Principles of risk management and insurance / George E. Rejda.

Includes bibliographical references and index.

Machine derived contents note: Contents -- Preface xvi -- Part One Basic Concepts in Risk Management and -- Insurance 1 -- chapter 1 Risk in Our Society 2 -- Meaning of Risk 3 -- Chance of Loss 4 -- Peril and Hazard 5 -- Basic Categories of Risk 6 -- Types of Pure Risk 8 -- Burden of Risk on Society 11 -- Methods of Handling Risk 12 -- Summary 15 n Key Concepts and Terms 15 n Review -- Questions 16 -- Application Questions 16 n Internet Resources 17 n -- Selected References 17 -- Notes 17 -- Case Application 14 -- Insight 1.1: At a Glance; The Economic Problem of Poor -- Health 10 -- chapter 2 Insurance and Risk 18 -- Definition of Insurance 19 -- Basic Characteristics of Insurance 19 -- Requirements of an Insurable Risk 21 -- Two Applications: The Risks of Fire and Unemployment 23 -- Adverse Selection and Insurance 24 -- Insurance and Gambling Compared 24 -- Insurance and Hedging Compared 25 -- Types of Insurance 25 -- Benefits of Insurance to Society 28 -- Costs of Insurance to Society 29 -- Summary 33 n Key Concepts and Terms 34 n Review -- Questions 34 -- Application Questions 34 n Internet Resources 35 n -- Selected References 36 -- Notes 36 -- Case Application 33 -- Insight 2.1: Insurance Fraud Hall of Shame; Sampling of -- Outrageous Cases 31 -- Insight 2.2: Don't Think Insurance Fraud is Committed -- Only by Hardened -- Crooks 32 -- Appendix Basic Statistics and the Law of Large -- Numbers 38 -- chapter 3 Introduction to Risk Management 41 -- Meaning of Risk Management 42 -- Objectives of Risk Management 42 -- Steps in the Risk Management Process 43 -- Identifying Loss Exposures 44 -- Analyze the Loss Exposures 44 -- Select the Appropriate Techniques for Treating the Loss -- Exposures 45 -- Implement and Monitor the Risk Management Program 52 -- Benefits of Risk Management 53 -- Personal Risk Management 53 -- Summary 56 n Key Concepts and Terms 57 n Review -- Questions 57 -- Application Questions 58 n Internet Resources 59 n -- Selected References 59 -- Notes 59 -- Case Application 56 -- Insight 3.1: Why Do Firms Self-Insure Their Group Health -- Insurance Plans? 49 -- Insight 3.2: Show Me the Money; Risk Manager Salaries -- Rise 54 -- Chapter 4 Advanced Topics in Risk Management 61 -- The Changing Scope of Risk Management 62 -- Insurance Market Dynamics 65 -- Loss Forecasting 69 -- Financial Analysis in Risk Management Decision Making 72 -- Other Risk Management Tools 75 -- Summary 77 n Key Concepts and Terms 78 n Review -- Questions 78 -- Application Questions 78 n Internet Resources 79 n -- Selected References 80 -- Notes 80 -- Case Application 77 -- Insight 4.1: The Weather (Derivatives) Report 70 -- Appendix Risk Management Application Problems 82 -- Part Two The Private Insurance Industry 87 -- Chapter 5 Types of Insurers and Marketing Systems 88 -- Overview of Private Insurance in the Financial Services -- Industry 89 -- Types of Private Insurers 92 -- Agents and Brokers 98 -- Types of Marketing Systems 99 -- Group Insurance Marketing 102 -- Summary 103 n Key Concepts and Terms 103 n Review -- Questions 103 -- Application Questions 104 n Internet Resources 104 n -- Selected References 105 -- Notes 106 -- Case Application 102 -- Insight 5.1: Holding Company Schemes: The Feeling Isn't -- Mutual 96 -- Insight 5.2: How Much Do Insurance Agents Earn? 99 -- Chapter 6 Insurance Company Operations 107 -- Insurance Company Operations 108 -- Rate Making 108 -- Underwriting 109 -- Production 112 -- Claims Settlement 113 -- Reinsurance 115 -- Alternatives to Traditional Reinsurance 120 -- Investments 121 -- Other Insurance Company Functions 124 -- Summary 125 n Key Concepts and Terms 126 n Review -- Questions 126 -- Application Questions 126 n Internet Resources 127 n -- Selected References 128 -- Notes 128 -- Case Application 125 -- Insight 6.1: Stiffed by Your Insurer? Check Your -- Insurer's Complaint -- Record 115 -- Insight 6.2: New Proposals for Dealing with Mega- -- Catastrophes 121 -- Chapter 7 Financial Operations of Insurers 130 -- Property and Casualty Insurers 131 -- Life Insurance Companies 136 -- Rate Making in Property and Casualty Insurance 139 -- Rate Making in Life Insurance 143 -- Summary 144 n Key Concepts and Terms 145 n Review -- Questions 145 -- Application Questions 145 n Internet Resources 146 n -- Selected References 147 -- Notes 147 -- Case Application 143 -- Insight 7.1: Profitability of Insurance Industry and -- other Selected -- Industries 137 -- Chapter 8 Government Regulation of Insurance 149 -- Reasons for Insurance Regulation 150 -- Historical Development of Insurance Regulation 151 -- Methods for Regulating Insurers 153 -- What Areas Are Regulated? 153 -- State Versus Federal Regulation 161 -- Current Problems and Issues in Insurance Regulation 163 -- Summary 169 n Key Concepts and Terms 169 n Review -- Questions 169 -- Application Questions 170 n Internet Resources 171 n -- Selected References 171 -- Notes 172 -- Case Application 168 -- Insight 8.1: 2005 Annual Ranking of Automobile Insurance -- Complaints -- in New York State (based on 2004 data) 159 -- Part THREE Legal Principles in Risks and -- Insurance 173 -- Chapter 9 Fundamental Legal Principles 174 -- Principle of Indemnity 175 -- Principle of Insurable Interest 178 -- Principle of Subrogation 179 -- Principle of Utmost Good Faith 181 -- Requirements of an Insurance Contract 183 -- Distinct Legal Characteristics of Insurance Contracts 185 -- Law and the Insurance Agent 186 -- Summary 188 n Key Concepts and Terms 189 n Review -- Questions 190 -- Application Questions 190 n Internet Resources 191 n -- Selected References 191 -- Notes 191 -- Case Application 188 -- Insight 9.1: Corporation Lacking Insurable Interest at -- Time of Death Can Receive -- Life Insurance Proceeds 180 -- Insight 9.2: Auto Insurer Denies Coverage Because of -- Material -- Misrepresentation 182 -- Insight 9.3 Insurer Voids Coverage Because of -- Misrepresentations in Proof -- of Loss 182 -- Chapter 10 Analysis of Insurance Contracts 193 -- Basic Parts of an Insurance Contract 194 -- Definition of the "Insured" 197 -- Endorsements and Riders 198 -- Deductibles 198 -- Coinsurance 200 -- Coinsurance in Health Insurance 201 -- Other-Insurance Provisions 201 -- Summary 204 n Key Concepts and Terms 204 n Review -- Questions 205 -- Application Questions 205 n Internet Resources 206 n -- Selected References 206 -- Notes 207 -- Case Application 203 -- Insight 10.1: Will Your Auto Insurance Cover You When You -- Drive Another -- Person's Car? 197 -- Part Four Life and health Risks 209 -- Chapter 11 Life Insurance 210 -- Premature Death 211 -- Financial Impact of Premature Death on Different Types of -- Families 212 -- Amount of Life Insurance to Own 213 -- Types of Life Insurance 219 -- Variations of Whole Life Insurance 225 -- Other Types of Insurance 234 -- Summary 237 n Key Concepts and Terms 238 n Review -- Questions 239 -- Application Questions 239 n Internet Resources 241 n -- Selected References 242 -- Notes 242 -- Case Application 237 -- Insight 11.1: 2001 CSO Mortality Table 222 -- Insight 11.2: How Good Is Cash-Value Life Insurance as an -- Investment? 224 -- Insight 11.3: Variable Universal Life Insurance: Is It -- Worth It? 232 -- Chapter 12 Life Insurance Contractual Provisions 244 -- Life Insurance Contractual Provisions 245 -- Dividend Options 251 -- Nonforfeiture Options 253 -- Settlement Options 254 -- Additional Life Insurance Benefits 259 -- Summary 264 n Key Concepts and Terms 264 n Review -- Questions 265 -- Application Questions 265 n Internet Resources 266 n -- Selected References 267 -- Notes 267 -- Case Application 262 -- Insight 12.1: Is This Death a Suicide? 247 -- Insight 12.2: Don't Be Confused About Dividend -- Options 252 -- Insight 12.3: Examples of Life Settlement Cases 262 -- Chapter 13 Buying Life Insurance 268 -- Determining the Cost of Life Insurance 269 -- Rate of Return on Saving Component 273 -- Taxation of Life Insurance 275 -- Shopping for Life Insurance 272 -- Summary 280 n Key Concepts and Terms 281 n Review -- Questions 281 -- Application Questions 281 n Internet Resources 282 n -- Selected References 282 -- Notes 283 -- Case Application 279 -- Insight 13.1: Be Careful in Replacing an Existing Life -- Insurance Policy 273 -- Appendix Calculation of Life Insurance Premiums 284 -- Chapter 14 Annuities and Individual Retirement -- Accounts 290 -- Individual Annuities 291 -- Types of Annuities 292 -- Taxation of Individual Annuities 295 -- Individual Retirement Accounts 297 -- Summary 305 n Key Concepts and Terms 306 n Review -- Questions 306 -- Application Questions 306 n Internet Resources 307 n -- Selected References 307 -- Notes 307 -- Case Application 1 304 -- Case Application 2 304 -- Insight 14.1: At a Glance; Advantages of an Immediate -- Annuity 293 -- Insight 14.2: Ten Questions to Answer Before You Buy a -- Variable Annuity 298 -- Insight 14.3: Will You Have Enough Money at Retirement? -- Monte Carlo Simulations -- Can Be Helpful 303 -- Chapter 15 Individual Health Insurance Coverages 309 -- Health-Care Problems in the United States 310 -- Large Member of Uninsured Persons in the Population 312 -- Individual Health Insurance Coverages 313 -- Hospital-Surgical Insurance 314 -- Major Medical Insurance 314 -- Health Savings Accounts 316 -- Long-Term-Care Insurance 319 -- Disability-Income Insurance 321 -- Individual Medical Expense Contractual Provisions 324 -- Shopping for Individual Health Insurance 326 -- Summary.

This book provides complete and current treatment of major rike management, functional and financial operations of insurers, legal principles, life and health insurance, property and liability insurance, employee benefits and social insurance.