MCCCD Program Description

Principles of Property and Liability Insurance

Course: INS200

First Term: 2018 Fall

Lecture 3.0 Credit(s) 3.0 Period(s) 3.0 Load
Subject Type: Occupational
Load Formula: S - Standard Load

Description: Basic principles of insurance. Introduction to insurance contracts. Overview of company functions and operations including ratemaking, underwriting, claims, adjusting, and marketing.

MCCCD Official Course Competencies
1. Describe the basic elements of the insurance industry. (I, V, XI, XII) 2. List the social costs and benefits of the insurance industry to our society. (I) 3. List the four major types of insurance. (II) 4. Identify the various types of property subject to loss. (III) 5. Evaluate the monetary value of potential loss. (III, IV, VI, VII, IX) 6. Analyze liability loss exposures in terms of damages. (IV) 7. Explain the liability adjustment process from time of claim to time of settlement. (IV) 8. List the parts of an insurance policy. (V, VI, VII) 9. Evaluate property loss situations. (VI) 10. Describe covered property losses. (VI) 11. Define liability policy coverage provisions. (VII) 12. List the various types of insurance producers. (VIII) 13. Describe the major types of insurance providers. (VIII) 14. Identify the factors of insurance company profitability. (IX) 15. Describe the method of regulating the insurance industry. (IX) 16. Explain how the insurance product is marketed. (X) 17. Describe the underwriting and claims functions in terms of their impact on profitability. (XI, XII) 18. Analyze the risk management process. (XIII)
MCCCD Official Course Competencies must be coordinated with the content outline so that each major point in the outline serves one or more competencies. MCCCD faculty retains authority in determining the pedagogical approach, methodology, content sequencing, and assessment metrics for student work. Please see individual course syllabi for additional information, including specific course requirements.

MCCCD Official Course Outline
I. Insurance basics A. Loss exposures B. Uncertainty of financial loss C. Techniques for treating loss exposures D. Benefits of insurance E. Social costs of insurance II. Types of insurance A. Property B. Life C. Health D. Casualty III. Property insurance A. Types of property 1. Real 2. Personal 3. Vehicles 4. Property in transit B. Perils affecting property C. Persons affected by losses D. Financial consequences of a loss 1. Reduction in value 2. Increased expenses 3. Lost income IV. Liability loss exposures A. Categories of the law 1. Criminal 2. Civil B. Legal rights of recovery 1. Types of torts 2. Contracts 3. Statutes C. Damages 1. Bodily injury 2. Property damages 3. Legal fees and expenses D. Liability judgements 1. Legal process 2. Valuation 3. Impact on insurance rates V. Insurance contracts A. Elements of a contract B. Unique nature of insurance contracts 1. Conditional 2. Aleatory 3. Utmost good faith 4. Aggression 5. Indemnity C. Policy content 1. Insuring agreement 2. Conditions 3. Exclusions 4. Limits VI. Property provisions A. Parties protected by the contract B. Covered property 1. Structures 2. Contents C. Covered causes of loss 1. Named peril 2. Risk of loss 3. Burden of proof D. Covered consequences E. Recovery 1. Replacement value 2. Actual cash value 3. Settlement options F. Insurance to value VII. Liability provisions A. Third party coverage B. Activities covered 1. On premises 2. Off premises 3. Operations 4. Products C. Injuries covered 1. Bodily injury 2. Property damage 3. Personal injury 4. Professional liability D. Supplementary payments E. Covered time periods F. Limits of recovery VIII. Providers of insurance A. Characteristics of an ideally insurable exposure B. Private insurers 1. Mutual 2. Lloyd`s of London 3. Stock companies 4. Insurance exchanges C. Lines of insurance 1. Primary 2. Reinsurer D. Government insurers IX. Financial performance and regulation A. How profitability is measured 1. Premium income 2. Losses 3. Loss reserves 4. Expenses 5. Investment income B. Solvency 1. Assets 2. Liabilities 3. Surplus C. Regulation 1. State participation 2. Rate regulation 3. Form regulation 4. Examinations X. Marketing A. Responsibilities of the insurance producer B. Marketing systems 1. Independent agent 2. Broker 3. Direct writer 4. Exclusive agent 5. Direct mail C. Compensation D. Licensing laws XI. Underwriting A. Purpose of underwriting B. Underwriting activities C. Pricing the insurance policy D. Underwriting process 1. Gathering information 2. Decision making 3. Underwriting options 4. Monitoring XII. Claims and other functions A. Claims adjusting 1. Primary 2. Types of adjusters 3. Investigation 4. Negotiations 5. Settlement 6. Unfair claims practices B. Loss control C. Premium auditing XIII. Risk management A. Definition B. Risk management process 1. Identify exposures 2. Select an alternative 3. Implement 4. Monitor

MCCCD Governing Board Approval Date: May 22, 2018

All information published is subject to change without notice. Every effort has been made to ensure the accuracy of information presented, but based on the dynamic nature of the curricular process, course and program information is subject to change in order to reflect the most current information available.