Maricopa Community Colleges  FIN115   19946-99999 
Official Course Description: MCCCD Approval: 05/24/94
FIN115 19946-99999 LEC 3 Credit(s) 3 Period(s)
Risk Management
Principles of risk management; the insurance contract and concepts relating to life insurance, property and liability insurance, medical and disability insurance, and social insurance; case analysis evaluating insurance needs; selecting appropriate risk management techniques; time value of money calculations. Prerequisites: FIN110.
Go to Competencies    Go to Outline
 
MCCCD Official Course Competencies:
 
FIN115   19946-99999 Risk Management
1. Describe the principles of insurance. (I)
2. Explain the risk exposures for life, health, homeowners, auto, and other property. (II)
3. Explain the legal aspects of insurance. (III)
4. Describe property and liability insurance. (IV)
5. Describe the principles of life insurance. (V)
6. Describe health insurance. (VI)
7. Explain state and federal regulation of the insurance industry. (VII)
8. Describe how life and disability insurance are used in business. (VIII)
9. Describe distribution options of retirement plans and the tax treatment of plan distributions. (IX)
10. Describe group insurance benefits and the tax treatment of the benefits. (X)
Go to Description    Go to top of Competencies
 
MCCCD Official Course Outline:
 
FIN115   19946-99999 Risk Management
    I. Principles of insurance
        A. Concept of insurable risk
        B. Elements of insurance
        C. Methods to avoid, reduce, and eliminate loss
      II. Identification of risk exposures
          A. Life exposures
            1. Analysis of present coverage
            2. Loss of income to family
            3. Final expenses
          B. Health exposures
            1. Medical expenses (including catastrophic)
            2. Loss of income
            3. Long-term care
          C. Homeowners exposures
            1. Dwelling
            2. Personal property
            3. Liability
          D. Auto exposures
            1. Property
            2. Third-party liability
            3. First-party injury protection
          E. Other property and liability exposures
            1. Commercial
            2. Professional
            3. Other personal (e.g., umbrella)
        III. Legal aspects of insurance
            A. The law of agency as applied to insurance
            B. Tort liability as applied to insurance
              1. Types of legal liability
              2. Preventative measures to reduce liability
              3. Defenses against legal liability
            C. Law and the insurance contract
              1. Basic components of a legal contract as applied to insurance
              2. Basic components of an insurance contract
              3. Special legal characteristics of insurance contracts
              4. Contract remedies
            D. Loss adjustment for various types of insurance
              1. The loss adjustment process
              2. Policy limits and recovery
          IV. Property and liability policy analysis
              A. Homeowners insurance policy analysis
                1. Forms and endorsements
                2. Determination of appropriate coverage
                3. Calculation of amount paid on loss
              B. Personal auto insurance policy analysis
                1. Determination of appropriate coverage
                2. Calculation of amount paid on loss
              C. Other liability insurance policy analysis
                1. Umbrella policy analysis
                2. Professional liability policy analysis
            V. Life insurance policy analysis
                A. Life insurance policy provisions
                  1. Incontestable clause
                  2. Grace period
                  3. Reinstatement
                  4. Suicide clause
                  5. Ownership
                  6. Loan provisions
                  7. Non forfeiture options
                  8. Settlement options
                  9. Dividends/interest
                  10. Renew ability and conversion provisions
                  11. Beneficiary designations
                B. Life insurance policy riders
                  1. Waiver of premium
                  2. Guaranteed insurability
                  3. Accidental death
                  4. Cost-of-living adjustments
                  5. Family riders and other insureds
                C. Types of life insurance
                  1. Term
                  2. Whole life
                  3. Variable
                  4. Universal
                  5. Variable universal
                  6. Joint life/second-to-die
                D. Life insurance needs analysis
                  1. Needs approach
                  2. Capital needs approach
                  3. Strengths and weaknesses of prevalent approaches
                E. Life insurance policy selection and replacement
                  1. Uses, advantages, and disadvantages of the different types of products
                  2. Life insurance policy replacement
                  3. Methods of analyzing life insurance policy illustrations
              VI. Health insurance policy analysis
                  A. Medical expense policy analysis
                    1. Types of coverage
                    2. Determination of appropriate coverage
                  B. Long-term care
                    1. Long-term care policies
                    2. Special life insurance benefits
                  C. Disability income policy analysis
                    1. Characteristics
                    2. Policy riders and provisions
                    3. Determination of appropriate coverage
                VII. Insurance industry regulation
                    A. State regulation
                    B. Federal regulation
                  VIII. Business applications of life and disability insurance
                      A. Business continuation (buy/sell) plans
                      B. Business overhead
                      C. Executive/owner benefits
                    IX. Distributions and distribution options
                        A. Retirement plan distribution options
                          1. Lump-sum
                          2. Rollovers
                          3. Annuity payments
                          4. Qualified domestic relations orders
                        B. Tax treatment of plan distributions
                          1. Distributions
                          2. Lump-sum distributions
                          3. Rollovers
                          4. Annuities
                          5. Estate tax considerations
                          6. Qualified domestic relations orders
                          7. Loans
                      X. Group insurance benefits
                          A. Group life insurance used in employee benefit program
                            1. Basic provisions
                            2. Income tax implications
                          B. Group health insurance used in employee benefit program
                            1. Basic provisions
                            2. Income tax implications
                          C. Group disability income insurance used in employee benefit program
                            1. Basic provisions
                            2. Income tax implications
                      Go to Description    Go to top of Competencies    Go to top of Outline