UNIVERSITY OF C0NNECTICUT

Finance 221/section 3

Risk Management and Insurance

Fall 2002

 

 

 

Classes: 3:30 – 4:45 MW                              

            BUSN 203                               Instructor: James Bridgeman, FSA

Office Hours: 12:30  –   2:00 M                                   Department of Mathematics, U3009

                           1:30  –   3:00 W                                  MSB 408; phone (860) 486-8382

 10:30  – 11:30 Th                                  bridgeman@math.uconn.edu

                         or by appointment                                  www.math.uconn.edu/~bridgemn     course web page

       

Course Content

Concepts of individual and corporate risk; management of risk using insurance; principles, products, underwriting, pricing and regulation of the insurance market.

 

Text

Harrington and Niehaus: Risk Management and Insurance, Irwin/McGraw-Hill 1998

 

Syllabus

Concept of risk; risk management tools

Ch. 1

Aug. 26 - 28

Cost of risk; risk management objectives

Ch. 2

Sept. 4

Measurement of risk; effects of pooling

Ch. 3

Sept. 9 – 11

Quiz (Ch. 1 – 3)

Insurance: pooling plus capital; insolvency risk

 

Ch. 4; Sec. 5.1

Sept. 16

Sept. 16 – 18

Solvency regulation; pricing; underwriting cycles

Sec. 5.2 – 5.6, 6.1 – 6.6

Sept. 23 - 25

Price regulation; risk aversion; cost of uncertainty

Quiz (Ch. 4 – 6)

Sec. 6.7 – 6.8, Ch. 7

Sept.30– Oct. 2

Oct. 2

Insurability; contract design and law;

Review

Ch. 8

Ch. 1 - 8

Oct. 7 – 9

Mid-Term Exam

Ch. 1 – 8

Oct. 16

Liability for injuries: torts and workers comp.

1st papers due

Parts of Ch. 14 & 16

Oct. 21 – 23

Oct. 23

Employee benefits; group health insurance; medicare

Ch. 18, Sec. 20.7

Oct. 28 – 30

Quiz (Ch. 14, 16, 18, Sec. 20.7)

Retirement plans; social security benefits

 

Ch. 19, Sec. 20.1 - 20.2

Nov. 4

Nov. 4 - 6

Social security financing; auto insurance coverage

Sec. 20.3 – 21.1

Nov. 11 – 13

Quiz (Ch. 19 – 20)

Automobile insurance pricing, underwriting, and regulation; no-fault

 

Sec. 21.2 – 21.5

 

Nov. 18

Nov. 18 – 20

 

Homeowners insurance

Ch. 22

Nov. 25

2nd papers due

Life insurance and annuities

 

Ch. 23

Dec. 2

Dec. 2 - 4

Review

All material

Dec. 9

 

Grading

4 Quizzes, each  5%; 2 papers, each 10%; Mid-Term Exam 25%; Final Exam 35%

 

Syllabus and/or grading plan subject to change with appropriate notice