CALIFORNIA STATE UNIVERSITY, FULLERTON
SCHOOL OF BUSINESS ADMINISTRATION
DEPARTMENT OF FINANCE
(714) 278-2217
Course Outline
Course: Business Property and Liability Risk Management (Fin 461)
Instructor: Dr. Weili Lu
M. 7:00-9:45 pm Phone: (714) 278-3679
Class room: MH 287 Email: wlu@fullerton.edu
Textbook:
Required:
Webb, B. L., Arthur L. F., and Jerome T., Commercial Insurance,[1] 4th ed. Malvern, PA: Insurance Institute of America, 1999;
Recommend:
Webb, B. L., Harrison, C. M. and Markham, J. J., Insurance Operations, 2nd ed. Vol. I & II, Malvern, PA: American Institute for Property and Liability Underwriters, 1999.
Course package:
1. Papers from insurance journals
2. Readings from training materials used in insurance companies,
3. Articles and news on current issues from major insurance publications.
Course Description:
The course covers the duties and the functions of a risk manager; the major commercial property and liability insurance lines including commercial property, business income, general liability, commercial auto, and workers compensation and business owner insurance; and the operation of property-liability insurers.
Course Objectives:
The primary objective of this course is to study property and liability insurance at an advanced level on the following topics:
1. How risk management works
2. The duties and roles of a corporate risk manager
3. The features of major property and liability insurance lines, and
the scope and limitations of major contracts.
4. The functions and operations of property and liability insurers.
5. Current issues and trends on property and liability insurance and
regulatory issues
It is expected the course will provide students with an understanding of risk management in property and liability insurance. It will also equip students for a career in insurance with a property and liability insurance company, a big corporation with risk management department, an insurance broker specialized in commercial insurance or an entrepreneur interested in managing his or her own business risks. It is also expected that the course can help those agents or employees in insurance companies who are planning to take CPCU (Chartered Property Casualty Underwriters) Exams in Commercial Insurance.
Course Policy:
1. Teaching Method: Lectures and discussions. Guest speakers from the industry will give some presentations. Interaction with the instructor, guest speakers and fellow students is strongly encouraged. There will also be a field trip to an insurance company.
2. Homework: two case studies will be assigned after each relevant section is covered.
3. Group Project: Design a business insurance plan for a local company.
4. Exams: There are two mid-term exams, and one final exam. Financial
calculators are allowed.
5. Grading:
Project 20%
Midterm I 20%
Midterm II 20%
Final 30%
Class Participation 10%
________________________
100%
6. Note: There will be no make-up exam.
7. Withdrawal policy: Confirms with the withdrawal policy of CSUF
8. Academic Dishonesty: Confirms with the official policy of CSUF
The Department of Finance requires that students engaging in academic dishonesty receive a grade of F. In addition, Department policy requires that all individuals engaging in academic dishonest be reported to the Vice President, Student Affairs.
Academic dishonesty takes place whenever a student attempts to take credit for work that is not his/hers own or violates test taking rules. Examples of academic dishonesty during test taking include looking at other students’ work, passing answers among students or using unauthorized notes. When students sitting next to each other have identical answers, especially the dame mistakes, this may indicate academic dishonesty. Examples of academic dishonesty on out-of-class projects include submitting the work of others or quoting directly from published material without footnoting the source. If you have any questions about the proper use of outside sources, please consult with your professor.
Course Schedule (tentative):
Time Topic Chapter
8/26 Duties and functions of a risk manger Readings
. Risk control and financing Ch1.
9/2 Labor Day
9/9 Commercial property insurance Ch2.
Commercial property insurance Ch3.
9/16 Business income insurance Ch4.
Commercial crime insurance Ch5.
9/23 Boiler and machinery insurance Ch6.
Midterm I
9/30 Inland and ocean marine insurance Ch7.
Commercial general liability insurance Ch8.
10/7 Commercial general liability insurance Ch9.
Commercial automobile insurance Ch10
10/14 The business owners policy Ch11
Workers Compensation Ch12
10/21 Employers liability insurance Ch12
Miscellaneous coverage Ch13
10/28 Overview of insurance operations Readings
Midterm II
11/4 Distribution system Readings
11/11 Underwriting Webb’s Ch5
11/18 Claims Webb’s Ch5
11/25-29 Thanksgiving Recess
12/2 Hot Topics Readings
12/9 Presentation and Review
12/16 Final Exam (7:30-9:20)