Risk Management and Insurance draws principles from finance, law, and ethics to address the issues that face individuals, companies, and society in general. This introductory course will lay the foundation for the degree program of Risk Management and Insurance at Canyon College. It will differentiate between the relatively narrow field of Insurance and the broader discipline of Risk Management. Upon completion the student will have the vocabulary and basic understanding of the various methods of handling exposure to loss.

1. Risk Management and Insurance terminology
2. The fundamental art and science of Risk Management
3. The market for insurance and financial services
4. Fundamentals of property and liability insurance
5. Fundamentals of auto insurance
6. Fundamentals of life insurance and annuities
7. Differential between commercial lines and personal lines insurance
8. Societal insurance

Assignments must be completed on a weekly basis. Please submit weekly assignments via email by Sunday evening of each week. Late assignments will affect your grade.

The course study should take 8 weeks to complete, but must be completed within 11 weeks of an agreed starting date.

The instructor may be contacted by e-mail with any questions or concerns. If person to person conversation is necessary, the student should e-mail the instructor with a time and phone number where the student can be reached.

Academic honesty is highly valued at Canyon College. A student must present the product of his or her own original work.

The answers to the assignments should be two to three sentences long and should clearly demonstrate your understanding of the material.

Chapters 1, 2, and 3: Fundamentals and Terminology, Defining the Insurable Event, & Risk Management

1. Define the following "Review Terms": hazards, law of large numbers, moral hazard, morale hazard, peril, pure risk, and speculative risk.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": adverse selection, casualty insurance, insurable interest, negligence, property damage, and tort.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": captive insurance company, finite risk contract, hedging, hold harmless agreement, and risk transfer.
2. Answer the "Review" questions: 6, 9, and 13.
3. Answer the "Objective Questions".

Chapters 4, 5, 6, & 7: Financial Services Companies, Insurance Operations, The Insurance Market: The Economic Problem, & Insurance Regulation

1. Define the following "Review Terms": health maintenance organization (HMO), highly protected risk, Lloyd's of London, mutual insurance company, preferred provider organization (PPO), and stock insurance company.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": actuary, agent, broker, loss adjuster, and underwriter.
2. Answer the "Review" questions: 1 and 3.
3. Answer the "Objective Questions".

1. Define the following "Review Terms": assigned risk plans, Best's insurance reports, Chartered Life Underwriter (CLU), Chartered Property Casualty Underwriter (CPCU), and insurance commissioner.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": admitted insurance, alien insurance, loss reserve, risk-based capital (RBC), and surplus-lines insurance.
2. Answer the "Review" questions: 2 and 5.
3. Answer the "Objective Questions".

Chapters 8, 9, 10, & 11: Insurance Contracts, Basic Property and Liability Insurance Contracts, Homeowners Insurance, & The Personal Auto Policy

1. Define the following "Review Terms": actual cash value (ACV), binder, conditional receipt, contract of adhesion, indemnity, subrogation, and unilateral contract.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": declarations, deductible, exclusions, increase in hazard, insuring agreement, and other-insurance clause.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": coinsurance, named insured, personal property, real property, and unscheduled personal property.
2. Answer the even numbered "Objective Questions".

1. Define the following "Review Terms": automobile liability insurance, collision, compulsory insurance laws, financial responsibility laws, other-than-collision coverage, and primary coverage.
2. Answer the even numbered "Objective Questions ".

Chapters 13, 14, 15, & 16: Life Insurance Policies, Annuities, Medical Expense and Disability Insurance, & Standard Life Insurance Contract Provisions and Options

1. Define the following "Review Terms": cash value, term life insurance, universal life insurance, variable life insurance, whole life insurance.
2. Answer the "Review" questions: 15 and 18.
3. Answer the "Objective Questions".

1. Define the following "Review Terms": period-certain life income, pure annuity, single-premium annuity, structured settlements, and variable annuity.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": activity of daily living (ADL), hospice, long-term care, medicaid, and PPO (preferred provider organization).
2. Answer the "Review" questions: 2 and 7.
3. Answer the "Objective Questions".

1. Define the following "Review Terms": beneficiary, cash surrender value, evidence of insurability, insured, misstatement -of-age provision, and owner.
2. Answer the "Objective Questions".

Chapter 18, 19, 20, & 21: Commercial Property Insurance, General Liability Insurance, Special Liability Insurance, & Bonding, Crime Insurance, and Reinsurance

1. Define the following "Review Terms": cause-of-loss form, commercial insurance, commercial package policy (CPP), ISO, personal property, and real property.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": claims-made form, commercial general liability, contractual liability, exclusions, tail coverage, umbrella policy, and vicarious liability.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": Americans with Disabilities Act of 1990 (ADA), comprehensive general liability (CGL), disability, pollution, products liability, professional liability, and sudden and accidental.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": catastrophe reinsurance, fidelity bonds, judicial bonds, obligee, reinsurance, surety bond, and treaty reinsurance.
2. Answer the "Objective Questions".

Chapters 22, 23, & 24: Employee Benefits, Social Security, & Unemployment and Workers' Compensation Insurance

1. Define the following "Review Terms": defined-benefit plan, defined-contribution plan, Health Insurance Portability and Accountability Act of 1996 (HIPPA), pension plan, retirement, and vesting.
2. Answer the "Objective Questions".

1. Define the following "Review Terms": average indexed monthly earnings (AIME), disability insured, earnings test, eligible, FICA (Federal Insurance Contribution Act), Old-Age, Survivors, Disability Insurance-Hospital Insurance Program (OASDI-HI).
2. Answer the "Objective Questions".

1. Define the following "Review Terms": assumption-of-risk defense, contributory negligence, exclusive remedy, experience rating, fellow servant rule, and workers' compensation insurance.
2. Answer the even numbered "Objective Questions".