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FISCAL MANAGEMENT OPERATIONS GUIDE

Comprehensive Property Protection Plan

The Comprehensive Property Protection Plan (CPPP) provides catastrophic insurance coverage for all University of Texas at San Antonio owned and leased buildings and contents for the period November 9, 2001 through November 9, 2002.

1. Program Coverage
   Unless otherwise excluded, this program covers the following property while on the described locations (see schedule of locations in the property inventory section of this guide) and within 1,000 feet thereof:
   • real property in which The University of Texas at San Antonio has an insurable interest;
   • personal property owned by The University of Texas at San Antonio, including improvements and betterments in which The University of Texas at San Antonio has an insurable interest;
   • personal property of others in the custody of The University of Texas at San Antonio, which the University is under obligation to keep insured for physical loss or damage;
   • personal property of others in the custody of The University of Texas at San Antonio to the extent of the University's legal liability for physical loss;

   Property excluded from coverage under this program:

   • accounts, bills, currency, deeds, evidences of debt or title, money, notes, securities, fine arts, furs, jewelry, precious metals or precious stones unless endorsed hereon;
   • land including water or any other substance in land, water on land, standing timber, growing crops or animals;
   • vehicles, watercraft, or aircraft;
   • property sold by The University of Texas at San Antonio under conditional sale, trust agreement, installment plan or other deferred payment plan after delivery to others;
   • property in transit unless endorsed hereon;
   • underground mines and mining equipment located below the surface of the ground;
   • dams or dikes.
2. Additional Coverages:
   • consequential reduction in value due to loss or damage;
   • debris removal;
   • property removed from premises for repair, service, etc.;
   • demolition and increased cost of construction as required by law or ordinance;
   • automatic coverage for new property for up to 90 days after acquisition or rental or purchase;
   • extra costs of temporary repair or damage to property and extra costs of expediting such repair or replacement;

   • expenses incurred to temporarily protect and preserve property in case of actual or imminent physical loss or damage:

3. Excluded from coverage are losses resulting from:
   • flood
   • wind
   • terrorism
   • nuclear reactions;
   • war, insurrection, etc.;
   • fraudulent or dishonest acts;
   • indirect or remote loss or damage;
   • deterioration, wear and tear or inherent vice;
   • loss or damage from any repairing, restoration or retouching process;
   • loss or damage to property on exhibition at fair grounds or at a location of national or international expositions.
4. Program liability limits:
   

   Coverage	Limit of Liability (per loss occurrence/annual aggregate)
   Property Damage, including Boiler and Machinery	$500,000
   Business Interruption	included
   Demolition and Increased Cost of Construction	$25,000,000
   Alterations and New Building Course of Construction	$25,000,000

   "All Risk" coverage with repair/replacement coverage subject to a $500,000,000 per occurrence/ aggregate.

5. General program deductible:
   In every case of loss or damage covered by this program, a program deductible of $250,000 shall be applicable to each loss occurrence.
6. Commercial policy deductible:
   In each case of loss or damage covered by this program, the Insurer shall not be liable unless The University of Texas at San Antonio sustains loss or damage in a single occurrence/ annual aggregate greater than $5,000,000 property damage. Unless otherwise specified under any location specific deductible(s) in the commercial policy, when this policy covers more than one location, this general policy deductible shall apply against the total loss or damage covered by this policy at all locations in a single occurrence. Deductible for Business Interruption is 14 day waiting period.
7. Commercial policy annual aggregate stop loss deductible:
   When the aggregate amount of loss that is not recoverable by the Insured (UTSA) because deductible provisions in the commercial insurance policy exceeds $5,000,000 during any policy year, the deductible amounts shall be reduced to $100,000 as respects any loss or damage in any single occurrence during the balance of such policy year.
8. General Deductibles
   $100,000 any one loss or occurrence on all insured perils. ALL SUBJECT to an annual aggregate deductible of $5,000,000. Once the aggregate is satisfied, a $100,000 deductible per occurrence will apply.
9. Specific Endorsements:
   Research Animals - Up to $10,000,000.
10. Boiler and Machinery Coverage:
    Boiler and machinery coverage is provided under the commercial property insurance policy. The losses incurred are included in the $5 million annual aggregate however, deductibles are as follows:
    • Power Plant                                                                                $100,000
    • All other objects except                                                                $25,000
    • 25 MW Steam Turbine Generator                                               $160,000
    • 13 MW Gas Turbine Generator                                                   $400,000
    • 43 MW Gas Turbine Generator                                                   $600,000

                24 Hour Wait Service Interruption.