MGMT160 Insurance and Risk Management

Department of Business Studies: Management

I. Course Number and Title
MGMT160 Insurance and Risk Management
II. Number of Credits
3 credits
III. Minimum Number of Instructional Minutes Per Semester
2250
IV. Prerequisites
None
Corequisites
None
V. Other Pertinent Information
None
VI. Catalog Course Description
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.
VII. Required Course Content and Direction
  1. Learning Goals:

    1. Course
    2. Students will:
      1. define the nature of risk and identify the risks facing both individuals and organizations today;
      2. describe the principles of risk management and the role of the risk manager;
      3. outline the risks associated with loss of income, ownership of property, and legal liability;
      4. 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
      5. explain our society’s treatment of fundamental risks, the concepts of social insurance used to treat these risks and suretyship.

    3. Core (if applicable)
    4. This course is not included in the Core.
  2. Planned Sequence of Topics and/or Learning Activities:

    1. define different types of risks, hazards and perils, and explain the adverse effect of risk on economic activity
    2. understand the basic statistical principles of insurance, and identify the situations where insurance may be used as a risk sharing or risk transfer device
    3. differentiate between private and social insurance and recognize the respective needs for each
    4. understand the structure of the insurance industry, and the unique facets of an insurance company, including its financial operations
    5. describe the general principles of contract law with a particular emphasis on those principles that are peculiar to insurance
    6. understand the traditional forms of whole life, endowment, and term insurance, as well as some of the innovative life policies which are now available
    7. describe the annuity contract, and understand the various uses of annuities today
    8. understand the need for disability income insurance and the provisions of the disability income policy
    9. identify the various types and appropriate uses of medical expense insurance contracts
    10. review the concept of the Social Security system including the coverage it provides, the soundness of the program, and proposals for future changes
    11. explain the Workers Compensation and Unemployment Compensation programs
    12. understand the concept of estate planning, and discuss the various tools which are used to minimize estate shrinkage
    13. understand the unique characteristics of group insurance and identify the types of group insurance most frequently used
    14. 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)
    15. review the concept of property insurance with a particular emphasis on the various forms of Homeowners and Inland Marine insurance policies
    16. discuss the legal concepts of negligence and identify methods of dealing with legal liability
    17. understand the nature and need for automobile insurance, the types of automobile coverage’s, and a review of the computation of auto insurance costs
    18. discuss commercial property and liability coverage’s available for businesses
    19. understand the principles behind surety and fidelity bonding
    20. recognize how government functions as an insurer
    21. 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
    22. understand suretyship
  3. Assessment Methods for Core Learning Goals:

    1. Course
    2. Course learning goals are assessed using a variety of quizzes, tests, and performance-based tasks.

    3. Core (if applicable)
    4. This course is not included in the Core.
  4. Reference, Resource, or Learning Materials to be used by Students:

    See course format.
VIII. Teaching Methods Employed
Section VIII is not being used in new and revised syllabi as of 12/10/08.

Review/Approval Date - 2/99; Revised 4/05; Revised 11/2011