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       G. Group Employees Insurance Committee Request Approved.

       President Dickey submitted a letter which he had received from the
Employees Insurance Committee:


                                                 November 17, 1959

       President Frank G. Dickey
       Campus

       Dear President Dickey:

           In accordance with our earlier discussion, the Employees
      Insurance Committee has conducted a poll of the University staff
      on its proposal to increase the group life insurance coverage.
      Ballots were returned by 1475 persons; 1264 were voted "yes"
      and 207 "no".  The remaining four were defective and could not
      be counted. This is approval by 85. 7 per cent of those voting.
      On October 1, 1959, there were 2272 members of the group;
      thus 55.6 per cent of the group voted "yes" and 9. 1 per cent "no",
      while 35 per cent failed to vote.

           The Committee has given careful study to the legal aspects
      of the plan. It is the opinion of the representatives of the under-
      writer, the Prudential Insurance Company of America, and of
      Professor Dukeminier of the College of Law and a member of the
      Insurance Committee, that approval by the group is not required.
      This is based on the assumption that the proposal involves a new
      contract under which the University rather than employees would
      pay the premium.  The Committee considers that the function
      of the vote was to determine the attitude of the group toward the
      proposal.

           Prudential is willing to make a new contract as proposed.
      Accordingly, the Committee recommends your approval of the
      plan with the following features:

           1. Double the insurance policy of each employee. (This
      assumes that the existing salary classes remain unchanged. )

           2. University contribution of an amount equal to the gross
      premium now paid by the employee.

           3. Any dividend refund from the underwriter to be paid to
      and retained by the University.

           It is further recommended that the revision be made effective
      as soon as possible, preferably December 1.

           There is an aspect of the revision as it affects certain per-
      sons that should be called to your attention. Under the original
      contract persons on change-of-work remain in the group on the
      same terms as others.  It has been the policy of the Insurance
      Committee to extend the coverage to all persons who have retired
      from University service, regardless of the particular form of
      retirement arrangement.  This policy is known to and approved
      by the underwriter. Prudential as well as the underwriter of our