Introduction to the University of Texas System Auto Insurance Program

1
Introduction to the University of Texas System
Auto Insurance Program

• Office of Risk Management

2
Purpose

• To train UT Auto Contacts on basic auto insurance
  terminology.
• To make UT Auto Contacts aware of the different
  type of auto policies available.
• To train UT Auto Contacts to accurately classify
  vehicles.

3
Auto Insurance Terms

• Auto Liability Provides protection for damages
  because of bodily injury or property damage to
  others.
• Physical Damage Coverage Provides for
  loss/damage to a covered auto. Most common
  physical damage coverage is Collision and
  Comprehensive coverage. Subject to policy
  conditions and exclusions.

4
Auto Insurance Terms

• Collision coverage includes collision with
  another object or the covered autos overturn.
• Comprehensive coverage includes loss from any
  other cause other than collision.

5
Auto Insurance Terms

• Hired Autos include leased, hired, rented or
  borrowed vehicles (except from employees).
• Non-Owned Autos include vehicles not leased,
  hired, rented, or borrowed that are used in
  connection with your business Employees use of
  a personal vehicle to conduct official UT
  business.

6
Auto Insurance Terms

• Personal Injury Protection provides for
• Necessary expenses for medical and funeral
  services.
• 80 of an insureds loss of income from
  employment.
• Provides coverage for you, family member, or
  anyone else occupying a covered auto with your
  permission.

7
Auto Insurance Terms

• Uninsured/Underinsured Motorists Insurance
  coverage Pays for damages which we are legally
  entitled to recover from an uninsured motor
  vehicle (other party) because of bodily injury
  sustained by an insured (us) or property damage
  (to our vehicle or property) caused by an
  accident.

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5 Types of UT Auto Policies

• System-wide Auto Liability Policy
• Hired/Non-Owned Auto Policy
• Physical Damage Policy
• Athletics Auto Policy
• Full Coverage Policy
• Note This training is a summary only, please
  refer to the policy language for complete
  description of conditions and exclusions.

9
System-wide Auto Liability

• Liability coverage only 3rd parties
• Provides coverage for all University-owned
  vehicles (including long term leases) with the
  exception of Full Coverage vehicles.
• Combined Single Limit
• 600,000 Bodily injury and Property Damage
• Deductible - 2,500 per accident

10
Hired/Non-Owned Auto

• Designed to be excess of other insurance
• Liability Limits Hired/Non-Owned Autos
• Combined Single Limit
• 600,000 Bodily injury and Property Damage
• Deductible - 2,500 per accident
• Physical Damage Hired Autos only
• Comprehensive coverage - 100 deductible
• Collision - 500 deductible
• Maximum limit of 75,000

11
Physical Damage Policy

• Comprehensive and Collision Coverage on scheduled
  vehicles only.
• 100 Comprehensive Deductible
• 500 Collision Deductible
• Provides for repair costs or actual cash value
  due to a covered loss, whichever is less.

12
Athletics Policy

• Provides coverage for all loaned, courtesy, and
  promotional vehicles to UT for business and
  personal use.
• Primarily used by Athletics Department employees
  and their spouses.
• Vehicles must be scheduled.
• Coverage includes
• Liability
• Personal Injury Protection (2,500 per insured)
• Uninsured/Underinsured Motorist
• Physical Damage

13
Full Coverage Auto Policy

• Provides coverage for University-owned vehicles
  for employees who are assigned a vehicle for
  business and personal use.
• Primarily used by Police Department employees.
• Vehicles must be scheduled.
• Coverage includes
• Liability
• Personal Injury Protection (2,500 per insured)
• Uninsured/Underinsured Motorist
• Physical Damage

14
Purpose of Auto Classification

• This training is designed to provide a simple and
  uniform system for classifying UT owned/leased
  vehicles.
• Accuracy is necessary as auto insurance premiums
  are rated based on the classification schedules.
• Example Incorrectly classifying a passenger van
  as a bus results in a higher premium.

15
What are rating classification factors?

• There are certain factors to consider when
  classifying vehicles.
• Radius of vehicle (trucks trailers)
• Type of vehicle
• Weight size (trucks and truck tractors, trailers)
• Passenger Capacity (Buses)
• Garaging Territory

16
Radius of Vehicle

• Trucks and Trailers are subject to radius
  classification.
• Radius is based on the regular and normal use of
  a vehicle.
• Four types of radius
• Campus use only not used off campus
• Local Radius up to 50 miles radius
• Intermediate 51 to 200 miles radius
• Long Distance over 200 miles

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Type of Vehicle

• Private Passenger Autos (PPA)
• Trucks
• Trailers
• Motorcycles
• Buses
• Special Vehicles
• Fire Trucks, Ambulances, Law Enforcement, Motor
  Homes, Golf Carts, MULES, Others

18
Private Passenger Autos (PPA)

• A PPA is a four wheel motor vehicle other than a
  truck type.
• This includes station wagons.
• It does NOT include utility vehicles.
• It does NOT include vans.

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Examples of PPAs

• Two door hatchback
• Four door sedan
• Stationwagon

20
Trucks

• Trucks includes pickup trucks, vans, utility
  vehicles, cargo trucks, and delivery trucks.
• A van is considered a truck regardless whether it
  is a passenger van or a cargo van. A passenger
  van is NOT a bus.
• Utility vehicles mean Jeeps, Blazers, Explorers,
  Suburbans and other similar vehicles.
• Trucks include licensed Multi-Utility Lightweight
  vehicles (MULES).
• Exceptions Do not include Special Vehicles and
  Unlicensed MULES.

21
Size of Trucks

• Trucks are further classified according to weight
  size.
• Two weight terms to be familiar with
• Gross Vehicle Weight (GVW) is the maximum loaded
  weight of a single vehicle.
• Gross Combination Weight (GCW) is the maximum
  loaded weight for a combination of a
  truck-tractor and trailer.

22
Truck Size Classes

• Light Trucks have a GVW of 10,000 pounds or less.
• Medium Trucks have a GVW of 10,001 to 20,000
  pounds.
• Heavy Trucks have a GVW of 20,001 pounds to
  45,000 pounds.
• Extra Heavy Trucks have a GVW over 45,000 pounds.

23
Truck Tractor Size Classes

• Heavy Truck Tractors have a GCW of 45,000 pounds
  or less.
• Extra Heavy Truck Tractors have a GCW over 45,000
  pounds.
• Please notify the ORM before adding any Extra
  Heavy Truck Tractors to the database as we need
  to obtain the insurance carriers approval for
  auto coverage.

24
Examples of Light Trucks GVW of 10,000 lbs. or
less

• Licensed MULE Express 1500 Work Van
• Dodge Ram PU Chevrolet Suburban

25
Examples of Medium Size Trucks GVW of 10,001 to
20,000 lbs.
26
Examples of Heavy and Extra-Heavy Trucks
27
Examples of Truck Tractors
28
Trailers

• Trailers are vehicles that are not self propelled
  and are designed to be pulled by a PPA or truck.
• Trailer does NOT include mobile homes and
  recreational trailers.
• There is NO liability premium charge for trailers.

29
4 Classes of Trailers

• Service or utility trailers
• Semi-trailers
• Trailers
• Trailers with Special Equipment

30
Service or Utility Trailer

• A service or utility trailer is any trailer or
  semi-trailer with a load capacity of 2,000 pounds
  or less.

31
Semi-trailers

• A semi-trailer is a trailer with wheels at rear
  only, equipped with fifth wheel couple device for
  use with a truck-tractor, with load capacity over
  2,000 pounds.

32
Trailers

• All other types of trailers, including tilt bed
  trailers with a load capacity over 2,000 pounds,
  other than a semi-trailer.

33
Trailers with Special Equipment

• These trailers are not self-propelled and are
  maintained primarily to provide mobility to
  permanently attached equipment of the following
  types
• Air compressors, pumps and generators
• Spraying and welding equipment
• Cherry pickers and similar devices
• Operations of the equipment is not covered under
  the Auto Liability Policy.

34
Trailers with Special Equipment
35
Motorcycles/Scooters

• There are two classifications for motorcycles or
  scooters
• Motorcycles/scooters other than Law Enforcement
• Law Enforcement Motorcycles or Scooters

36
Buses

• Buses include school buses, shuttle buses, blood
  mobile buses, etc.
• Buses do NOT include passenger vans.
• Four classes by passenger capacity
• 1 to 8 passenger
• 9-20 passengers
• 21-60 passengers
• Over 60 passenger

37
Special Vehicle Classifications

• Fire Trucks self explanatory
• Ambulances self explanatory
• Motor Homes self explanatory
• Law Enforcement
• Golf Carts and MULES
• Riding Lawn Mowers
• Special Mobile Equipment or Multipurpose Vehicles

38
Law Enforcement Vehicles

• There are three classes of Law Enforcement
  Vehicles.
• Law Enforcement - Private Passenger Auto (PPA)
• Law Enforcement - Trucks/SUV/Vans
• Law Enforcement - Motorcycles or Scooters

39
Golf Carts

• Two classes of Golf Carts
• Unlicensed Golf Carts
• Campus use only, not allowed on public roads.
• Includes unlicensed MULES.
• There is NO liability premium charge at this
  time.
• Licensed Golf Carts

40
Riding Lawn Mowers

• Campus use only
• Small yard/lawn mower type
• Does NOT include Tractors
• There is NO liability premium charge at this time.

41
Special Mobile Equipment or Multipurpose Equipment

• This classification includes self-propelled
  equipment included but not limited to
• Street Sweepers
• Cherry Pickers
• Motor Graders
• Tractor-mowers
• Forklifts

42
Garage Territory

• The garage territory is the principal city where
  the vehicle is garaged.
• Do not confuse the main campus location or
  department with the garaging territory.
• Example UT Austin has vehicles garaged at
  Austin, Port Aransas, Midland. UTMDA has
  vehicles garaged at Houston, Bastrop, Smithville.
  

43
Commercial DriverLicense (CDL)

• Reminder for truck and special vehicle drivers
• A CDL is required of authorized drivers who
  operate commercial motor vehicles (CMVs) for
  official University business.
• In accordance with the US Department of
  Transportation's Federal Motor Carrier Safety
  Regulations, 49 CFR Parts 40 and 382, employers
  shall test drivers holding a CDL for drugs and
  alcohol. The regulations call for pre-employment,
  post accident, reasonable suspicion, random,
  return-to-duty, and follow-up drug and alcohol
  testing. Component institutions with authorized
  drivers who are required to hold a CDL shall
  adopt a drug and alcohol-testing program that
  meets the regulatory requirements.

44
Helpful tips

• UTS157 Automobile Insurance Coverage for
  Officers and Employees and General Requirements
  for the Use of Vehicles, go to
  http//www.utsystem.edu/policy/ov/uts157.html
• For Weight Sizes, check the title or registration
  of the vehicle/trailer or go the manufacturers
  web site.

45
ORM Contacts

• Eric Agnew, Risk and Insurance Analyst
• 512-499-4305 (ph), 512-499-4524 (fax)
• eagnew_at_utsystem.edu
• Benny VandenAvond, Insurance Specialist
• 512-499-4298 (ph), 512-499-4524 (fax)
• bvandenavond_at_utsystem.edu