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Business and Financial Policies and Procedures

How Your Personal Insurance Becomes Involved in a Claim

Insurance Settlement Process

Settling insurance claims frequently involves multiple insurance companies. Depending on who owns the vehicle, claims are processed in the following order:

University Vehicles
     State of Illinois Self-Insured Motor Vehicle Liability Plan
     Personal auto insurance

Rental Vehicles
     Rental car insurance
     State of Illinois Self-Insured Motor Vehicle Liability Plan
     Personal auto insurance

Commercially Insured University Vehicle
     Commercial insurance
     State of Illinois Self-Insured Motor Vehicle Liability Plan
     Personal auto insurance

Personal Vehicle
     Personal auto insurance
     State of Illinois Self-Insured Motor Vehicle Liability Plan

However, coverage can be jeopardized if the accident is not reported immediately.

University Vehicles

The State of Illinois Self-Insured Motor Vehicle Liability Plan (State Plan) is administered by the Department of Central Management Services (CMS). This Plan is the primary liability insurer for University vehicles, but there may be situations where other insurance plans are involved.

The State Plan provides liability coverage to full-time, part-time, and student employees or student trustees operating a University motor vehicle in the course of their employment and in accordance with State of Illinois and University policies and procedures. Neither the University nor the State of Illinois will insure any driver who uses a University motor vehicle for unauthorized purposes (see the Illinois Administrative Code Section 5040.350, Paragraph C.)

The State of Illinois may accept liability to others harmed by a University employee's negligence, but occupants of University motor vehicles are not provided any medical payments. University drivers or passengers are covered by Workers' Compensation benefits if injured while on University business.

Any personal property belonging to drivers and/or occupants is the responsibility of those individuals. Neither the University nor the State of Illinois provides any insurance coverage for personal property.

Rental Vehicles

Through its affiliation with the "Big Ten," University employees obtain discounted rates on rental vehicles in the United States which includes, at no additional cost, liability insurance, and optional damage waiver. This coverage pays first in an accident that involves a rental vehicle. The State of Illinois Self-Insured Motor Vehicle Liability Plan pays second if the rental company limits are exhausted. If for any reason the State Plan denies coverage, your personal auto insurance pays next.

Commercially Insured University Vehicles

The University has a limited number of vehicles in each campus motor pool that are insured through a commercial insurance policy which is the primary insurer. If for any reason the commercial insurer or the State of Illinois deny or limit coverage, your personal auto insurance pays next.

Personal Vehicle

If you are on University business while driving your personal vehicle and have an accident, your personal auto insurance is the primary insurer. After your personal auto insurance has been exhausted, the State Plan only provides liability coverage. The State does not provide collision coverage for your vehicle.

Related Policies and Procedures

Report an Accident Involving a University Vehicle
Report an Accident Involving a Commercial Rental Vehicle
Report an Accident Involving a Personal Vehicle while on University Business

Additional Resources

Illinois Administrative Code Section 5040.350
Car Rental
State of Illinois Self-Insured Motor Vehicle Liability Plan

Last Updated: October 4, 2016 | Approved: Senior Associate Vice President for Business and Finance | Effective: September 2012

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