Division: Business, Engineering, and Technologies
Subject Code: BUSI
Course #: 282D
Course Title: Principles of Risk Management and Insurance
HARRISBURG AREA COMMUNITY COLLEGE
FORM 335
Course Form 335 must be updated at least every five years to qualify for state
reimbursement.
1.
Digital Description [§335.2]:
Credit hours:
Lecture hours:
Lab hours:
2.
3
3
0
Catalog Description [§335.2]:
An introduction to the process by which businesses and individuals identify and respond to risk. The
emphasis will be on the form and content of insurance policies as they are used to manage risk. Insurance
company operations including the marketing and underwriting of insurance policies will be discussed.
Loss adjustment policies will be presented as they relate to the regulatory environment for insurers and
their customers. The content of this course will prepare the student to sit for a nationally accredited exam
(additional fee and arrangements must be made).
Minimum Grade Required
3.
Prerequisites: None
Corequisites:
Other:
4.
Learning Outcomes [§335.2]
[These outcomes are necessary to enable students to attain the essential
knowledge and skills embodied in the program’s educational objectives.]
Upon successful completion of the course, students will be able to:
A. Demonstrate an understanding of different types of risk.
B. Demonstrate an understanding of the application of the risk management
process.
C. Demonstrate an understanding of basic insurance terminology.
D. Identify and explain the components of an insurance contract and its
application to business.
E. Demonstrate an understanding of the integration of the marketing and
underwriting aspects of insurance.
F. Identify different types of loss exposures and appropriate insurance or risk
management techniques to handling them.
G. Identify possible career paths in risk management and insurance.
H. Sit for a national insurance certification exam.
6/16/04
1
Division: Business, Engineering, and Technologies
Subject Code: BUSI
Course #: 282D
Course Title: Principles of Risk Management and Insurance
5.
Planned Sequence of Learning Activities [§335.2]
[These must be designed to help students achieve the learning outcomes.]
I.
Risk Management Basics
A. Definition and Example
B. Types of Risks
C. Types of Loss Exposures
D. The Importance of
II. The Risk Management Process
A. Identification and Analyzing Loss Exposures
B. Alternative Techniques and their Feasibility
C. Selection of Most Appropriate Strategy
D. Implementation of Strategy
E. Monitoring the Strategy
III. The Role of the Risk Manager
A. Technical Skills
B. Managerial Skills
C. Reduction of an Organization’s Costs
1. Lives, property, income, and items of value
2. Potential profits or benefits
3. Efficient allocation of resources
D. Preloss and Postloss Responsibilities
E. Case Studies
IV. Insurance and Risk Management
A. Transfer Cost of Losses
B. Review Types of Losses
V. Insurance as a Business
A. Types of Insurers
B. Overview of Operations
C. Cost of Insurance
VI. Insurance Contracts
A. Property
B. Liability
C. Life
D. Health
VII. Regulation of Insurance
A. National Association of Insurance Commissioners
B. Rate Regulation
C. Solvency Surveillance
D. Consumer Protection
E. Excess and Surplus Lines
VIII.
Financial Performance of Insurers Measured
A. Insurer Profitability
1. Premiums
2. Investments
3. Expenses
a) Losses and underwriting expense
b) Investment expenses
B. Operations Gain or Loss
C. Insurer Insolvency
1. Assets
2. Liabilities
3. Policyholder surplus
D. Monitoring Financial Performance
1. Financial statement analysis
6/16/04
2
Division: Business, Engineering, and Technologies
Subject Code: BUSI
Course #: 282D
Course Title: Principles of Risk Management and Insurance
2. Capacity
IX. The Marketing of Insurance
A. The Marketing Relationships
1. Policyholder
2. Agent
3. Provider
4. Principle
B. Legal responsibilities of Insurance Marketing
C. Insurance Marketing Systems
1. Independent agent
2. Exclusive agent
3. Direct response
D. Advertising
E. Regulation of Insurance Producers
F. Project Development
X. Underwriting Insurance
A. Selecting Insureds
B. Pricing Coverage
C. Determining Policy Terms and Conditions
D. Monitoring Underwriting Decisions
XI. Underwriting Management
A. Overall Management of the Insurance Company
B. Arranging Reinsurance
C. Delegating Underwriting Authority
D. Making and Enforcing Underwriting Guidelines
E. Monitoring Results of Underwriting Guidelines
F. The Underwriting Process
G. Regulation of Underwriting Activity
XII. Claims
A. Responsibilities of the Claims Function
B. Types of Claims Representatives
1. Company representatives
2. Independent adjusters
3. Agents
4. Public adjusters
5. Internal claim administration
C. The Claim-Handling Process
1. Property
2. Liability
D. Establishing Loss Reserves
E. Unfair Claim Practices Laws
XIII.
Insurance Contracts
A. Elements of a Contract
1. Agreement
2. Competent Parties
3. Legal Purpose
4. Consideration
B. Special Characteristics of Insurance Contracts
1. A person contract
2. A conditional contract
3. A contract involving the exchange of unequal parts
4. A contract of the utmost good faith
5. A contract of adhesion
6. A contract of indemnity
C. Content of Insurance Policies
D. Structure of Insurance Policies
6/16/04
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Division: Business, Engineering, and Technologies
Subject Code: BUSI
Course #: 282D
Course Title: Principles of Risk Management and Insurance
E. Conditions Found in Property and Liability Insurance Policies
Property Loss Exposures and Policy Provisions
A. Types of Property
B. Causes of Loss
C. Financial Consequences of Property Losses
D. Property Insurance Policy Provisions
1. Covered property and locations
2. Covered causes of loss
3. Causes of loss excluded
4. Covered financial consequences
5. Parties covered by property insurance
6. Amounts of recovery
XV. Liability Loss Exposures
A. Legal Liability
B. Elements of a Liability Loss Exposure
1. Legal basis of a liability claim
2. Statutes
3. Potential financial consequences of liability loss exposures
C. Activities and Situations Leading to Liability Loss Exposures
D. Liability Policy Provisions
1. Who is an insured?
2. What activities are covered?
3. What types of injury or damage are covered?
4. What costs are covered?
5. What time period is covered?
6. What factors affect the amount of claim payments?
XVI.
Comparison of Personal and Commercial Property and Casualty Insurance
A. Who is Insured?
B. What is Insured?
C. Policy Construction
D. The “Hybrids”
XIV.
6.
List of Texts, References, Selected Library Resources or other Learning
Materials (code each item based on instructional use: C-lecture/lab, Alecture, B-lab, I-internet, and V-videocourse) [§335.2] [These resources must
be easily accessible to students.]
[A] Introduction to Risk Management, First Edition, Insurance Institute of America,
1998, ISBN 0-89462-118-1
[A] Property and Liability Insurance Principles, Third Edition, Insurance Institute of
America, 1999, ISBN 0-89462-132-7
7.
Prepared by Faculty Member: Jason Nielson
Date: 08/19/04
8.
Approved by Dean:
Date: 08/19/04
Brad Wolf / Ronald Young
This course meets all reimbursement requirements of Chapter 335,
subchapters A / B.
6/16/04
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Division: Business, Engineering, and Technologies
Subject Code: BUSI
Course #: 282D
Course Title: Principles of Risk Management and Insurance
This course was developed, approved, and offered in accordance with the
policies, standards, guidelines, and practices established by the College. It is
consistent with the college mission.
If the course described here is a transfer course, it is comparable to similar
courses generally accepted for transfer to accredited four-year colleges and
universities.
Whether transfer or career, this course is articulated with other courses so
that it is an elective or a requirement of one of the college programs and it
does not require students to have more than 30 credit hours of post
secondary study prior to enrolling in the program.
9.
VP, AA & EM:
Ronald R. Young
10.
Original Date of course approval by the college:
11.
Date(s) of subsequent reviews:
6/16/04
Date:08/23/04
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