Insurance Program Goals and Indicators

 An insurance major will be:

 A Competent Insurance Practitioner

 Chief Indicators:

• Comprehend the principal risk exposures to property, liability, life, and health
• Understand how risk exposures and theoretical concepts of risk affect insurance policy design, coverages, and contractual provisions
• Be familiar with the structure of the insurance industry, in terms of primary insurance, captives, reinsurance, surplus lines and alternative risk markets
• Follow the trends, market cycles, and structural changes in the insurance industry
• Possess a significant knowledge of insurance company operations in terms of sales, claims, accounting, underwriting, and reserving
• Have a thorough knowledge of insurance terminology
• Understand the contents of commonly used insurance contracts

 A Critical thinker in risk management

 Chief Indicators: 

• Identify and pinpoint a risk exposure as a problem to be solved with a risk management solution.
• Collect information to assess the risk exposure and identify the assumptions which must be made in the process of recommending a risk management solution
• Decide if the risk exposure should involve an insurance solution
• Be capable of putting together an insurance coverage package that accurately and creatively addresses the risk exposure that is identified

 A Professional with communication and interpersonal skills

 Chief Indicators:

• Write clear, concise and grammatically correct prose when corresponding with clients, regulators, and industry colleagues
• Make effective oral presentations when presenting or discussing insurance issues or proposing insurance solutions to clients
• Have good listening skills to help in understanding client’s needs for insurance solutions
• Be able to communicate effectively as a member of a risk management team
• Be able to explain insurance concepts/coverages in a clear, persuasive manner

 An Ethical Insurance Professional

 Chief Indicators:

• Be familiar with the ethical dimensions that underlay the legal and regulatory environment of the insurance industry
• Recognize that ethical dilemmas often emerge in professional situations and understand that there is not always a certain and easy solution
• Apply ethical codes of conduct in client and other professional relationships
• Have awareness of the economic and reputational costs of bad ethical decisions
• Show leadership in ethical conduct

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FIL 382.02: Seminar in Insurance Operations

Wednesdays 5:30-8:30 pm

COB 370

Prerequisite: FIL 250

Required Reading:

·        Insurance Operations, Regulation, and Statutory Accounting-Myhr and Markham 2nd Edition

·        CPCU 520 Course Guide

·        III Fact Book

·        Assigned websites

FIL 382.02 Course Description

This course is a seminar on property and casualty insurance company operations. In this course we will explore topics such as insurance financials, property underwriting, liability underwriting, insurance pricing, liability claims, property claims, loss control practices, marketing and selling insurance, types of reinsurance, management, and strategic planning.

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In this course, you will experience the inner workings of the insurance industry. You will hear presentations by industry practitioners, you will work on projects and presentations that are similar to those you would encounter in the workplace and you will be evaluated using criteria similar to that of the workplace.

Course Goals

Upon completion of this course, you will be able to:

1. Describe basic insurance operations and key processes.

2. Demonstrate your knowledge of course concepts by taking/passing the CPCU 520 exam.

3. Identify activities you will undertake to prepare yourself to become an industry professional. 

Special Note: On February 15^th, class will be held in Room 133. 

Performance Evaluation Criteria

Student Attendance (10 pts): As in the workplace, attendance will be taken and considered in the evaluation of your performance.

Student Participation (10 pts): Students are expected to think critically and to demonstrate their communication and interpersonal skills in class discussions and when interacting with guest speakers. The extent of your participation, as expressed in the number and quality of questions and responses you give to your course leader and presenters, will figure extensively into this part of your performance evaluation.

Part of the participation grade will be based on each student’s industry knowledge. You will be given a free online subscription service to different insurance news publications. Each week a few students will be called on randomly to discuss the main points and significance of an article they have read from one of the insurance news publications.

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Team Project (40 pts) : You will conduct a project (as a team member) where you and your team will be  required to analyze the operations of a given insurance company. You and your team will analyze the insurance company’s financials, strategy, products, and marketplace. You will have to obtain and use a number of tools to help you complete this project. You will be given the contact information of key personnel at your assigned company and will have to use your interpersonal skills to attain information from these resources.  The project will culminate with a written report and an oral presentation and Q&A. Your evaluation will be broken down as follows:

*         20 points for written report

*         10 points for oral presentation

*         10 points for interaction with company

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 Insurance company managers will evaluate the quality of your communications and interaction with them. This includes setting timely appointments, being respectful of their time, being prepared, and asking good questions. The managers will also evaluate your written report on the company. At a minimum, the report should address the following:

*         History and background of company

*         Overview of company operations, products and services

*         Identification of peer group companies

*         Company financial position and trends. Including key ratios

*         Use of reinsurance. Types. Results.

*         Distribution channel(s), challenges, and competitive trends. Skills needed to succeed in marketing/sales. Regulatory and legislative issues.

*         Claims issues: Key challenges, claim trends, changes in claim practices over past years. Legal environment. Claim Challenges and points of pain. Tools used. Skills needed to succeed in claims. Regulatory and legislative issues.  

*         Underwriting. Changes in underwriting. Use of automation. Tools used. Key challenges. Skills needed to be successful underwriter. Market conditions. Regulatory and legislative issues.

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 This report will be evaluated on the following criteria:

*         Quality of the company analysis

*         Reference sources cited in developing the report

*         Clarity of report

*         Organization of report (Structure/Subsections/Paragraph useage)

*         Appropriate use of graphs and tables in report

*         Professional Appearance (eg. Grammar/Spelling/Punctuation)

*         Accuracy of information presented

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 The length of the report should not exceed 20 pages single spaced not including cover page and bibliography. 12 pt. font 1 inch margin. 

 Chapter Quizzes/Insurance Facts/and Industry Presentations (25 pts): As in the workplace, you will be evaluated on your understanding of industry terminology and how well you assimilate information from industry presenters, websites, and reference sources. Each week you will be given a short quiz. The quizzes are designed to assess your vocabulary and your ability to process information from these various  sources (textbook/assigned websites/reference sources/industry presenters).     

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 Completion of CPCU 520 Course Guide Review and Application Questions (15pts)

On March 8 and on April 29, you will you will be asked to turn in your course guide to determine if you have answered the review and application questions for the chapters covered. This will help you to stay on track for your exam preparation.  

 Mid-term Evaluation

There is no mid-term exam! Instead, you will receive a mid-term performance assessment  (essentially a grade based on the first half of the based on your work completed on quizzes, insurance facts, industry presentations, and course guide questions. NOTE: Because the mid-term evaluation does not include an assessment of your project, this evaluation represents LESS THAN half of your total points. Nonetheless, it should give you an indication of where you stand in the class. 

 Final Exam:    The only exam related to this course will be the CPCU 520  Exam. All students are encouraged to take the exam, but the exam results can only help your grade. You will take the CPCU 520 exam the week of May 8, 2006. The exam is administered online through the American Institute for CPCU. We will arrange a room for you with computers in which you will take the exam. Students who pass the CPCU 520 exam will receive a one letter grade improvement. More importantly, students who pass the exam will have an important resume item and will put you on your way toward a prestigious CPCU designation.