General, Auto & Employment Practices Liability Program (GAEL)
Q: I have recently assumed some duties of an MSO in our department and would like to learn more about the "cost allocation program" for the "GAEL" program. What is it?
A: The Cost Allocation program was originally developed in 1998/99 after millions of dollars in premiums were allocated to the campuses in order to adequately fund the self-insurance General/Auto/Employment Practices Liability (GAEL) program, along with a hefty deficit. Please see the GAEL Program for a more detailed explanation. The program is also designed to create awareness of liabilities with which the institution is faced and to provide long-term incentives to departments for improved loss experience over time.
Q: How are "GAEL" costs distributed to the campus?
A: At first, they were distributed in socialized fashion based on each $100 of salary/wages. As the program matured, a differential rating plan, based on both exposure (salaries) and experience (loss history over a five-year period) was developed to create a more equitable distribution of the costs. That is, those with improved loss history (or no loss history at all) are rewarded in the form of lower premium assessments, and those with poor loss history receive a greater share of the burden . For more information please see UC Davis Auto, General & Employment Practices Liability (GAEL) Deductible Program.
Q: What does the "GAEL" self-insured program cover?
A: In general, it covers tort actions resulting from negligent acts and omissions of the Regents and its employees. It also covers litigated employment practices liability. Examples of tort claims include injuries or death sustained by a third-party as a result of a dangerous condition of public property, such as slips-and-falls, as well as vehicle accidents. NOT included in the program are, for example, pre-litigated employment actions, environmental lawsuits, writs of mandamus, and union disputes. .
Q: What does "Self-Insured" mean?
A: It is similar to a deductible in that it represents the amount of money that must be paid before the insurance policy will respond to a loss. Public entities and corporations utilize this as a mechanism for reducing premium costs for insurance policies purchased through commercial markets.