New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Prin of Risk Mgmt & Insur

by: Mr. Sonia Ruecker

Prin of Risk Mgmt & Insur FINN 3271

Mr. Sonia Ruecker
GPA 3.72

Faith Neale

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Faith Neale
Class Notes
25 ?




Popular in Course

Popular in Finance

This 3 page Class Notes was uploaded by Mr. Sonia Ruecker on Sunday October 25, 2015. The Class Notes belongs to FINN 3271 at University of North Carolina - Charlotte taught by Faith Neale in Fall. Since its upload, it has received 70 views. For similar materials see /class/228894/finn-3271-university-of-north-carolina-charlotte in Finance at University of North Carolina - Charlotte.


Reviews for Prin of Risk Mgmt & Insur


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/25/15
Risk Management I Acme Chemical Company Preloss Minimize cost and impact of fireexplosion Reduce anxiety protection amp security Meet legal obligations OSHA pollution building code Postloss Survival Continued operation Stability of earnings Continued growth Social responsibility Risk Management Process I Identify potential losses 4 areas Property I Liability Net income amp extra expense Personnel including employee benefits I Analyze loss exposures I Examine RM techniques I Select RM techniques for treating losses I Implement I Monitor amp Revise Identifying Potential Losses I Questionnaires I Inspection of the premises I Flow charts of product and processes I Financial statements I Historical loss data Analyze loss exposures I Frequency and severity I Also estimate losses from a single event I Maximum possible loss Katrina or World Trade Center I Maximum probable loss Hurricane modeling Techniques for Treating Loss I RiskControl I Risk Financing CH 3 Redja Principles of Risk Management and Insurance 9 11 Edition FINN 3271 Risk Control I Avoidance I Withdraw product from the market Vioxx asbestos I Loss Prevention I Reduce frequency I Safety programs I Driver Training Vehicle inspections MVR Checks construction site worker safety I Loss Reduction I Reduce severity I Sprinkler system fire walls amp doors fire suppression re and burglar proof safe worker rehab Risk Financing I Retention I Non insurance transfers I Insurance transfers Retention I Why retain losses I The only RM treatment option I Worst possible loss is not significant I Losses are very predictable and can be planned for I WC auto physical damage I How much to retain I The amount that can be paid without affecting the firm s earnings Typically no more than 5 of firms EBIT I A percentage of net working capital 1 5 Measures rm s ability to pay a loss Self Insurance I Losses paid from income or reserves I Current net income I Unfunded reserve I Funded reserve I Credit line I Excess insurance over stop loss I Examples I Workers compensation I Health insurance Captives I Single parent captive or association captive I IRS requires risk transfer in order for insured to deduct premiums paid to captive I Captive must derive 30 of premium from unrelated exposures in order to show risk transfer I Example I Belk Stores CH 3 Redja Principles of Risk Management and Insurance 9 11 Edition 2 FINN 3271 Risk Retention Groups I Group captive I Example Medical malpractice I Captives olten domiciled in Bermuda Caribbean South Carolina or Vermont Non Insurance Transfer I Leases I Equipment lease I Apartment lease I Hold Harmless Agreements I Construction contract contractor holds the property owner harmless Insurance Program I Covera es Deductible or retention I Insurers Financial strength and service Premium I Contract terms Filed or manuscript I Dissemination of insurance information Records required notice of loss comply with policy provisions I Periodic review CH 3 Redja Principles of Risk Management and Insurance 9 11 Edition FINN 3271


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.