Risk Management and Insurance
Risk Management and Insurance

Risk Management and Insurance

Lead Author(s): Rob Hoyt, David Sommer

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The text covers the foundations of risk management and insurance. The broad view of risk reflected in the concept of enterprise risk management is incorporated throughout the text, while still maintaining features that are important for introductory courses in risk management and insurance. The text considers property, liability, life, health, and income risks for both individuals and organizations. For all risks discussed, both insurance and non-insurance solutions are analyzed.

Risk Management and Insurance

Robert E. Hoyt, University of Georgia

David W. Sommer, St. Mary's University

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Table of Contents (Condensed)

Part I - Fundamentals of Risk and Risk Management

Chapter 1: Introduction to Risk

Chapter 2: Risk Identification and Evaluation

Chapter 3: Property and Liability Loss Exposures

Chapter 4: Risk Management Techniques: Non-Insurance Methods

Chapter 5: Insurance as a Risk Management Technique: Principles

Chapter 6: Insurance as a Risk Management Technique: Policy Provisions

Chapter 7: Selecting and Implementing Risk Management Techniques

Part II - Personal Risk Management

Chapter 8: Risk Management for Auto Owners

Chapter 9: Risk Management for Homeowners

Chapter 10: Managing the Risk of Loss of Life

Chapter 11: Managing the Risk of Loss of Health

Chapter 12: Employee Benefits - Life and Health Benefits

Chapter 13: Employee Benefits - Retirement Plans

Chapter 14: Financial and Estate Planning

Part III - Commercial Risk Management

Chapter 15: Risk Management and Commercial Property

Chapter 16: Risk Management and Commercial Liability Risk

Chapter 17: Workers' Compensation and Alternative Risk Financing

Part IV - The Risk Management Environment

Chapter 18: Risk Management and the Insurance Industry

Chapter 19: Functions and Organization of Insurers

Chapter 20: Government Regulation of Risk Management and Insurance


Table of Contents (Expanded)

Part I - Fundamentals of Risk and Risk Management

Chapter 1: Introduction to Risk

The Burden of Risk; Categories of Risk; Attitudes toward Risk;  Types of Risk; Measurement of Risk; Perils and Hazards Associated with Risk; Management of Risk

Chapter 2: Risk Identification and Evaluation

Risk Identification; Risk Evaluation Accuracy of Predictions

Chapter 3: Property and Liability Loss Exposures

Property Loss Exposures; Liability Exposures; Types of Liability Damages; Criminal and Civil Law; Torts; Basic Law of Negligence; Defenses Against Negligence Claims; Factors Leading to Higher Standards of Care; Types of Liability Exposures; Miscellaneous Liability 

Chapter 4: Risk Management Techniques: Non-Insurance Methods

Risk Avoidance;  Loss Control; Risk Retention; Risk Transfer; The Value of Risk Management

Chapter 5: Insurance as a Risk Management Technique: Principles

The Nature of Insurance; The Principle of Indemnity; The Principle of Insurable Interest; Principle of Subrogation; Principle of Utmost Good Faith; Requisites of Insurable Risks; Requirements of an Insurance Contract; Distinguishing Characteristics of Insurance Contracts; Principles of Social Insurance; Social and Economic Values and Costs of Insurance

Chapter 6: Insurance as a Risk Management Technique: Policy Provisions

Declarations; The Insuring Agreement; Exclusions; Common Policy Conditions; Definitions; Basis of Recovery; Clauses Limiting Amounts Payable

Chapter 7: Selecting and Implementing Risk Management Techniques

Avoid Risks If Possible and Appropriate; Implement Appropriate Loss Control Measures; Select the Optimal Mix of Risk Retention and Risk Transfer; Implementing Decisions; Subjective Risk Management; Enterprise Risk Management and Alternative Risk Transfer

Part II - Personal Risk Management

Chapter 8: Risk Management for Auto Owners

The High Cost of Automobile Losses; Insurance Claims; The Need for Insurance; Where Does the Auto Insurance Premium Go?; Personal Automobile Policy; Personal Auto Policy Components; Automobile Insurance and the Law; Cost Containment; Risk Management and Personal Automobile Rating; Alcohol and Driving

Chapter 9: Risk Management for Homeowners

Homeowners’ Program: Development; Analysis of Homeowners’ Policy; Perils Covered in Homeowners’ Insurance; Optional Property Endorsements to Homeowners’ Policies; Flood Insurance; Personal Articles Floater; Mobile Home Endorsement to Homeowners’ Policy; Shopping Tips for Homeowners; Personal Liability and Medical Payments Coverage; Dwelling Program; Personal Risk Management

Chapter 10: Managing the Risk of Loss of Life

Exposures Due to Premature Death; Likelihood of Premature Death; Needs versus Human Life Values; Types of Life Insurance; Income Tax Treatment of Life Insurance; Life Insurance Contract Provisions; Considerations in Buying Life Insurance

Chapter 11: Managing the Risk of Loss of Health

Exposures Due to Loss of Health; Managing Exposures Due to Loss of Health; Health Insurance Providers; Medicaid and Medicare; Mechanics of Cost Sharing; The Individual Health Insurance Market; Dental Insurance; Long-Term Care Insurance; Other Health Expense Insurance; Disability Income Insurance; Individual health Insurance Policy Provisions

Chapter 12: Employee Benefits - Life and Health Benefits

Reasons for Employee Benefits; Premature Death Benefits; Health Expense Benefits; Disability Income Benefits

Chapter 13: Employee Benefits - Retirement Plans

Social Security Retirement Benefits; Employer-Sponsored Retirement Plans; Individual Retirement Accounts; Retirement Plans for Small Businesses and The Self-Employed

Chapter 14: Financial and Estate Planning

The Retirement Exposure; Annuities; Structure of Annuities; Annuity Characteristics; Annuity Taxation; Estate Planning

Part III - Commercial Risk Management

Chapter 15: Risk Management and Commercial Property

The Commercial Package Policy; Building and Personal Property Coverage Form; Boiler and Machinery Insurance (Equipment Breakdown Insurance); Business Owners Policy; Other Commercial Property Forms; Reporting Forms; Consequential Loss Coverage; Other Important Forms of Property Insurance

Chapter 16: Risk Management and Commercial Liability Risk

Common Liability Contract Provisions; Commercial General Liability Insurance; Employment Practices Liability; Business Auto Coverage; Professional Liability Insurance; Commercial Umbrella

Chapter 17: Workers' Compensation and Alternative Risk Financing

Workers’ Compensation Insurance; Risk Management and Workers’ Compensation; Captive Insurance Companies

Part IV - The Risk Management Environment

Chapter 18: Risk Management and the Insurance Industry

The Field of Insurance; Types of Insurers; Channels of Distribution in Insurance; Globalization of Risk Management and the Insurance Industry

Chapter 19: Functions and Organization of Insurers

Production; Underwriting; Rate Making; Managing Claims and Losses; Investing and Financing; Reinsurance

Chapter 20: Government Regulation of Risk Management and Insurance

Why Insurance is Regulated; The Legal Background of Regulation; The McCarran-Ferguson Act; Federal versus State Regulation; Responsibilities of the Insurance Regulators; Miscellaneous Insurance Laws; Taxation of Insurance





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