Finance 341:Property-Liability Insurance

Instructor:Stephen D’Arcy

Lecture 1:Introduction and Course Organization

General Course InformationPrerequisite:

Basic knowledge of insurance terminology and personal lines coverage (Fin 260)

Course focus - three components:1 Insurance Operations2 Commercial Property and Liability Exposures and

Coverages3 Current Events

Insurance RegulationFinancial Services DeregulationCatastrophesInsurance SecuritizationCaptive Insurers

Required Textbook

Risk Management and Insurance by Pritchett, Schmit, Doerpinghaus and Athearn (Seventh Edition) (Fin 260 Text)

Optional TextbooksOn Reserve in the Undergraduate Library

Insurance Operations by Webb, Harrison, and Markham;Volumes I and II

Commercial Liability Risk Management and Insurance by Malecki, Horn, Wiening, and Flitner Volume II

Course Websitehttp://www.cba.uiuc.edu/

~s-darcy/fin341/2001/index.htmlThe site contains the syllabus, lecture notes (posted about one week prior to class), class projects (after covered in class) and assignments (approximately one week prior to due date).

General Purpose of Course

Fin 260 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.

Review1. The News-Gazette had a picture of a car buried in a

mudslide in Peru. If this had been your car, would this be a covered by your personal auto policy?

2. Would mercury contamination be covered under a Homeowners policy?

3. If you threw away some old paint that contaminated a landfill and you were found liable, would your Homeowners policy cover you?

Initial Introduction• Find someone in the class that has the same three

initials that you have, in any order. (Example: If you are John Philip Sousa, you might pair up with Penelope Sarah Johnson.)

• Once you find this person, sit down somewhere and introduce yourself. You will be introducing this person to the rest of the class. Find out their name, major, and something that will help the class remember this person.

Initial Introduction - 2• If you couldn’t find anyone that matched all three

initials, find someone else that is unmatched that matches any two of your initials, in any order.

• Once you find this person, sit down somewhere and introduce yourself. You will be introducing this person to the rest of the class. Find out their name, major, and something that will help the class remember this person.

Initial Introduction - 3• If you failed in the first two tries, find someone

else that is still looking that has at least one of your initials.

• Once you find this person, sit down somewhere and introduce yourself. You will be introducing this person to the rest of the class. Find out their name, major, and something that will help the class remember this person.

Initial Introduction - 4• If you are still unmatched, pair up with anyone

else who is unmatched.

• Once you find this person, sit down somewhere and introduce yourself. You will be introducing this person to the rest of the class. Find out their name, major, and something that will help the class remember this person.

Initial Introduction - 5

• As we go around the room, please introduce your partner in this exercise. Please tell us their name, major and one thing about them that will help the class remember this person.

What’s next?Ten lectures on the general structure of insurance companies and functions within the company, plus commercial property insurance.

Review and first exam.Seven lectures on commercial liability coverages and workers compensation.

Review and second exam.Five lectures on current events.

Review and final exam.