INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Banking and Finance
2016-2017

SYLLABUS
Code Name Level Year Semester
BAF 306 Risk Management and Insurance Undergraduate 3 Spring
Status Number of ECTS Credits Class Hours Per Week Total Hours Per Semester Language
Compulsory 5 2 + 1 59 English

Instructor Assistant Coordinator
Ermin Cero, Expert Ermin Cero Ermin Cero, Expert
no email [email protected] no email

The course introduces the fundamentals of risk management and insurance. It examines risk management issues faced by firms and individuals and discusses ways to protect firm value and personal wealth. The course covers the areas of general risk management process, property and liability insurance, life and health insurance, annuities and employee benefits. The insurance industry and regulatory concerns are also addressed.

COURSE OBJECTIVE
The primary objective of this course is to provide students with the insights of risk and its treatment, the principles of decision-making under uncertainty, and the methods of managing and protecting against risks to firms and individuals. The course is also expected to prepare the students for a career in an insurance company or providing risk management services in the public and private sectors.

COURSE CONTENT
Week
Topic
  1. Course Introduction and Risk and Its Treatment (Chapter 1).
  2. Insurance and Risk (Chapter 2) and Introduction to Risk Management (Chapter 3).
  3. Types of Insurers and Marketing Systems (Chapter 5)
  4. Insurance Company Operations (Chapter 6) and Government Regulation of Insurance (Chapter 8)
  5. Fundamental Legal Principles (Chapter 9) and Analysis of Insurance Contracts (Chapter 10)
  6. Life Insurance (Chapters 11, 12, 13)
  7. Review for Midterm Exam
  8. Midterm #1
  9. Life Annuities (Chapter 14) and Health Insurance (Chapter 15)
  10. Employee Benefits (Chapters 16, 17)
  11. Liability Risk (Chapter 19) & Homeowners (HO) Insurance Policy (Chapters 20 and 21)
  12. Personal Auto Policy (PAP) (Chapters 22, 23)
  13. Commercial Property and Liability Risks – (Chapters 25, 26, 27)
  14. Review for Final
  15. Final Exam

LABORATORY/PRACTICE PLAN
Week
Topic

    TEACHING/ASSESSMENT
    Description
    • Interactive Lectures
    • Presentation
    • Discussions and group work
    • Assignments
    • Guest instructor
    Description (%)
    Method Quantity Percentage (%)
    Homework210
    Midterm Exam(s)125
    Term Paper120
    Attendance15
    Final Exam140
    Total: 100
    Learning outcomes
    • Basic concepts in insurance
    • Property insurance
    • Insurance company operations
    • Government regulation of insurance
    • Legal principles in risk and insurance
    • Life insurance contractual provisions; Buying life insurance; Annuities and individual retirement accounts; Individual health insurance coverage
    • Employee benefits: Group life and health insurance
    • Personal and Commercial property and liability risks
    TEXTBOOK(S)
    • George Rejda, Principles of Risk Management and Insurance (12th edition), Prentice Hall, 2010; 10th edition acceptable.

    ECTS (Allocated based on student) WORKLOAD
    Activities Quantity Duration (Hour) Total Work Load
    Lecture (14 weeks x Lecture hours per week)15230
    Laboratory / Practice (14 weeks x Laboratory/Practice hours per week)15115
    Midterm Examination (1 week)122
    Final Examination(1 week)122
    Preparation for Midterm Examination133
    Preparation for Final Examination133
    Assignment / Homework/ Project122
    Seminar / Presentation122
    Total Workload: 59
    ECTS Credit (Total workload/25): 2