Associated Students, Inc., approved a motion for a new insurance provider for next year at its final board meeting of the year, May 2. The total term premium for this insurance quote is $62,252, pending some additions to the plan by the provider.

According to Janet Rice, the director of Finance and Administration for ASI, the board is looking to reduce the cost of the policy and she is hoping that this plan will do that. The savings cannot be computed as of yet, as the board is still waiting for a few more insurance quotes that will be included in this plan.

The motion was brought to the board by ASI Vice President of Finance Paul Ueckert. The California State University Risk Management Authority gave the bid to the board. According to Ueckert, this is the same provider who also insures a number of other California State Universities.

“This is the overall insurance coverage package for ASI,” said Ueckert.

This quote is an Auxiliary Group Purchase Insurance Program quotation for the ASI insurance program. The quote includes liability, property and excess liability programs.Ueckert explained how ASI decides on purchasing a certain insurance plan.

“Insurance companies compete for our business,” Ueckert said. “We take bids from different companies and decide on one that best fits.”

The Commercial Liability area of this plan will cover General Liability, Auto Liability, Errors and Omissions, Employment Practices Liability and Employee Benefits Liability. This particular area allows CSURMA to provide coverage for the entire Associated

Students? Liability exposures on one policy. The term premium for this area is $56,044.The Commercial Property quotation provides blanket limits of $500 million for all risk coverage with various sublimits and no coinsurance. The policy would also include boiler, machinery and flood coverage with a loss limit of $100 million. The term premium for this area of insurance is $3,500.

The quote for Excess Liability is being provided by the Schools Excess Liability Fund. SELF is the excess insurer of the CSU and provides a shared limit of $14 million excess of $1 million to Auxiliary Organizations. This program will include coverage for Errors and Omissions, including Directors and Officers.

The term premium for this area is $2,748. Michael Beatty of Driver Risk Services states in his letter that this proposal will provide ASI with broad, comprehensive coverage, streamline the insurance needs of ASI and reduce the cost of insurance that ASI incurs.

Even though the savings cannot be computed yet, Ueckert believes this company will provide savings from the current provider.

“This company came back with a significantly lower bid than our current plan,” Ueckert said.