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.