SYLLABUS
01/14/2013
Course title and number
AGEC 489 – Special Topics: Risk and Insurance (3 credits)
Term
Spring 2013
Section/ Location
Section 599 offered online
Course Description and Prerequisites
Applies the fundamental principles of risk management to the planning of insurance needs for
individuals, families, and small businesses; evaluate various insurance products including life, disability,
long term care, health, homeowners, auto, and liability.
Prerequisites: AGEC 435, AGEC 330, FINC 409, or FINC 341; and junior or senior classification.
Instructor Information
Name
A. Gene Nelson, Professor
Telephone number
979-862-2527 (If I don’t answer, leave a message and I will get it by email.)
Email address
Send email through the eLearning system at http://elearning.tamu.edu/.
Office hours
MWF 1:15 pm to 3:15 pm. I am available at most other times when my door is
open. You can schedule a time by calling or emailing me in advance.
Office location
Agriculture and Life Sciences Building (AGLS) 210B
Course Goal
Overall Goal: We will learn to apply the principles of risk management to evaluate the insurance needs
of individuals, families, and small businesses and evaluate the roles of various insurance products in
achieving their financial goals.
Learning Outcomes
As a result of your participation in this course, you will be able to:
1. Comprehend the basic concepts of risk as they relate to insurance planning and the regulatory
and market environment of the insurance industry.
2. Understand legal principles related to insurance and evaluate the alternative life, disability and
long term care insurance products.
3. Recognize the critical planning elements related to health insurance, Social Security, Medicare,
and property and liability insurance.
4. Identify appropriate insurance coverages for automobile and other personal and commercial
property insurance.
Textbook and Resource Material
Textbook: George E. Rejda. Principles of Risk Management and Insurance, 11th Edition,
Pearson/Addison Wesley, 2011. ISBN 978-0-13-611702-5. See readings on Course Schedule.
Additional references and readings will be assigned and posted on the TAMU eLearning website. You
should check the website regularly for announcements, points earned, readings, and homework. To
access: Go to http://elearning.tamu.edu/ and type your NetID and password to “Log In.”
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Course Structure
This online course is organized into 14 weeks. Each week will include some or all of the following
resources and activities as follows:
• Assigned readings in the textbook
• Additional readings about current issues
• Videos of short lecture presentations (some of these will be made by guest lecturers who work
in the insurance field)
• Assignments related to the weeks topics
• The assessment or quiz over the topics of the week.
• There will also be special weeks when you will take one of the four exams
Each week will be a little different with different amounts of time devoted these various activities.
Tentatively, one week will end and the other begin at noon on Monday. All assessments and
assignments must be submitted by that time. You will have the option to complete everything during
the work week and have your weekends free, or if you are occupied during the work week, you have
the weekends to complete your studies.
Grading Policies
Your final letter grade will be determined based on the following schedule of total points earned:
A
630 – 700 total points
B
560 – 629 total points
C
490 – 559 total points
D
420 – 489 total points
F
Less than 420 total points
Your total points are determined from exams, quizzes, and homework assignments:
Item
Number
Points Each
Possible Points
Exams (inc. Final)
Assignments
Assessments & Participation
4
TBD
TBD
100
TBD
TBD
400
200
100
Total Possible Points
700
Examinations
The four examinations, including the final exam, are worth 100 points each. They are comprehensive,
reviewing material from the beginning of the course, but emphasizing the more recent classes.
Because everyone has a bad day, the lowest score earned on these four exams will be replaced by the
overall average for the four exams or by the Exam 4 score, whichever is higher. Suppose you get a 74
on your first exam and 84, 86, and 80 on the other three. The overall average is 81. Substituting the
81 for the 74 would give you a total 331 points, instead of 324. However, if you get a 90 on the final
(exam 4), the 90 will replace the 74, and your total exam points will be 350. This gives you a greater
opportunity to improve your grade by taking the final exam. The total possible points for exams is 400,
out of 700, for the course.
Assignments
Several homework projects will be assigned during the semester and will account for 200 points, out of
700 for the course. Ten percent of the possible points on the assignment will be deducted if submitted
up to 24 hours late, 20 percent after that, and after one week, no points will be given. You are
responsible for assuring that the assignment has been properly submitted in eLearning.
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Assessments (Quizzes) and Participation
Assessment quizzes will be assigned at the end of each week’s activities. Participation points will also
be given for short essays and posting to Discussions. The possible points for these activities will
account for a total of at least 100 points, out of 700 possible points for the course.
Makeup Policy
Makeup exams and assignments will be given to students with absences considered excused under
TAMU Student Rule 7 (Attendance) at http://student-rules.tamu.edu/rule07. For absences related to
injury or illness, also see http://attendance.tamu.edu/. Students should inform me in advance if they
anticipate missing an exam, quiz, or assignment deadline. To be eligible for a makeup exam or quiz, or
for acceptance of a late assignment, students must provide documentation for the excuse within two
days following the absence or missed deadline. For an injury or illness of three or more days, provide
an excuse completed by a medical professional. For an injury or illness of less than three days,
complete the Explanatory Statement for Absence from Class form at
https://dsacms.tamu.edu/sites/shs.tamu.edu/files/Explanatory%20Statement%20for%20Absence%20from%20Class_1.pdf.
Americans with Disabilities Act (ADA)
The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides
comprehensive civil rights protection for persons with disabilities. Among other things, this legislation
requires that all students with disabilities be guaranteed a learning environment that provides for
reasonable accommodation of their disabilities. If you believe you have a disability requiring an
accommodation, please contact Disability Services, in Cain Hall, Room B118, or call 845-1637. For
additional information, visit http://disability.tamu.edu.
Plagiarism
Plagiarism consists of presenting someone else’s work (ideas, writings, etc.) as your own. In
accordance with this definition, you are committing plagiarism if you copy the work of another person
and turn it in as your own, even if you have the permission of that person. I encourage study groups
and collaboration, but submitted assignments should be your own work. If you have questions, consult
the TAMU Student Rules, under the section “Academic Misconduct,” or ask me.
Academic Integrity: “An Aggie does not lie, cheat, or steal, or tolerate those who do.”
As a Texas A&M University student, you committed to uphold the Honor Code, to accept responsibility
for learning, and to follow the philosophy and rules of the Honor System. This commitment applies to
examinations, research papers, and all other academic work. When you submit your work for this
course, you are making an implicit pledge that you have neither given nor received unauthorized aid.
For additional information, please visit: http://aggiehonor.tamu.edu/.
Notes from Your Instructor
This is an online class so I may not see you in person, but I do want to invite you to come visit me. I
want to answer any questions you have or hear your comments and suggestions for improving the
course. My door is always open. Feel free to stop in to see me anytime, or call or email ahead and we
can schedule an appointment. I would like to get to know you; you don’t need to have a problem to
come see me.
All class announcements will be posted in eLearning. Please be sure to log in regularly so you don’t
miss anything. If for some reason you have trouble with eLearning, please contact the Help Desk at
(979) 845-8300 or helpdesk@tamu.edu.
PS – The information in this Syllabus is subject to change. You will be notified of any changes in class
and through the eLearning website.
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AGEC 489 – Risk and Insurance
Tentative Schedule and Topics
Textbook: George E. Rejda. Principles of Risk Management and Insurance, 11th Edition,
Pearson/Addison Wesley, 2011. ISBN 978-0-13-611702-5
Week
Beginning
Due Date
Topics
Assignments
1
1/14/2013
1/22/2013
Course Overview
Career Opportunities in Insurance
2
1/22/2013
1/28/2013
Introduction to risk management
Risk in society and role of insurance
Chaps. 1 and 2 and
posted resources
3
1/28/2013
2/4/2013
Introduction to risk management
Advanced topics in risk management
Chaps. 3 and 4 and
posted resources
4
2/4/2013
2/11/2013
Types of insurers and marketing systems
Insurance company operations
5
2/11/2013
2/18/2013
Government regulation of insurance
Exam #1
Chap. 8 and posted
resources
6
2/18/2013
2/25/2013
Fundamental legal principles
Analysis of insurance contracts
Chaps. 9 and 10 and
posted resources
7
2/25/2013
3/4/2013
Life insurance
Life insurance contractual provisions
Chaps. 11 and 12 and
posted resources
8
3/4/2013
3/8/2013
Selling and buying life insurance
Individual health insurance coverages
Chaps. 13 and 15
and posted resources
Posted resources
Chaps. 5–7 and
posted resources
Spring Break 3/11-15/2013
9
3/18/2013
3/25/2013
Employee Benefits: group life & health
insurance
Exam #2
Chap. 16 and posted
resources
10
3/25/2013
4/1/2013
Disability & long term care insurance
Annuities & business uses of life
insurance
Chaps. 15 and 14 and
posted resources
11
4/1/2013
4/8/2013
Homeowners insurance, sections I & II
Chaps. 20 and 21 and
posted resources
12
4/8/2013
4/15/2013
Personal property: liability insurance
Exam #3
Chaps. 19 and 24 and
posted resources
13
4/15/2013
4/22/2013
Employee benefits: retirement plans
Social security and medicare insurance
Chaps. 17 and 18 and
posted resources
14
4/22/2013
4/28/2013
Auto insurance
Auto insurance and society
Chaps. 22 and 23 and
posted resources
TBD
• Exam #4
15
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