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25350 Principles of Risk and Insurance

UTS: Business: Finance and Economics
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): (25300 Fundamentals of Business Finance AND (26134 Business Statistics OR 26133 Business Information Analysis) AND 25115 Economics for Business)
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces students to the theory of risk and examines the history and evolution of insurance together with its contemporary functioning. Students are exposed to the study of insurance as a commercial, economic and social institution. The subject also deals with the principal statutory controls governing the transaction of insurance business in Australia.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

  1. understand the influence of uncertainty or risk in insurance
  2. examine the history and evolution of insurance together with its contemporary functioning
  3. understand the study of insurance as a commercial, economic and social institution
  4. understand the principal statutory controls governing the transaction of insurance business in Australia.

Contribution to graduate profile

This subject serves as a foundation course to subsequent subjects in insurance.

Teaching and learning strategies

This subject uses case problems and practical assignments to reinforce the concepts covered in lectures.

Content

  • Introduction to concepts of risk and insurance
  • Insurance in Australia — general and life insurance industries, current trends and issues
  • Introduction to risk management, underwriting and legal principles of insurance
  • An outline of current regulation of the Australian insurance process
  • An introduction to life insurance and the regulation of the Australian life insurance industry.

Assessment

Assessment item 1: Class Tests (Individual)

Objective(s): 1, 2
Weighting: 50%
Task: Class tests assure objectives 1 and 2. They assess students' understanding of the role of insurance in risk management and the evolution of its functions over time.
    The Mid-Semester Examination which is of 1.5 hours duration will cover Topics One to Seven inclusive and will examine learning objectives a. & b.
    The Mid-Semester Examination, which is worth 35% of the total Subject Marks, is designed to indicate to the student the extent to which they have grasped the essential elements of the particular Topic(s).
    The Examination will comprise three (3) questions requiring essay style responses.
    The Examination will be preceded by 10 Minutes reading time.

Assessment item 2: Final Examination (Individual)

Objective(s): 1-4
Weighting: 50%
Task: Final examination assures objectives 1-4. Students are tested for their understanding of the functions of insurance and their knowledge of principal statutory controls of the Australian insurance industry.
    65% Weighting
    The Examination which is of 3 hours duration will cover Topics One to Thirteen inclusive and examine learning objectives a., b.& c.
    The Examination will comprise six (6) questions requiring essay style responses.
    The Examination will be preceded by 10 Minutes reading time.

Recommended text(s)

George E. Rejda, Principles of Risk Management and Insurance, 10 edn, Pearson Addison Wesley, Boston, 2007

Note: Students should avoid reference to earlier editions of this textbook due to the major changes incorporated in the latest edition.

Other resources

All 25350 lecture overheads will be available on UTS 25350 Online.

Relevant readings will be placed on UTS 25350 Online or are accessible in the UTS City campus library or via the internet.