1. Finance 431: Property-Liability Insurance Instructor: Stephen D’Arcy Teaching Assistant: Gerry Molidor Lecture 1: Introduction and Course Organization

2. General Course Information
Prerequisite:
Basic knowledge of insurance terminology and personal lines coverage (Fin 230)
Course focus - three components:
Insurance Operations
Commercial Property and Liability Exposures and Coverages
Current Events

3. Insurance Operations Overview of Industry and Profit Measures
Underwriting
Marketing and Distribution Systems
Claims Adjusting
Ratemaking
Loss Reserving
Reinsurance

4. Commercial Exposures and Coverages
Commercial Property Insurance
Commercial Liability Insurance
Excess and Umbrella Policies
Professional Liability
Workers Compensation and Employers Liability

5. Current Events – Examples (These topics may change based on issues that emerge over the semester)
Insurance Brokerage Issues
Insurance Regulation
Insurance Accounting/Finance
Catastrophes
Insurance Securitization
Intellectual Property in Insurance

6. Required Textbook
Risk Management and Insurance by Pritchett, Schmit, Doerpinghaus and Athearn (Seventh Edition) (Fin 230 Text)

7. Optional Textbooks On Reserve in the Undergraduate Library
Insurance Operations by Webb, Harrison, and Markham;Volumes I and II
Commercial Liability Risk Management and Insurance by Malecki, Horn, Wiening, and Flitner Volume II

8. Course Website http://www. business. uiuc
Course Website ~s-darcy/Fin431/2006/index.html
The site contains the syllabus, lecture notes (posted about one week prior to class), class projects (after covered in class), assignments (approximately one week prior to due date) and keys (after the due date).

9. General Purpose of Course
Fin 230 covered what every consumer needs to know about insurance.
This class covers what someone intending to work in the insurance industry, as a risk manager, or as a corporate insurance buyer needs to know about the insurance industry.

10. Likely Guest Speakers
Mark Vonnahme, Clinical Professor in Finance, Former CEO of CNA Surety
Gail Ross, Senior Consultant, Milliman
James Smieszkal, Senior Actuarial Analyst, Zurich North America
Mark Strauch, VP, Arthur J. Gallagher & Co.
James Matusiak, Actuary, PXRE Group

11. What You Should Know Now
Class Project #1

12. What’s next?
Seven lectures on the general structure of insurance companies and functions within the company.
Review and first exam.
Ten lectures on commercial property and liability coverages and workers compensation.
Review and second exam.
Six lectures on current events (the topics are subject to change).
Review and final exam.