Department of Finance and Marketing
Fin
156
Office: 466 Tehama
PonArul
Phone: 898-6242
Fall
2004
Email:rponarul@csuchico.edu
Fax: 898-6360
RISK AND INSURANCE
Scope: In this course we will
study how insurance contracts are designed and how they can be used in risk
management. We will also study how
the insurance industry is organized and regulated. The objective will be to understand the
role of insurance in the field of finance.
Prerequisites: FIN 150 (not
being taken concurrently)
Text: Principles of Risk
Management and Insurance by
Rejda (Eighth edition)
Handouts and articles
circulated in the class will also be considered required
reading.
Format: Class lectures will be
informal with ample opportunities for questions and clarifications. The students
are expected to have read the assigned chapters in advance and work on the
questions at the end of each chapter in a timely manner.
Exams and quizzes: There will be two exams and several
quizzes. Missed quizzes cannot be made up.
Roughly 30% will be dropped. No makeup exams or other remedial measures
will be available.
Mini papers: Students will have to write two mini
papers (2 to 4 pages in length).
Topics and deadlines will be announced later.
Grading: 90% and above
A and A minus
75% to 90%
B plus, B and B minus
60% to 75%
C plus, C and C minus
50% to 60%
D plus and D
The maximum possible points
will be 250, with the following distribution.
Midterm 1
50
points
Midterm 2
50
Final Exam
80
Quizzes
40
Mini papers
30
Schedule
Week
1
Introduction. Some
definitions. (Chapters 1 & 2)
Week
2
Risk Management. (Chapters 3
& 4)
Week
3
Legal aspects (Chapter 5)
Week
4
Insurance contracts (Chapter
6)
Week
5
Liability risk (Chapter 7)
Week
6
Midterm I (September
29)
Week
7
Life Insurance (Chapters 16 and 17)
Week
8
Life Insurance (Chapters 18
and 19)
Week
9
Annuities and retirement accounts
(Chapter 20)
Week
10
Employee benefits (Chapters 22 & 23)
Week
11
Midterm II (November
3)
Week
12
Homeowners (Chapters 8 and 9)
Week
13
Auto insurance. (Chapters 10 & 11)
Week
14
Insurer Operations.
(Chapters 25 and 26)
Week
15
Pricing and Regulation (Chapters 27 and 28)
Final exam (As per university
schedule)