Post on 27-Dec-2015
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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