Finance 431: Property-Liability Insurance Instructors: Stephen D

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Finance 431Property-Liability
InsuranceInstructorsStephen DArcyMark
VonnahmeTeaching AssistantAdam GruenLecture
1Introduction and Course Organization
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General Course Information

• Prerequisite
• Basic knowledge of insurance terminology and
  personal lines coverage (Fin 230)
• Course focus - three components
• Insurance Operations
• Commercial Property and Liability Exposures and
  Coverages
• Current Events

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Insurance Operations

• Overview of Industry and Profit Measures
• Underwriting
• Marketing and Distribution Systems
• Claims
• Ratemaking
• Loss Reserving
• Reinsurance

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Commercial Exposures and Coverages

• Commercial Property Insurance
• Workers Compensation
• Commercial Liability Insurance
• Excess and Umbrella Policies
• Professional Liability
• Surety

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Current Events Examples

• Insurance Brokerage
• Insurance Regulation
• Insurance Accounting/Finance
• Catastrophes
• Insurance Securitization
• Intellectual Property in Insurance

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Required Textbook

• Risk Management and Insurance by Pritchett,
  Schmit, Doerpinghaus and Athearn (Seventh
  Edition) (Fin 230 Text)

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Optional TextbooksOn Reserve in the
Undergraduate Library

• Insurance Operations by Webb, Harrison, and
  MarkhamVolumes I and II
• Commercial Liability Risk Management and
  Insurance by Malecki, Horn, Wiening, and Flitner
  Volume II

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Course Websitehttp//www.business.uiuc.edu/s-da
rcy/Fin431/2005/index.html

• The site contains the syllabus, lecture notes
  (posted about one week prior to class), class
  projects (after covered in class), assignments
  (approximately one week prior to due date) and
  keys (after the due date).

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General Purpose of Course

• Fin 230 covered what every consumer needs to know
  about insurance.
• This class covers what someone intending to work
  in the insurance industry, as a risk manager, or
  as a corporate insurance buyer needs to know
  about the industry.

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Whom You Should Know

• Mark Vonnahme
• Visiting Lecturer in Finance
• Former CEO of CNA Surety
• Will cover surety, professional liability,
  marketing and distribution systems, insurance
  brokerage issues, and insurance accounting and
  finance.

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What You Should Know Now

• Class Project 1

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Whats next?

• Seven lectures on the general structure of
  insurance companies and functions within the
  company.
• Review and first exam.
• Ten lectures on commercial property and liability
  coverages, workers compensation and surety.
• Review and second exam.
• Six lectures on current events (the topics are
  subject to change).
• Review and final exam.