PRINCIPLES OF INSURANCE
Instructor: H. Swint Friday, Ph.D., CFP
Phone: (361) 825-2498
Office: Driftwood 201c
Office Hours: TR: 11:30-12:30; 3:15-4:00; 5:15-6:00 W: 1:30-2:30 or by appointment
1. Text: Principles of Risk Management and Insurance by Rejda, 9th Edition
2. Accompanying Study Guide
3. Financial Calculator
Junior standing or above.
Fundamentals of risk management as practiced in the commercial life and health and property
and casualty insurance industries.
Relationship to Othe r Coursework:
The principles of risk management provides a systematic process for the identification and
evaluation of loss exposures faced by organizations or individuals, and for the selection and
implementation of the most appropriate techniques for treating such exposures.
Lectures are supplemented by class discussion, handouts, questions and answer sessions,
computer presentations and videos.
Performance Evaluation and Grading:
Two exams and a comprehensive final exam will be given. The final exam is cumulative. Test
materials will come from lecture notes, the text, assigned readings, homework, and class
discussion. Test format is primarily multiple choice; questions will emphasize understanding
and application of concepts and topics covered.
To facilitate student mastery of financial concepts, problems will be assigned following
discussion of each major topic area. Students should prepare for class meetings by studying the
assigned text materials and preparing problems and other assignments prior to class.
Grades will be assigned based on the following weights:
Exam 1 30%
Exam 2 30%
Exam 3 30%
Homework, Participation, and Quizzes 10%
Test dates will be announced one week prior to the exam date. No early exams or make-up
exams will be administered. If you must miss an exam, notify me in advance and provide me
subsequent comprehensive documentation from the appropriate entity within one week of the
exam that the absence was an excused University activity, a severe illness, or a dire emergency.
If these conditions are met, your score on the final exam will be substituted for the exam you
missed. Otherwise, I will assign you a zero for the exam.
Exams are closed book unless otherwise stated. To protect the integrity of the test banks
employed to construct the exams, exams are not returned. However, exams are available for
review in my office during scheduled office ho urs for two weeks after the exam.
Students are responsible for all material in the assigned readings, handouts, homework, and class
presentations. Furthermore, students are expected to attend class on a regular basis. However, in
the event of an absence, students are responsible for obtaining all missed information and notes
from a classmate.
All assignments are to be turned in at the beginning of the class on their due date unless
otherwise instructed. Late assignments are penalized 20 percentage points for each day that they
I expect everyone to follow all rules of common courtesy during classroom lecture and
discussion. The presence of cell phones and pagers as well as other disruptive items or actions
are prohibited in the classroom. If the disruptive or inappropriate behavior persists, action will
be taken to have the party removed from the course.
Oral and Written Communication Require ments:
Effective written communication is also necessary for exams. Students are expected to
participate actively in class discussion of the topics and issues covered in the course, and will be
rewarded though their class participation grade for doing so.
Students are required to use computer applications, computer databases, and online information
services for this course.
An insurance contract is based on the principle of utmost good faith where a higher degree of
honesty is expected of both parties to the contract than is expected of parties to other contracts.
Consequently, ethics and ethical behavior is fundamental to the insurance and risk management
The principles of risk management apply to all.
Career opportunities for students of all genders and ethnicities and from various backgrounds are
Political, Social Legal, Regulatory, and Environme ntal Pe rspectives:
The course will consider the structure, regulation, influence, and role in corporations and markets
of a variety of governmental and social entities including but not limited to State Insurance
Commissions, SEC, CFTC, NASD, Federal Reserve, US Congress, EPA, Department of Labor,
and the President of the United States.
Class attendance is mandatory. To account for missed c lass participation, students will lose 1
point from their final course grade for each absence past the third absence (1 absence = 3 classes
for night sections). Late arrivals or early departures will be considered one-half an absence. In
addition, students will be rewarded for attendance through their class homework and quiz
This course, and all other courses offered by the College of Business (COB), requires all of its students to
abide by the COB Student Code of Ethics (available online at www.cob.tamucc.edu) Provisions and
stipulations in the code are applicable to all students taking College of Business courses regardless of
whether or not they are pursuing a degree awarded by the COB.
FINA 3351 Preliminary Schedule
Chapter Topics Week
Course Introduction 1
PART I Basic Concepts in Risk Management and Insurance 2-3
PART II Legal Principles in Risk and Insurance 4-5
*** EXAM 1 *** 6
PART III Personal Prope rty and Liability Risks 6-7
PART IV Commercial Property and Liability Risks 9-10
PART V Life and Health Risks 11-13
***EXAM 2*** 13
PART VI The Insurance Industry 14
*** EXAM 3*** 15