RMIN PRINCIPLES OF RISK MANAGEMENT AND INSURANCE FALL 2015

Transcription

1 RMIN PRINCIPLES OF RISK MANAGEMENT AND INSURANCE FALL 2015 Instructor: Class Periods: Dale Sharpe Jenkins, M.S., CIC, AINS Monday and Wednesday 3:30 4:50 p.m. BLB Office: Phone: (940) COMMUNICATION My office hours are Mondays and Wednesdays from 1:30 pm 3:00 pm and Monday evenings from 5:00 pm 6:-00 pm or by appointment. All announcements regarding the class will be posted under Course Announcement in Blackboard. All correspondence must be made through Blackboard or your UNT assigned at my.unt.edu. EAGLE CONNECT All students should activate and regularly check their EagleConnect account. EagleConnect is used for official communication from the University to students. For information about EagleConnect, including how to activate an account and how to have EagleConnect forwarded to another address, visit BLACKBOARD In addition, please check Blackboard regularly for additional required reading material, weekly quizzes, PowerPoint presentations as well as Course Announcements, your grades and any updates in our class schedule. All communication with me must be made through Blackboard OR your UNT assigned at my.unt.edu due to privacy issues and regulations! ATTENDANCE AND PARTICIPATION Attendance and participation are not optional. Attendance will be taken at the beginning of each class. In order to be successful in this course it is imperative that students attend class punctually and take notes. Five points of your final grade will be determined at my discretion based on your record of class attendance and participation. If you come late to class more than three times, or miss more than three unexcused days, you may be dropped from the class. CLASSROOM CONDUCT Student behavior that interferes with an instructor s ability to conduct a class or other students' opportunity to learn is unacceptable and disruptive and will not be tolerated in any instructional forum at UNT. Students engaging in unacceptable behavior will be directed to leave the classroom and I may refer the student to the Dean of Students to consider whether the student's conduct violated the Code of Student Conduct. The university's expectations for student conduct apply to all instructional forums, including university and electronic classroom, labs, discussion groups, field trips, etc. Examples of such behaviors include but are not limited to the following: using digital devices and cell phones in any manner, chatting, arriving late, leaving early, or exiting in the middle of the class. If you have a situation which requires your early exit, please visit with me before class begins. It is my expectation that all student conduct be in accordance with the UNT Code of Student Conduct. The Code of Student Conduct can be found at 1

2 WEEKLY QUIZZES There will be weekly quizzes beginning Week 1 for a total of 10 quizzes throughout the semester. The quizzes will be timed and will be based on vocabulary and concepts discussed in class and in the textbook. The quizzes will be available in Blackboard at the beginning of the week and the due date will be each Friday by midnight. The quizzes will consist of 20 questions and you will have 15 minutes to complete the quiz. You will be allowed to take the quiz twice and the highest score will be taken. Your average grade for all quizzes will represent 25% of your final course grade. EXAMS There will be three exams given in class during the semester. The general content of exams will be reviewed prior to the examination date. Each exam will contain 26 questions; 10 true/false, 15 multiple choice and 1 essay. The exams will cover materials from class discussions, reading assignments, textbook and guest speakers. Midterm exams are scheduled as follows; however, dates may change if classroom presentations and discussions run longer than anticipated: Exam 1 Exam 2 Wednesday 09/23/15 Wednesday 10/21/15 Exam 3 Wednesday 11/18/15 Final exam is Wednesday Dec. 9, 2015 from 1:30 3:30 pm. (set by UNT Registrar s office If you have three final exams the same day and want this final exam to be rescheduled, you must give me at least one week notice in writing. If granted, the exam must be taken BEFORE the scheduled exam date and time. If the University cancels classes on a day that we have a scheduled exam, the exam will be given the very next day that classes are held. Once an exam has started, no student may leave the classroom until he or she has finished the exam and turned it in. Violation of this policy will result in an automatic zero for the student on that exam. Obviously, if there is an emergency situation, please come see me. Scantrons will be provided. During exams, nothing is allowed on the desk except your pencil and exam materials. During the exam, I will not answer any questions with regards to clarifying a question, unless the question is applicable to all students in the room (such as a typing error or other obvious error in formatting). You must return the exam to me with your Scantron before leaving the classroom or you will be assigned a zero. No make-up exams will be allowed. GRADES The course grade will be determined as the average grades of all exams PLUS grades for quizzes. Exams count as 70% of your grade; quizzes 25%; attendance and participation + or - 5%. To calculate your final grade: (Exam average X.70) + (Quizzes X.25) +/- 5 attendance/participation points = 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 2

3 ACADEMIC DISHONESTY Students caught cheating or plagiarizing will receive a "0" for that particular assignment or exam. Additionally, the incident will be reported to the Dean of Students, who may impose further penalty. According to the UNT catalog, the term "cheating" includes, but is not limited to: a. use of any unauthorized assistance in taking quizzes, tests, or examinations; b. dependence upon the aid of sources beyond those authorized by the instructor in writing papers, preparing reports, solving problems, or carrying out other assignments; c. the acquisition, without permission, of tests or other academic material belonging to a faculty or staff member of the university; d. dual submission of a paper or project, or resubmission of a paper or project to a different class without express permission from the instructor(s); or e. any other act designed to give a student an unfair advantage. The term "plagiarism" includes, but is not limited to: a. the knowing or negligent use by paraphrase or direct quotation of the published or unpublished work of another person without full and clear acknowledgment; and b. the knowing or negligent unacknowledged use of materials prepared by another person or agency engaged in the selling of term papers or other academic materials. QUALIFIED STUDENTS WITH DISABILITIES The University of North Texas makes reasonable academic accommodation for students with disabilities. Students seeking accommodation must first register with the Office of Disability Accommodation (ODA) to verify their eligibility. If a disability is verified, the ODA will provide you with an accommodation letter to be delivered to faculty to begin a private discussion regarding your specific needs in a course. You may request accommodations at any time, however, ODA notices of accommodation should be provided as early as possible in the semester to avoid any delay in implementation. Note that students must obtain a new letter of accommodation for every semester and must meet with each faculty member prior to implementation in each class. For additional information see the Office of Disability Accommodation website at You may also contact them by phone at (940) STUDENT EVALUATION OF TEACHING EFFECTIVENESS (SETE) The Student Evaluation of Teaching Effectiveness (SETE) is a requirement for all organized classes at UNT. This short survey will be made available to you at the end of the semester, providing you a chance to comment on how this class is taught. The administration of the SETE will begin a couple of weeks before the end of the semester and remain open through the week of finals to try to maximize student SETE participation. You can access the SETE instrument by going to LEARNING OBJECTIVES; READING ASSIGNMENTS; QUIZZES; EXAMS Week 1: Companies Impact on Economy & the Treatment of Risk Explain how insurance companies contribute to the economy Explain how insurance companies contribute to communities Explain how insurance companies contribute to families Discuss the Council of Texas Education (ICT) missions and programs Explain the concepts and definitions of risk : o Uncertainty o Objective Risk o Subjective Risk Explain the meaning of loss exposures Define Chance of Loss Distinguish between Objective and Subjective Probability Identify Perils and Hazards in a given scenario Explain how risk is classified Distinguish Personal and Commercial Risks 3

4 Reading Assignment Impact on Texas Economy Read report located in Blackboard 8/24/2015 Reading Assignment Risk and Its Treatment Principles of Risk Quiz 1 Chapter 1 and Reading Aid Chapter 1 pages /26/2015 8/28/2015 Week 2: Introduction to Risk Define Risk and its objectives Explain the Steps in the Risk Process Explain the major risk control techniques o Avoidance o Loss Prevention o Loss Reduction Explain how insurance companies contribute to the economy Explain how insurance companies contribute to communities Explain how insurance companies contribute to families Discuss the Council of Texas Education (ICT) missions and programs Explain the major risk financing techniques o Retention o Noninsurance transfers o Explain Financial Risk and Enterprise Risk Describe how the underwriting cycle and consolidation in the insurance industry impacts the practice of risk management Explain how insurance functions in each of the following roles: o As a risk management technique o As a transfer system o As a business o As a contract Identify the characteristics of an ideally insurable risk Explain adverse selection as a challenge faced by insurers Understand the concept of Pooling of Losses and the Law of Large Numbers Reading Assignment Introduction to Risk Principles of Risk 8/31/2015 Chapter 3 and Chapter 4 pages Reading Assignment and Risk Principles of Risk 9/2/2015 Chapter 2 pages and Quiz 2 Chapters 2,3, & 4 09/04/2015 4

5 Week 3 and Risk List the various categories and types of insurance sold by private insurers Describe the U.S. federal and state government insurance programs Explain the cost and benefits of insurance to society Identify the different types of private insurers Explain the role agents and brokers Reading Assignment Quiz 3 HOLIDAY - NO CLASSES 9/7/2015 How insurance functions and key concepts related risk selection and insurable risks Terms and concepts Chapter 2 and 5 Principles of Risk and Chapters 2 pages and Chapter 5 pages /9/2015 9/11/2015 Week 4 Cyber liability and Risk Define negligence and the explain the elements of negligence Explain the legal defenses used in a lawsuit o Contributory o Comparative o Assumption of risk o Last clear chance rule Explain imputed negligence Explain res ipsa loquitur Define cyber liability Discuss the types of information susceptible to Data Breach Laws Discuss liability exposure to Data Owners and Data Processors List causes of data breach Apply the steps in the risk management process to the evaluation of cyber liability risks Reading Assignment The Liability Risk Principles of Risk and Chapter 19 pages /14/2015 Reading Assignment Cyber liability issues Reading Aid - Ponemon 2014 Study Global Cost of Cyber located in Blackboard Reading Assignment Cyber liability issues Reading Aid - Ponemon Study Cost of Malware located in Blackboard Reading Assignment Cyber liability issues Reading Aid Ponemon Study Security Impact of Mobile Devices Quiz 4 Chapter 9 & Reading Aid 9/14/2015 9/14/2015 9/16/15 9/18/2015 5

6 Week 5 Exam Preparation and Exam 1 Exam 1 Preparation / Review Question and answers and overview of Chapters covered to date and 09/21/15 additional reading material provided Exam 1 In Class Exam In class exam; 26 questions worth 100 points: 09/23/15 10 true/false 2 pts ea. 15 multiple choice 3 pts ea. 1 essay 35 pts Week 6 Company Operations Understand the various types of insurance distribution systems used by insurers Explain the purpose and function of underwriting Distinguish between activities performed by a line underwriting and those performed by a staff underwriter Describe the underwriting process Calculate policy premium given insurance rates and exposure units Describe the responsibilities of underwriting management Explain how insurance rates are developed Explain the goal and function of the claim department Describe the structure of the claim department Describe the claim handling process Explain the claim handling process as it relates to property losses Explain the claim handling process as it relates to liability losses Understand the special considerations involved in catastrophic claims Describe the elements of good-faith claim handling Understand the practices prohibited by unfair claim practice laws Reading Assignment Co. Operations Principles of Risk and Chapter 5 pages and Chapter 6 pages 104-9/28/15 Reading Assignment Reading Assignment Quiz 5 Underwriting and Claim Operations Other Company Functions Terms and Concepts Chapters 5&6 and Reading Aid 108 Read Study Aid Resource Located in Blackboard; Title: Underwriting, Rate Making and Claim Operations Principles of Risk and Read Chapter 6, pages /28/15 9/30/15 10/2/15 6

7 Week 7 Financial Operations of Insurers, Government Regulation and Legal Principles Explain how management of income and expenses affect property-casualty insurers profitability Understand and describe the typical items found on the balance sheet of a property-casualty insurer Analyze a property-casualty insurers profitability information using : Loss ratio Expense ratio Combined ratio Investment income ratio Overall operating ratio Explain the reasons for government regulation of insurers Describe methods for regulation Identify the major areas of insurance that are regulated Explain the objectives of rate regulation and the different types of rating laws Explain state regulation of underwriting activities in the areas of unfair discrimination, cancellation, and non-renewal Explain the fundamental legal principle of an insurance contract: o Principle of indemnity o Principle of insurable interest o Principle of subrogation o Principle of utmost good faith Reading Assignment Financial Operations of Principles of Risk 10/5/15 Insurers and Read Chapter 7 pages & Reading Assignment Government Regulation Principles of Risk 10/5/15 & Read Chapter 8 pgs & Reading Assignment Legal Principles Principles of Risk & 10/7/15 Quiz 6 Chapters 7,8,9 Read Chapter 9 pgs /9/15 Week 8 Contracts Understand the difference between insurance contracts and other contracts Explain the law of agency and how it affects the actions and duties of insurance agents Explain the meaning of insured in an insurance contract Given a specific policy provision, classify it into one of the following categories: o Declarations o Definitions o agreements o Conditions o Exclusions o Miscellaneous provisions Explain and calculate how coinsurance works in a property policy Explain the meaning of coinsurance in a health insurance contract Discuss the types and purpose of various deductibles 7

8 Reading Assignment Contracts Principles of Risk 10/12/15 and Read Chapter 9 pgs Reading Assignment Contracts Principles of Risk and 10/12/15 Read Chapter 10, pages Reading Assignment Contracts Principles of Risk 10/14/15 and Read Chapter 10 pages Quiz 7 Chapters 9 & 10 10/16/15 Week 9 Exam Preparation and Exam 2 Exam 2 Preparation / Review Question and answers and overview of Chapters covered from last exam 10/19/15 to date and additional reading material provided Exam 2 In Class Exam In class exam; 26 questions worth 100 points: 10/21/15 10 true/false 2 pts ea. 15 multiple choice 3 pts ea. 1 essay 35 pts Week 10: Life, Group Health & Affordable Care Act Explain the needs approach in determining the amount of life insurance to purchase Describe the basic characteristics of term life insurance Explain the basic characteristics of ordinary life insurance Describe various types of life insurance Describe important contractual provisions and clauses in life insurance policies Explain the underwriting principles followed in group insurance Describe the basic characteristics of group term life insurance Describe the major characteristics of HMOs, PPOs and POS Understand how the ACA affects group medical expense insurance Explain the major health care problems in the US Identify the major provisions of the ACA that affect individuals and families Describe the potential problems of adverse selection faced by insurers as a result of ACA and its effect on consumers Identify what remedies the ACA provides to insurers to address adverse selection Explain the effect of ACA on large employers 8

9 Reading Assignment Life Principles of Risk Read Chapter 11 pages 10/26/ Reading Assignment Group Health Principles of Risk 10/26/15 Read Chapter 16 pages Reading Assignment Life Read Ernst & Young 10/28/15 Article: Contributions of the Life Industry to the U.S. Economy Reading Assignment Affordable Care Act Chapter 15; pages /28/ Reading Assignment Affordable Care Act Risk Adjustment and the 10/28/15 Quiz 8 Chapters 11,15, & 16 ACA Week 11 Personal Auto Identify Who s Insured under the auto policy Explain the coverage parts of the auto policy o Liability o Medical payments o Personal Injury Protection o Uninsured motorist o Collision o Other than collision Explain coverage provided by the personal umbrella policy 10/30/15 Reading Assignment Personal Auto Policy Principles of Risk and Read Chapter 11/2/15 22; Pages Reading Assignment Personal Auto Policy Principles of Risk 11/4/15 and Read Chapter 22 Pages Reading Assignment Personal Umbrella Principles of Risk and Read Chapter 24 Pages 11/4/15 Quiz 9 Chapter 22& 24 Week 12 Auto and Society Learning Objectives: Complete the Glossary of Terms Quiz. 11/6/15 Describe the approaches for compensation auto accident victims Explain the meaning of no-fault auto insurance Describe the methods for providing auto insurance to high risk drivers Identify the major factors that determine the cost of auto insurance 9

10 Reading Assignment Auto Principles of Risk 11/9/15 and Read Chapter 23; pages Reading Assignment Auto Principles of Risk 11/11/15 and Read Chapter 23; pages Quiz 10 Chapter 23 11/13/15 Week 13 Exam Preparation and Exam 3 Exam 3 Preparation / Review Question and answers and overview of material covered from last exam 11/16/15 to date and additional reading material provided Exam 3 In Class Exam In class exam; 26 questions worth 100 points: 11/18/15 10 true/false 2 pts ea. 15 multiple choice 3 pts ea. 1 essay 35 pts Week 14: Commercial Lines/ Property Explain the basic provisions in the building and personal property coverage form Identify causes of loss that are covered under each coverage form Understand the purpose of business income and extra expense coverage Understand the use of inland marine insurance Reading Assignment Commercial Property Principles of Risk and Read Chapter 11/23/15 Reading Assignment Commercial Property 25 pages Principles of Risk and Read Chapter 25 pages /25/15 1

11 Week 15 Commercial Lines/ General Liability, Employment Practices Business Owners Policy (BOP), Directors and Officers and Professional Liability Describe the basic coverages provided by the commercial general liability policy Describe the coverage provided by employment practices insurance Describe the important provisions of the commercial umbrella Identify the liability coverage provided by a business owners policy Explain coverage by professional liability policies including D&O Explain the basic objectives of workers compensation Identify the four basic benefits of workers compensation Discuss the challenges of workers compensation programs Reading Assignment Commercial General Liability and Workers Comp Principles of Risk and Read Chapter 11/30/15 26; Pages Reading Assignment Final Exam Review Final Exam Chapters 25 & 26 12/2/15 Week 16 Finals Week 1