KFZAJI Reinsurance Basics

Faculty of Economics and Administration
Autumn 2008
Extent and Intensity
0/0. 3 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Svatopluk Nečas, Ph.D. (lecturer)
Guaranteed by
prof. Ing. Viktória Čejková, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Timetable
Sat 22. 11. 16:20–19:35 P312, Sat 13. 12. 16:20–19:35 P312
Prerequisites (in Czech)
KFPOJI Insurance Industry
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
Main objectives can be summarized as follows:
- to enlarge students' knowledge about reinsurance as a fundamental element of the insurance system;
- to delineate relationships between the insurance and reinsurance, furthermore reinsurance relationships and legal basis of reinsurance;
- to understand the function of reinsurance and problems of retention of an insurance company;
- to understand classification of reinsurance using various criteria;
- to characterize proportional and non-proportional reinsurance and their individual components, including the determination of reinsurance premium;
- to understand the structure and the formation of reinsurance program, as well as alternative risks transfers;
- to understand co-insurance as a method of horizontal division of risks, including its principles.
Syllabus
  • 1. Connection between insurance and reinsurance. History of reinsurance
  • 2. Reinsurance as method of vertical division of risk. Functions and tasks of reinsurance. Analysis of insurance stocks of insurance entering reinsurance. Retention and ways of its determination.
  • 3. Legal relations in reinsurance. Facultative reinsurance. Obligatory reinsurance. Conventions of negotiating reinsurance and basic content of reinsurance contracts.
  • 4. Types and forms of reinsurance.
  • 5. Proportional reinsurance. Quota share and surplus reinsurance. Other types of proportional reinsurance. Principles of determining reinsurance premium for proportional reinsurance.
  • 6. Non-proportional reinsurance. Excess of loss. Stop Loss. Other types of non-proportional reinsurance. Principles of determining reinsurance premium for non-proportional reinsurance.
  • 7. Reinsurance program for commercial insurance companies, its formation and importance for economy.
  • 8. Alternative risk transfers. Finite reinsurance and its basic principles.
  • 9. Current issues and problems in field of reinsurance and co-insurance.
  • Tutorials are organised in two four-hour blocs covering above mentioned topics as follows:
  • 1. Topics No. 1 - 5
  • 2. Topics No. 6 - 9
Literature
  • NEČAS, S. Základy zajištění (DSO). 1. vyd. Brno: MU, 2007
  • CIPRA, Tomáš. Zajištění a přenos rizik v pojišťovnictví. 1. vyd. Praha: Grada, 2004, 260 s. ISBN 8024708388. info
  • [2] BELLEROSE, R. P. Reinsurance for the Beginner (3rd Edition). London : Witherby & Co., 1987
  • BUCHOVÁ, J. Zaistenie. 1. vyd. Hronský Beňadik: NETRI, 2004. 152 s. ISBN 80-968904-7-6
Assessment methods
The course has a form of tutorials. Requirements for admission to the exam:
1. Submission of a seminar paper referred to as a POT assessed passed.
In case of the assessment failed, a student will not be admitted to the exam.
2. Successfully passing an in-term test in the second tutorial.
Minimum success rate for passing the in-term test is not strictly defined, because the test is a part of the final exam. The requirement is thus set for an overall assessment of the tests, not for its components. The in-term test consists of 10 questions and can be assessed up to 10 points. If a student can not physically sit for the test (the excuse will be considered by the teacher), he/she will take it in the first two weeks of the examination period.
The final exam:
The exam has a written form. It consists of the in-term test and the exam test. Minimum success rate is not strictly defined.
The final grade is made up of the result of the in-term test taken in the second tutorial (maximum 10 points) and the result of the exam test (maximum 10 points).
Grading scale:
A: 90 - 100% (18 - 20 points),
B: 85 - 89% (17 - 17.9 points),
C: 75 - 84% (15 - 16.9 points),
D: 70 - 74% (14 - 14.9 points),
E: 60 - 69% (12 - 13.9 points),
F: less than 60% (less than 12 points).
A student, who will achieve less than 12 points for both the in-term test and exam test, will repeat the test with fewer points. The examination date for the resit will be posted through IS MU and will take place in the course of the examination period. Students are supposed to register for the resit test. The same rules are applied to the exam test. A student can take the resit test (exam test, respectively in-term test) only twice provided he/she qualifies for the 2nd resit date (based on his previous study results). If not, he/she can resit the test only once. The resits of the tests are summed, which does not mean that the student may resit each test twice (or once - see previous sentence).
If a student commits a prohibited act, such as using various forbidden tools (e.g. cheatsheets), cribbing, taking out any part of the test or any other form of cheating, the teacher is allowed to interrupt the test and to grade the student with F, FF or even FFF, according to the seriousness of the offence. The described procedure applies to all the activities that are included in the final evaluation of the course (semester paper).
Language of instruction
Czech
Follow-Up Courses
Further Comments
The course is taught annually.
The course is also listed under the following terms Spring 2007, Autumn 2007, Spring 2008.
  • Enrolment Statistics (recent)
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