Econ 423 May 2016 - Econ 423 Insurance Spring 2016 Tuesday...

This preview shows page 1 - 3 out of 8 pages.

Econ 423 Insurance Spring 2016 Tuesday April 26 th Intro and Life Health (Chip Holland) Thursday April 28 th Property and Casualty Tuesday May 3 rd Property and Casualty Thursday May 5 th Exam ********************************************************************************** Thursday April 26 th 2016 and Tuesday May 3 rd , 2016 We are going to talk about insurance in these sections as it pertains to property and casualty insurance. Insurance is the legal transaction between two parties, the insurer, and the insured, where, in exchange for premium (money), the insurer agrees to indemnify or reimburse the insured for losses previously agreed to, in the insurance contract, also known as insurance policy. Risk Management is about managing risk that would occur to property and casualty exposures, this is not about risk management in losing value of your financial assets, these are your property assets and liability issues. ************************************************************************************* Grading of this section will consist of class participation (questions are welcome) and test on May 5 th . The test will consist of multiple choice questions and essay questions, to demonstrate how much of the material you understand from class. Class participation and questions will help clarify a lot of issues.
Image of page 1

Subscribe to view the full document.

1 R ISK What is risk: chance or probability of loss. Unpredictability or not knowing, insecurity Two types of risk: Speculative (uncertainty about profit or loss) sometimes known as “hedging” Pure risk (uncertainty about loss or no loss situation) A pure risk always is a chance of loss. Loss: decrease or disappearance of value, usually in an unexpected or at least relatively unpredictable manner. What makes an Insurable Risk: Firstly it has to be probability of a loss. As such, insurance cannot cover known consequences as loss of value due to age of an asset, or a building needing replacement because its structural members wear out (as expected).
Image of page 2
Image of page 3
  • Spring '16
  • Tapnia
  • insurance company

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern