Finance 431: Property-Liability Insurance Instructor: Stephen D’Arcy Teaching Assistant: Bill Schneider Lecture 1: Introduction and Course OrganizationFill Out on Index Card Name Major Year Career Objective Finance and Actuarial Science Courses Previously taken Taking this semester Why are you taking this course? In what way are you different from other students in this class? Where are we most likely to see you on campus (other than in class)?General Course InformationInsurance OperationsCommercial Exposures and CoveragesCurrent Events – Examples (These topics may change based on issues that emerge over the semester)Required TextbookI-clickers Will Be Required For ClassOptional Textbooks On Reserve in the Undergraduate LibraryCourse Website http://www.business.uiuc.edu/ ~s-darcy/Fin431/2008/index.htmlGeneral Purpose of CourseWhat year are you at the U of I?What College are You In?What Is Your Major?Where Is Your Hometown?Your Car Insurance CompanyHow Many Auto Accidents Have You Had Since You Started Driving?Who Is Going to Win the Superbowl?Likely Guest SpeakersWhat You Should Know NowWhat’s next?Finance 431:Property-Liability InsuranceInstructor:Stephen D’ArcyTeaching Assistant:Bill SchneiderLecture 1:Introduction and Course OrganizationFill Out on Index CardNameMajor YearCareer ObjectiveFinance and Actuarial Science CoursesPreviously takenTaking this semesterWhy are you taking this course?In what way are you different from other students in this class?Where are we most likely to see you on campus (other than in class)?General Course InformationPrerequisite: Basic knowledge of insurance terminology and personal lines coverage (Fin 230)Course focus - three components:1Insurance Operations2Commercial Property and Liability Exposures and Coverages3Current EventsInsurance Operations•Overview of Industry and Profit Measures•Underwriting•Marketing and Distribution Systems•Claims Adjusting•Ratemaking •Loss Reserving•ReinsuranceCommercial Exposures and Coverages•Commercial Property Insurance•Commercial Liability Insurance•Excess and Umbrella Policies•Professional Liability•Workers Compensation and Employers LiabilityCurrent Events – Examples(These topics may change based on issues that emerge over the semester)•Insurance Brokerage Issues•Insurance Regulation•Catastrophes•Insurance Securitization•Insurance Fraud•Enterprise Risk ManagementRequired TextbookRisk Management and Insurance by Pritchett, Schmit, Doerpinghaus and Athearn (Seventh Edition) (Fin 230 Text)I-clickers Will Be Required For ClassOptional TextbooksOn Reserve in the Undergraduate LibraryInsurance Operations by Webb, Harrison, and Markham;Volumes I and IICommercial Liability Risk Management and Insurance by Malecki, Horn, Wiening, and Flitner Volume IICourse Websitehttp://www.business.uiuc.edu/~s-darcy/Fin431/2008/index.htmlThe 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).General Purpose of CourseFin 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.What year are you at the U of I?A) FreshmanB) SophomoreC) JuniorD) SeniorE) Graduate StudentWhat College are You In?A) ACESB) BusinessC) EngineeringD) LASE) OtherWhat Is Your Major?A) FinanceB) AccountingC) Actuarial ScienceD) EconomicsE) OtherWhere Is Your Hometown?A) IllinoisB) United States other than IllinoisC) EuropeD) AsiaE) OtherYour Car Insurance CompanyA) State FarmB) AllstateC) GEICOD) ProgressiveE) OtherHow Many Auto Accidents Have You Had Since You Started Driving?A) 0B) 1C) 2D) 3E) 4 or moreWho Is Going to Win the Superbowl?A) Green Bay PackersB) New England PatriotsC) New York GiantsD) San Deigo ChargersE) What Superbowl?Likely Guest Speakers1. Mark Vonnahme, VP Arch Insurance Group2. Gail Ross, Senior Consultant, Milliman3. James Smieszkal, Associate Actuary, Zurich North America4. James Matusiak, Underwriter, Renaissance ReinsuranceWhat You Should Know NowClass Project #1What’s next?Seven lectures on the general structure of insurance companies and functions within the company.Review and first exam.Thirteen lectures on commercial property and liability coverages, workers compensation and professional liability.Review and second exam.Additional lectures on current events (the topics are subject to change).Review and final