1. Safety, Health, Environment & Risk Management FY07 Risk Finance Summary for Work Force & Property Insurance Lines

3. UTHSC-H Employee Injury Reports and Worker’s Compensation Insurance Premium Trends, FY01 to 08 Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Annual Policy premium reduction from FY07 to FY08 of $220,280 Oversight by SHERM $570,000 in premium savings 104 fewer injuries reported 72 fewer injuries needing medical care

4. $167,000 in RAP Rebate Reduction

5. UTHSC-H Residents Injury Reports and Worker’s Compensation Insurance Premium Trends, FY01 to 08 Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Annual policy premium reduction from FY07 to FY08 of $36,000 Oversight by SHERM $68,000 in premium savings

6. Workers’ Compensation Insurance Premium Adjustment for UTS Health Components Fiscal Years 2003 to 2008 (discount premium rating as compared to a baseline of 1, three year rolling average adjusts rates for subsequent year) UT Health Center Tyler (0.17) UT Medical Branch Galveston (0.16) UT HSC San Antonio (0.13) UT Southwestern Dallas (0.13) UT HSC Houston (0.09) UT MD Anderson Cancer Center (0.07) Oversight by SHERM

8. Possible Range of Annual WCI Premium (Assuming no change in population, payroll, or other influencing factors) Estimated Premium2008200920102011 Upper bound similar to UTHC Tyler $358,000 (+$30,000) $388,000 (+$60,000) $418,000 (+$90,000) No Change$328,000 Lower bound similar to UTMDACC $298,000 (-$30,000) $268,000 (-$60,000) $238,00 (-$90,000)

9. No Care or Lost Time (18% response rate) Care But No Lost Time (57% response rate) Supervisors (13% response rate) Was this the first time you have reported an injury or exposure at UTHSC-H?67%(Y) 33%(N)62%(Y) 38%(N)37%(Y) 63%(N) Prior to the reported injury event, were you aware of your obligation to report any injury or exposure?88%(Y) 12%(N) 96%(Y) 4%(N) Did you receive a copy of the completed first report of injury form?70%(Y) 30%(N)62%(Y) 38%(N)96%(Y) 4%(N) To your knowledge has the source of your injury or exposure been addressed?81%(Y) 19%(N)88%(Y) 12%(N) Did you encounter any issues with the reporting process that you didn’t know or anticipate?12%(Y) 88%(N)38%(Y) 62%(N)27%(Y) 73%(N) Our records indicate that you did not receive any health care in response to your injury or exposure. Who made the determination that health care was not needed? 72% Yourself 9% Supervisor 19% Other Have you experienced any residual affects from your injury or exposure?9%(Y) 91%(N)12%(Y) 88%(N) Where did you access health care?53% Employee Health 20% Student Health 27% Other Please indicate your impression of the level of service provided by the health care provider who addressed your injury or exposure? 38% Very Good 44% Good 6% Average 0% Poor 12% Very Poor Were you able to easily access the necessary Supervisor's First Report of Injury form?92%(Y) 8%(N) If any assistance was needed in order to complete and submit the Supervisor's First Report of Injury form, was this assistance readily available? 46% (Y) 8% (N) 46% (none needed) Were you provided with the information needed for you to effectively manage the affected employee?100%(Y) 0%(N) Survey of Employees and Supervisors Filing UTHSC-H First Reports of Injury in 2007 (Email based Zoomerang survey for period February 1, 2007 to August 31, 2007) Injured Employees Requiring Care and Loss Time (n = 39): Not Included in survey, as each injured worker that accrues lost time is assigned a case manager to personally assist in the rehabilitation process. Employees requiring care, but no lost time (n = 28) Employees not requiring care, no lost time (n = 179) Employee Population (not reporting any injuries, n = 4,181)

10. Key Findings Most employees and supervisors (88 to 96%) indicated their knowledge of the importance of reporting injuries and exposures It is largely the affected employees (72%) making the determination to seek or not seek health care Most employees (88 to 91%) reported not experiencing residual effects from their reported event Affected employees noted that the cause of their injury was corrected (81 – 88%) All supervisors reported that they were provided with the information needed to effectively manage the affected employee (100%)

11. FY07 Property Losses Losses incurred but covered by UTS Comprehensive Property Protection Program MSB sprinkler loss total of $460,000 Currently pursuing subrogation to at fault contractor, $250,000 retained by deductible Losses incurred but covered by 3rd party RRF Fire $10-$14 Million Potential retention of $1-$3M Retained losses Water leak in MSI $210,000 Theft total $65,000 (predominantly laptops) Electrical power disruption no implicated in any losses Other losses $65,000 Retained Property Loss by Peril ( Total $645,895)*

12. Help Avoid the 3 Main Causes of Property Loss at UTHSC-H The three main causes of property loss at UTHSC-H in FY06 were water leaks, theft, and electrical power interruption. These three perils resulted in over $331,000 in direct loss and untold disruption to teaching, research, and service activities. The deductible for the UTS Comprehensive Property Protection Program is $250,000 per occurrence, in FY06 none of the losses exceeded the per occurrence deductible, however the sum of retained losses exceeded the deductible by $140,000. In special cases additional insurance can be purchased*. Summarized below are simple steps that can be taken to avoid such losses. Potential For LossSimple Prevention MeasuresFor more information and assistance Water Damage Water damage accounted for $221,000 of loss in FY06. Water can enter a lab or office from the same floor or from the floor above. Move equipment off of the floor and cover when not in use. Evaluate possible purchase of supplemental insurance for certain types of equipment* Contact Facilities Planning and Engineering for more information, (713)500-3498. Theft Theft accounted for $90,114 of loss in FY06, the majority of which were theft of laptops, PDAs and cell phones. Secure laptops, PDA’s, or cellular phones. Always backup data and keep it in a physically separate location. For more information about how to lock a PC or laptop: http://www.uth.tmc.edu/med http://www.uth.tmc.edu/med /msit/howdoi/physical_security.htm Evaluate possible purchase of supplemental insurance for certain types of equipment* Contact University of Texas Police Department for more information, (713)794-4357. Electrical Power Interruption Electrical power disruption accounted for $20,000 worth direct losses in FY06. However this is not reflective of the loss of priceless research specimens. Ensure that all critical equipment has backup power or has the ability to alert local personnel when power or temperature is disrupted. The production of duplicate or split samples is encouraged. Finally, some buildings are equipped with the necessary infrastructure to provide monitoring of temperature. Contact Facilities Planning and Engineering for more information, (713)500-3498. *Information about the purchase of additional insurance can be obtained by contacting Risk Management; 713-500-8100.

13. Other Policies Equipment Floater Rate (per $100 of insured value)Total Insured ValueAnnual Premium FY03$0.42*$4,600,788$19,390 FY04$0.49*$3,083,582$15,204 FY05$0.42*$4,017,404$16,870 FY06$0.46*$3,581,709$16,476 FY07$0.54*$3,983,875$23,414 FY08$0.54*$3,983,875$23,414 Fleet Insurance LiabilityComp/CollLossesPremium FY03$189$334$96,052$43,322 FY04$169$349$2,610$37,508 FY05$234$434$20,074$40,443 FY06$230$412$905$38,202 FY07$230$418$846$42,234 FY08$252$459$0$46,457 *Not Inclusive of current SHERM administrative processing fee of $0.46 SHERM

14. Other Policies Fine Arts Limit based PremiumLossesAnnual Premium FY05$500,000$0$2,689 FY06$500,000$0$200 FY07$500,000$0$215 FY08$500,000$0$226 Endowment Policy (Liability) Total Insured ValueLosesAnnual Premium FY05*$5,462$0$3,177 FY06$0 FY07**$53,254$0$2,746 FY08**$53,254$0$7,129 *For Liability only at 1246 FM Hwy 102, Eagle Lake, TX -$5,735 - $2,558 for property deletion 8/31/2004 **For Liability only at 1133 John Freeman Boulevard - The property was added 06/01/2006 premium pro-rata

15. SHERM’s Total Cost of Risk Transfer Insurance Line Managed by SHERM FY07FY08Annual Change (%) Worker's Comp-Employees $ 547,924 $ 327,644(40) Worker's Comp-Residents $ 219,749 $ 175,799(20) General Liability-CDC $ 7,189 0 Endowment Policy $ 7,129 0 Fine Arts - Multiple Locations $ 215 $ 2265 Mobile Diagnostic Equipment $ 6,284 0 Auto Physical Damage $ 21,981 $ 24,17910 Auto - Hired/Non Owned $ 2,737 $ 3,01110 Auto Liability $ 17,516 $ 20,14415 Property-Fire & AOP Premium incl Fees $ 155,800 0 Property - Fire & AOP - UTS retention $ 163,441 0 Property-Named Windstorm & 100-Yr Flood $ 832,623 $ 823,6230 Flood - 60 various policies* $ 108,742* $ 116,354*7 Equipment Policy $ 24,858 0 Total Cost of Risk Transfer $ 1,998,446 $ 1,746,939(13) FY08 Savings $251,507 *NFIP places policies on individual locations, such as UT Apts *Paid out of the Named Windstorm & 100-Yr Flood

16. Future Considerations SHERM recommends the development of a retained loss pool or funded reserve for property losses. –Retained losses: Those <$250,000 property deductible or due to excluded perils. –A retained loss pool would provide resources to promptly assist in restorative activities when damage occurs in a laboratory or office space. –Could also provide “upfront funds” in cases of subrogation.

17. Appendix A