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History of Insurance History of Insurance NEW YORK INSURANCE LICENSEE CONTINUING EDUCATION COURSES INSURANCE TRAINING INSTITUTE Robert Secovnie, Director Phone: 518-758-6609 Fax: 518-758-6693 www.itiny.com Licensed by the New York State Insurance Department As a Continuing Education Provider – NYPO 100210 0 The Insurance Training Institute (ITI) is an approved provider of Continuing Education Courses for all New York State Insurance Department licensees required by the Insurance Law to complete biennial education to renew their licenses. ITI provides classes at over 20 locations and will provide classes at your own facility. We follow all guidelines and procedures required by the NYS Education and Insurance Departments. ITI provides its clients with competitive tuition and offers a broad range of up-to-date courses to meet their needs along with the best-trained and qualified instructors. ITI provides you and your employees the insurance training that you deserve in this rapidly changing market. For over 18 years, our Director, Robert Secovnie, worked with many of you in his capacity as an employee of the Executive Branch of the NYS Insurance Department, (assigned to the Licensing Bureau). Bob worked with other states' Insurance Departments, the ASI Insurance Testing Company regarding legislative and law changes, state examination materials, insurance course approvals, and has worked with many agencies regarding licensing questions and problems over the years. ITI's goal is to meet your needs in training and consulting as a professional organization committed to improve the operation and image of the insurance industry. Our Continuing Education classes will qualify your agents and brokers for their license renewals. All classes will be held either at our locations or at your office for your convenience. All classes held at your office will meet the requirements of the NYS Insurance Department. ITI Courses will also meet the reciprocity requirements of most other states for your Non-Resident Licenses. Thank you for your time and consideration; Insurance Training Institute, Inc. (ITI) A family owned and operated business 1 History of Insurance Outline Section / Title History of Insurance Introduction Chapter 1 - History of Insurance (Section 1.1) General History (Section 1.2) Other forms of Ancient Insurance (Section 1.3) Property Casualty – From Marine to Fire (Section 1.4) General History Review Chapter 2 – Homeowners Insurance (Section 2.1) Standard Homeowners Insurance Policy (Section 2.2) Modern Homeowners Policy (Section 2.3) National Flood Insurance Program (NFIP) (Section 2.4) Fire / Homeowners Insurance Review Chapter 3 – Auto Insurance Coverages (Section 3.1) Auto Insurance (Section 3.2) SUM Coverage & No-Fault Section 3.3 Assigned Risk Auto Plan Section 3.4 Supplemental Spousal Liability Insurance (Section 3.5) Auto Insurance Review Chapter 4 – Commercial Coverages (Section 4.1) Commercial Insurance Excess Markets 2 (Section 4.2) Risk Retention Groups, Purchasing Groups and Trusts (Section 4.3) Commercial Property and Commercial General Liability Policy (Section 4.4) Commercial Coverage Review Chapter 5 - Adjusting (Section 5.1) Claims and Adjusting (Section 5.2) Claims Settlement Review Chapter 6 – Life Insurance (Section 6.1) Life Insurance History in America (Section 6.2) Annuities (Section 6.3) Pensions (Section 6.4a) Regulation 60 (Section 6.4b) (Section 6.4c) (Section 6.4d) (Section 6.5) Life Insurance Review Chapter 7 – Health Insurance (Section 7.1) Healthcare (Section 7.2) HMO Act 1973 (Section 7.3) The Patient Protection and Affordable Care ACT of 2010 (Section 7.4) Health Insurance Review Chapter 8 – Federal and State Programs (Section 8.1) 3 Social Security, Medicare and Medicaid (Section 8.2) Social Security Medicare & Medicaid Review Chapter 9 Workers Compensation & Disability (Section 9.1) Workers Compensation & Disability (Section 9.2) New York State Insurance Fund (Section 9.3) Wage Replacement (Cash) Benefits (Section 9.4) Disability Insurance (Section 9.4) Workers Compensation & Disability Review Chapter 10 – Development of Regulations (Section 10.1) Regulation of the Insurance Industry (Section 10.2) Modern Era Federal Regulations (Section 10.3) Principles Based Regulation Modern Era Federal Regulations (Section 10.4) Regulation Review Chapter 11 – Best Practices Best Practices (Section 11 a) (Section 11 b) (Section 11 c) (Section 11 d) (Section 11 e) Chapter 12 – Regulatory Process (Section 12.1) Legislative Process (Section 12.2) Senate Bill - S7814 4 (Section 12.2b) (Section 12.3a) Senate Bill S7661 (Section 12.3b) (Section 12.4) Circular Letters (Section 12.5) Unlicensed and Support Staff Guidelines (Section 12.6) Waiver of Pre‐Licensing Criteria Chapter 13 - Fraud (Section 13.1) Ancient Insurance Fraud (Section 13.2) Insurance Fraud Organizations (Section 13.3) NY Insurance Fraud Bureau (Section 13.4) Insurance Scams (Section 13.5) Types of Fraud (Section 13.5a) Auto (Section 13.5b) Medical (Section 13.6) FBI Section 13.7 Fraud Review Chapter 14 (Section 14) Disciplinary Actions Glossary 5 History of Insurance Introduction The Insurance Training Institute (ITI) has been a leader in providing continuing education to insurance professionals in New York State since 1996. Our courses are designed to provide students with an updated view of multiple insurance disciplines to improve the individual competency as well as overall professionalism of our industry. The History of Insurance course, like all ITI programs, is a “Bridge” course providing 15 hours of New York Department of Financial Service (NYDFS) approved continuing education credit hours for all insurance license holders. Although a significant number of students are licensed for Property and Casualty (P&C) as well as Life, Accident and Health (LA), ITI is committed to the belief that all insurance license holders should have a working understanding of all major insurance disciplines. For example, Life, Accident and Health producers should be aware of the medical coverage elements of auto insurance policies while P&C producers will benefit with an understanding of Life insurance principles. History of Insurance is organized to be informational and we hope pleasing for students to read. The text will prepare students for our proprietary monitored exam which is offered at more than 25 locations across New York State. The course examines the history of specific product lines as far back in history as possible to establish the foundation on which our industry currently sits. Readers will note the repeating theme of insurers working to expand their product offering as commercial enterprise, although discrimination in underwriting is consistently exercised limiting the reach of product distribution. The text attempts to explain the need or desire within communities which leads to the introduction of products, whether voluntarily, through government intervention, or a combination of both. Readers will note that while History of Insurance takes an approach to teaching of looking significantly to the past, the text fully examines current state of the insurance industry. Each product line investigated is followed from its inception, or earliest historical record, through to its current state. The text includes review of current rules and regulations, descriptions of modern product lines, currently accepted underwriting principles, ethical guidelines for licensees and much more. In writing this course, certain texts were invaluable as references, including “The Origin and Early History of Insurance” by CF Trenery, originally published in 1911 and “A treatise on the Law of Benefit Societies and Life Insurance” Third Edition by Frederich H. Bacon published 1904. These works provide a flavor of antiquity which modern writing struggles to match. As stated, the goal of the course is to make every student a more well-rounded insurance professional. History of Insurance Chapter 1 (Section 1.1) General History All discussion of history is bound by documentation that can be used repeatedly as a reference source. That documentation may be written word or symbol, oral narrative or physical reference. History does not necessarily limit the possibility or probability of acts or thoughts existing in the past. History merely is a limit on our knowledge to a specific point in the past. It is with that understanding that we do not talk of the invention of insurance, but rather its earliest documentation and subsequent innovations, which have been recorded by one means or another. Credit is given to Chinese merchants as far back as 3000 BC for their risk management practices of dividing cargo 6 among several vessels to reduce their losses should a vessel with cargo fail to complete its voyage. While not a classic form of bottomry, (Bottomry is generally a pledge of the boat – from its keel or bottom up, against a particular debt.) partly because there is no evidence of contract, (a promise to perform in exchange for compensation) indemnification or third party involvement with the shippers dating to this time in China, it is a close cousin. This Chinese practice was simply sound business, although it was lacking a guarantee to restore to the merchant or financier the value of contents lost. Bottomry, a term referenced throughout this text, can be defined in more than one way. The most accepted definition relates to the situation where a ship requires repair while in port in order complete its journey and the Captain takes a loan with pledge of payment secured against default by the ship itself. Another aspect of bottomry is a venture at a voyages start wherein a loan is made to fund an expedition with payment in the form of interest collected only upon the completion of the voyage. Respondentia, a term commonly used with bottomry, applies the same principles to the cargo, rather than the ship itself. The establishment of law governing loss in written form is credited to Hammurabi and dates back to at least 1750 BC. Hammurabi's Code contains 282 clauses which gave guidance on the judgement over matters ranging from infidelity to the right of an accused to be presumed innocent until proven guilty.
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