Principles Risk Management and Insurance Rejda

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					FIN 3210A/B    Risk Management and Insurance, Fall 2010
Instructor:             Jason J. H. Yeh, A.S.A., Ph.D.
Class meetings:         (A) TUE 10:30am ~ 12:15pm, UCC111; THU 1:30pm ~ 2:15pm, UCC201
                        (B) TUE 1:30pm ~ 2:15pm, UCC201; THU 10:30am ~ 12:15pm, UCC201
Office & Phone:         Room 1213, Teaching Building at Chak Cheung Street; 2609-7653
E-mail:                 jasonyeh@baf.msmail.cuhk.edu.hk
Office Hours:           by appointment
Teaching Assistant:     Iris Au, irisau@baf.msmail.cuhk.edu.hk, 2609-7840
Course Web:             http://ihome.cuhk.edu.hk/~b103302/fin3210/fin3210.html
Textbook website:       http://www.pearsonglobaleditions.com/rejda

Course Objectives:
This is an introductory course to the principles and practices of individual and corporate risk
management and insurance (RMI), and to the career paths of corporate risk manager, employee
benefits manager, actuary, insurance agent/broker, underwriter, loss adjuster, risk management
consultant, and personal financial planner. After completing the course, the students should be able to:
(1) understand the risk and risk management; (2) apply legal principles in the risk management area;
(3) comprehend insurance contracts such as corporate property insurance, liability insurance and life
and health insurance; (4) know how insurance companies operate under regulations.
This course has been recognized by the Institute of Financial Planners of Hong Kong (IFPHK) as a
substitute for Module 2 Insurance in its education program (i.e., those who have passed this course
will not be required to take Module 2 Insurance of the education program for Certified Financial
Planners.


Required Readings:
Principles of Risk Management and Insurance / Rejda (11th edition), 2011

Primary Goals and Expected Outcomes:
It is anticipated that after this course you know where to find resources to effectively manage risks
(uncertain variability in future outcomes over a specified time period in a given situation) faced
personally, in professional careers and as managers in business, government, and other organizations.
The intent of the course is to encourage the development of analytical and decision-making skills
within the context of risk management (the decision-making process by which adverse consequences
of risk are minimized). You will be learning how to identify and evaluate property, liability and
human resource risks, and how to effectively apply the best combination of risk control and risk
financing tools including insurance. Concepts of risk management precede the review of insurance,
which is a major risk treatment method. You are expected to be familiar with basic principles and
practices of various insurance products.

Participation:
Attendance will NOT be taken into account for your course grade. Yet, you will certainly need to
attend classes to be able to participate class discussions (which accounts for 10% of the course grade).
We know that in a class of this size, individual attention becomes challenging. However, learning is
most effective when (1) students verbalize ideas and questions about the material and (2) when
feedback between student and teacher is common. As a result, the “lectures” will be conducted in a
way that is intended to encourage student participation and questions. The class goes on a first-name
basis; if you have questions and comments at any time of the lectures, please don’t hesitate to call
“Jason!” or “Question!”




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Schedule:
Period            Chapter        Topic
Sep.4 ~ Oct. 16
                  1              Risk and Its Treatment
                  2              The Insurance Mechanism
                  3              Fundamentals of Risk Management
                  4              Additional Topics in Risk Management
                  5              Legal Principles in Insurance
                  6              Analysis of Insurance Contracts

Oct. 18 ~ Nov. 20
                7                Liability Risk
                16               Fundamentals of Life Insurance
                17               Contractual Provisions in Life Insurance
                18               Life Insurance Purchase Decisions
                19~23            Selected sections (with local relevance)
                24               Types of Insurers and Marketing Systems
                25               Insurance Company Operations
                26               Financial Operations of Insurers
Nov. 22 ~ Dec. 3
                                 Group Project Presentation

Grading:
Throughout the semester, there will be three quizzes for 10% of your grade. Two of these quizzes
will be announced at least one class period in advance, plus, a “surprise” quiz will be given at any
time. Make up quizzes will not be given. However, your lowest quiz score will be dropped (so if you
miss one, for any reason, that would be the one to drop). Also, two non-cumulative tests, covering
materials from lectures and the text, will be given, accounting for 40% of the grade. Unless permitted
in advance, failure to take a test on time will result in a score of zero for that part. Make-up exams
will be allowed only for special consideration.

Finally, there is a group project (presentation and written report) on mini insurance case or two related
to insurance claim disputes. I suggest you to visit the “Case Review” section of the ICCB
(http://www.iccb.org.hk/en_index.htm) web site to choose your case(s). You may also find other
sources of mini insurance cases for such purpose. To avoid duplicates, you have to let me know your
case(s) choice beforehand. The details of this group work will be announced later.


                                 Participation:                             10%
                                 Quiz:                                      10%
                                 Test:                                      40%
                                 Group Project                              40%


Academic Honesty:
Attention is drawn to University policy and regulations on honesty in academic work, and to the
disciplinary guidelines and procedures applicable to breaches of such policy and regulations. Details
can be found at http://www.cuhk.edu.hk/policy/academichonesty/. With each assignment, you are
required to submit a statement (http://www.cuhk.edu.hk/policy/academichonesty/p09.htm) that you
are aware of these policies, regulations, guidelines and procedures.




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