INSURANCE AND RISK MANAGEMENT

Insurance & Risk Management challenges members to demonstrate their understanding of risk management principles and various types of insurance. Through an objective test, members explore how individuals and businesses identify, assess, and mitigate risks through insurance products and strategic planning.

 

Event Overview

Division: High School
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes
Educational Alignments

 

Items Competitor Must Provide: Sharpened pencil, Fully powered device for online testing, Photo Identification, Conference-provided nametag, Attire that meets the Florida FBLA Dress Code

Items FBLA Provides: One piece of scratch paper per competitor, Internet access, Test login information

Knowledge Areas

·         Risk Management Fundamentals
·         Insturance Industry & Legal Principles
·         Personal Insurance Products
·         Commercial & Specialized Insurance Products
·         Insurance Operations & Underwriting
·         Claims & Fraud Management
·         Professional Development in Insurance

District

Check with your District leadership for District-specific competition information.

State

Eligibility

·         FBLA membership dues are paid by 11:59 pm Eastern Time on December 1 (or earlier date specified by District Director) of the current program year.
·         Members may compete in an event at the State Leadership Conference (SLC) more than once if they have not previously placed in the top 10 of that event at the National Leadership Conference (NLC). If a member places in the top 10 of an event at the NLC, they are no longer eligible to compete in that event.
·         Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.
·         Members must stay within the official FBLA housing block of the official FBLA hotel to be eligible to compete.
·         Each district may be represented by participant(s) based on the Florida FBLA scaled quota system found on the Florida FBLA website.
·         Each member can only compete in one individual/team event and one chapter event (Community Service Project, Local Chapter Annual Business Report).
·         Identification: Competitors must present valid photo identification (physical) that matches the name on their conference name badge. Acceptable forms include a driver’s license, passport, state-issued ID, or school ID.
·         If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled. 
·         Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.

Recognition

·         The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 5.

Event Administration

·         This event is an objective test administered at the SLC.
·         No reference or study materials may be brought to the testing site.
·         No calculators may be brought into the testing site.

Scoring

·         Each correct answer is worth one point.

·         No points are deducted for incorrect answers.

·         Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.
·         Results announced at the State Leadership Conference are considered official and will not be changed after the conclusion of the State Leadership Conference.

Americans with Disabilities Act (ADA)

·         FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support

Penalty Points

·         Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.

Electronic Devices

·         Unless approved as part of a documented accommodation, all cell phones, smartwatches, electronic devices, and headphones must be turned off and stored away before the competition begins. Visible devices during the event will be considered a violation of the FBLA Honor Code.

National

If you are competing on the National level, be sure to see the National guidelines at https://www.fbla.org/divisions/fbla/fbla-competitive-events/


 

Study Guide: Knowledge Areas and Objectives

This study guide outlines the skills and knowledge assessed for this event. Objectives followed by a two-letter, three-digit code in parentheses are aligned to the National Business Administration Standards from MBA Research and Curriculum Center. Some objectives reference MBA Research’s Learning Activity Packages (LAPs), which are instructional resources with readings, activities, and assessments available exclusively to teacher advisers. For more information, visit MBAResearch.org/FBLA. 

Important Notice Regarding Test Preparation 

MBA Research materials are not required to study for or prepare for FBLA competitive event tests. MBA Research provides curriculum and instructional resources directly to teachers and does not administer or manage individual student testing or competition participation. 

Note for members and parents: All questions related to tests, study materials, scores, or competition guidelines should be directed to the local FBLA adviser. Only teacher advisers should contact MBA Research directly. 

Risk Management Fundamentals (15 test items)  

  • Explain the role of ethics in risk management (RM:041, LAP-RM-041) (SP)  

  • Describe the use of technology in risk management (RM:042) (SP)  

  • Discuss legal considerations affecting risk management (RM:043) (SP)  

  • Discuss the nature of enterprise risk management (ERM) (RM:062) (SP)  

  • Discuss the nature of risk control (i.e., internal and external) (RM:058) (SP)  

  • Describe alternative risk transfer (ART) techniques (e.g., reinsurance, self-insurance, captives) (PD:292) (SP)  

  

Insurance Industry & Legal Principles (15 test items)  

  • Describe the nature of the insurance industry (PD:157) (CS)  

  • Discuss the role of supervisory/regulatory bodies in the insurance industry (PD:289) (SP)  

  • Explain ethical issues in insurance (PD:290) (SP)  

  • Discuss federal and state regulation governing the insurance industry (BL:101) (SP)  

  • Discuss fundamental legal principles that pertain to insurance (e.g., indemnity, insurable interest, subrogation, utmost good faith) (BL:082) (MN)  

  • Describe the nature of insurance contracts (BL:083) (MN)  

 

Personal Insurance Products (20 test items)  

  • Describe components of automobile insurance coverage (PD:319) (SP)  

  • Discuss components of homeowners/renters insurance (PD:321) (SP)  

  • Discuss the nature of health insurance coverage (PD:320) (SP)  

  • Discuss the nature of life insurance (PD:323) (SP)  

  • Explain the nature of liability insurance (PD:322) (SP)  

  • Describe the nature of disability insurance (PD:324) (SP)  

  • Discuss the nature of Medicaid (PD:331) (SP)  

  • Explain the nature of Medicare (PD:332) (SP)  

  • Discuss the role of life insurance in investment, retirement, and estate planning (PD:334) (SP)  

  • Evaluate an existing client's insurance needs (PD:336) (SP)  

  

Commercial & Specialized Insurance Products (15 test items)  

  • Describe components of commercial property insurance (PD:327) (SP)  

  • Explain the nature of commercial liability insurance (PD:328) (SP)  

  • Discuss the nature of title insurance (PD:326) (SP)  

  • Explain the nature of workers compensation insurance (PD:330) (SP)  

  • Discuss the nature of unemployment insurance (PD:329) (SP)  

  • Discuss components of flood and earthquake insurance (PD:325) (SP)  

  • Discuss the nature of domestic and international business insurance (PD:335) (SP)  

  • Discuss trends in the insurance industry (e.g., hacker insurance, identity theft insurance) (PD:224) (SP)  

  

Insurance Operations & Underwriting (10 test items)  

  • Explain insurance underwriting techniques and processes (RA:004) (SP)  

  • Discuss the nature of credit-based insurance scores (RA:002) (SP)  

  • Explain the importance of actuarial science in the insurance industry (RA:001) (SP)  

  • Explain the nature of pricing and rate-making in insurance (OP:373) (SP)  

 

Claims & Fraud Management (15 test items)  

  • Discuss the nature of insurance claims (OP:188) (CS)  

  • Process an insurance claim (OP:289) (SP)  

  • Inspect property damage (OP:291) (SP)  

  • Evaluate injury claims and needed medical treatment (OP:371) (SP)  

  • Assign value to an insurance claim (OP:372) (SP)  

  • Use claims analytics (NF:204) (SP)  

  • Discuss the nature of insurance fraud (OP:187) (SP)  

  

Professional Development in Insurance (10 test items)  

  • Discuss employment opportunities in the finance industry (PD:152, LAP-PD-152) (CS)  

  • Explain career opportunities in insurance (PD:293) (SP)  

  • Discuss licensing and certification in the insurance industry (PD:225) (SP)  

  • Describe the services of professional organizations in insurance (PD:294) (SP)