understanding insurance and risk management

Understanding Insurance and Risk Management

Theodore A. (Ted) Feitshans

Extension Associate Professor

Department of Agricultural & Resource Economics

North Carolina State University

919-515-5195 ted_feitshans@ncsu.edu

January 18, 2012

DISCLAIMER

Information provided is for educational purposes only; nothing herein constitutes the provision of legal advice or

services, and no attorney-client relationship is formed.

E-mail correspondence to and from this address (ted_feitshans@ncsu.edu) may be subject to the North Carolina Public Records Law and may be disclosed, if

permitted by law, to third parties. All e-mail to and from this address will be archived for a minimum period of 10 years.

Liability

Where does liability come from?

Contracts

IPRs

Torts

Strict Liability in Tort

IntentionalTorts

Quasi- IntentionalTorts

NegligentTorts

Duty

Duty to a Trespasser

Duty to an Invitee

Modification of Duty by Statute

Breachof

Duty

ProximateCause

Actual Damages

ContributoryNegligence

Waivers

Choice of Business Entity

Independent Contractors

Employment

Managing Risk Intelligently

The Risk Management Model

Risk identification

Risk Evaluation

• Low-Severity, Low-Frequency

• High-Severity, Low-Frequency

• Low-Severity, High-Frequency

• High-Severity, High-Frequency

Risk Treatment

Selection&

Implementation

ProgramMonitoring

WhatIs

Insurance?

Let’s talk terminology…

Premium

Rider

Policy

EVENT

CLAIM

Adjuster

Policy holder

Insured

Third-party beneficiary

Agent/Broker

Insurable Interest

Underwriter

Actuary

Reinsurer

Insurance NeedsDisability

HealthLife: owner & key employees

Property/CasualtyLiability

Motor vehicleBusiness interruption

Motor Vehicle

Issues

Managing Your

Insurance

Read Your Policy!

Ask Questions!

Ask more questions!

Promptly notify your agent of claims!

Communicate with your insurance agent!

Use the resources that your insurance agent provides

Insurance Pays the Costs of Defense

CONCLUSION

N.C. Department of Insurance

For assistance in finding authorized insurance services in North Carolina:

– N.C. Department of Insurance http://www.ncdoi.com/

For assistance finding insurance, regularly licensed companies and surplus lines:

– MAP (919) 733-9811 or (800) 546-5664

For help with unauthorized insurance:– 1-800-546-5664 Consumer services– (919) 733-7487 Agent services

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