The document provides an overview of training programs offered by Saunders Learning Group, focusing on the financial services and insurance industries. It covers basic insurance concepts, various product lines such as life, home, and auto insurance, and types of insurance, as well as the organization and growth of insurance companies. Key topics include risk management, policy definitions, and the roles of insurance agents and company structures.

1. Financial Services Industry Training
Insurance Industry Overview
Date July 2012
Saunders Learning Group, LLC
Saunders Learning Group, LLC, Andover, KS

2. Training from Saunders Learning Group
Saunders Learning Group provides a variety
of training programs, workshops and
seminars targeted to the financial services
industry.
Programs are available in a wide range of
topics, and we are specialists in developing
custom programs that are targeted to your
needs.
Contact the founder, Floyd Saunders at
316-680-6482 or at
floyd@floydsaunders.com for more
information.
Saunders Learning Group, LLC, Andover, KS
1

3. Topics
1. What is Insurance
2. Product Lines offered by Insurance Companies
3. Types of Insurance
4. Insurance Company Organization
1. Stock company
2. Mutual Company
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4. Module 1
What is Insurance
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Slide 3

5. Overview
Any risk that can be quantified can potentially be
insured. There is an exhaustive lists of the many different
types of insurance that exist.
 A single policy may cover risks in one or more of the
categories set out below.
For example, vehicle insurance would typically cover both the
property risk (theft or damage to the vehicle) and the liability
risk (legal claims arising from an accident).
 A home insurance policy in the U.S. typically includes:
 coverage for damage to the home and the owner's belongings
 certain legal claims against the owner
 coverage for medical expenses of guests who are injured on
the owner's property.
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6. What is Insurance?
 Insurance is a form of “Risk Sharing”
 Everyone pays a little into a insurance fund so that one individual does not
have to pay a lot
 Insurance is based on statistics gathering and probability of an event
occurring
 The more likely an event is to occur and cause damage, the higher the cost of
insurance
 Insurance is based on the idea that you should only risk what you can afford
to lose
 The more you have to lose, the more you have a need for the protection that
insurance provides.
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7. “Insurance is the One Thing
that You Buy, that You Hope Never to Use”
~ anonymous
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8. Useful Definitions
1. Policy – Insurance Contract
2. Premium – Cost of Having an Insurance Policy
3. Deductible – Cost of Using an Insurance Policy
4. Claim – Act of Using an Insurance Policy
5. Lapsed – A Policy Terminated by Non-payment of
Premium
6. Dropped – Disallowed to Renew a Policy
7. Declaration Page – Summary of Policy Terms
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9. Module 2
Product Lines Offered by
Insurance Companies
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10. Consumer Insurance lines
Home Insurance Life Insurance
Property Insurance Auto Insurance
Health Insurance
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11. Business Lines of Insurance
 Liability insurance
 Errors & Omissions
 Casualty Insurance
 Fire, Theft, Natural Disasters, terrorist
 Employee benefits
 Health
 Dental
 Disability
 Life
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12. Module 3
Types of Insurance
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13. Life Insurance
 Life insurance provides a benefit (typically money) to a descendant's family or
other designated beneficiary.
 It may specifically provide for income to an insured person's family, burial, funeral
and other final expenses.
 Life insurance policies often allow the option of having the proceeds paid to the
beneficiary either in a lump sum cash payment or an annuity (or stream of
payments over the life of the beneficiary.
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14. Types Life Insurance
 There are several types of life insurance policies provided by insurance
companies. Generally these can be defined as either “Term” policies and
“Whole Life” or cash value policies.
 Term policies remain in effect for only a certain term (generally years),
then expire without a cash payout, unless the policy holders dies during
the coverage period. Term is generally cheaper to buy than cash value
policies.
 A whole life policy covers a policy holder for their entire life and generally
accumulate cash values, which may be taken by the insured if the policy is
surrendered or which may be borrowed against.
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15. Home Insurance
Home insurance provides coverage for damage or destruction of the
policyholder's home.
 In some geographical areas, the policy may exclude certain types of
risks, such as flood or earthquake, that require additional coverage.
 The policy may include inventory, or this can be bought as a separate
policy, especially for people who rent housing.
 In some countries, insurers offer a package which may include liability
and legal responsibility for injuries and property damage caused by
members of the household, including pets
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16. Accident, sickness Insurance
Under this category there are four type of insurance are there
1. Health insurance
2. Disability insurance
 long term disability
 Short term disability
 Total Permanent disability
3. Disability overhead insurance
4. Workers' compensation insurance
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17. Health Insurance
 Health insurance policies issued by
private insurers and/or publicly-funded
health programs, such as cost of
medical treatments.
 Dental insurance, like medical
insurance, is protects policyholders for
dental costs. In the U.S. and Canada,
dental insurance is often part of an
employer's benefits package, along with
health insurance
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18. Disability insurance
Disability insurance policies provide financial support in the event of the
policyholder becoming unable to work because of disabling illness or injury.
 It provides monthly support to help pay such obligations as mortgage
loans and credit cards.
 Short-term and long-term disability policies are available to
individuals
 long-term policies are generally cover the cost of replacing part of your income if
you are unable to work for a longer period (generally more than six months).
 Short-term disability insurance covers a person for a period typically up to six
months, paying a stipend each month to cover medical bills and other
necessities
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19. Property Insurance
 Property insurance provides protection against risks to
property, such as fire, theft or weather damage.
 This may include specialized forms of insurance such as fire
insurance, flood insurance, earthquake insurance, home
insurance, inland marine insurance or boiler(heating)
insurance., be used as a broad category of various subtypes of
insurance.
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20. Fire Insurance
 Fire insurance is a insurance that cover property, such as home
shop or other fixed asset protection against fire, burn Etc..
 It also cover destruction of property due to fire
 Written for personal and business use.
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21. Builder’s Risk insurance
 Builder's risk insurance insures against the risk of physical loss or damage
to property during construction.
 Builder's risk insurance is typically written
on an "all risk" basis covering
damage arising from any
not otherwise
expressly excluded.
 Builder's risk insurance is coverage that
protects a person's or organization's insurable
interest in materials, fixtures and/or equipment being used in the
construction or renovation of a building or structure should those items
sustain physical loss or damage from an insured peril.
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22. Crop Insurance
 Crop insurance may be purchased by farmers to reduce or
manage various risks associated with growing crops.
 Such risks include crop loss or damage caused by weather, hail,
drought, frost damage, insects, or disease.
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23. Earthquake Insurance
 Earthquake insurance is a form of property insurance that pays the
policyholder in the event of an earthquake that causes damage to the property.
 Most ordinary home insurance policies do not cover earthquake damage.
Earthquake insurance policies generally feature a high deductible.
 Rates depend on location and hence the likelihood of an earthquake, as well as
the construction of the home.
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24. Flood insurance
 Flood insurance protects against property loss
due to flooding. Many insurers in the U.S. do not
provide flood insurance in some parts of the
country. In response to this, the federal
government created the National Flood Insurance
Program which serves as the insurer of last
resort.
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25. Marine insurance
Marine insurance and marine cargo insurance cover the
loss or damage of vessels at sea or on inland waterways, and of cargo in
transit, regardless of the method of transit. When the owner of the cargo
and the carrier are separate corporations, marine cargo insurance
typically compensates the owner of cargo for losses sustained from fire,
shipwreck, etc., but excludes losses that can be recovered from the
carrier or the carrier's insurance. Many marine insurance underwriters
will include "time element" coverage in such policies, which extends the
indemnity to cover loss of profit and other business expenses attributable
to the delay caused by a covered loss.
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26. natural disaster insurance
natural disaster insurance covers specified expenses after a
natural disaster renders the policyholder's home uninhabitable.
Periodic payments are made directly to the insured until the home is
rebuilt or a specified time period has elapsed.
 Volcano insurance
 Windstorm insurance
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27. Terrorism insurance
 Terrorism insurance provides protection against any loss or
damage caused by terrorist activities.
 In the U.S. in the wake of 9/11,
the Terrorism Risk Insurance Act 2002
(TRIA) set up a federal Program providing
a transparent system of shared public and
private compensation for insured losses
resulting from acts of terrorism.
 The demand for terrorism insurance surged
after 9/11
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28. Auto Insurance - Coverage
• Liability Insurance – Legal Requirement
• Collision Insurance
• Comprehensive Insurance
• Medical Payments
• Uninsured Motorist Coverage
• Rental Reimbursement
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29. Liability Insurance
• Protects Others
• Two Types
o Bodily Injury
o Property Damage
• Limits – Each Person/Aggregate Limit
• Legal Requirement in Illinois
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30. Collision Coverage
• Protects Your Vehicle
• Two Types
o Actual Cash Value
o Replacement Cost
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31. Comprehensive Coverage
• Coverage for Problems Other than Driving
• Theft, Fire, Etc.
• Two Types
o Actual Cash Value
o Replacement Cost
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32. Medical Payments
• Medical Costs for People Involved in an
Accident
• Each Person
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33. Uninsured/Underinsured Motorist Coverage
• Protects You From Others
• Uninsured vs. Underinsured
• Each Person/Aggregate Limit
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34. Module 4
Insurance Company
Organization
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35. Growth and Organization
of Insurance Companies
 Insurance companies may be organized in two
difference ways:
 A stock company is owned by shareholders and has a
profit motive
 A mutual insurance company is owned by the
policyholders and attempts to provide the lowest
cost insurance
 Insurance companies grew until 1988, and have since
fallen steadily.
 Most insurance companies are Stock companies.
With very few mutual insurance companies
remaining.
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36. Insurance Agents
 Insurance companies strong sales force:
 Independent agents may sell the insurance products of a
number of different insurance companies.
 Exclusive agents only sell the products of
one company.
 An underwriter reviews each policy prior to its
acceptance to determine if the risk is acceptable.
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37. Growth and Organization
of Insurance Companies
Copyright © 2009 Group, LLC, Andover, KS Hall. All rights
Saunders Learning
Pearson Prentice
22-36
reserved.

38. Life Insurance:
Company Assets and Liabilities
 Life insurance companies derive funds from two sources:
 They receive premiums that must be used to payout future claims when the
insured dies
 They receive premiums paid into pension funds managed by the life insurance
company
• The distribution of the typical life insurance company’s assets, as well as
assets invested in mortgages.
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39. Questions
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40. Thank You !
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