We believe it's important that the University's "cost of risk" be allocated back to each campus department. By doing this, departments are more accountable and have a greater financial incentive to avoid losses. Additionally, by knowing your true "cost of risk", your financial planning and budgeting is easier and more accurate.

In most situations, the University charges back to each campus department their insurance costs while other costs of operational risk such as uninsured losses and deductibles are also borne by that unit.

One of Risk Management Services' primary responsibilities is to serve as a clearinghouse for the University's insurance premiums. On behalf of the entire University, we deal directly with our insurance broker and carriers to negotiate the best coverages and prices. And once coverage is purchased, we pay the insurance carrier directly from our accounts.

This process serves the interest of the University in several ways. By purchasing as a single entity, we benefit from economies of scale and have much greater bargaining power. And using our expertise, it assures that the proper insurance coverage is being purchased and that the premiums are paid in a timely fashion with no lapse in coverage. Finally, it relieves campus departments of this administrative duty so they can focus on their educational missions.

Although Risk Management Services initially pays the premium, these insurance costs are ultimately allocated back to the campus department(s) that requested the coverage. This internal charge-back program is done electronically through FRS.

Campus departments that request or require a particular insurance coverage will receive an Insurance Statement from us. The Insurance Statement serves as documentation of the purchase and identifies the amount, the charged account and details of the coverage being purchased. Click here to view a sample Insurance Statement.

On the 21st of that month, the charged account will be electronically debited through FRS. This transaction will show up on the charged department's next monthly FBM091 Statement, referenced under the Description column by the RMS Stmt#.

Campus departments may also receive insurance credits when a prepaid coverage is cancelled before its expiration date. Departments will receive a prorated credit using the same process as they were charged. They will receive an Insurance Credit Statement and later that month, their account will be electronically credited through FRS.