Fundamentals of Insurance

Course Objectives

By the end of the course, participants will be able to:

• Discuss industry definitions & structure including:
  • Definition of risk & insurance
  • The role of insurance companies
  • Differences between Property & Casualty and Life companies
  • Overview of the global insurance marketplace
  • Insurance vs. Reinsurance
  • Two accounting standards
  • Types of ownership structures (stock, mutual, mutual holding companies)
• Recognize the primary factors determining insurance financial strength
  • Profitability (the ability to earn income)
  • Liquidity (the ability to convert assets into cash to pay claims and/or fund policyholder liabilities)
  • Leverage (the ability to produce, grow or expand business through borrowing)
• Explain industry regulation including:
  • State oversight for licensing, monitoring, consumer protection
  • Coordination by the National Association of Insurance Commissioners (NAIC)
  • Securities and Exchange Commission (publicly registered “stock” insurers and holding companies)
  • Federal legislation
    • Financial Services Modernization Act of 1999
    • Dodd-Frank Wall Street Reform & Consumer Protection Act of 2010, which created the Federal Insurance Services Office

Suggested Prerequisites: None

Program Level: Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 14

Duration: 2 days