SECTION 130.185. Insurance Operations (One Credit), Adopted 2015

(a) General requirements. This course is recommended for students in Grades 10-12. Recommended prerequisite: Principles of Business, Marketing, and Finance. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Finance Career Cluster focuses on planning, services for financial and investment planning, banking, insurance, and business financial management.

(3) In Insurance Operations, students will understand the laws and regulations in order to manage business operations and transactions in the insurance industry.

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) demonstrate an understanding of appropriate communication with customers, employers, and coworkers through verbal, nonverbal, or digital means;

(B) demonstrate an understanding of the use of business etiquette;

(C) demonstrate an understanding of appropriate customer service such as building customer relationships and resolving customer complaints; and

(D) demonstrate an understanding of ethical and legal issues.

(2) The student has an understanding of the insurance industry. The student is expected to:

(A) examine the insurance industry;

(B) evaluate components of automobile insurance coverage;

(C) evaluate components of homeowner's insurance and renter's insurance, including a personal umbrella liability policy;

(D) evaluate the purpose of flood insurance and earthquake insurance;

(E) evaluate the purpose of commercial property insurance;

(F) evaluate the purpose of commercial liability insurance;

(G) evaluate the purpose of title insurance;

(H) evaluate the purpose of health insurance, long-term care insurance, and cancer insurance;

(I) compare and contrast Medicare and Medicaid;

(J) investigate the purpose of unemployment insurance;

(K) evaluate the purpose of workers' compensation insurance;

(L) evaluate the purpose of disability insurance;

(M) compare and contrast the purpose of life insurance, including term, whole, and group;

(N) summarize the role of life insurance in investment and estate planning;

(O) compare and contrast the methods that insurance companies use to generate income, including collection of premiums and investing activities;

(P) evaluate the use of state risk pool programs; and

(Q) summarize trends in the insurance industry such as hacker insurance, pet insurance, travel insurance, and identity theft insurance.

(3) The student explores careers in insurance. The student is expected to:

(A) explore education, licensing, and certification requirements; and

(B) understand the role and responsibilities of insurance professionals such as agents, underwriters, actuaries, claims personnel, and investigators.

(4) The student examines regulations that ensure compliance adherence to insurance industry regulations. The student is expected to:

(A) evaluate the ethical and social responsibilities in the field of insurance;

(B) summarize federal and state regulations governing the insurance industry;

(C) assess the significance of the Consolidated Omnibus Budget Reconciliation Act (COBRA);

(D) assess the Health Insurance Portability and Accountability Act (HIPAA), including Title I and Title II; and

(E) assess the Patient Protection and Affordable Care Act (PPACA).

(5) The student explains legal concepts pertinent to the insurance industry. The student is expected to:

(A) examine legal principles that pertain to insurance such as indemnity, insurable interest, subrogation, and utmost good faith; and

(B) evaluate insurance contracts.

(6) The student identifies the components used in the insurance industry for approval and denial decisions. The student is expected to:

(A) explain the importance of actuarial science in the insurance industry;

(B) examine the nature of credit-based insurance scores; and

(C) examine the underwriting process.

(7) The student has an understanding of insurance fraud. The student is expected to:

(A) examine various types of insurance fraud;

(B) investigate various methods for detecting insurance fraud; and

(C) investigate and research a current event about insurance fraud to create a grammatically correct, written report with citations for presentation.

(8) The student demonstrates an understanding of the claims process. The student is expected to examine the claims process, including the role of the agent and the adjustor.

(9) The student identifies different insurance providers and rates. The student is expected to:

(A) compare and contrast insurance company ratings; and

(B) compare and contrast insurance premiums according to gender, geographic area, and age.

(10) The student demonstrates an understanding of identity theft. The student is expected to create a plan for prevention of identity theft and for the reporting of identify theft.

(11) The student demonstrates an understanding of a postsecondary plan. The student is expected to:

(A) understand educational, military, and current job opportunities; and

(B) create a postsecondary plan that includes topics such as application requirements; testing requirements; certification requirements; associated deadlines; associated costs, including living expenses; job prospects and opportunities; beginning earnings; expected future earnings; and resumes and cover letters.

Source Note: The provisions of this §130.185 adopted to be effective August 28, 2017, 40 TexReg 6601