BA 385
PRINCIPLES OF RISK AND INSURANCE

Course Syllabus

Required Text
Risk and Insurance, by Pritchett ,et al., West Publishing Company, 7 th Edition

Course Description
 A survey of the general principles of risk management and insurance. Topics covered include life, health, disability, automobile, homeowner's and liability insurance. the course content will also include Social Security and worker's Compensation.

Course Objectives
The major objective of "Principles of Risk and Insurance" are :1) to provide the student with an understanding of the nature of risk, risk management and the theory and practices of insurance, and 2) to familiarize the student with the major types of insurance policies which are utilized by families and businesses.

Insurance contracts and various government coverages reviewed will be auto, homeowner's, life, health, disability and business policies. Social Security, Worker's Compensation and Unemployment Compensation will be studied. Insurance as an institution will also be examined.

After completion of this course, the student will

1. know the definition of risk.
2. know the means of handling risk.
3. understand the principle of indemnity
4. understand the concept of subrogation.
5. know the ideal characteristics of of an insurable risk.
6. know the major types of life insurance policies (whole life, term, universal, variable).
7. be aware of the incontestable clause.
8. be aware of the consequences of making a misrepresentation on an insurance policy application.
9. be aware of the tax advantages of a cash value life insurance policy.
10. know the settlement options for a life insurance policy.
11. know the coverage's provided in a home owner's policy.
12. know the coverage's provided in an automobile policy.
13. know the coverage's provided by Social Security
14. be aware of the differences between an HMO and a PPO.
15. be aware of the structure of an health savings account.

Course Prerequisite
 Junior Standing (55 SH)

Course Requirements
The course is based on: (1) 4 tests(96%), and (2) class projects and class participation(4%). Class attendance is mandatory and attendance policies in the General Catalog will be followed. All students enrolled at the University shall follow the tenets of common decency and acceptable behavior conducive to a positive learning environment. (See Student's Guide Book)

1.TESTS(96%): 

Four tests will be given during the term. Each will count 24% toward the final grade. Make-up quizzes will be given only for excused absences and will be be administered with the final test. There is no comprehensive exam in this course. Therefore, dead week will not be observed.

2.OUTSIDE READINGS  AND CLASS PROJECTS AND PARTICIPATIONS:

a.(2%) During each class meeting scheduled below, students will come to class prepared to discuss the topic scheduled for the date indicated. This preparation will require at least one news article from a newspaper, a current periodical, radio or TV reports. These sources will be identified and will be turned in at the end of the class period. No late submissions will be accepted except for excused absences. Fewer than 5 articles = no points.

*depends on class progress and exam schedule.

b.(2%) Each student will contact an Insurance company/agent and obtain information on an insurance policy to be brought to class for discussion purposes and to be turned in by Friday, November 9th.

Grading Computation
The course grade will be determined by completion of the course requirements with averages on tests, outside readings and class participation as follows:

Classroom Demeanor 
 “All students enrolled at the university shall follow tenets of common decency and acceptable behavior conducive to a positive learning environment ”.  See Students Guide Book.

Attendance Policy
 You are expected to be present for all class meetings of this course.  You will be allowed to make up work for classes you miss only if your absence is excusable.  Excusable absences are defined in the current University Catalog.

 Students with disabilities:
The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities. If you have a disability requiring an accommodation, please contact:

Office of Student Disability Resources and Services
Texas A&M University-Commerce
Gee Library, Room 132
Phone (903) 886-5150 or (903) 886-5835
Fax (903) 468-8148
mailto:StudentDisabilityservices@tamu-commerce.edu

Course Schedule:*

Section I      The nature of risk management; the legal environment of insurance;
                       fundamental insurance doctrines and the structure of insurance
                       contracts.

                       Chapters 1-5
                       Exam1

Section II      Property and Liability Risks

                       Chapters 6-9, Appendices A and B 
                       Exam II

Section III     Life Insurance                      
             Types of life insurance, costs, and coverage                                    

                        Chapters 13 -16; Appendix E; Class Handouts
                        Exam III

Section IV    Health Insurance and Employee Benefits
             health Insurance Disability Insurance, Social Security, Work's
                        Compensation and Unemployment Compensation.

                       Chapters 12, 17-21
                       Exam IV - Tuesday December 12 at 10:30 am

*Will depend on class progress; chapter assignments and order of coverage may be altered as the class progresses.