1. Finance 431: Property-Liability Insurance Instructors: Stephen D’Arcy Mark Vonnahme Teaching Assistant: Adam Gruen Lecture 1: Introduction and Course Organization

2. General Course Information Prerequisite: Basic knowledge of insurance terminology and personal lines coverage (Fin 230) Course focus - three components: 1Insurance Operations 2Commercial Property and Liability Exposures and Coverages 3Current Events

3. Insurance Operations Overview of Industry and Profit Measures Underwriting Marketing and Distribution Systems Claims Ratemaking Loss Reserving Reinsurance

4. Commercial Exposures and Coverages Commercial Property Insurance Workers Compensation Commercial Liability Insurance Excess and Umbrella Policies Professional Liability Surety

5. Current Events – Examples Insurance Brokerage Insurance Regulation Insurance Accounting/Finance Catastrophes Insurance Securitization Intellectual Property in Insurance

6. Required Textbook Risk Management and Insurance by Pritchett, Schmit, Doerpinghaus and Athearn (Seventh Edition) (Fin 230 Text)

7. Optional Textbooks On Reserve in the Undergraduate Library Insurance Operations by Webb, Harrison, and Markham;Volumes I and II Commercial Liability Risk Management and Insurance by Malecki, Horn, Wiening, and Flitner Volume II

8. Course Website http://www.business.uiuc.edu/ ~s-darcy/Fin431/2005/index.html The site contains the syllabus, lecture notes (posted about one week prior to class), class projects (after covered in class), assignments (approximately one week prior to due date) and keys (after the due date).

9. General Purpose of Course Fin 230 covered what every consumer needs to know about insurance. This class covers what someone intending to work in the insurance industry, as a risk manager, or as a corporate insurance buyer needs to know about the industry.

10. Whom You Should Know Mark Vonnahme Visiting Lecturer in Finance Former CEO of CNA Surety Will cover surety, professional liability, marketing and distribution systems, insurance brokerage issues, and insurance accounting and finance.

11. What You Should Know Now Class Project #1

12. What’s next? Seven lectures on the general structure of insurance companies and functions within the company. Review and first exam. Ten lectures on commercial property and liability coverages, workers compensation and surety. Review and second exam. Six lectures on current events (the topics are subject to change). Review and final exam.