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Board of Regents  |  University of the State of New York

LOMA | Evaluated Learning Experience

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Insurance Company Operations (LOMA 290)

Formerly Insurance Company Operations [FLMI 290]; Life and Health Insurance Company Operations [FLMI 290]; Life and Health Insurance Company Operations [Course 2]; also known as Life Company Operations [Part 2]
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.

Instructional delivery format: 
Proficiency exam
Learner Outcomes: 

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. 

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