ji?(S
X(JLIL
Wednesday, february 14, 1979
lincoln, nebraska vol. 102 no. 78
Legislature committee considers NU insurance plan
By Randy Essex
NU would be able to claim it is like
Harvard University in at least one way if a
bill heard Monday by the Legislature's
Banking, Commerce and Insurance Com
mittee becomes law.
LB309 would allow the university to in
sure itself through a "captive" insurance
company. Under the plan, the NU Board of
Regents would appoint the directors of a
company that would insure general and
professional liabilities of the university.
The liabilities are claims that would be
brought in court against the university for
personal damages allegedly suffered on un
iversity property or caused by the neglect
of university personnel. Medical or legal
malpractice would fall into the second cat
egory. The captive company would be formed
as a distinct corporate entity, although it
would be a part of the overall university
system, explained Roy Loudon, adminis
trator for personnel and risk management.
Loudon said the university would pay
Omaha senators
retract alien bill
Omaha senators Vard Johnson and Neil
Simon backed off Monday on their move
to require persons suspected of being il
legal aliens to supply several forms of iden
tification to prospective employers upon
demand.
Johnson and Simon announced at a
hastily-called press conference that they
would ask the Legislature to send LB51
back to committee for further study.
"We have been told in no uncertain
terms by the Mexican-American communi
ty in Omaha that the bill would have an
oppressive effect,'" Johnson said.
Pete Uridiales, executive director of the
Mexican-American Commission, said the
bill would have sanctioned discrimination
by employers with bigoted feelings. Uri
diales said identification could be required
of anyone who looks "foreign," which
would be discriminatory.
Simon and Johnson said they don't
want to be part of anything that could be
oppressive. Simon said an interim study
would be conducted in conjunction with
the commission to determine the scope and
nature of the problem with undocumented
workers in the state.
The senators said they were not
responding to a perceived national problem
with a full understanding of the problem
in the state.
An interim study was conducted two
years ago, but Johnson said the data
needed to determine need for the legis
lation was not collected.
The senators said their proposed interim
study will be better because the Mexican
American commission will work with the
study committee.
insurance premiums to itself through the
captive company.
Hospital liability
In outlining NLBRINCO, a proposal for
the Nebraska Regents Insurance Company,
attorney Charles Pallesen, Jr. told the
committee the university has been unable
to buy $900,000 worth of insurance on the
open market.
Pallesen pointed out that Harvard and
Yale insure their risks through captive com
panies. The $900,000 gap, Pallesen said, is in
hospital general liability. That liability
would fall on the university if a patient at
the Medical Center Hospital won a lawsuit
for damages.
Pallesen told the committee insurance
companies combine that insurance with
malpractice, or hospital professional liabili
ty coverage. He said the university looked
all over the world for a company that
would cover that risk, but found only one,
and the cost was too high.
But the captive insurance plan was not
greeted well by private insurance repre
sentatives. One observer (who did not test
ify) commented that the plan seemed so
cialistic to him.
Bandwagon
Another opponent said every political
subdivision in the state would want to
"jump on the bandwagon" and form a cap
tive company.
Lynn Rex, representing the Nebraska
League of Municipalities, testified in favor
of the proposal.
She told the committee the league sup
ported the bill if it allowed municipalities
to form captives. Pallesen presented an
amended version of the bill which would
allow only colleges to form the companies.
John Bining, a former director of the
state's Department of Insurance, said the
university could be coming back to the
Legislature every year for money to un
derwrite claims.
Bining said the university's plan to in
sure any claims brought against it through
a letter of credit would not be sufficient.
He said there is a great deal of litigation
brought by the holders of a letter of credit
to collect the money promised by the
writer of the letter.
Lloyd's of London
But, Loudon said, the university would
probably not have to draw on the letter,
because it could buy insurance on the "re
insurance" market. Pallesen said Lloyd's of
London is an example of a company deal
ing in reinsurance.
If the university were ordered to pay a
very large claim, Pallesen said.it could pay
a premium to a company like Lloyd's,
Lloyd's would pay the claim, and the uni
versity would be freed of its obligation.
But Bining urged the committee to kill
the bill because captives are a new concept
that, in his opinion, pose regulatory pro
blems. "There will never be a judgment against
the captive company , it will be against NU:
the state of Nebraska," Bining said.
He said the cost of paying an insurance
premium to a private company is fixed, but
the claims against a captive company are
not.
Pallesen pointed out that the university
has only had $2,534 in claims since 1974.
Photo by Mary Anne Golon
These toboggan riders were no! alone Sunday afternoon at Pioneers Park. Over 300 people packed the sledding area of the
park for the "Fastest Sled in the West" contest. For story and more pictures, see page 8.
Valentines range from underwear to intimate cookies
By Cecille Coffman
Al Capone's gift to the city of Chicago
on Saint Valentine's Day in 1929 was dif
ferent, to be sure. And the cost was more
than most could afford.
The Valentine's gift of today is not as
unusual, but the effect is definitely more
pleasureable. The choices range from a
basic Valentine cake or floral arrangement
to decorative underwear or a singing valen
tine. Klein's Bakery is offering cakes and
cookies to the propsective gift giver. The
most popular baked item seems to be a
decorated cake.
The Union Bakery once again is selling
heart-shaped cookies which can be
decorated with any saying from Cupid. Ac
cording to an employee, the most popular
message is a Happy Valentine's Day wish,
but some buyers have resorted to more in
timate expressions of affection.
Cards and candy are available in many
stores. These are effective as they bring a
tear to the eye, pull at a heart siring, or
produce a chuckle.
Flowers are a special valentine. Robert
Danielson of Danielson Floral Company
said roses most often are requested, but are
so popular there is a shortage.
If one is far from that special person,
flower orders can be wired across the coun
try. So if distances are a problem, don't
despair.
Assorted gifts - jewelry, perfume,
scented candles and scented fans -are avail
able to the discriminating giver and red,
fuzzy animals will warm those cold nights.
For the giver who wants to be different,
members of the Alpha Omicron Pi
sorority will sing your sweetheart a valen
tine. Several choices are offered, some
tamer than others.
Once again, decorative underwear is
awaiting the connoisseur of intimate
apparel at the Nebraska Bookstore. This
gift, however, should be given with dis
cretion. If all else fails and you find no personal
valentine to give, you can "Give from the
Heart" Wednesday when the Community
Blood Bank visits Wesley House. The dona
tions will be for burn patients and elderly
persons.
Remember, Valentine's Day gifts should
be reflections of love and friendship. Al
Capone did not have the right idea.
Wednesday
Cool it, YAF: Columnist Mike Gib
son comments on the latest Young
Americans for Freedom letter to
conservative Nebraskans . . .page 4
No crumbs, please: Food reviewer
Ben T. Shomshor takes a look at
foods to eat in bed page 14
Third time's a charm?: Husker bas
ketball team hopes it is when it
meets Oklahoma in Norman
tonight page 16