The course covers the risks that are faced by an individual or firm and the various methods for their treatment. Methods of treatment include, but are not limited to, insurance, loss prevention, suretyship, simple retention, and self-insurance. Topics include personal and business insurance. This course is intended to:
define the nature of risk and identify the risks facing both individuals and organizations today;
describe the principles of risk management and the role of the risk manager;
outline the risks associated with loss of income, ownership of property, and legal liability;
classify the various types of insurance, which are used to reduce the chance of loss and identify other loss prevention/reductions mechanisms, which may be appropriate; and
explain our society's treatment of fundamental risks, the concepts of social insurance used to treat these risks, and suretyship. Learning activities of the course are: define different types of risks, hazards and perils, and explain the adverse effect of risk on economic activity
understand the basic statistical principles of insurance and identify the situations where insurance may be used as a risk-sharing or risk-transfer device
differentiate between private and social insurance and recognize the respective needs for each
understand the structure of the insurance industry and the unique facets of an insurance company, including its financial operations
describe the general principles of contract law with a particular emphasis on those principles that are peculiar to insurance
understand the traditional forms of whole life, endowment, and term insurance, as well as some of the innovative life policies, which are now available
describe the annuity contract and understand the various uses of annuities today
understand the need for disability income insurance and the provisions of the disability income policy
identify the various types and appropriate uses of medical expense insurance contracts
review the concept of the Social Security system, including the coverage it provides, the soundness of the program, and proposals for future changes
explain the Workers Compensation and Unemployment Compensation programs
understand the concept of estate planning and discuss the various tools, which are used to minimize estate shrinkage
understand the unique characteristics of group insurance and identify the types of group insurance most frequently used
understand the nature of pension plans and other retirement plans and outline the requirements for pension plans established under the Employee Retirement Income Security Act of 1974 (ERISA)
review the concept of property insurance with a particular emphasis on the various forms of Homeowners and Inland Marine insurance policies
discuss the legal concepts of negligence and identify methods of dealing with legal liability
understand the nature and need for automobile insurance, the types of automobile coverage, and a review of the computation of auto insurance costs
discuss commercial property and liability coverages available for businesses
understand the principles behind surety and fidelity bonding
recognize how government functions as an insurer
identify the need for regulation of the insurance industry, explain the methods by which the industry is currently regulated, and discuss proposals of future regulation
understand suretyship