, which means that any items that meet the definition are automatically covered. Both owned and on-loan items are included. Therefore, departments do not have to report each owned or on-loan item in their possession that may be considered a fine art.
Non–State-Owned Property
Certain University affiliations operate using real and personal property that is not State owned. Examples of these affiliations are our foundations, UNC Press, and the UNC General Alumni Association.
Insurance for property that is not State owned does not have to be placed through RMS, the Fund, or our agent of record; these affiliations have the option of placing their coverage through a private carrier. Nevertheless, RMS will assist them when requested to do so.
Personal Property
Personal property owned by faculty, staff, or students, even when used for University business, is not covered under the University's insurance policies. Therefore, these items should not be reported to RMS.
Automobiles and Other Motorized Land Conveyances
All currently owned or newly acquired University vehicles and motorized land conveyances (such as tractors, Cushmen, and golf carts) are automatically insured for liability only. These coverages are automatically implemented or discontinued when a vehicle is acquired or disposed of through the Materials Management Division. Therefore, departments do not have to report these assets to Risk Management Services unless optional insurance such as collision, comprehensive, or medical payments coverage is requested. See RMS Policy 1, Automobile Insurance.
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