USING THE CAROLINA SELF-INSURANCE FUND

Risk Management Services (RMS)

PROCEDURE 2

Effective Date:  07/01/2003

Last Modified Date:  10/24/2003

Procedure Description

Campus departments have the option to insure their University-owned computer and business equipment in the Carolina Self-Insurance Fund (CSIF), a convenient and cost-effective alternative to purchasing insurance from an outside source. Departments may selectively decide what to insure, so only those items actually in harm's way are covered.

Participating campus departments pay into an internal fund based on the value of their covered equipment. If they sustain a covered loss, their claim is paid directly from the fund. All financial transactions are completed electronically through FRS, minimizing much of the administrative burden.

Procedure Steps

Enrolling

1. Complete an All-Risk Insurance Coverage Request (Form AR-4; RMS Appendix 3).
   1. File a separate request for each of the following categories:
      • UNC-owned computer and related equipment or software
      • UNC-owned miscellaneous equipment
      • leased or on-loan computers and related equipment or software
      • leased or on-loan miscellaneous equipment
   2. Specifically identify each item to be insured.
      • description (including model number)
      • serial number
      • location (building & room; show city only if other than Chapel Hill)
      • approximate replacement cost value (including tax, shipping, & installation)
   3. Account information must be included on the AR-4 form to facilitate electronic payment through FRS.
      
      
2. RMS charges an annual premium of $0.0028 of each scheduled value (e.g., a $2,000 laptop would carry an annual premium of $5.60).
   
   
3. RMS will process coverage and send the department an Insurance Statement. Keep the statement with departmental accounting records.

Filing a Claim

1. Submit the following documentation for a covered loss:
   • Proof of Loss, signed by an authorized department representative; requires a loss narrative (under Description of Loss) and specific identificiation of the item(s) involved in the claim
   • A police report, if the loss involved a criminal offense (e.g., theft or vandalism claims)
   • The account number(s) the department used to purchase the claimed item(s) so that the claims money is correctly allocated
   
   
2. Departments are not required to replace an item before their claim is paid. Rather, once the claim is verified, they will be paid the full scheduled amount of the item(s), less the following applicable deductibles (which serve as financial incentives to departments to avoid losses):
   • $500 per occurrence for any loss other than theft
   • $1,000 per occurrence for theft
   
   
3. Once the account is credited, RMS sends a Claim Statement documenting that the FRS transaction is complete. Keep the Claim Statement with department accounting records.

Procedure Assistance

Contact Janet Hoernke, 966-6681, for further assistance.

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