Professional Documents
Culture Documents
INS 21
(Updated June 13, 2006—Latest Editions of Book Included)
DESCRIPTION
This course is intended to help individuals learn basic information concerning Property
and Liability Insurance. The first segment of the course covers the fundamentals of
insurance including types of insurers, institutions that provide insurance, how it is
regulated, and measurement of financial performance. The second segment includes
insurance operations, such as marketing, underwriting, and claims. The final segment
covers insurance contrasts, loss exposure, and risk management.
JUSTIFICATION
The course is one of four developed as a result of a request from the CEO of a large
insurance company in Oakland, California and his colleagues in the insurance industry
for community college involvement in providing basic insurance education. The four
courses were developed by the Business Education Statewide Advisory Committee
(BESAC) in a collaborative effort with the insurance industry. A Certificate of Insurance
is being created along with recommendations for an A.S. or A.A. Degree. A team of 15
community college individuals who were currently teaching insurance or involved in
insurance in some way reviewed and made recommendations for the courses,
certificate and degree.
Insurance Defined
• Transfer System
• Business
• Contract
Marketing
• Legal Role of an Insurance Agent
• Insurance Marketing Systems
• Compensation of Producers
• Advertising
• Marketing Management
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• Regulation of Insurance Producers
Underwriting
• Activities of Underwriting
• Underwriting Management
• Underwriting Process
• Regulation of Underwriting Activity
Claims
• Responsibilities of Claim Representative
• Types of Claim Representatives
• Claim Handling Process
• Establishing Loss Reserves
• Unfair Claim Practice Laws
Insurance Contracts
• Elements of a Contract
• Insurance Contracts
• Conditions Commonly Found in Property and Liability Insurance Policies
* Source: Property and Liability Insurance Principles, 4th Edition—Luthardt, Smith, and
Wiening, AICPCU
OBJECTIVES
As the successful completion of this course, students will be able to analyze, evaluate,
compare, and contrast the following concepts, characteristics, and techniques of
Property and Liability Insurance. They will be able to:
1. Define insurance as a transfer system, a business, and a contract
2. Describe types of insurers and insurance regulation
3. Identify measures of financial performance, such as profitability, solvency, and
monitoring financial performance
4. Explain marketing concepts, i.e., the legal role of an insurance agent, insurance
marketing systems, compensation of producers, advertising, marketing
management, regulation of insurance producers
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5. Describe underwriting activities, underwriting management, the underwriting
process, and the regulation of underwriting activity
6. Explain responsibilities of claim representatives, types of claim representatives,
the claim handling process, establishing loss reserves, and unfair claim practice
laws
7. Describe elements of a contract, insurance contracts, and conditions commonly
found in property and liability insurance policies
8. Describe loss expenses and property insurance policy provisions
9. Identify liability loss exposures and policy provisions
10. Explain the risk management process of benefits or risk management
INSTRUCTIONAL METHODS
This course will include a variety of instructional methods including: lecture, videos,
case studies, guest speakers, and role-playing. Collaborative projects will be
emphasized.
TEXTBOOKS
Highly Recommended: The textbooks listed below are highly recommended because
they have been most effective in providing information that has enabled students to
pass the insurance exams.
Luthardt, Smith & Wiening, Property and Liability Insurance Principles, 4th Ed.,
American Institute for Chartered Property Casualty Underwriters/Insurance Institute of
America Malvern, PA
INS 21 Course Guide: Property and Liability Insurance Principles, 4th Ed., American
Institute for Chartered Property Casualty Underwriters/Insurance Institute of America
(AICPCU), Malvern, PA, http://aicpcu.org/
RESOURCES
American Institute for American Institute for Chartered Property Casualty Underwriters
and Insurance Institute of America (AICPCU), http://aicpcu.org/
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PERSONAL INSURANCE (3 Units)
INS 22
DESCRIPTION
JUSTIFICATION
The course is one of four developed as a result of a request from the CEO of a large
insurance company in Oakland, California, and his colleagues in the insurance industry
for community college involvement in providing basic insurance education. The four
courses were developed by the Business Education Statewide Advisory Committee
(BESAC) in a collaborative effort with the insurance industry. A Certificate of Insurance
is being created along with recommendations for an A.S. or A.A. Degree. A team of 15
community college individuals who were currently teaching insurance or involved in
insurance in some way reviewed and made recommendations for the courses,
certificate and degree.
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Homeowners Insurance: Section 1
• How the Homeowners Policy Evolved
• The Homeowners 3 Special Form (HO-3)
Life Insurance
• Premature Death
• Need for Life Insurance
• Determining the Amount of Life Insurance to Own
• Types of Life Insurance
• Life Insurance Contractual Provisions
• Additional Life Insurance Benefits
• Life Insurance Underwriting
• Group Life Insurance
OBJECTIVES
As the successful completion of this course, students will be able to analyze, evaluate,
compare, and contrast the following concepts, characteristics, and techniques of
Personal Insurance:
1. Discuss loss exposures, personal risk insurance, and types of personal
insurance policies
2. Explain problems associated with insurance, such as no-fault insurance, high-risk
drivers, compensation of victims, regulation and rating of automobile insurance
3. Define Parts of automobile coverage, i.e., Liability, Medical Payments, Uninsured
Motorists, Coverage for Damage to Automobiles, and Personal Automobile
Policy Conditions
4. Evaluate Homeowners Insurance as it relates to the policies--variations,
endorsements and ratings
5. Investigate residential insurance concerning polices that include disasters such
as earthquakes, floods, fires, and other similar events
6. Identify other catastrophes that include liability for events such as marine
floaters, watercraft policies, and umbrella liability insurance
7. Discuss financial planning as it impacts personal loss, social security, retirement
plans, and annuities
8. Explain the need or life insurance as it affects premature death and the need for
life insurance
9. Discuss health care problems in the United States and the need for health and
disability insurance and the options one has for coverage such as major medical,
dental, long-term care, disability insurance, etc.
INSTRUCTIONAL METHODS
This course will include a variety of instructional methods including: lecture, videos,
case studies, guest speakers, and role-playing. Collaborative projects will be
emphasized.
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TEXTBOOKS
(The textbooks listed below are highly recommended because they have been most
effective in providing information to enable students to pass the insurance exams.)
RESOURCES
American Institute for American Institute for Chartered Property Casualty Underwriters
and Insurance Institute of America (AICPCU), http://aicpcu.org/
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COMMERCIAL INSURANCE (3 Units)
INS 23
DESCRIPTION
This course is intended to help individuals learn basic information regarding the whole
area of Commercial Insurance. Covered in this course is information concerning
commercial property insurance, business income insurance, commercial crime
insurance, equipment breakdown insurance, inland and ocean marine insurance,
commercial general liability insurance, commercial automobile insurance, business
owners policies and farm insurance, workers compensation and employers liability
insurance, and other miscellaneous coverage.
JUSTIFICATION
The course is one of four developed as a result of a request from the CEO of a large
insurance company in Oakland, California and his colleagues in the insurance industry
for community college involvement in providing basic insurance education. The four
courses were developed by the Business Education Statewide Advisory Committee
(BESAC) in a collaborative effort with the insurance industry. A Certificate of Insurance
is being created along with recommendations for an A.S. or A.A. Degree. A team of 15
community college individuals who were currently teaching insurance or involved in
insurance in some way reviewed and made recommendations for the courses,
certificate and degree.
8
Business Income Insurance
• Business Income Loss Exposure
• Business Income Coverage Forms
• Other Forms and Endorsements
• Rating Business Income Coverage
Commercial Crime Insurance
• ISO Commercial Crime Program
• Financial Institution Bonds
Miscellaneous Coverage
• Excess and Umbrella Liability Insurance
• Professional Liability Insurance
• Aircraft Insurance
• Environmental Insurance
• Coverage for Foreign Operations
• Surety Bonds
Source: Commercial Insurance, 1st Edition—Flitner & Trupin, American Institute for
Chartered Property Casualty Underwriters/Insurance Institute of America
OBJECTIVES
As the successful completion of this course, students will be able to analyze, evaluate,
compare, and contrast the following concepts, characteristics, and techniques of
Property and Liability Insurance. They will be able to:
1. Define commercial insurance as a risk management technique, lines of business
involved, and commercial insurance policies
2. Explain policies providing commercial property coverage, building and personal
property coverage forms, insuring fluctuating values, and blanket insurance
3. Describe cause-of-loss forms, other commercial property coverage forms,
endorsements, commercial property conditions, and rating commercial property
coverage
4. Explain business income loss exposure, business income coverage forms, other
forms and endorsements, and rating business income coverage
5. Describe commercial crime insurance as it relates to ISO commercial crime
program and financial institution bonds
6. Explain equipment breakdown insurance including insuring agreements,
exclusions, limits of insurance, and conditions
7. Describe the development of inland and ocean marine insurance, inland marine
exposures and insurance, ocean marine exposures and insurance
8. Explain liability loss exposures, commercial general liability insurance including
insured party(ies), limits of insurance. CGL conditions, Claims-made CGL
coverage form, CGL endorsements, rating CGL coverage and miscellaneous
liability coverage forms
9. Describe commercial automobile insurance as it relates to automobile loss
exposures, business automobile coverage forms, garage coverage forms, motor
carrier coverage forms, and rating commercial automobile insurance
10. Define business owners policies and farm insurance including business owners
policies and farm insurance
11. Explain workers compensation and employers liability insurance as it relates to
workers compensation statures, workers compensation and employers liability
policy, and rating workers compensation insurance
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12. Describe miscellaneous coverage for express and umbrella liability insurance,
professional liability insurance, aircraft insurance, environmental insurance,
coverage for foreign operations, and surety bonds
INSTRUCTIONAL METHODS
This course will include a variety of instructional methods including: lecture, videos,
case studies, guest speakers, and role-playing. Collaborative projects will be
emphasized.
TEXTBOOKS
Highly Recommended: (The textbooks listed below are highly recommended because
they have been most effective in providing information to enable students to pass the
insurance exams.)
Commercial Insurance, 1st Edition—Flitner & Trupin, American Institute for Chartered
Property Casualty Underwriters/Insurance Institute of America Institute Insurance
Research Council, Malvern, PA, 2002
RESOURCES
American Institute for American Institute for Chartered Property Casualty Underwriters
and Insurance Institute of America (AICPCU), http://aicpcu.org/
11
INTRODUCTION TO INSURANCE
INS (1 unit)
DESCRIPTION
The purpose of the course is to give students a basic background of the modern
property/casualty insurance system, how insurance products and services are
distributed to the consumer, how insurance company departments function, how
reinsurance is used to create an insurance company and insure large property and high
liability values/limits, an understanding civil laws or tort and contract, review the basic
commercial and personal ISO insurance contracts, and understand the importance of
the risk management process.
JUSTIFICATION
COURSE CONTENT
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Course Content
Valuations
• Valued Policy/Replacement Cost Value/Actual Cash Value
• First Party and Third Party Claim Forms
• Limits-Commercial, General Liability
• Loss Ratio
• Occurrence Liability Form
• Risk
Civil Law
Common Law
• Statutory and Common Law
- Contract Law (Civil Law Category)
• Tort Law (Civil Law Category)
Tort Law-Intentional Acts
Tort Law-Unintentional Acts (Negligence)
Tort Law-Strict Liability
Medical Payments
TEXTBOOK
RESOURCES
American Institute for American Institute for Chartered Property Casualty Underwriters
and Insurance Institute of America (AICPCU), http://aicpcu.org/
14
CODE AND ETHICS
INS 2 (1 unit)
(Developed September, 2005)
DESCRIPTION
This Code and Ethics course is designed for insurance majors. It addresses ethical
considerations one must support in order to succeed in business, specifically in the
insurance industry. The course presents ethical issues with which employees working
in insurance offices will be involved.
JUSTIFICATION
While the three major insurance courses that are offered in the Insurance Major include
ethical concepts, several members of the insurance original committee suggested that a
short introductory course on Code and Ethics should be a part of the major. This
suggestion was approved by the 21-person statewide Insurance Committee and the
California Community College Statewide Insurance Advisory Committee, which consists
of both business representatives and community college personnel.
The one-unit course will cover topics on business ethical behavior and ethics unique to
the Insurance Industry. Included in the course will be a series of Case Studies regarding
ethical behavior in the field of insurance.
From ethics textbooks to those who write about articles specific to the insurance
industry, there is no clear message as to how one teaches another individual to become
ethical. In her research study, “Promises, Promises: Ethics in the Insurance Industry,”
Rinetti (2001) suggests that “The ethics code should become a living part of everyday
work life, a compass that guides workers as they wrestle with large and small ethical
demands.” Based on the findings, the author further asserts that equally important as
sales training is ethics training.
I. Definition of Ethics
A. Business Ethics
B. Ethics and the Corporate Environment
C. Insurance Ethics
OBJECTIVES
As the successful completion of this course, students will be able to analyze, evaluate,
compare, and contrast the following concepts, characteristics, and techniques of
Property and Liability Insurance. They will be able to:
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INSTRUCTIONAL METHODS
This course will include a variety of instructional methods including: lecture, videos,
case studies, guest speakers, and role-playing. Collaborative projects will be
emphasized.
TEXTBOOKS:
Code of Professional Ethics of the American Institute for Chartered Property Casualty
Underwriters (7th ed.). (2002). Malvern, PA: American Institute for Chartered
Property Casualty Underwriters.
Duska, R. F. (2003). Ethics for the financial services professional. Bryn Mawr, PA: The
American College.
Vasquez, M. G. (2006). Business ethics: Concepts and cases, (6th ed.) ,Upper Saddle
River, NJ: Pearson Prentice Hall.
RESOURCES
Center for the Study of the Code of Ethics in the Professions. Retrieved August 30,
2005, from http://ethics.iit.edu/codes
Cordell, David M. (2004, May). Insurance, ethics and the golden rule. Journal of
Financial Planning. Retrieved August 30, 2005, from
http://www.fpanet.org/journal/articles/2004_Issues/jfp0504-art4.cfm
American Institute for CPCU and Insurance Institute of America. Retrieved September
5, 2005, from http://www.aicpcu.org/
Glenn, J. (2004, October). Making sense of ethics. Business Education Forum 59(1),
10-13.
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MacDonald, Chris, Creating a code of ethics for your organization. Retrieved August
30, 2005, from http://www.ethicsweb.ca/codes/
Rinetti, Marhta (2001). Promises, promises: Ethics in the insurance industry. Retrieved
September 6, 2005, from http://katie.cob.ilstu.edu/IIEthics/ethicsMR2001.doc
State of California Department of Insurance. (2004 June 24). Retrieved August 30,
2005, from http://www.insurance.ca.gov/
Van Wyhe, P. (1996-2000). Ethics in Insurance. Retrieved August 30, 2005, from
http://www.insurancece.com/resources/articles/a12ethics.html
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Appendix
(Sample of a Code of Ethics Statement)
OF PROFESSIONAL CONDUCT
In keeping with the purpose set forth in Article II, 4. of the Constitution, the Association
endorses the following statement of ethics and standards of professional conduct for
member representatives:
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INTERNSHIP IN INSURANCE
INS 3 (1 unit)
This one-unit internship will be carried out in a local insurance company and will follow
the guidelines of the Solano Community College.
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