CIP011 - Principles and Practices of Insurance

Outline info
Last revision date 2013-10-01 18:45:03.945
Last review date 2013-11-18 00:15:11.075

Subject Title
Principles and Practices of Insurance

Subject Description
This course introduces the concept of risk and shows how insurance deals with risk. Students examine the basic concepts and language of insurance, the legal context of insurance and, the participants in the industry and their relationship to each other. The principles covered in this course underlie every situation encountered in insurance and every policy and course studied subsequently.

Credit Status
One Credit

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. To introduce students to the principles and practice of insurance.

2. Show the multi-faceted nature of the insurance business.

3. Dealing with risk and how insurance responds to it.

4. Look briefly at some of the law that deals with insurance.

5. Introduce many of the terms and practices commonly encountered in the business.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.


Topic Outline

  • Risk and insurance
  • History and functions of insurance
  • Ratemaking, underwriting, and rating
  • The insurer and the insurance contract
  • Insurance distribution and insurance intermediaries
  • The law and the judicial system
  • The law of contract: common law and the Civil Code of Quebec
  • Insurance documents and processes
  • Adjusters and the claims process
  • Reinsurance
  • Insurance organizations and customer
  • The customer

Mode of Instruction
Students learn through classroom lectures, discussions, and question and answer periods.

It is the student's responsibility to save documents, articles and notes that the instructor has provided on Blackboard or in class. Students will not be able to access Blackboard as of the last day of the student's class. 

Prescribed Texts
Textbooks must be purchased directly from the Insurance Institute of Canada (416-362-2588). College fee does not include textbook.

Reference Material

Required Supplies
A notebook, pens, highlighter

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation

Tests 2 X 10 20%
Assignment 10%
Midterm 30%
Final Exam 40%

Those students electing to obtain a credit from the Insurance Institute of Canada (IIC) will write the IIC final exam, which will be written outside of Seneca College. Details regarding the registration process, payment, and date/time/location will be communicated to the class by the Seneca College course instructor. Those students not wishing to pursue the IIC credit will write a Seneca College final exam. In both cases, students who are successful will receive a Seneca College credit.

To obtain the IIC credit: students must achieve a minimum mark of 70% on the term work (counted out of 100) and 55% on the IIC final exam
(counted out of 200) for a combined minimum total mark of 180 out of 300. To obtain Honours, an overall course grade of 80%, including a minimum final exam mark of 80% (240 out of 300) is required. 

Approved by: Susan Horne