FAK 2501 Introduction to Insurance

APPLIES TO ACADEMIC YEAR 2012/2013

FAK 2501 Introduction to Insurance

Responsible for the course
Kristian Trosdahl

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
3

Language of instruction
Norwegian

Introduction
This course is the basis of the insurance education at BI. It is mandatory for the Insurance exam and all authorization exams.

Learning outcome
Acquired knowledge
The students shall obtain knowledge about the core principles and regulations of the Insurance Contracts Act and the principles and products of non-life-, life-, pension- and credit insurance and reinsurance. They shall further obtain knowledge about the asset management of the insurance companies, insurance mediation, the history and development of the insurance industry and Finance Norway (FNO) and other associations within the insurance and financial industry.

Acquired skills
The students shall be able to evaluate specific questions about the meaning and practise of core paragraphs in the Insurance Contracts Act, particularly those concerning the right of the policyholder. Further they shall be able to explain and give advice about the most common life-, non-life- and credit insurance products and answer questions about the asset management of the insurance companies, insurance broking and Finance Norway (FNO) and other associations within the insurance and financial industry.

Reflection
The students shall acquire a conscious attitude to the fact that their professional choices and advices might be of great importance for other people than themselves. They shall also be aware of and able to discuss ethical dilemmas relating to their work in the insurance industry.

Prerequisites
None

Compulsory reading
Books:
Trosdahl, Kristian, red. 2010. Forsikring : en innføring. 18. utg. BI Forsikring

Other:
Forsikringsavtaleloven


Recommended reading

Course outline
Introduction
  • Insurance vocabulary
  • The main principles for insurance
  • History of the insurance industry
  • Public supervision and regulation – The financial supervision authority of Norway (“Finanstilsynet”)
Society and insurance
  • How insurance companies are organized – mutual and public companies, life, non-life an credit insurance companies

Insurance Contracts Act
  • The Insurer’s duty to provide information and duty of the person effecting the insurance to provide information concerning the risk
  • The insurance policy
  • Stipulated safety regulations
  • Renewal, termination, claims handling, compensation

Non-life insurance
  • Terms – persons covered by the insurance, geographical limitations for the cover, damages covered, calculation of compensation
  • How to calculate the sum insured – terms: first loss or fully insured
  • Main features in the terms for household, holiday cottage, motor, travel, liability and marine insurance
  • Reinsurance
Life insurance
  • National Insurance (“Folketrygden”) – main features
  • Main features of the most common life insurance products: whole life insurance, Unit Linked products, life annuity, pension, accident and group insurance
  • Life insurance technique – premium calculation, risk assessment
  • Life insurance law and The Inheritance Act
Financial services and asset management
  • Asset management by financial institutions
  • Leasing, factoring, credit cards, mortgage, loans against security in capital goods or movables
Credit insurance

Insurance broking
  • Development of insurance broking in Norway
  • The insurance broker’s responsibility relating to client and insurance companies
  • Insurance broking in practice
  • Regulations on insurance broking
Insurance and Norwegian consumer law and regulations
  • The consumer’s right according to the Insurance Contracts Act
  • The Norwegian Bureau for Insurance Disputes
    • Insurance Complaints Board (ICB)
  • Insurance disputes in the ordinary courts of law
Cooperation in the insurance and the financial services industry
  • Finance Norway (FNO)
  • Accident and crime prevention
  • Other areas and bodies of cooperation
Ethics
  • What is ethics?
  • Ethical problems relating to insurance
  • Ethical guidelines – an example

Computer-based tools
It’s learning (virtual classroom/intranet facilities)

Learning process and workload
Part-time organized as distance education based on self-tuition and two send-ins (not mandatory).
Intensive one-day seminars are organized but participation is not mandatory.


Examination
Three hour individual written exam. Grades: “Passed” and “Failed” only.

Examination code(s)
FAK 25011 Introduction to Insurance, which account for 100 % of the final grade in the course FAK 2501, 3 ECTS.

Examination support materials
Insurance Contracts Act and BI-approved exam calculator and allowed. TEXAS INSTRUMENTS BA II Plus™
Examination support materials at written examinations are specifies under exam information in our web-based Student Handbook. Please note the use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids

Re-sit examination
A re-sit is held at the next scheduled exam in the course.

Additional information

Semesters

Translations