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by Therese M. Vaughan, Emmett J. Vaughan
Fundamentals of Risk and Insurance, 11th Edition
Cover Page
Title Page
Copyright
Dedication
ABOUT THE AUTHORS
PREFACE
SCOPE OF THE SUBJECT
WHY STUDY INSURANCE?
ORGANIZATION OF THE BOOK
CHANGES IN THE TENTH EDITION
ACKNOWLEDGMENTS
BRIEF CONTENTS
CONTENTS
Chapter 1: The problem of risk
THE CONCEPT OF RISK
THE BURDEN OF RISK
THE GROWING NUMBER AND VARIETY OF PURE RISKS
INCREASING SEVERITY OF LOSSES
MANAGING RISK
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
Chapter 2: Introduction to Risk Management
THE HISTORY OF MODERN RISK MANAGEMENT
ENTERPRISE RISK MANAGEMENT
RISK MANAGEMENT DEFINED
RISK MANAGEMENT TOOLS
RISK MANAGEMENT AS A BUSINESS FUNCTION
MISCONCEPTIONS ABOUT RISK MANAGEMENT
RISK MANAGEMENT AND THE INDIVIDUAL
THE RISK MANAGEMENT PROCESS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 3: The Insurance Device
THE NATURE AND FUNCTIONS OF INSURANCE
THE ECONOMIC CONTRIBUTION OF INSURANCE
ELEMENTS OF AN INSURABLE RISK
SELF-INSURANCE
THE FIELDS OF INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 4: Risk Management Applications
RISK MANAGEMENT DECISIONS
BUYING INSURANCE
ALTERNATIVES TO COMMERCIAL INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 5: The Private Insurance Industry
A BRIEF HISTORY OF PRIVATE INSURANCE
CLASSIFICATION OF PRIVATE INSURERS
MARKETING SYSTEMS
COOPERATION IN THE INSURANCE INDUSTRY
COMPETITION IN THE INSURANCE INDUSTRY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 6: Regulation of the Insurance Industry
THE WHY OF GOVERNMENT REGULATION OF INSURANCE
REGULATION TODAY
AREAS REGULATED
STATE VERSUS FEDERAL REGULATION
GLOBAL INFLUENCES ON INSURANCE REGULATION
APPENDIX THE AVAILABILITY/AFFORDABILITY DEBATE
THE ESSENCE OF THE DEBATE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 7: Functions of Insurers
FUNCTIONS OF INSURERS
RATEMAKING
PRODUCTION
UNDERWRITING
LOSS ADJUSTMENT
THE INVESTMENT FUNCTION
MISCELLANEOUS FUNCTIONS
APPENDIX RETROSPECTIVE RATING PLANS
THE RETROSPECTIVE FORMULA
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 8: Financial Aspects of Insurer Operations
STATUTORY ACCOUNTING REQUIREMENTS
PROPERTY AND LIABILITY INSURERS
LIFE INSURANCE COMPANIES
REINSURANCE
TAXATION OF INSURANCE COMPANIES
IMPORTANT TERMS AND CONCEPTS
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 9: The Legal Framework
INSURANCE AND THE LAW OF CONTRACTS
SPECIAL LEGAL CHARACTERISTICS OF INSURANCE CONTRACTS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 10: Managing Personal Risks
OBJECTIVES IN MANAGING PERSONAL RISKS
OTHER STEPS IN MANAGING PERSONAL RISKS
MANAGING RISKS ASSOCIATED WITH PREMATURE DEATH
LONGEVITY RISK
THE RISKS ASSOCIATED WITH DISABILITY
EVALUATING THE MEDICAL EXPENSE EXPOSURE
MANAGING THE RISK OF UNEMPLOYMENT
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 11: Social Insurance Programs
OLD-AGE, SURVIVORS, DISABILITY, AND HEALTH INSURANCE
WORKERS COMPENSATION
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 12: Introduction to Life Insurance
SOME UNIQUE CHARACTERISTICS OF LIFE INSURANCE
TYPES OF LIFE INSURANCE CONTRACTS
TAX TREATMENT OF LIFE INSURANCE
CURRENT LIFE INSURANCE PRODUCTS
GENERAL CLASSIFICATIONS OF LIFE INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 13: The Actuarial Basis of Life Insurance
LIFE INSURANCE PREMIUM COMPUTATION
RESERVES ON LIFE INSURANCE POLICIES
BENEFIT-CERTAIN AND BENEFIT-UNCERTAIN CONTRACTS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 14: The Life Insurance Contract—General Provisions
INCEPTION OF THE LIFE INSURANCE CONTRACT
GENERAL PROVISIONS OF LIFE INSURANCE CONTRACTS
SETTLEMENT OPTIONS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 15: The Life Insurance Contract—Other Provisions
NONFORFEITURE VALUES
DIVIDEND PROVISIONS
IMPORTANT OPTIONAL PROVISIONS
UNIVERSAL LIFE POLICY PROVISIONS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 16: Special Life Insurance Forms
SPECIALIZED LIFE CONTRACTS
ADVANTAGES AND DISADVANTAGES OF SPECIAL FORMS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 17: Buying Life Insurance
DECISIONS IN BUYING LIFE INSURANCE
SOME ADDITIONAL TAX CONSIDERATIONS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 18: Annuities and Pension Benefits
ANNUITIES
QUALIFIED RETIREMENT PLANS
INDIVIDUAL RETIREMENT ACCOUNTS
A CONCLUDING NOTE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 19: Managing the Retirement Risk
AN OVERVIEW OF THE RETIREMENT RISK
CONSTRUCTING A RETIREMENT PLAN
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 20: Health Insurance: Disability Income Insurance
GENERAL NATURE OF DISABILITY INCOME INSURANCE
DISABILITY INCOME CONTRACTS
INDIVIDUAL HEALTH INSURANCE POLICY PROVISIONS
PROGRAMMING AND BUYING DISABILITY INCOME INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 21: Health Insurance: Coverage for Medical Expenses
BACKGROUND ON THE CURRENT HEALTH INSURANCE MARKET
THE HEALTH INSURANCE MARKET
THE INSURANCE PRODUCT
OTHER MEDICAL EXPENSE COVERAGES
HEALTH INSURANCE
DEFICIENCIES IN THE SYSTEM AND PRIOR REFORM EFFORTS
THE PATIENT PROTECTION AND AFFORDABLE CARE ACT OF 2010 (THE ACA)
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 22: Health Insurance for the Elderly
MEDICARE
LONG-TERM CARE INSURANCE
MEDICAID PLANNING
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 23: Employee Benefits and Other Business Uses of Life and Health Insurance
EMPLOYEE BENEFITS GENERALLY
GROUP LIFE AND HEALTH INSURANCE AS EMPLOYEE BENEFITS
FUNDING ISSUES
PENSIONS
ERISA PENSION PLAN TERMINATION INSURANCE
ACCOUNTING FOR DEFINED BENEFIT PLANS
PLAN DE-RISKING AND LONGEVITY RISK TRANSFER
CAFETERIA EMPLOYEE BENEFIT PLANS
SOME SPECIALIZED USES OF LIFE INSURANCE IN BUSINESS
SUMMARY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 24: The Homeowners Policy—General Provisions
THE HOMEOWNERS POLICY PROGRAM
HOMEOWNERS SECTION I COVERAGE
OTHER PROVISIONS
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 25: The Homeowners Policy Forms
DIFFERENCES AMONG HOMEOWNERS FORMS
HOMEOWNERS SECTION I OPTIONAL COVERAGES
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 26: Other Personal Forms of Property Insurance
MONOLINE FIRE DWELLING PROGRAM
Coverages under the Dwelling Program
MOBILEHOME PROGRAM
FLOOD INSURANCE
INLAND MARINE COVERAGE FOR THE INDIVIDUAL
BUYING PROPERTY INSURANCE FOR THE INDIVIDUAL
TITLE INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 27: Negligence and Legal Liability
CRIMINAL AND TORTIOUS BEHAVIOR
POSSIBLE CHANGES IN THE TORT SYSTEM
SUMMARY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 28: General Liability Insurance for the Individual
LIABILITY INSURANCE IN GENERAL
TYPES OF LIABILITY INSURANCE
COMPREHENSIVE PERSONAL LIABILITY COVERAGE
PROFESSIONAL LIABILITY INSURANCE
UMBRELLA LIABILITY POLICY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 29: The Automobile and its Legal Environment
A BRIEF OVERVIEW OF AUTOMOBILE COVERAGES
LEGAL LIABILITY AND THE AUTOMOBILE
THE AUTOMOBILE INSURANCE PROBLEM AND CHANGES IN THE TORT SYSTEM
AUTOMOBILE INSURANCE RATES
THE SHIFTING VIEW OF AUTO INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 30: The Personal Auto Policy
GENERAL NATURE OF THE PERSONAL AUTO POLICY
LIABILITY COVERAGE
MEDICAL PAYMENTS COVERAGE
UNINSURED MOTORIST COVERAGE
POLICY CONDITIONS
ENDORSEMENTS TO THE PAP
BUYING AUTOMOBILE INSURANCE
SUMMARY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 31: Commercial Property Insurance
COMMERCIAL PROPERTY COVERAGE
COMMERCIAL PROPERTY DIRECT LOSS COVERAGES
COMMERCIAL PROPERTY COVERAGE FOR INDIRECT LOSS
BOILER AND MACHINERY INSURANCE
TRANSPORTATION COVERAGES
THE NATIONAL FLOOD INSURANCE PROGRAM
INSURANCE AGAINST DISHONESTY
PACKAGE POLICIES FOR BUSINESS FIRMS
SUMMARY
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 32: Commercial Liability Insurance
EMPLOYERS LIABILITY AND WORKERS COMPENSATION
GENERAL LIABILITY INSURANCE
CYBER LIABILITY INSURANCE
COMMERCIAL AUTOMOBILE INSURANCE
INSURANCE FOR BAILEES
AVIATION INSURANCE
EXCESS LIABILITY AND UMBRELLA LIABILITY COVERAGE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 33: Surety Bonds, Trade Credit, and Financial Guaranty Insurance
SURETY BONDS
TRADE CREDIT INSURANCE
FINANCIAL GUARANTY INSURANCE
MORTGAGE GUARANTY INSURANCE
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Chapter 34: Insurance in the Future (Online)
HEALTH AND RETIREMENT SECURITY
GLOBALIZATION OF INSURANCE
REGULATION
PROTECTION FOR CATASTROPHE EXPOSURE
CHANGES IN THE LEGAL ENVIRONMENT
CHANGES IN THE INSURANCE INDUSTRY
SOME PERSISTENT PROBLEMS
CAREER OPPORTUNITIES IN INSURANCE
CONCLUDING OBSERVATION
IMPORTANT CONCEPTS TO REMEMBER
QUESTIONS FOR REVIEW
QUESTIONS FOR DISCUSSION
SUGGESTIONS FOR ADDITIONAL READING
WEB SITES TO EXPLORE
Glossary
AUTHOR INDEX
SUBJECT INDEX
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