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

4. UTHSC-H Employee Injury Reports and Worker’s Compensation Insurance Premium Trends, FY01 to 08 Note: insurance premium influenced predominantly by market conditions, employee payroll, head count, injury frequency and severity Annual Policy premium reduction from FY07 to FY08 of $220,280 Projection Oversight by SHERM initiated $570,000 in annual premium savings

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 payroll, head count, injury frequency and severity Annual policy premium reduction from FY07 to FY08 of $36,000 Projection Oversight by SHERM initiated $68,000 in annual 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)

8. Possible Range of Annual WCI Premium (Assuming no change in population or payroll) Performance Option2008200920102011 Best Possible Performance $300,000 (-$30,000) $270,000 (-$60,000) $240,00 (-$90,000) No Change$330,000 Poorest Possible Performance $360,000 (+$30,000) $390,000 (+$60,000) $420,000 (+$90,000)

11. Other Property 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 FY08 Fleet Insurance LiabilityComp/CollLossesPremium FY03 $2,528$43,322 FY04 $0$44,409 FY05 $0$45,400 FY06 $0$35,757 FY07 FY08

12. Other Property Policies Fine Arts RateTotal Insured ValueLossesAnnual Premium FY03 FY04 FY05 FY06$200 FY07$215 FY08$226 Endowment RateTotal Insured ValueLossesAnnual Premium FY03 FY04 FY05 FY06$6229 FY07$7129 FY08$7129

13. SHERM’s Total Cost of Risk Transfer Insurance Line Managed by SHERM FY07Annual % change Estimated FY08 Cost Worker's Comp-Employees $ 547,924-40% $ 327,644 Worker's Comp-Residents $ 219,749-20% $ 175,799 General Liability-CDC $ 7,1890% $ 7,189 Endowment Policy $ 7,1290% $ 7,129 Flood $ 108,7427% $ 116,354 Fine Arts - Multiple Locations $ 2155% $ 226 Mobile Diagnostic Equipment $ 6,2840% $ 6,284 Auto Physical Damage $ 21,98110% $ 24,179 Auto - Hired/Non Owned $ 2,73710% $ 3,011 Auto Liability $ 17,51615% $ 20,144 Property-Fire & AOP Premium incl Fees $ 155,8000% $ 155,800 Property - Fire & AOP - UTS retention $ 163,4410% $ 163,441 Property-Named Windstorm & 100-Yr Flood $ 823,6230% $ 823,623 Equipment Policy $ 24,8580% $ 24,858 Total Cost of Risk Transfer $ 2,107,188-12% $ 1,855,681 FY08 Savings $251,507

14. Future Considerations SHERM recommends consideration of the development of a retained loss pool for property. –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 laboratory and office space. –Could also provide “up front funds” in cases of subrogation.