AUI shall purchase insurance coverage as a means of mitigating the financial risk posed by the loss or damage of AUI-owned property, as well as by the liabilities that could be incurred as a result of actions by its Trustees, Officers and employees in performance of duties. The types of insurance and the amount of financial protection provided by the policies will not be determined solely by the extent to which such coverage is considered an allowable expense of the Research Center(s). When the potential benefits of insurance coverage are directly identifiable with the Research Center(s), the cost of insurance premiums shall be allocated between the Corporate Office and the Research Centers, provided that such costs are allowable according to the terms of their contracts.
AUI’s Corporate-wide insurance and retirement programs are of direct interest to the Board of Trustees. Primary responsibility for the programs are delegated to the Controller, who will submit an annual summary report of all substantive changes effected within the preceding year to the Operations and Administration Committee. The Operations and Administration Committee shall report to the Board all significant changes in the benefits accruing to employees of the Corporation or, when appropriate, request Board concurrence for changes.
Proposed changes to AUI’s insurance and retirement programs that affect the following items will require the approval of the Board prior to implementation:
- Selection of a new carrier for the AUI Retirement Program and Supplemental Retirement Program;
- Existing or proposed insurance with ex officio provisions covering Trustees and/or Corporate Officers;
- Any changes which by law or by request of the carrier require Board approval.
It is the Board’s intention that the insurance and retirement programs available to employees of Research Centers and the Corporate Office be generally comparable to one another.