Text: Trieschmann, J.S., S.G. Gustavson, and R.E. Hoyt, Risk Management and Insurance, 11^th edition, South-Western College Publishing, 2001.

Course Description:

This course will introduce you to the principles of risk management and insurance. You should gain a fundamental knowledge of risk exposures, the management of pure risk, and the insurance mechanism. Another objective is to make you a more informed consumer of insurance products when you conduct both business and personal matters.

Course Objectives:

Upon completion of the course you should be able to:

• Demonstrate an understanding of basic risk exposures for businesses and consumers, and their impact on society.

• Understand the risk management process and be able to assess alternative methods for handling risk.

• Explain the involvement of the government in dealing with risks through social insurance and employee benefits.

• Explain and utilize risk treatment mechanisms in the property, liability, auto, life and health fields.

A class contract explains both your any my duties with respect to this class. Important issues such as attendance at classes and exams, exam procedures, and academic honesty is discussed in this contract. So that I can be sure that you understand the policies for this course, I require you to

examine the contract, then sign and return the signature page by the beginning of class on Wednesday, August 29^th. By doing this you will earn five (5) extra credit points. Please be aware that the syllabus provides a tentative road map for this course. Deviations may be necessary.

Bring Scantron Form #882-ES (4 1/4" X 11") and a #2 pencil. You may also bring your own pocket calculator for exams, but you may not share it with another student during the exam. Hand-held computers (Palm Pilots, etc.) are not permitted.

Students are responsible for all material presented in class, assigned in the textbook, and/or posted on Blackboard.

Tests: 4 Exams @ 100 Points Each 400 Points

Insurance Planning Project 150 Points

Attendance & Class Participation 50 Points

TOTAL: 600 Points

 

Testing :

 

There will be three tests and a final exam. The format for the tests will be multiple-choice exams with the inclusion of one or two short-answer/essay questions. Each will count for one hundred (100) points toward the class total of 600 points. Each exam will be announced before it will be given. Further information regarding testing procedures, make-up exams, and rebuttals concerning examination questions may be found in the class contract.

At Ole Miss, the Insurance and Risk Management program takes great pride in attracting industry speakers to update us on current developments, including career opportunities. These speakers are giving up at least one full day of their valuable time and traveling here at their expense. The information they convey usually is as important as that I deliver, if not more so. To reward you for attending and participating in guest speaker sessions, you will be given five (5) extra credit points if the speaker receives a reasonable number of questions from students during the class period. No "make-up" opportunities for extra credit will be given to students missing these sessions.

This class will utilize Blackboard as the primary mechanism to disseminate handouts and information. I will perform a batch enrollment for the class. It is your responsibility to know your account number and password, and make sure you can access this site. See the class contract for further information.

All e-mail will be sent to your Sunset (olemiss.edu) account. If you want to receive it on another server, such as "hotmail" or "aol", please go to www.bus.olemiss.edu/it, then "student information" to learn how to forward Sunset mail to your preferred mail server.

Basic Concepts in Risk Management and Insurance

Purpose: To introduce the concept of Risk and to recognize, evaluate, select, and implement the risk management process. Political, social, legal, environmental and technological issues are explained.

Read: Chapter 1: Introduction to Risk

Chapter 2: Risk Identification and Evaluation

Chapter 5: Risk Management Techniques: Non-insurance Methods

Chapter 8: Selecting & Implementing Risk Management Techniques

EXAM 1: Tentative Date – Friday, September 14, 2001

Purpose: To provide a legal framework for proper analysis of financial techniques of insurance and introduce political and social changes.

Read: Chapter 6: Insurance as a RM Technique: Principles

Chapter 7: Insurance as a RM Technique: Policy Provisions

Chapter24: Government Regulation of RM and Insurance

3 Property and Liability Risks

Purpose: To introduce from a personal and corporate risk perspective the complex areas of property and liability – the average businessperson is often very naïve about liability exposures, because they are not even aware of the potential loss. Also special government programs are discussed.

Read: Chapter 3: Property and Liability Loss Exposures

Chapter 13: RM for Auto Owners – Part I

Chapter 14: RM for Auto Owners – Part II

Chapter 15: RM for Homeowners

 

4 Life and Health Risks

Purpose: To introduce how American society deals with the personal risks of premature death, and health losses – Demographic, trends and social as well as political factors have affected the American search for economic security – Employers and the government play a dramatic role, and many diverse viewpoints are examined

Read: Chapter 4: Life, Health, and Loss of Income Exposures

Chapter 16: Loss of Life

Chapter 17: Loss of Health

Chapter 19: Employee Benefits: Life and Health Benefits

Chapter 20: Employee Benefits: Retirement Plans

 

FINAL EXAM: Firm Date – Friday, December 14, 2001 at 7:00 pm