Introduction to Risk Management
RM 357E
Spring 2007

   
Professor: Patricia M. Arnold, CPCU, ALCM
Office: GSB 5.126A
calendar
Phone: 475-6728
syllabus
Office Hours: 2 - 3 PM, M-W-F
e-mail address:pat.arnold@mccombs.utexas.edu
Class location: GSB 2.124, M W F, 11-12 AM (#03960), and 12-1 PM (#03965)
OR pma55@austin.rr.com

Calendar - Spring 2007

Textbook: Rejda, George E., Principles of Risk Management and Insurance (9th Ed.), Addison Wesley publishers, Boston, Mass., 2004 (required)

Reading and Homework Assignments

Evaluation & grading - see syllabus

DATE

TOPIC

READING ASSIGNMENTS, REFERENCE AND LEARNING MATERIALS

January 17 Syllabus Overview Slideshow: Intro slideshow; Rejda public website; fun with risk management
Part One: Introduction to Risk Management
January 19 Risk in Our Society Reading: Chapter 1
Slideshow:slideshow, fire slideshow
Other Resources: Chapter 1 quiz; outline; Evolution of Risk Management; Hartford: Managing Your Risk; Climate Change
January 22 Insurance and Risk Reading: Chapter 2
Slideshow: slideshow
Other Resources: outline, History of Risk Management; Chapter 2 puzzle, clues
January 24 Introduction to Risk Mgmt Reading: Chapter 3
 Slideshow: slideshow
Other Resources: outline; interactive catastrophe-risk map of US
January 26 Homework chapters 1 - 3  
Part Two: Legal Principles in Risk and Insurance
January 29 Adv'd Topics in Risk Mgmt
 Reading: Chapter 4
Slideshow: slideshow
Other Resources: outline, & Quiz ~ T/F, III's forecast 2006; facts and figures; "Running with Risk" heat map; ERM, Corporate Risk Management, SwissRe sigma's, overview for 2006
January 31 Adv'd Topics in Risk Mgmt (cont'd) Review for discussion: chemsafety.gov video of 11/10/2005 - Explosion at BP Refinery  (6 min.)
Reading: RM, Corporate Risk Management, latest III forecast, SwissRe sigma's
February 2 In-class quiz chapters 1 - 4
February 5

Fundamental Legal Principles

Reading: Chapter 5
Slideshow: slideshow
Other Resources: outline; waiver (& sample)
February 7 Analysis of Insurance Contracts Reading: Chapter 6
 Slideshow: slideshow
Other Resources: outline and sample event agreement (Westin)
February 9

Analysis of Insurance Contracts (cont'd)

Contract construction, use of exclusions, definitions
February 12 C.O.P.E. and building code / location / jurisdiction
(increased cost of construction due to code, risk financing)

 Review construction, fire protection, occupancy/classification and exposures, see "safety" - see coverage and classification listing, safety checklist (STEP 2003 - Safety Training and Evaluation Process)
February 14 In-class quiz chapters 5 - 6
February 16 Exam #1 chapters 1 - 6 + selected readings
Part Three: Personal Property and Liability Risks
February 19

The Liability Risk
Homework (due 2/21/2007)

 Reading: Chapter 7; Alternative Dispute Resolution (RIMS mag. 10/06)
 Slideshow: slideshow
Other Resources: outline; auditors and privilege; Tort Excess, AAIS Update; Tort versus contract - remedies?
February 21 Homeowners Insurance, Sec. I Reading: Chapter 8
 Slideshow: slideshow
Other Resources: outline and & homeowners endorsements slideshow
February 23 Homeowners Insurance, Sec. II
 		 Reading: Chapter 9
Other Resources: outline and crossword clues, solution, & puzzle
February 26 In class quiz chapters 7 - 9
February 28 Automobile Insurance
Homework (due 3/2/2007) 		Reading: Chapter 10
 Slideshow: slideshow
Other Resources: outline, True/False
March 2 Automobile Insurance and Society
 Reading: Chapter 11
 Slideshow: Slideshow
Other Resources:outline; review Hired auto, Employer's Non-Ownership Liability (ENOL); review FAIR Plan, MAP, JUA's; consumer survey (J D Powers); Online Defensive Driving Course listing (TDI); crossword
March 5 Other Property and Liability Insurance Coverages, review floaters, umbrellas, flood   Reading: Chapter 12
 Slideshow: slideshow
Other Resources: outline; FAIR Plan, MAP, JUA's
March 7 Exam #2 - Part Three chapters 7 - 12 + selected readings (see "Reading" for 2/19 on ADR)  
March 9 Commercial Property Insurance

Safety; MGM Grand

Part Four: Commercial Property and Liability Risks
March 19 Commercial Property Insurance: limitations, extensions, conditions, valuation
Reading: Chapter 13
 Slideshow: commercial risk management strategies, chapter 13/14 slideshow
Other Resources: outline, quiz
March 21

Commercial Liability Insurance: excess/umbrella; contractual, exclusions, conditions

sample equipment lease;  sample lease of premises agreement
March 23

Commercial Liability insurance (cont'd): environmental impairment, liquor, auto, own work/product (recall, impaired property/failure to perform, faulty workmanship - "business risk");

Reading: Chapter 14
 Slideshow: commercial slideshow
Other Resources: outline; crossword: blank, clues, multiple choice quiz, (quiz with answers); completed crossword
March 26 Management liabilities, employment practices, security liability; Management liability, professional liability
March 28 Professional Liability, Medical Malpractice, other liability issues
Resources: Limiting Tort Liability for Medical Malpractice; Med Mal slideshow; umbrella slideshow
March 30

In-class quiz

 Chapters 13-14
April 2 Crime Insurance & Surety Bonds
Homework (due April 4)		 Reading: Chapter 15
 Slideshow: slideshow
Other Resources: outline; eCommerce slideshow; HRH 2005 Liability Snapshot (Hilb Rogal and Hobbs);
April 4 Crime Insurance & Surety Bonds (cont'd) RFP - State of Maryland: sample services contract RFP
April 6    
April 9 Social Insurance Reading: Chapter 24 (workers' compensation sections only)
Other Resources: outline; puzzle; Guide to W. Comp (for employee)
Part Six: The Insurance Industry
April 11 In class quiz chapters 15, 24
April 13 ERM and Corporate Social Responsibility Sustainability and Disaster Risk Financing: Swiss Re; CPCU Journal; preview of upcoming topics; Climate Change: Time to Come Clean
April 16 Types of Insurers & Marketing Systems  
 Reading: Chapter 25
Slideshow: slideshow
Other Resources: outline; Marsh update incl OIL (7/06)
April 18 Market challenges Surplus Lines Insurance - the Safety Valve; III update 10/06; Surplus lines and non-admitted markets; special slideshow: Katrina & Rita
April 20 Insurance Company Operations Reading: Chapter 26
Slideshow: slideshow
Other Resources: outline
April 23 Insurance Pricing   Reading: Chapter 27
Other Resources: outline; rating filing when using modeling;
April 25 Government Regulation of Insurance; Reinsurance
 Reading: Chapter 28
 Slideshow: slideshow;
Other Resources: outline; crossword, SMART - Modernizing Insurance Regulation;
April 27 practice quiz Chapters 25-28, selected readings
April 30 Government Regulation of Insurance; Reinsurance (cont'd) Reinsurance and markets, unfair claims practices, market conduct and compliance, "The Loss of the Certainty Effect" discussion
May 2 Exam prep/review  
May 4 Exam #3 - Parts Four and Six
 chapters 13-15, 24, 25-28, plus April 16th "other resources", March 21st "contracts" in-class discussion, & April 18 "markets" in-class discussion
Updated 5/10/2007