This Study Guide has been prepared to enhance your learning experience. It contains all of the Check-In questions, Knowledge Checks, and Self-Quizzes contained within the course, along with an Answer Key and Glossary. Use it as a tool to help practice and assess your knowledge of the course material, but do not mistake it for a comprehensive “short-cut” to preparing for the final exam.
Be sure to take a look at the Appendix that follows the Answer Key in this Study Guide. It contains valuable suggestions for test preparation and study techniques, as well as some sample exam questions and a glossary of terms.
Your path to success in passing the final exam will come from your attentiveness during the course and the effort you put into preparation.
Study Set
Use this study set to review digital flashcards and play interactive vocabulary games for the insurance and risk management terms found in the glossary of this course!
Section 3 – Methods for Risk Financing
Using Large Deductible Programs and TCOR in Financing Risk
This video combines the decision-making concepts from Section 2 with those of Section 3—using large deductible programs—to show how the risk manager can have a positive impact on the company’s risk financing program by reducing the cost of insurance and reducing the overall cost of risk to the organization.
Section 5 – Alternative Risk Financing
Using Pools for Risk Financing
Learn how the state of Tennessee supported and continues to support its small municipalities through offering a risk pool. Many of these entities were faced with extremely high insurance costs—if coverage was even offered. Today, in partnership with their third-party administrator, 90% of municipalities, utilities, economic development districts participate. These organizations enjoy many value-added services such as legal hotlines, disaster recovery assistance, and safety programs.
Using Captives in Financing Risk
This video gives insight into how captives can be used to effectively control the costs of financing risks. It discusses the insured’s role in controlling the risk management process and balancing the costs of the traditional commercial insurance market with company needs.
