Contract Summary

This Engagement Letter, effective July 1, 2019 and ending July 1, 2022, is a service agreement between Aon Risk Services Central, Inc. (provider) and the Board of Regents of the University of Nebraska (client). The arrangement establishes Aon as the University's insurance broker and risk advisor for four fee-based programs (Educators Legal Liability, Excess Liability, Aircraft Hull & Liability, and Physicians Professional Liability) and commission-based programs covering all other policies and surety bonds. The agreement is governed by Nebraska law and incorporates multiple exhibits addressing business terms, data protection regulations, claims advocacy services, and additional conditions.

The annual fee for the fee-based programs is $388,782 for 2019, with scheduled increases of 3% annually to $391,388 for 2020 and $94,130 for 2021. For commission-based programs, Aon retains earned commissions and may receive additional compensation from insurers and third parties including contingencies, overrides, bonus commissions, and referral fees, which are not credited against the annual fee. Included services encompass risk exposure identification, insurance program development, underwriting assistance, insurer negotiations, policy placement, administrative functions, casualty claims services (limited to 20 hours), premium invoicing and remittance, ACCORD certificate production, and premium audit reviews. The contract requires either party to provide 30 days' written notice for termination, with fees prorated upon early termination. The contract includes provisions for Financial Services Group claims advocacy services at specified hourly rates ($150–$600 per hour) and addresses data protection, confidentiality, FATCA compliance, and various regulatory requirements applicable to state and federal contracting.