The University participates with other campuses that comprise the System in a self-insurance program for general liability. The Board established a separate revocable trust fund for payment of these self-insurance claims under its risk retention program. Annual contributions are made to the trust fund, at an actuarially determined rate, to provide funding for the retained risk. Other liabilities in the accompanying statements of net position includes a reserve of approximately $2.0 million and $1.8 million for general liability at September 30, 2020 and 2019, respectively.
The University is self-insured for health insurance. The liability for unpaid claims includes an accrual for an estimate of claims incurred but not reported and is included in accounts payable and accrued liabilities in the accompanying statements of net position. The changes in the health insurance liabilities for the years ended September 30, 2020 and 2019 are summarized as follows:
| 2020 | 2019 |
|
| Balance, beginning of year | $4,569,000 | $3,469,200 |
| Claims paid | (49,654,349) | (52,992,720) |
| Contributions | 49,188,349 | 54,092,520 |
| Balance, end of year | $4,103,000 | $4,569,000 |
