Finance 431: PropertyLiability Insurance Instructor: Stephen DArcy Teaching Assistant: Gerry Molidor

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Finance 431Property-Liability
InsuranceInstructorStephen DArcyTeaching
AssistantGerry MolidorLecture 1Introduction
and Course Organization
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General Course Information

• Prerequisite
• Basic knowledge of insurance terminology and
  personal lines coverage (Fin 230)
• Course focus - three components
• Insurance Operations
• Commercial Property and Liability Exposures and
  Coverages
• Current Events

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Insurance Operations

• Overview of Industry and Profit Measures
• Underwriting
• Marketing and Distribution Systems
• Claims Adjusting
• Ratemaking
• Loss Reserving
• Reinsurance

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Commercial Exposures and Coverages

• Commercial Property Insurance
• Commercial Liability Insurance
• Excess and Umbrella Policies
• Professional Liability
• Workers Compensation and Employers Liability

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Current Events Examples(These topics may
change based on issues that emerge over the
semester)

• Insurance Brokerage Issues
• Insurance Regulation
• Insurance Accounting/Finance
• Catastrophes
• Insurance Securitization
• Intellectual Property in Insurance

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Required Textbook

• Risk Management and Insurance by Pritchett,
  Schmit, Doerpinghaus and Athearn (Seventh
  Edition) (Fin 230 Text)

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Optional TextbooksOn Reserve in the
Undergraduate Library

• Insurance Operations by Webb, Harrison, and
  MarkhamVolumes I and II
• Commercial Liability Risk Management and
  Insurance by Malecki, Horn, Wiening, and Flitner
  Volume II

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Course Websitehttp//www.business.uiuc.edu/s-da
rcy/Fin431/2006/index.html

• The site contains the syllabus, lecture notes
  (posted about one week prior to class), class
  projects (after covered in class), assignments
  (approximately one week prior to due date) and
  keys (after the due date).

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General Purpose of Course

• Fin 230 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 insurance industry.

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Likely Guest Speakers

• Mark Vonnahme, Clinical Professor in Finance,
  Former CEO of CNA Surety
• Gail Ross, Senior Consultant, Milliman
• James Smieszkal, Senior Actuarial Analyst, Zurich
  North America
• Mark Strauch, VP, Arthur J. Gallagher Co.
• James Matusiak, Actuary, PXRE Group

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What You Should Know Now

• Class Project 1

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Whats next?

• Seven lectures on the general structure of
  insurance companies and functions within the
  company.
• Review and first exam.
• Ten lectures on commercial property and liability
  coverages and workers compensation.
• Review and second exam.
• Six lectures on current events (the topics are
  subject to change).
• Review and final exam.