Principles of Risk Management and Insurance

George E. Rejda is a nationally known expert on private insurance and social insurance programs.  He is a Past President of the American Risk and Insurance Association. His primary research areas are Social Security and unemployment insurance. He is a founding member of the National Academy of Social Insurance, initially limited to 125 experts on Social Security in the United States.  He is the founding editor of Benefits Quarterly in the employee benefits field and also served as Communication and Notes editor for the Journal of Risk and Insurance.  He has published numerous books, articles, and other publications, several of which were used by the Insurance Institute of America in its professional program. He is a former member of the examination committee of the Insurance Institute of America, which designs and administers professional examinations to employees in the property and casualty insurance industry. His textbook, Principles of Risk Management and Insurance, is widely used by colleges and universities throughout the United States.  Rejda received his Ph.D. degree from the University of Pennsylvania where he studied risk and insurance as a Huebner Foundation Fellow in the Wharton School. He is a former member of the Administrative Board of the Huebner Foundation for Insurance Education at the Wharton School, University of Pennsylvania. He is also a Chartered Life Underwriter (CLU).  During his career at UNL, he has taught more than 13,000 students.

PART ONE: BASIC CONCEPTS IN RISK MANAGEMENT AND INSURANCE
Chapter 1: Risk in Our Society
Meaning of Risk
Chance of Loss
Peril and Hazard
Basic Categories of Risk
Types of Pure Risk
Burden of Risk on Society
Methods of Handling Risk

Chapter 2: Insurance and Risk
Definition of Insurance
Basic Characteristics of Insurance
Requirements of an Insurable Risk
Two Applications: The Risks of Fire and Unemployment
Adverse Selection and Insurance
Insurance and Gambling Compared
Insurance and Hedging Compared
Types of Insurance
Benefits of Insurance to Society
Costs of Insurance to Society

Chapter 3: Introduction to Risk Management
Meaning of Risk Management
Objectives of Risk Management
Steps in the Risk Management Process
Identifying Loss Exposures
Analyze the Loss Exposures
Select the Appropriate Techniques for Treating the Loss Exposures
Implement and Monitor the Risk Management Program
Benefits of Risk Management
Personal Risk Management

Chapter 4: Advanced Topics in Risk Management
The Changing Scope of Risk Management
Insurance Market Dynamics
Loss Forecasting
Financial Analysis in Risk Management Decision Making
Other Risk Management Tools

PART TWO: THE PRIVATE INSURANCE INDUSTRY
Chapter 5: Types of Insurers and Marketing Systems
Overview of Private Insurance in the Financial Services Industry
Types of Private Insurers
Agents and Brokers
Types of Marketing Systems
Group Insurance Marketing

Chapter 6: Insurance Company Operations
Insurance Company Operations
Rate Making
Underwriting
Production
Claims Settlement
Reinsurance
Alternatives to Traditional Reinsurance
Investments
Other Insurance Company Functions

Chapter 7: Financial Operations of Insurers
Property and Casualty Insurers
Life Insurance Companies
Rate Making in Property and Casualty Insurance
Rate Making in Life Insurance

Chapter 8: Government Regulation of Insurance
Reasons for Insurance Regulation
Historical Development of Insurance Regulation
Methods for Regulating Insurers
What Areas Are Regulated?
State Versus Federal Regulation
Current Problems and Issues in Insurance Regulation

PART THREE: LEGAL PRINCIPLES IN RISK AND INSURANCE
Chapter 9: Fundamental Legal Principles
Principle of Indemnity
Principle of Insurable Interest
Principle of Subrogation
Principle of Utmost Good Faith
Requirements of an Insurance Contract
Distinct Legal Characteristics of Insurance Contracts
Law and the Insurance Agent

Chapter 10: Analysis of Insurance Contracts
Basic Parts of an Insurance Contract
Definition of the “Insured”
Endorsements and Riders
Deductibles
Coinsurance
Coinsurance in Health Insurance
Other-Insurance Provisions

PART FOUR: LIFE AND HEALTH RISKS
Chapter 11: Life Insurance
Premature Death
Financial Impact of Premature Death on Different Types of Families
Amount of Life Insurance to Own
Types of Life Insurance
Variations of Whole Life Insurance
Other Types of Life Insurance

Chapter 12: Life Insurance Contractual Provisions
Life Insurance Contractual Provisions
Dividend Options
Nonforfeiture Options
Settlement Options
Additional Life Insurance Benefits

Chapter 13: Buying Life Insurance
Determining the Cost of Life Insurance
Rate of Return on Saving Component
Taxation of Life Insurance
Shopping for Life Insurance

Chapter 14: Annuities and Individual Retirement Accounts
Individual Annuities
Types of Annuities
Taxation of Individual Annuities
Individual Retirement Accounts

Chapter 15: Individual Health Insurance Coverages
Health-Care Problems in the United States
Individual Health Insurance Coverages
Hospital-Surgical Insurance
Major Medical Insurance
Health Savings Accounts
Long-Term-Care Insurance
Disability-Income Insurance
Individual Medical Expense Contractual Provisions
Shopping for Individual Health Insurance

Chapter 16: Employee Benefits: Group Life and Health Insurance
Group Insurance
Group Life Insurance Plans
Group Medical Expense Insurance
Traditional Indemnity Plans
Managed Care Plans
Consumer-Driven Health Plans
Patients Bill of Rights
Group Medical Expense Contractual Provisions
Group Dental Insurance
Group Disability-Income Insurance
Cafeteria Plans

Chapter 17: Employee Benefits: Retirement Plans
Fundamentals of Private Retirement Plans
Types of Qualified Retirement Plans
Defined-Contribution Plans
Defined-Benefit Plans
Section 401(k) Plans
Section 403(B) Plans
Profit-Sharing Plans
Retirement Plans for the Self-Employed
Simplified Employee Pension (SEP)
SIMPLE Retirement Plans
Funding Agency and Funding Instruments

Chapter 18: Social Insurance
Social Insurance
Old-Age, Survivors, and Disability Insurance (OASDI)
Types of Benefits
Medicare
Unemployment Insurance
Workers Compensation
 
PART FIVE: PERSONAL PROPERTY AND LIABILITY RISKS
Chapter 19: The Liability Risk
Basis of Legal Liability
Law of Negligence
Imputed Negligence
Res Ipsa Loquitur
Specific Applications of the Law of Negligence
Current Tort Liability Problems

Chapter 20: Homeowners Insurance, Section I
Homeowners Insurance
Analysis of Homeowners 3 Policy (Special Form)
Section I Coverages
Section I Perils Insured Against
Section I Exclusions
Section I Conditions
Section I and II Conditions

Chapter 21: Homeowners Insurance, Section II
Personal Liability Insurance
Section II Exclusions
Section II Additional Coverages
Endorsements to a Homeowners Policy
Cost of Homeowners Insurance

Chapter 22: Auto Insurance
Overview of Personal Auto Policy
Part A: Liability Coverage
Part B: Medical Payments Coverage
Part C: Uninsured Motorists Coverage
Part D: Coverage for Damage to Your Auto
Part E: Duties After an Accident or Loss
Part F: General Provisions
Insuring Motorcycles and Other Vehicles

Chapter 23: Auto Insurance and Society
Approaches for Compensating Auto Accident Victims
Auto Insurance for High-Risk Drivers
Cost of Auto Insurance
Shopping for Auto Insurance

Chapter 24: Other Property and Liability Insurance Coverages
ISO Dwelling Program
Mobilehome Insurance
Inland Marine Floaters
Watercraft Insurance
Government Property Insurance Programs
Title Insurance
Personal Umbrella Policy
 
PART SIX: COMMERCIAL PROPERTY AND LIABILITY RISKS
Chapter 25: Commercial Property Insurance
ISO Commercial Property Program
Building and Personal Property Coverage Form
Causes-of-Loss Forms
Reporting Forms
Business Income Insurance
Other Commercial Property Coverages
Transportation Insurance
Businessowners Policy (BOP)

Chapter 26: Commercial Liability Insurance
General Liability Loss Exposures
Commercial General Liability Policy
Employment-Related Practices Liability Insurance
Workers Compensation Insurance
Commercial Auto Insurance
Aircraft Insurance
Commercial Umbrella Policy
Businessowners Policy
Professional Liability Insurance
Directors and Officers Liability Insurance

Chapter 27: Crime Insurance and Surety Bonds
ISO Commercial Crime Insurance Program
Commercial Crime Coverage Form (Loss-Sustained Form)
Financial Institution Bonds
Surety Bonds

Appendices
Appendix A Homeowners 3 (Special Form)
Appendix B Personal Auto Policy
Appendix C Whole Life Insurance Policy with Riders
Appendix D Flexible Premium (Universal) Life Insurance Policy

Glossary
Index