1. Understanding Insurance and Risk Management Theodore A. (Ted) Feitshans Extension Associate Professor Department of Agricultural & Resource Economics North Carolina State University 919-515-5195 ted_feitshans@ncsu.edu January 18, 2012

2. DISCLAIMER Information provided is for educational purposes only; nothing herein constitutes the provision of legal advice or services, and no attorney-client relationship is formed. E-mail correspondence to and from this address (ted_feitshans@ncsu.edu) may be subject to the North Carolina Public Records Law and may be disclosed, if permitted by law, to third parties. All e-mail to and from this address will be archived for a minimum period of 10 years.

3. Liability

4. Where does liability come from?

5. Contracts

6. IPRs

7. Torts

8. Strict Liability in Tort

9. Intentional Torts

10. Quasi- Intentional Torts

11. Negligent Torts

12. Duty

13. Duty to a Trespasser

14. Duty to an Invitee

15. Modification of Duty by Statute

16. Breach of Duty

17. Proximate Cause

18. Actual Damages

19. Contributory Negligence

20. Waivers

21. Choice of Business Entity

22. Independent Contractors

23. Employment

24. Managing Risk Intelligently

25. The Risk Management Model

26. Risk identification

27. Risk Evaluation Low-Severity, Low- Frequency High-Severity, Low- Frequency Low-Severity, High- Frequency High-Severity, High- Frequency

28. Risk Treatment

29. Selection & Implementation

30. Program Monitoring

31. What Is Insurance?

32. Let’s talk terminology…

33. Premium

34. Rider

35. Policy

36. EVENT

37. CLAIM

38. Adjuster

39. Policy holder Insured Third-party beneficiary

40. Agent/ Broker

41. Insurable Interest

42. Underwriter

43. Actuary

44. Reinsurer

45. Insurance Needs Disability Health Life: owner & key employees Property/Casualty Liability Motor vehicle Business interruption

46. Motor Vehicle Issues

47. Managing Your Insurance

48. Read Your Policy!

49. Ask Questions!

50. Ask more questions!

51. Promptly notify your agent of claims!

52. Communicate with your insurance agent!

53. Use the resources that your insurance agent provides

54. Insurance Pays the Costs of Defense

55. CONCLUSION

56. N.C. Department of Insurance For assistance in finding authorized insurance services in North Carolina: –N.C. Department of Insurance http://www.ncdoi.com/ For assistance finding insurance, regularly licensed companies and surplus lines: –MAP (919) 733-9811 or (800) 546-5664 For help with unauthorized insurance: –1-800-546-5664 Consumer services –(919) 733-7487 Agent services 56