The insurance premium for Excess Side A D&O coverage has returned higher than the good faith estimate of $24,750, which was the amount presented at the June 27, 2023, Board of Regents meeting.

At the June 27, 2023, Board of Regents meeting, it was presented that, based on a good faith estimate, the Excess Side A D&O insurance premium (coverage for Directors' and Officers' personal assets) would not exceed $24,500. Prior to the carrier finalizing the estimate, the Acting VP for Finance & Business Affair was informed that the carrier had discovered the APA's special examination report during their assessment of KSU, and as a result, a higher-than-expected premium was finalized.

Assured Partners, KSU's insurance broker, conducted an exhaustive marketing campaign and reached out to twenty (20) carriers. Almost all the carriers declined; however, one (1) carrier did not respond and two (2) carriers provided quotes that were lower ($37,229 and $41,200), but with reduced coverage. The decision was made to stay with KSU's current carrier at the increased price to ensure the same coverage.

The total cost of the renewal is $60,000, which has been budgeted for in the E&G budget for FY24.

The total cost of the renewal for FY23 was $22,500.