The
Chinese University of Hong Kong MBA Program in Finance at Tsinghua University, Shenzen
FINA 6511B Insurance and Risk Management, Summer, 2014
Instructor: Jason J.
H. Yeh, A.S.A., Ph.D.
Office & Phone: Department of Finance, CUHK, HONG KONG; +852-3943-7653
E-mail: jasonyeh@baf.msmail.cuhk.edu.hk
Course Web: http://ihome.cuhk.edu.hk/~b103302/fin6511/fin6511.html
Course Objectives:
Textbook:
Textbook Web Site: http://www.pearsonglobaleditions.com/rejda
(Society of Actuaries) Society of Actuaries Study Note: Risk and Insurance
Information Sheet => info.pdf
ACV = Replacement Cost - Depreciation: An exception
ACV in general equals replacement cost minus depreciation. But In some court decisions, fair market value is used to determine the actual cash value. In Jefferson Insurance Company of New York v Superior Court of Alameda County (http://scocal.stanford.edu/opinion/jefferson-ins-co-v-superior-court-30176), a building valued approximately at $170,000 based on (replacement cost - depreciation) had a market value of only $65,000 when a loss occurred. The court ruled that ACV of the property should be based on the fair market value of $65,000 rather than on $170,000.
CUHK's Excess Liability Insurance: excess.pdf
Sample Commercial Property Insurance Contract: BPP
Sample Commercial Liability Insurance Contract: CGL
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Time |
Topics |
Text |
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1 |
June 21
(Sat.) 9AM ~ 12PM |
CDS: Insurance or Speculation? Society of Actuaries Study Note [P-21-05]: Risk and Insurance (http://www.soa.org/files/pdf/P-21-05.pdf) Captive, Alternative Risk Transfer, etc. |
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2 |
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Legal
Principles of Risk and Insurance |
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3 |
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4 |
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Commercial
Liability Risk and Insurance |
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5 |
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Life Insurance (and Annuities); |
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6 |
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Group Project |
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Evaluation:
Two quizzes (20%) and one exam (25%) will be given during the
term of the course. The homework (25%) and group project (25%) will be
based upon group teamwork. Attendance and participation will account for the
remaining 5%. For the group project, according to the size of the class
(60), I request each group to have 10 members so that we could have SIX groups
to prepare for 6 respective project presentations and reports.
Presentation should be done within 12 minutes and reports should be around 10
pages, due one week after the class.
Project topic:
The project topic will be related to the legal principles of risk and insurance, you will be asked to make a presentation on one or two Insurance Claims Complaints Bureau (ICCB) insurance cases. Please visit the “Case Review” section of the ICCB (http://www.iccb.org.hk/en_index.htm) web site to choose your case(s). You may also find other sources of mini insurance cases for such purpose. To avoid duplicates, you have to let me know your case(s) choice beforehand.
For case presentation, please indicate what happens; what are both parties' opinions; what is ICCB committee decision; and more importantly, what is your group's viewpoint? Do you support ICCB's opinion? Why or why not? There is no required number of presenters. Please coordinate among group members for a fair division of labor while preparing for mini case presentation and written report. (Severe free-riding situations should be reported to the instructor.)
For written report, discuss the insurance claim dispute cases you present in the class. In addition, please also offer some extended discussions such as: What you have learned from those cases (including cases presented by other groups)? What should be done to resolve insurance disputes? What can be done to reduce number of disputes? You can provide more supported analyses (and reference websites, reports, articles, etc.) if warranted, but please confine it to 10 pages.
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Attendance & Participation |
5% |
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Quiz |
20% |
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25% |
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25% |
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25% |
CDS Moral Hazard: Insuring the House You Burn Down, http://seekingalpha.com/article/135608-cds-moral-hazard-insuring-the-house-you-burn-down
Travel Insurance Dispute: 永久傷殘賠償表; 康泰旅遊保險計畫; 美亞旅遊保險條文及條款
Hong Kong - Ideal Captive Centre, http://www.oci.gov.hk/framework/index08.html
Property Insurance: Insurance Test for Super High-Rise
Named-Peril (versus Open-Peril) Property Insurance:
《基本险》保险责任：火灾、雷击、爆炸、飞行物体及其它空中运行物体坠落
《综合险》保险责任：《基本险》保险责任＋暴雨、洪水、台风、暴风、龙卷风、雪灾、雹灾、冰凌、泥石流、堐崩、突发性滑坡、地面下陷下沉
D&O Insurance: Satyam and PricewaterhouseCoopers under fire
Employment Practice Liability case: Morgan Stanley Settles Gender Discrimination Case for US$54 Million
Countryfile's Miriam O'Reilly wins
BBC ageism claim
•
Japan firm fined for suicide from overwork
(日員工過勞死 雇主判賠1億)
Products Liability: McDonald's Hot Coffee; Stella Awards; Are You Amused by the Annual Stella Awards?
Negligence? Hand's Rule at Wiki
Worker's Compensation: A local case: Zhen Yi Jia Shi Jia Yi Zhen (My view: HKEJ#17-1, #17-2).
Medical Liability: Wrong patient!! Doctors forgot something…
More Here....; Medical Protection Society Rates; MPS rates 5 years ago; Medical Malpractice Crisis
World insurance in 2012, Sigma No. 2/2013, Swiss Reinsurance Company. http://www.swissre.com/
“One Occurrence or Two: How the Courts Decide”, by Jeannine Chanes and Mary Daniels in Risk Management Magazine Vol. 49 No. 1, January 2002, available on-line at http://www.rmmag.com/Magazine/PrintTemplate.cfm?AID=1293.
“Ethical Dilemma – Liability Limits: One Event or Two?” in Etti Baranoff, Risk Management and Insurance, p. 279, Wiley, 2004.
Hong Kong - Ideal Captive Centre, http://www.info.gov.hk/oci/chi/ideal/index.htm
Newspaper articles from: 香港《太陽報》、香港《信報》，various dates。
The McDonald’s Hot Coffee Case from Law and Economics, by Robert Cooter and Tomas Ulen, Addison Wesley, 2004. Or on-line at http://www.cooter-ulen.com/
Some Mainland and Hong Kong cases from:
香港保險案例精解，周偉文著，壹出版，2001年。
补充保险与商业保险，刘新军、刘蓉着，中国劳动社会保障出版社，2002年。
保险实务教程，张代军主编，经济科学出版社，2002年。
公民保险知识与最新案例，郭丽军主编，中国财政经济出版社，2003年。
财产保险业务员手册，李克强主编，企业管理出版社，2002年。
金融诈骗案例，张锡坤、何勰编着，经济日报出版社，2002年。
保险纠纷案例，邹辉编着，经济日报出版社，2001年。
变革中的稳健：保险、社会保障与经济可持续发展，北京大学中国保险与社会保障研究中心（CCISSR）编，北京大学出版社2005年。
中华人民共和国保险法 (PRC Insurance Law): 1995; 2009
University's
Risk Management
University of Calgary Insurance & Risk Management Department
http://www.ucalgary.ca/riskmgmt/
The Office of Risk Management, University of Wisconsin
http://www.bussvc.wisc.edu/risk_mgt/risk_mgt.html
Business Office, The Chinese University of Hong Kong
CUHK Risk
Exposures and Insurance Policies
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Property Exposure |
Liability Exposure |
Human Capital Exposure |
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Property All Risks (Buildings, Street Lightings, Contents, Library Books) |
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http://www.cuhk.edu.hk/bursary/stf/eng/bus_insurance.html
Academic
Honesty:
Attention
is drawn to University policy and regulations on honesty in academic work, and
to the disciplinary guidelines and procedures applicable to breaches of such
policy and regulations. Details can be
found at http://www.cuhk.edu.hk/policy/academichonesty/. With each assignment, you are required to
submit a statement
(http://www.cuhk.edu.hk/policy/academichonesty/) that you are aware of these
policies, regulations, guidelines and procedures.
From
the University Guideline: Please be reminded that students have to submit their
written assignments including group reports and PowerPoint via VeriGuide and sign a declaration of honesty. We do not
accept submission of assignment through email or hardcopy anymore. But if the assignment
is handwritten or is a drawing or calculation assignment, then there is no need
to submit to VeriGuide.