RMIN Online PRINCIPLES OF RISK MANAGEMENT AND INSURANCE FALL 2017

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1 RMIN Online PRINCIPLES OF RISK MANAGEMENT AND INSURANCE FALL 2017 Instructor: Dale Sharpe Jenkins, M.S., CIC, AINS Class website: Phone: (817) Office Hours: By Telephone; Monday and Wednesday 8:00 am 10:00 am. I will be available for your phone call. If you do no reach me, leave a message and the call will be returned during office hours. Required Textbook Principles of Risk Management & Insurance, (13th Edition) by George E. Rejda and Michael J. McNamara. ISBN 13: Course Description Study of basic risk theory, risk management techniques, fundamental principles of insurance and insurance company operations. Overview of insurance contracts and examination of the personal lines home and auto policies and major commercial lines policies. For RMI majors, this course serves as a basis for more advanced courses. Students are expected to comprehend key insurance terminology and contract features; to acquire the knowledge, judgment, and expertise to understand the risk management process; to fully understand property and liability loss exposures. Access to Class You can access the course at Login using your EUID and password under Course Login Click RMIN 2500 from the list of courses Please note that Blackboard relies heavily on electronic technologies for online courses, and technology isn't 100% reliable. It is each student s responsibility to complete homework assignments and take exams in a location with a reliable computer and internet connection. Sometimes, a problem can be easily resolved. However, if problems do occur and persist, please contact Student Support staff at helpdesk@unt.edu or give the helpdesk a call at (940) Please note: Every Saturday night from 11:00 PM until 2:00 AM CDT Sunday morning, Blackboard Learn is NOT available due to its regular system maintenance. Course Materials Introduction to Risk Management & Insurance (13th Edition) by George E. Rejda and Michael J. McNamara.. Additional reading material and videos posted in Blackboard Online magazine article publications; links provided in Blackboard 1

2 Lectures posted in Blackboard Course Announcements and Communications Information that needs to be communicated to the entire class will be done so through Blackboard, Course Announcements. The best manner of communication for students to communicate with the instructor is via . If you me, please make sure to include RMIN in the subject line; when you do so this will reduce (not necessarily eliminate) the risk of your important message getting filtered into spam or junk folders by the system administrator. Generally speaking, s will be responded to by the next business day. In cases where you need more timely assistance please call my office at (940) and leave a message with your name, the best number to reach you and details about what issues you want to address. Under normal circumstances, you can expect a return call by the next business day. If I return the call and you do not respond, I ll assume that you no longer need assistance. Attendance and Participation Blackboard enables us to track whether and when you visit various areas of the course site, login times, total number of login sessions, total amount of time online and number of discussion postings. We reserve the right to drop students with very poor access. Zip Code Survey To better serve students who have a need for taking classes online, the University may collect some basic information via the Zip Code Survey which I strongly encourage you to take. The Survey will be posted in Blackboard when it becomes available. Netiquette Netiquette is network etiquette; it is a set of rules for behaving properly online. Students are required to understand and adhere to netiquette while interacting with others in this course. You can review the rules at Please review them carefully. You will be asked a question pertaining to netiquette on your graded homework assignment for Week One. Disability Accommodation The University of North Texas is on record as being committed to both the spirit and letter of federal equal opportunity legislation; reference Public Law The Rehabilitation Act of 1973 as amended. With the passage of new federal legislation entitled Americans with Disabilities Act (ADA), pursuant to section 504 of the Rehabilitation Act, there is renewed focus on providing this population with the same opportunities enjoyed by all citizens. As a faculty member, I am required by law to provide "reasonable accommodations" to students with disabilities, so as not to discriminate on the basis of that disability. Student responsibility primarily rests with informing faculty of their need for accommodation and in providing authorized documentation through designated administrative channels. Information regarding specific diagnostic criteria and policies for obtaining academic accommodations can be found at Also, you may visit the Office of Disability Accommodation in the University Union (room 321) or call them at (940) If you need an accommodation, please contact me promptly during the first week of class. 2

3 Special Note about Blackboard Learn Blackboard Learn is committed to making certain that online courses are open and accessible to people with disabilities. As a result, Blackboard Learn complies with Section 508 of the United States Rehabilitation Act of 1973, enabling people with disabilities and those using assistive technologies, such as screen readers, to fully use the software. Academic Dishonesty Academic dishonesty is defined in the UNT Policy on Student Standards for Academic Integrity. Any suspected case of Academic Dishonestly will be handled in accordance with the University policy and procedures. Possible academic penalties include a grade of F in the course. You will find the policy and procedures at If I suspect that you have engaged in academic dishonesty, I will deal with the situation as outlined in the University Policy mentioned above. You will be allowed to remain in the class during the entire time that the academic misconduct accusation is being investigated, adjudicated, and appealed. As noted above, the maximum academic penalty that can be assessed by an instructor is an F in the course. However, university officials use the academic misconduct information to decide if other misconduct sanctions are then to be applied, and the student has separate rights to appeal those decisions, remaining in the class until all appeals are exhausted. You will be asked to agree to an ethics statement that outlines the ethical principles you are expected to adhere to throughout this course. The ethics statement will be made available to you on our course homepage. As stated earlier, on Graded Quiz 1, you will be asked in one of the questions whether you have read and agree to this statement. Student Perceptions of Teaching (SPOT) Student feedback is important and an essential part of participation in this course. The student evaluation of instruction is a requirement for all organized classes at UNT. The short SPOT survey will be made available to provide you with an opportunity to evaluate how this course is taught. You will receive an from "UNT SPOT Course Evaluations via IASystem Notification" (no-reply@iasystem.org) with the survey link. Please look for the in your UNT inbox. Simply click on the link and complete your survey. Once you complete the survey you will receive a confirmation that the survey has been submitted. For additional information, please visit the spot website at or spot@unt.edu. Eagle Connect Account All students should activate and regularly check their EagleConnect ( ) account. EagleConnect is used for official communication from the University to students. Many important announcements for the University and College are sent to students via EagleConnect. For information about EagleConnect, including how to activate an account and how to have EagleConnect forwarded to another address, visit Notice to F1 Visa Holders 3

4 For F 1 students enrolled in classes for credit or classroom hours, no more than the equivalent of one class or three credits per session, term, semester, trimester, or quarter may be counted toward the full course of study requirement if the class is taken on-line or through distance education and does not require the student's physical attendance for classes, examination or other purposes integral to completion of the class. An on-line or distance education course is a course that is offered principally through the use of television, audio, or computer transmission including open broadcast, closed circuit, cable, microwave, or satellite, audio conferencing, or computer conferencing. If the F 1 student's course of study is in a language study program, no on-line or distance education classes may be considered to count toward a student's full course of study requirement [Title 8 CFR Paragraph (f)(6)(i)(g)]. University of North Texas Compliance. To comply with immigration regulations, an F-1 visa holder within the United States may need to engage in an on-campus experiential component for this course. This component (which must be approved in advance by the instructor) can include activities such as taking an on-campus exam, participating in an on-campus lecture or lab activity, or other on-campus experience integral to the completion of this course. If such an on-campus activity is required, it is the student s responsibility to do the following: (1) Submit a written request to the instructor for an on-campus experiential component within one week of the start of the course. (2) Ensure that the activity on campus takes place and the instructor documents it in writing with a notice sent to the International Student and Scholar Services Office. ISSS has a form available that you may use for this purpose. F-1 Visa holders will be required to attend weekly scheduled office visits throughout the term. Because the decision may have serious immigration consequences, if an F-1 student is unsure about his or her need to participate in an on-campus experiential component for this course, s/he should contact the UNT International Student and Scholar Services Office (telephone or internationaladvising@unt.edu) to get clarification before the one- week deadline. Discussion Board The Discussion Board (DB) assignments are designed to help you apply the reading material to topics and issues faced by professionals in the risk management and insurance industry today. Your participation in the DB conversations is required and will be graded. There is one DB assignment each week except for exam weeks. The first Discussion Board assignment is titled Introductions and Personal Perspective of Risk Taking. This is the only Discussion Board assignment that will involve the entire class and take place in the general DB. The general DB area can be accessed by clicking on Discussions located on the Course Menu in Blackboard. For the remaining DB conversations, you have been randomly placed in a Group of 5 6 students and must access the weekly DB within your Group. Group Discussion Board assignments can be accessed by clicking on Users and Groups under Course Management in the Blackboard menu. Discussion Board assignments open by midnight Sundays and close the following Fridays at. With the exception of the first DB assignment (Introductions & Personal Perspective of Risk) you will be required to make at least two posts per week as well as answer any follow up questions posed by the instructor. The initial post will be your response to the prompt/question(s) raised by the instructor and it is due by on Wednesdays. The second post will be your comment on another classmate s post. The second post is due on Fridays by. Any additional questions raised by the instructor will be posted by Thursday. If the instructor raises additional questions in the discussion you must respond to those as well by the Friday deadline. Please see Blackboard for additional information regarding Discussion Board assignments. Your average grade for Discussion Board assignments will make up 25% of your final grade. 4

5 There will be weekly homework assignments beginning Week One for a total of 14 assignments throughout the term. The homework assignments are located in Blackboard. They will open midnight on Sundays and close on Fridays at. The assignments are designed to test your understanding of the reading material and therefore the correct answers come from your reading assignments. The homework assignments consist of a mix of multiple choice, fill in the blank and matching questions. Your average grade for all homework will represent 15% of your final course grade. Midterm and Final Exams There will be three (3) midterm exams during the semester and one (1) final exam. The exams will cover the weekly learning objectives. The average of your score on the midterm exams represents 25% of your final grade. The final is comprehensive and will represent 35% of your final grade. All exams are administered through Blackboard. Midterm exams are scheduled as follows: Exam One Opens 12:00 am 10/4/17; Closes 10/4/17 Exam Two Opens 12:00 am 10/23/17; Closes 10/23/17 Exam Three Opens 12:00 am 11/21/17; Closes 11/22/17 The final exam will be available: 12:00 AM Sunday, December 10, 2017 until Wednesday December 13, Grades No make-up exams will be allowed. The course grade will be determined by adding your average grade for DB, and Midterms to your Final Exam. To calculate your final grade: (Average of DB x.25) + (Average of x.15) + (Average of Midterm Exams x.25) + (Final Exam Score x.35) = Final Average Reminder if this class is in your major, you must earn a C to pass. Course grade is determined as follows: FINAL AVERAGE LETTER GRADE A B C D UNDER 60 F The instructor reserves the right to curve final grades if it is deemed appropriate. Issues: if a student has any issue regarding grading or assignments, please contact the instructor within one business day of the grade being released in the grade book. Please do not wait until the semester ends when it is too late to consider any recourse. While you are allowed to use your textbook and refer to Blackboard materials in completing the exams, you are NOT allowed to get help from other students. 5

6 Important Note: There will be no makeup work for missed assignments, discussions or exams. Utilization of the calendar functions on your personal phones or s to set up reminders about course deadlines is highly recommended. Course Organization Several folders have been set up in Blackboard. The folders are located within the Course Content section in Blackboard. By clicking on Course Content on the menu to the left in Blackboard, you will be able to access the folders. These are the folders you should be able to access: Course Introduction. In this folder you will find an overview of the course, the course syllabus, and additional information regarding Discussion Board instructions and expectations. College of Business Opportunities. There are many opportunities for scholarships, internships, jobs and conferences that are available to College of Business students. In this folder you will find information on these opportunities along with dates and application deadlines. Weekly Folders. This is a fifteen (15) week course. A weekly folder for each of the 15 weeks is set up in Blackboard. The folders will be available for your viewing and access in Blackboard each Sunday at midnight. Within the contents of the weekly folder, each week you will find the following pertaining to instructions and your responsibilities for the week: Learning Objectives Required Reading Assignment - including additional reading material Instructions for Discussion Board - including links to required reading material for discussion A link to all Optional videos, YouTube presentations, power points to assist with understanding weekly learning objectives WEEKLY SCHEDULE OF REQUIRED READING; READING ASSESSMENT HOMEWORK; DISCUSSION BOARD TOPICS and LEARNING OBJECTIVES Week One: A Brief Summary of the History of Risk Reading Assignment Against the Gods; The Remarkable Story of Risk/ Peter L. Bernstein (Located in Blackboard) 8/31/17 Introduction Pages 1 8 Learning Objectives: 1. A general understanding of how historical perspectives of risk have changed and influenced modern thinking about decision making Discussion Board 2. Knowledge of some key historical figures and their contribution to the study of risk management Introduction and Personal Perspective of Risk Taking 1 st Post 11:59 pm 8/31/17 Not required 9/1/2017 6

7 Week Two: Definitions and Classifications of Risk Reading Assignment Principles of Risk Management & Insurance, Rejda and McNamara (PRMI Textbook) - Chapter 1, Pages /6/17 Learning Objectives: 1. Explain the difference between objective Risk and subjective Risk 2. Explain objective and subjective probability 3. Define and understand key terms: o Loss Exposure, o Chance of Loss o Peril, o Hazard, 4. Explain how risks are categorized as: o Pure o Speculative o Diversifiable o Non diversifiable o Enterprise risk o Systemic risk 5. Give examples of various types of hazards Discussion Board Current and Emerging Risks 1 st Post 9/6/17 9/8/17 9/8/17 Week Three: Introduction to Risk Management Reading Assignment PRMI Textbook - Chapter 3 9/13/17 Learning Objectives: 1. Define Risk Management 2. Understand and Explain Risk Management Pre- Loss and Post Loss Objectives 3. Describe the Steps in the Risk Management Process 4. Explain the Major Risk Control Techniques 5.Explain the Major Risk Financing Techniques 6. Understanding the Importance of Identifying Loss Exposures in the Management of Risk 7

8 Discussion Board Indentifying Loss Exposures 1 st Post 9/13/17 9/15/17 9/15/17 Week Four: A Brief History of Insurance Reading Assignment Against the Gods; The Remarkable Story of Risk/ Peter L. Bernstein, Pages 73-77; 84-top of 86; /20/17 Learning Objectives: 1. Develop knowledge of the history of modern day insurance 2. Understand the use of stratified and random sampling in insurance Discussion Board Benefits and challenges of using sampling in insurance selection 1 st Post 9/20/17 9/22/17 9/22/2017 Week Five: Insurance and Risk Reading Assignment PRMI Textbook - Chapter 2, and Chapter 4 bottom of page 74 top of page 78 Learning Objectives: 1. Explain the basic characteristics of insurance 2. Explain the Law of Large Numbers 3. Describe the Characteristics of an Ideally Insurable Risk 4. Describe the Major Types of Insurance 5. Explain the Social Benefits and Costs of Insurance 6. Describe the impact of the underwriting cycle and consolidation in the insurance industry on the practice of risk management 9/27/17 8

9 Discussion Board Insurance Characteristics and Ideally Insurable Risks 1 st Post 9/27/17 9/29/17 9/29/17 Week Six: Insurance Company Operations Exam 1 Covers Material from Weeks /4/17 Reading Assignment PRMI Textbook, Chapter 5, pgs & Chapter 6 10/7/17 Learning Objectives: 1. Describe and Explain: The Rate Making Function of Insurers The Underwriting Process The Sales and Marketing Activities of Insurers, and The Steps in the Claims Process 2. Explain What Reinsurance Is and Its Use and Purpose 3. Explain the Importance of Insurance Company Investments Discussion Board No Discussion Board this Week 10/7/2017 Week Seven: Financial Operation of Insurers Reading Assignment PRMI Textbook - Chapter 7 10/11/17 Learning Objectives: 1. Understand the three major sections of the balance sheet for a property and casualty insurance company 2. Identify the sources of revenues and types of expenses incurred by a property and casualty insurance company 3. Explain how profitability is measured in the P&C industry using ratios 4. Explain how profitability is measured in the life insurance industry 5.Explain the Objectives of Rate Making in Property and Casualty Insurance 9

10 Discussion Board Insurance Company Operations in the Future 1 st Post 10/11/17 10/13/17 10/13/2017 Week Eight: Government Regulation of Insurance Reading Assignment PRMI Textbook - Chapter 8 Texas Department of Insurance (TDI) website - Assigned pages in Blackboard Learning Objectives: 1. Explain the major reasons why insurers are regulated 2. Identify key legal cases and legislative acts that have had an important impact on insurance regulation 3. Identify the major areas of insurance that are regulated 4. Explain the major arguments for and against state regulation of insurance 5. Explain the objectives of rate regulation and types of rating laws 10/18/17 Discussion Board State vs. Federal Regulation 1 st Post 10/18/17 10/20/17 10/20/2017 Week Nine: Legal Principles of Insurance and Analysis of Insurance Contracts Exam 2 Reading Assignment Covering Material from Weeks 6-8 PRMI Textbook - Chapter 9, pages and Chapter 10 10/25/17 10/28/17 10

11 Learning Objectives: 1. Explain the fundamental legal principles reflected in insurance contracts 2. Explain the legal concepts of representations, concealment and warranty and how they affect insurance transactions 3. Describe the basic requirements for the formation of a valid insurance contract 4. Explain how insurance contracts differ from other contracts 5. Identify the basic parts of an insurance contract Explain the meaning of insured in an insurance contract 6. Explain the purpose and how coinsurance works in a property insurance contract 7. Explain how losses are paid when more than one insurance contract covers the same loss Discussion Board No Discussion Board 10/28/2017 Week Ten: The Liability Risk Reading Assignment PRMI Textbook - Chapter 19 11/1/17 Learning Objectives: 1. Define and Explain the Elements of Negligence 2. Identify and Explain Defenses Used in a Lawsuit 3. Understand how the law of negligence applies in difference liability situations 4. Explain the issues effecting tort liability system Discussion Board Issues of negligence related to cyber liability 1 st Post 11/1/17 11/3/17 11/3/

12 Week Eleven: Personal Auto Insurance Reading Assignment PRMI Textbook - Chapter 20 11/8/17 Learning Objectives: 1. Identify the parties that are insured for liability coverage under the Personal Auto Policy (PAP) 2. Describe the liability coverage in the PAP 3. Explain the medical payments coverage in the PAP 4. Describe the uninsured motorists coverage in the PAP 5. Explain the coverage for damage to your auto in the PAP 6.Explain the duties imposed on the insured after an accident or loss Discussion Board Current Trends in Personal Auto Loss Exposures and Insurance 1 st Post 11/8/17 11/10/17 11/10/17 Week Twelve: The Homeowners Policy Reading Assignment Principles of Risk Management & Insurance, Rejda and McNamara, Chapter 22 and Chapter 23 pages /15/17 Learning Objectives: 1. Identify the major homeowners policies for homeowners, condominium owners and renters 2. Explain the major provisions in Section I and Section II of the Homeowners 3 policy 3. Explain the insured s duties after a loss occurs 4. Explain and illustrate the loss settlement provisions in the HO3 policy 5. Identify major exclusions found in Section II of the HO3 policy Discussion Board Current Trends in Homeowners Insurance 1 st Post 11/15/17 11/17/17 11/17/

13 Week Thirteen Exam 3 Covering Material from Weeks /22/17 Week Fourteen: Overview of Commercial Insurance Reading Assignment PRMI Textbook Chapter 25 pgs and Chapter 26 pgs /29/17 Learning Objectives: 1. Explain the basic components of the commercial package policy 2. Explain the basic provisions of the building and personal property policy 3. Identify the major liability loss exposures of businesses and organizations 4. Describe the basic coverage provided by Commercial General Liability policy, Workers Compensation policy and Business Auto policy Discussion Board The Risk Manager and Insurance Broker 1 st Post 11/29/17 12/1/17 12/1/17 Week Fifteen: Week Fourteen Topic: Reading Assignment Against the Gods; The Remarkable Story of Risk/ Peter L. Bernstein, Chapter 19 12/6/17 Learning Objectives: Identify broad issues related to decision making under uncertainty Discussion Board Open Discussion on Topics and Class 12/6/17 No Assignment Study for Final 13