Risk Management and Insurance

Article excerpt

Risk Management and Insurance (7th edition)

S. Travis Pritchett, Joan T. Schmit, Helen I. Doerpinghaus, and James L. Athearn St. Paul, MN: West Publishing Company; 1996 (ISBN 0-314-06427-3)

There are a number of principles textbooks on the market, each with its own style of presentation. Risk Management and Insurance by Pritchett et. al. is a textbook whose principal readership is students enrolled in a principles of risk management and insurance course. As the authors point out, this book is operational, and thus is also concerned with what the non-student user needs to know and what they need to do. As a principles textbook, it covers a wide myriad of topics related to risk management and insurance, while at the same time providing depth in an effective manner.

The text is arranged in five parts with 26 chapters, and seven appendices. Consumer Applications at the end of each chapter provide real-world applications of the material just covered. A number of these applications are designed to capture the interest of students by using examples they can relate to now. Further, these applications will be useful to all students whether or not they pursue employment in the risk management industry.

Some changes made to the 7th edition include an Ethical Dilemmas case or question relating to the chapter material. The conflicts raised between competing interests are designed to stimulate discussion of complex situations that do not have exact answers. Expanded coverage of business risk and insurance, personal risks, employee benefits, and general liability has been added to this edition as well. Electronic spreadsheets are used in several places to illustrate material.

Part I is titled "Fundamentals of Risk Management and Insurance," and contains chapters on Risk, Risk Management, Insurance, Fundamental Doctrines Affecting Insurance Contracts, and Structure and Analysis of Insurance Contracts. An appendix in Chapter 2 provides a useful introduction into cash flow analysis. Useful tables and figures are interspersed throughout the chapters to provide summary information, beneficial statistics, and more details regarding coverages, exclusions, etc.

Part II covers "Property and Liability Risks," and has chapters discussing The Property Exposure, The Liability Risk, Managing Home Risks, Managing Automobile Risks, Business Property Insurance, Workers' and Unemployment Compensation, and Business Liability Insurance. …