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National College Credit Recommendation Service

Board of Regents  |  University of the State of New York

FLMI (Fellow, Life Management Institute) Insurance Education Program with Active Credit Recommendations

Titles of all evaluated learning experiences in FLMI (Fellow, Life Management Institute) Insurance Education Program with Active Credit Recommendations

Descriptions and credit recommendations for all evaluated learning experiences

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study.

Dates:

Version 1: January 1997 - June 2002.* Version 2: July 2002 - October 2017. 

Objectives:

Version 1 and 2: Upon successful completion of the course, students will be able to: distinguish between generally accepted accounting principles (GAAP) and statutory accounting principles (SAP) and describe important reports prepared using GAAP and SAP, such as the Annual Report and the Annual Statement; describe the components and purposes of an insurer's key financial statements-the balance sheet, income statement, cash flow statement, and statement of owners' equity, and explain the relationships among these financial statements; define the five major account classifications—assets, liabilities, owners' equity, revenues, and expenses, and identify examples of each type of account classification for life insurers; describe the different types of financial ratios used by life insurers and evaluate the financial ratio results for a life insurer over time and in comparison to the results other companies; explain and apply the tools of management accounting, including responsibility accounting, cost accounting, financial analysis, and budgeting; and describe the principles of an effective system of internal controls and explain the importance of audits for life insurers.

Instruction:

Version 1: Major topics include: the accounting function; accounts and the double entry system; the accounting cycle; the conceptual framework of financial accounting; the annual report; an overview of the annual statement; accounting for invested and other assets; accounting for liabilities: reserves; accounting for policy benefits and other liabilities; accounting for capital, surplus, revenues, and expenses; the time value of money; management and cost accounting; budgeting; responsibility accounting; financial statement analysis; internal control and auditing. Version 2: Major topics include: accounting information; the accounting cycle; accounting concepts and principles; internal control and auditing; responsibility accounting; cost accounting; cost analysis; budgeting; financial statements and reports; accounting for invested assets; accounting for other assets; accounting for reserves; accounting for liabilities other than reserves; accounting for capital and surplus; accounting for revenues; accounting for expenses; financial ratio analysis of life insurance companies; regulatory monitoring of life insurance companies.

Credit recommendation:

Version 1 and 2: In the lower division baccalaureate/associate degree category, 3 semester hours in Financial Accounting or as Survey of Accounting for non-accounting majors (12/97) (6/02 revalidation) (1/08 revalidation) (10/12 revalidation) (3/20 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to March 1997, have been recommended for credit. Please refer to Accounting in Life and Health Insurance Companies (FLMI 360) under 73 for further information or contact NCCRS.

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study. 

Dates:

July 2010 - October 2017. 

Objectives:

Upon successful completion of the course, students will be able to: define economics and explain the primary sectors that make up local, national, and global economies, as well as the different types of financial institutions and the roles they play in the economy; describe the three types of insurance companies – stock, mutual, and fraternal benefit societies – and how their products can satisfy one or more of the four basic financial needs of customers; explain how changes in price levels due to inflation, deflation, or increasing / decreasing market interest rates can affect insurance or financial services institutions; explain the steps in the control process and describe the important control mechanisms insurance companies use to measure, evaluate, and improve their operational performance, including risk management, profitability, and solvency; understand key financial concepts such as simple and compound interest, minimum reserve requirements, minimum capital standards, required and risk-free rates of return, risk premium, the rule of 72, and future and present value calculations; describe the major components of a product's financial design, such as the cost of benefits, operating expenses, and investment earnings; describe how insurers can use benchmarking, total quality management (TQM), Six Sigma, lean management, and business process reengineering (BPR) to improve operating efficiency, and how they use outsourcing, enhanced information technology, and remote work accommodations to reduce operating expenses; explain how insurers use information technology to manage information and improve business processes and relationships with customers; describe the three primary elements of a financial model and explain how insurers can use modeling to forecast future financial conditions; recognize essential information contained in the income statement and the balance sheet, as well as the purpose of cash flow and owners' equity statements and Annual Reports; and describe the ratio-based systems used by regulators and rating agencies to monitor and evaluate insurance company solvency and profitability.

Instruction:

Major topics include: the role of insurance in the economy; insurance company management; managing solvency and profitability; product design and the time value of money; achieving operating efficiency; how the economy affects insurance companies; financial reports and plans; understanding financial ratios; presenting data visually; analyzing population data; and analyzing sample data.

Credit recommendation:

In the lower division degree category OR in the upper division baccalaureate/associate degree category, 3 semester hours in Business, Finance, Insurance or as General Elective (10/12) (3/20 revalidation). NOTE: This course replaces LOMA 351 (Financial Services Environment) in the FLMI Program (10/12).

Location:

Independent study and proficiency examination program administered from the central offices of LOMA.

Length:

Varies-independent study. 

Dates:

July 2004 - Present.

Objectives:

Upon successful completion of the course, students will be able to: describe the basic features of the legal environment in which financial services companies operate; identify the three primary types of business organizations and describe how corporations are organized and managed; explain how businesses are regulated by antitrust laws, consumer protection laws, electronic commerce laws, and employment laws; describe the general rules of contract law, agency law, and property law; explain the legal rules that govern contracts for the sale of goods, negotiable instruments, credit and secured transactions, and bankruptcy; describe how financial services companies are regulated; identify and explain the legal issues that arise in the sale and ownership of financial services products; identify and explain the legal issues that arise in the sale and ownership of financial services products; explain how insurance contracts are performed and recognize situations in which insurers have the right to avoid paying a claim for insurance policy proceeds; and describe the regulatory requirements that govern group life insurance contracts and group retirement plans.

Instruction:

This course presents the basic features and principles of the legal environment in which financial services companies operate.  The first part describes general principles of business law, and the second part describes the special types of legal issues that affect financial services companies.  Major topicsinclude: legal environment of business; civil disputes; regulation of business; contract law; agency law; property law; commercial transactions; regulation of financial services companies; sale of financial services products; ownership of financial products; rights of third parties; contests and remedies; contract performance; and group products.

Credit recommendation:

In the upper division baccalaureate degree category, 3 semester hours as an elective in Business Law, Legal Studies, Financial Services or Insurance (12/04) (3/10 revalidation) (11/17 revalidation). NOTE: This course overlaps in content with Business Law for Financial Services Professionals - Canada (LOMA 316), Legal Aspects of Life and Health Insurance - U.S. (LOMA 310) and Legal Aspects of Life and Health Insurance - Canada (LOMA 315).  Credit is recommended for the completion of only one course.

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Version 1 and 2: Varies-independent study. 

Dates:

Version 1: April 2009 - October 2017. Version 2: November 2017 - Present.

Objectives:

Version 1 and 2: Upon successful completion of the course, students will be able to: distinguish among the various stakeholder groups connected with a financial services company; recognize typical functional areas for insurance operations and classify units as line or staff units; define risk and return and explain the risk-return tradeoff; distinguish among product distribution systems and channels; explain how insurers assess the risks presented by a proposed insured and classify those risks; identify the purpose of customer service and describe some typical customer service transactions for individual life and annuity products; describe the participants and the steps in the claim process; explain how insurers use market segmentation and target marketing to identify the customers who are most likely to buy their products; compare and contrast the legal and compliance functions and describe the roles and responsibilities of each area; explain the responsibilities of the various operating functions involved in financial management; summarize the financial reporting requirements imposed by insurance and securities regulators.

Instruction:

Version 1 and 2: Major topics include: stakeholders; corporate structure; enterprise risk management; product distribution; new business and underwriting; customer service; claims; developing, introducing, and evaluating new products; marketing; accounting and financial reporting; investment operations; treasury operations; audit; profitability, and capital regulators.

Credit recommendation:

Version 1: In the lower division baccalaureate/associate degree category, 3 semester hours in Business, Finance, Insurance or as a General elective (10/12). Version 2: In the upper division baccalaureate degree category, 3 semester hours in Business, Finance, Insurance, or as a General elective (11/17 revalidation). 

Location:

Independent study and proficiency examination administered from the central offices of LOMA.

Length:

Varies-independent study.

Dates:

November 2014 - Present. 

Objectives:

Upon successful completion of course, students will be able to: identify the types of insurance products supported by general account and separate account assets; describe the movement of funds in and out of general and separate accounts; define and describe different ways that investors can measure investment returns; explain how investors use volatility and standard deviation to estimate investment risks and returns; explain how interest-rate risk affects bond investments, interpret interest-rate sensitivity using bond duration, and explain how market interest-rate changes can result in margin compression or margin expansion for insurers; explain some of the investment objectives and the investment constraints of life insurance companies; describe insurer investment strategies related to asset-liability management (ALM); explain how investment professionals create a portfolio's strategic asset allocation (SAA); describe diversification and hedging and explain how institutional investors can use each strategy to manage specific risks in portfolios; explain how investment professionals use certain metrics to measure the level of risk that a portfolio has accepted and the portfolio's risk-adjusted returns; explain how capital adequacy requirements, asset and liability valuation standards, and accounting and financial reporting standards contribute to insurer solvency regulations; and describe the effects that the Investments of Insurers Model Acts, investment reserve requirements, and restrictions on general account holdings have on insurers' investments.

Instruction:

LOMA 357 is an online course that provides an understanding of the investment environment and investing for life insurance companies and similar institutions. Learners will learn about investment returns and risks, investment performance, and fund options for retirement products and other products with fund options. Students will distinguish among various investment types and strategies important for institutional investors, including fixed-income investments, real estate-related investments, equity investments, and derivatives.

Credit recommendation:

In the upper division baccalaureate category, 3 semester hours in Business Administration or Finance (11/14) (3/20 revalidation).

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study.

Dates:

Version 1: June 1997 - June 2002. Version 2: July 2002 - December 2007. Version 3: January 2008 - October 2017.  

Objectives:

Version 1: Upon successful completion of the course, students will be able to: describe the insurance administration activities associated with underwriting individual and group life and health insurance; explain how reinsurance works and identify the fundamentals of administering reinsurance agreements; explain the process of administering claims for life, medical, and disability income insurance and recognize situations that may involve misrepresentation or fraud; recognize the importance of customer service and describe ways to provide quality service; and describe the process of administering annuities. Version 2: Students will be able to: describe the insurance administration activities associated with underwriting individual and group life and health insurance; explain how reinsurance works and identify the fundamentals of administering reinsurance agreements; explain the process of administering claims for life, medical, long-term care, and disability income insurance and recognize situations that may involve misrepresentation or fraud; and recognize the importance of customer service and describe ways to provide quality service. Version 3: Students will be able to: explain the importance of efficient administration practices to a company’s business processes, productivity, profitability, and compliance with regulatory and ethical standards; describe how marketing, actuarial, accounting, treasury operations, legal, compliance, human resources, and information technology coordinate with staff in insurance administration, notably underwriting, claim administration, reinsurance and customer service; describe how governments in the United States and Canada regulate discrimination, privacy, medical testing, replacements, money laundering, and financing terrorists during the underwriting process for both individual and group business; define key considerations, such as insurable interest, risk assessment and classification, suitability, information sources, and anti-selection that influence the decision to approve and issue insurance; how these determine whether coverage is preferred, standard, sub-standard, or declined; and if reinsurance may be necessary; list the basic features and underwriting considerations of various types of insurance, including multi-life policies, juvenile insurance policies, buy-sell agreements, key-person life insurance, split-dollar life insurance, creditor insurance and direct response policies; explain the importance of an insurer’s claim philosophy in guiding its claim practices, the steps it takes in evaluating a typical claim,  and any “red flags” that indicate potentially fraudulent claims; explain how claim analysts determine the proper payee for life insurance policy proceeds and describe situations involving the beneficiary, policy assignments, adverse claimants, community property laws, divorce, and simultaneous deaths that can complicate the payment process; recognize actions that qualify as unfair claim practices according to the NAIC Unfair Claims Settlement Practices Act, and requirements imposed on insurers by the NAIC Unfair Life, Accident and Health Claims Settlement Practices Model Regulation; describe how a database management system, data mining, predictive modeling, a business rules engine, a document management system, and an automated workflow system enhance insurance administration processes and reduce security risks; and identify the benefits to insurers of providing effective customer service including the typical ways that insurers organize customer service departments and the tools that automate and simplify customer service delivery.

Instruction:

Version 1: Major topics include: scope and organization of underwriting; legal issues affecting underwriting; factors in underwriting individual life and health insurance; factors in underwriting specialized policies and supplemental coverages; group insurance underwriting principles and procedures; scope and organization of reinsurance; bases and plans of reinsurance; reinsurance treaties; reinsurance administration; scope and organization of claims; administering life, medical, LTC, and disability income insurance; claim administration; handling claim fraud; scope and organization of policy owner service; practices of policy owner service; administering annuities. Version 2: Major topics include: overview of insurance administration; scope and organization of underwriting; legal issues affecting underwriting; underwriting individual life and health insurance; personal and financial factors for individual life insurance; underwriting specialized policies and supplemental coverages; underwriting group coverage; scope and organization of reinsurance; reinsurance forms and treaties; reinsurance administration; scope and organization of claim administration; administering life, medical, long-term care, disability income, and critical illness claims; scope and organization of customer service; customer service practices. Version 3: This course describes the principles and practices of individual and group life and health insurance administration and provides an overview of insurance administration functions and systems as well as discussions of underwriting, reinsurance, claim administration, and customer service for life and health insurance. Major topics include: overview of new business processing and underwriting; legal aspects of underwriting; assessing mortality risk for individuals; financial underwriting and risk classification; underwriting special policies and supplemental benefits; underwriting for individual health insurance; underwriting group life and health insurance; overview of reinsurance; types of reinsurance and reinsurance agreements; reinsurance administration; overview of claim administration; administering claims for life, medical expenses, critical illness, long-term care, and disability income insurance; overview of customer service; and customer service practices.

Credit recommendation:

Version 1, 2, and 3: In the lower division baccalaureate/associate degree category 3 semester hours in Insurance (12/97) (6/02 revalidation) (1/08 revalidation) (10/12 revalidation) (3/20 revalidation). 

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study.

Dates:

Version 3: June 1986 - November 1995.* Version 4: December 1995 - October 2000. Version 5: November 2000 -  September 2012. Version 6: October 2012 - Present.

Objectives:

Version 3 and 4 : Upon successful completion of the course, students will be able to: describe the organization of insurance companies and the environments in which they operate and define the function of specific company operations such as marketing, actuarial, underwriting, and financial activities. Version 5 and 6: Upon successful completion of the course, students will be able to: describe how life insurance companies operate in today’s global environment, how they are organized and managed, and the roles specific functional and support units play in developing, distributing, issuing, and administering life insurance and annuity products; explain traditional ways that insurers organize operations and organizational concepts such as authority, responsibility, accountability, chain of command, delegation, centralized organizations, and decentralized organizations; describe types of customer-related confidential information and how insurance company employees should handle such information to comply with privacy and confidentiality requirements, as well as ethics and regulatory guidelines; understand the differences between legal functions and compliance functions, including how each is organized, resolves disputes, and conforms to market conduct protocols; describe how human resources (HR) organizations are typically organized and their primary responsibilities, notably planning and staffing, training, performance evaluation standards, and oversight of compensation and benefits programs; identify the main elements in information management, including databases, database management and data warehouses, and workflow management systems; discuss the changing role of technology, including big data, automation of administrative tasks and new methods of engaging customers; describe how business intelligence, business analytics, and expert systems are used in insurance companies; describe common risks life insurance companies face and the risk management techniques deployed, i.e., diversification, hedging, expense, and enterprise risk management; describe the different types of financial accounting, premium accounting, investment accounting, general accounting, and tax accounting, and distinguish among Generally Accepted Accounting Principles (GAAP), statutory accounting practices, and International Financial Reporting Standards (IFRS); discuss the product development process, generating and screening ideas for new products, product implementation, and monitoring, evaluating, and using feedback to improve product offerings; identify the benefits to insurers of providing effective customer service, including typical customer service department organization, and the tools that automate and simplify customer service delivery; and explain why effective claim administration is critical to an insurer’s success in guiding claim practices, as well as the steps taken in evaluating a typical claim, and any “red flags” that indicate potentially fraudulent claims.

Instruction:

Version 3 and 4: Major topics include: insurance companies and their environment; insurance company organization and structure; insurance company functions: administration, actuarial, claims, marketing, underwriting, policy owner service, legal, investment and accounting, information systems, human resources. Version 5 and 6: Major topics include: company operations and ethics; regulation and the financial services industry; company formation; organization structure; managing information; identifying customers and their needs; developing new products; pricing; distributing products; supporting distribution; underwriting basics; customer service; administering claims; financial management; investments; accounting and financial reporting; legal operations and compliance; strategic planning.

Credit recommendation:

Version 3: In the lower division baccalaureate/associate degree category, 2 semester hours in Insurance (5/85 revalidation) (5/90 revalidation). NOTE: If this course and Principles of Life and Health Insurance (Course 1) are both completed, a total of 3 semester hours in Insurance in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 4: In the lower division baccalaureate/associate degree category, 2 semester hours as a General Elective (12/95 revalidation). NOTE: If this course and Principles of Life and Health Insurance (FLMI 280) are both completed, a total of 3 semester hours as a General Elective in the lower division baccalaureate/associate degree category are recommended for the two courses. Version 5: In the lower division baccalaureate/associate degree category, 3 semester hours as a General Elective (1/01 revalidation) (7/06 revalidation). Version 6: In the lower division baccalaureate/associate degree category, 3 semester hours in Business, Insurance, or as General Elective (10/12 revalidation) (3/20 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to May 1986, have been recommended for credit. Please contact NCCRS for copies of the course exhibits. 

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study.

Dates:
Version 2: January 1989 - October 2000.* Version 3: November 2000 - December 2004. Version 4: January 2006 - Present.
Objectives:

Version 2: Upon successful completion of the course, students will be able to: define and explain basic marketing concepts and principles and apply marketing concepts and principles to the life and health insurance industry. Version 3: Upon successful completion of the course, students will be able to: discuss how strategic marketing principles and practices are applied in the life and health insurance industry; explain methods used by insurers to strengthen and improve customer relationships; explain how life and health insurance products are developed, priced, and distributed; explain how insurance companies use advertising and other product promotion; describe the regulatory environment surrounding life and health insurance; discuss the role that ethics plays in insurance marketing; and explain the challenges facing insurers in marketing products in a global marketplace. Version 4: Upon successful completion of the course, students will be able to: describe the environment in which life and health insurers conduct their marketing activities; discuss how strategic marketing principles and practices are applied in the life and health insurance industry; explain methods used by insurers to strengthen and improve customer relationships; explain how insurers gather and manage marketing information; explain how life and health insurance products are developed, priced, and distributed; explain how insurance companies advertise and promote their products; describe the regulatory environment surrounding life and health insurance; explain the marketing challenges facing insurers operating in a global marketplace; discuss the role that ethics plays in insurance marketing; and explain the marketing challenges facing insurers operating in a global marketplace.

Instruction:

Version 2: Major topics include: marketing's role in society and business: planning; research; market segmentation; consumer behavior; products; distribution channels; pricing; promotion. Marketing functions in life and health insurance: product development; market research; distribution; group and special markets. Version 3: Topics include: the marketing environment; marketing planning; information management and marketing research; consumer behavior; market segmentation; relationship marketing; product development; pricing; distribution systems; personal selling, advertising, sales promotion, and publicity; regulatory influences; international marketing. Version 4: This course covers marketing principles and the functions of marketing as an integral aspect of the life and health insurance industry. Topics include: regulatory and other environmental influences on insurance marketing; international marketing of insurance; planning marketing goals; organizing, implementing, and controlling marketing activities; market segmentation and target marketing; marketing research and marketing information systems; product development and pricing; customer behavior and customer relationship marketing; distribution channels and strategies; insurance producer licensing and compensation; advertising, promotion, and selling.

Credit recommendation:

Version 2 and 3: In the lower division baccalaureate/associate degree category OR in the upper division baccalaureate degree category, 3 semester hours as an elective in Business Administration or Insurance (3/84) (5/90 revalidation) (12/95 revalidation) (1/01 revalidation). Version 4: In the upper division baccalaureate degree category, 3 semester hours in Financial Planning, Insurance, Business, or Marketing curriculum or certificate programs (7/06 revalidation) (10/12 revalidation) (11/17 revalidation). *NOTE: An earlier version of this course, dating from December 1981 to December 1988, has been recommended for credit. Please contact NCCRS for copies of the course exhibits. NOTE: This course and Financial Services Marketing (LOMA 326) overlap in content. Credit is recommended for the completion of only one course.

Location:

Independent study and proficiency examination program administered from the central offices of LOMA.

Length:

Varies - independent study. 

Dates:

November 2014 - Present. 

Objectives:

Upon successful completion of course, students will be able to: define marketing and the elements of the marketing mix and describe factors in the marketing environment that interact with and affect the marketing mix; describe the steps in a customer’s purchase decision process and explain how companies use customer relationship marketing to manage the customer relationship; identify how companies use internal databases, marketing intelligence, and marketing research to acquire marketing information; explain the marketing management process and how companies use market segmentation and target marketing; identify characteristics of financial services that are unique from consumer products and describe the concepts of product development and product pricing as they apply to financial services; describe the marketing communication process and the promotion tools of personal selling, advertising, and publicity; describe the characteristics of direct (company-controlled) distribution channel and an indirect distribution channel that uses intermediaries and explain factors a company considers when selecting a type of distribution channel; describe the personal selling process financial professionals use to identify, contact, and qualify prospects and explain how they generate proposals, make sales presentations, answer objections, and close sales; and describe the four types of fraudulent, misleading, or unethical sales activities that financial professionals are prohibited from engaging in and specific regulatory oversight, from entities such as FINRA, the SEC and NAIC, aimed at preventing these practices.

Instruction:

This is an online interactive course that uses a variety of media to present basic marketing principles and to show how these principles are used in the financial services industry to satisfy customers' needs and to create profitable relationships. The course utilizes extensive example and interactive exercises so that learners will be able to understand and apply marketing principles in their own work environments.

Credit recommendation:

In the lower division baccalaureate/associate degree category, 3 semester hours in Business Administration or Marketing (11/14) (3/20 revalidation). 

Location:
Independent study and proficiency examination program administered from the central offices of LOMA.
Length:

Varies-independent study. 

Dates:

January 2009 -  Present.

Objectives:

Upon successful completion of the course, students will be able to: define and use basic insurance terminology; explain the regulation of insurance companies; outline a contract and identify the parties involved; explain how actuaries account for the cost of benefits, investment earnings, and expenses in developing premium rates; describe term life insurance coverage and distinguish between level term, decreasing term, and increasing life term insurance plans; classify various types of cash value life insurance coverage; compare and contrast fixed, variable, and combination annuities; define and outline the benefits provided under major medical and supplemental medical expense insurance policies; summarize the characteristics of various supplemental benefits; outline typical life insurance policy provisions; define group insurance contracts; identify group life insurance plans and policy provisions; explain basic elements of group retirement plans and distinguish among various types of plans.

Instruction:

 Major topics include: risk and risk management; regulation of insurance; life insurance as a contract; the value exchange in an insurance transaction; term life insurance; cash value life insurance; fixed and variable annuity products; health insurance; supplemental benefits; policy provisions; ownership rights; characteristics of group insurance; and group retirement plans.

Credit recommendation:

In the lower division baccalaureate/associate degree category, 2 semester hours in Business, Insurance, or as a General Elective (10/12) (11/17 revalidation). 

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