INSURANCE AND RISK MANAGEMENT
Insurance & Risk Management provides members with the opportunity to demonstrate knowledge about risk management processes and different types of insurance. This competitive event consists of an objective test. This event aims to inspire members to learn about insurance and risk management.
Event Overview
Division: High School
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes
NACE Connections: Career & Self-Development
Equipment Competitor Must Provide: Sharpened pencil, Conference-provided nametag, Attire that meets the Florida FBLA Dress Code
Objective Test Competencies
· Risk Management
· Property & Liability Insurance
· Health, Disability, & Life Insurance
· Insurance Knowledge
· Decision Making
· Ethics
· Career
District
Check with your District leadership for District-specific competition information.
State
Eligibility
· FBLA membership dues are paid by 11:59 pm Eastern Time on December 1 (or earlier date specified by District Director) of the current program year.
· Members may compete in an event at the State Leadership Conference (SLC) more than once if they have not previously placed in the top 10 of that event at the National Leadership Conference (NLC). If a member places in the top 10 of an event at the NLC, they are no longer eligible to compete in that event.
· Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.
· Members must stay in an official FBLA hotel to be eligible to compete.
· Each district may be represented by participant(s) based on the Florida FBLA scaled quota system found on the Florida FBLA website.
· Each member can only compete in one individual/team event and one chapter event (American Enterprise Project, Community Service Project, Local Chapter Annual Business Report, Partnership with Business Project).
· If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled.
· Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.
Recognition
· The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 5.
Event Administration
· This event is an objective test administered at the SLC.
· No reference or study materials may be brought to the testing site.
· No calculators may be brought into the testing site.
Tie Breaker
· Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.
Americans with Disabilities Act (ADA)
· FBLA meets the criteria specified in the Americans with Disabilities Act for all competitors with accommodations submitted through the conference registration system by the registration deadline.
Penalty Points
· Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.
Electronic Devices
· All electronic devices such as cell phones, headphones, and watches of any type are not to be brought to the testing site.
National
Be sure to see the National guidelines at https://www.fbla.org/divisions/fbla/fbla-competitive-events/
Study Guide: Competencies and Tasks
A. Risk Management
1. Understand the risk management model (identify hazards, assess and prioritize risks, choose control measures, implement controls, and monitor and review results).
2. Understand the enterprise risk management model – ERM (state goal, identify risks, evaluate risks, treat risks, monitor and review results, ad communicate results).
3. Adapt risk management models to meet organization’s needs.
4. Understand how risk creates value.
5. Know the risk management process of creating a risk program.
6. Create valid risk forecasts.
7. Perform risk mapping and risk profiling.
8. Determine the cost of risk.
9. Apply risk control theories to create prevention, reduction, enablement, and enhancement tactics.
10. Create emergency response and business continuity plans.
11. Understand risk retention plans and risk financing transfers.
12. Understand how to prepare risk management reports.
13. Understand legal components of risk management industry.
14. Recommended insurance for the types of risk commonly faced by young adults.
B. Property and Liability Insurance
1. Differentiate between the main types of auto insurance coverage.
2. List facts that can increase or reduce auto insurance premiums.
3. Determine the legal minimum amounts of auto insurance coverage required in one’s state of residence and recommended optimal amounts.
4. Calculate the amount paid on insurance claims after applying exclusions and deductibles.
5. Compare costs of auto insurance, given different deductibles and liability coverage limits.
6. Explain renter’s insurance benefits.
7. What are worker’s compensation benefits in states and how they are paid.
C. Health, Disability, and Life Insurance
1. Analyze conditions when people need health, disability, and life insurance.
2. Identify government programs, including social security, that provide financial assistance for income loss due to illness, disability, or premature death.
3. Compare sources of health and disability insurance.
4. Explain purpose of long-term care insurance.
5. Create a basic financial plan and explain both the benefits and how the plan will change over time.
D. Insurance Knowledge
1. Recognize basic policy types and basic policy features.
2. Determine how companies underwrite life insurance.
3. Define term insurance and permanent insurance.
4. Understand the basics of contract provisions and legal doctrines.
5. Understand claims management.
6. Create portfolios and place insurance coverage.
7. Be knowledgeable of global insurance markets.
8. Understand the importance of pricing, risk aversion, and regulation.
9. Negotiate, write, and renew insurance contracts.
10. Define regulations that ensure compliance and demonstrate adherence to insurance industry regulations.
11. Explain legal concepts pertinent to the insurance industry.
12. Describe insurance products and their benefits.
13. Discuss the nature of insurance fraud.
14. Investigate suspected insurance fraud.
15. Process a claim to fulfill company’s legal obligation to client.
16. Ensure regulatory compliance of EPA, OSHA, NFPA, ERISA, and COBRA laws and regulations.
17. Discuss the insurance business cycle (agent, underwriter, claims, settlement, etc.)
E. Decision Making
1. Recognize and analyze problems and make decisions based on global environments.
2. Use benchmarking to compare data.
3. Understand the techniques and processes for optimizing risk taking decisions within an organization (Enterprise Risk Management).
4. Analyze the risk posed by potential clients in order to make insurance approval/denial decisions.
5. Demonstrate ethical decision making by compliance with fiduciary duties of care (competency and due diligence).
F. Ethics
1. Understand the process and importance of confidentiality agreements.
2. Implement data security measures for confidential records.
3. Recognize state and federal regulations regarding privacy violations and public disclosure.
G. Careers
1. Identify insurance industry jobs.
2. Recognize industry organizations.
3. Describe essential knowledge and skills needed to be employed in the insurance industry.
4. Describe roles and responsibilities in insurance (e.g., underwriter, insurance sales representative, actuary, claims personnel, and loss control specialist).
5. Describe insurance licensing and certification programs.