52.1701 - Insurance (2013)

Plus Technical

Plus I. Principles of Insurance and Risk Management
  Plus A. Explain the concepts of risk and insurance
    1. Describe the role of insurance in risk management
    2. Explain how insurance works as a transfer system
    3. Explain how the law of large numbers operates and applies to insurance
    4. Describe the major types of loss exposures
    5. Describe the characteristics of an ideally insurable loss exposure
    6. Explain why government insurance is needed
    7. Describe examples of federal and state insurance programs
    8. Describe the major business operations of insurers
    9. Explain why and how state insurance departments regulate insurers
    10. Describe the benefits of insurance
    11. Describe the costs of insurance
    12. Distinguish among the major types of property and liability insurance
    13. Distinguish among the major types of life and health insurance
  Plus B. Describe the types of insurance organizations and regulation
    1. Describe the various types of private property-casualty insurance providers
    2. Describe the federal government Social Security program
    3. Identify other federal insurance programs
    4. Describe common state government insurance programs
    5. Describe the purpose and activities of the NAIC
    6. Explain how insurance rates are developed
    7. Describe the objectives of rate regulation
    8. Describe the different types of insurance rating laws
    9. Explain how insurance regulators monitor insurers' financial condition and protect consumers
    10. Explain the role of excess and surplus lines in meeting the needs of business in nonstandard markets
  Plus C. Explain how to measure the financial performance of insurers
    1. Describe the sources of income for property-casualty insurers
    2. Describe the types of expenses property-casualty insurers incur
    3. Explain how an insurer's gain or loss from operations is determined
    4. Distinguish between the admitted and non admitted assets of insurers
    5. Describe the three types of liabilities found on the financial statements of insurers
    6. Describe the typical items found on the balance sheets of property-casualty insurers
    7. Describe the typical items found on income statements of property-casualty insurers
    8. Given insurers' financial statements, calculate and explain the significance of various profitability ratios
    9. Given insurers' financial statements, calculate and explain the significance of the capacity ratio
  Plus D. Explain the role of marketing in insurance operations
    1. Describe the legal relationship known as agency
    2. Describe the responsibilities of the agents and the principal in any agency relationship
    3. Describe insurance agents' express authority, implied authority and apparent authority
    4. Summarize the various types of insurance marketing systems and alternative distribution channels
    5. Describe typical compensation arrangements for insurance producers
    6. Describe advertising methods used by insurers, producers and producer trade associations
    7. Describe the various aspects of marketing management
    8. Describe how states regulate producers' activities
    9. Discuss unfair trade practices as they relate to insurance
  Plus E. Explain the role of underwriting in insurance operations
    1. Describe the purpose of underwriting and an insurer's major underwriting activities to achieve that purpose
    2. Explain how underwriters protect an insurer's available capacity
    3. Explain when and how class and individual insurance rates are appropriate in a given situation
    4. Describe the responsibilities of underwriting management
    5. Describe the steps in the underwriting process that an underwriter follows in selecting policyholders
    6. Describe information sources that underwriters use in the underwriting process
    7. Describe four categories of hazards that underwriters must evaluate in reviewing an application for insurance
    8. Describe an underwriter's options when evaluating an application for insurance
    9. Explain how states regulate underwriting activities through restrictions on unfair discrimination, cancellation and nonrenewal
  Plus F. Explain the role of claims in insurance operations
    1. Describe the role performed by each of the following in the claim handling process
    2. Describe the activities in the claim handling process
    3. Describe how the claim handling process applies to property insurance claims
    4. Describe how the claim handling process applies to liability insurance claims
    5. Describe the special consideration for catastrophic claims
  Plus G. Describe the structure of the insurance contract
    1. Explain the four elements of any valid contract
    2. Describe the special characteristics of insurance contracts
    3. Describe the principle of indemnity
    4. Summarize the information usually found in the declarations pages of an insurance policy
    5. Explain the purpose of the categories of insurance policy provisions
    6. Distinguish between manuscript policies and standard forms
    7. Describe the advantages and disadvantages of standard forms to insurers and insureds
    8. Distinguish between a self-contained policy and a modular policy
    9. Describe the conditions commonly found in property and liability insurance policies
    10. Explain how subrogation works
  Plus H. Describe property loss exposures and policy provisions
    1. Describe the types of property that may be exposed to loss and that are typically covered by property insurance
    2. Explain how causes of loss (a.k.a., perils) are treated in named perils policies and in special form policies, and their effect on burden of proof
    3. Describe the financial consequences of property losses
    4. Explain how parties with an insurable interest would be affected by property losses
    5. Describe the types of property and their locations commonly covered in property insurance policies
    6. Explain how property insurance policies typically describe covered causes of loss
    7. Explain why property insurance policies usually exclude some causes of loss
    8. Describe the financial consequences of loss that may be covered by property insurance policies
    9. Identify the parties that can be covered by property insurance policies
    10. Explain how property insurance policies provide coverage for the named insured and other parties
    11. Explain how policy limits and other provisions affect the amount of recovery under a property insurance policy
  Plus I. Describe liability loss exposures and policy provisions
    1. Distinguish among constitutional, statutory and common law
    2. Distinguish between criminal law and civil law
    3. Explain the basis of legal liability for torts, contracts, statutes
    4. Describe the four elements of negligence
    5. Describe the potential financial consequences of liability loss exposures
    6. Describe circumstances that create liability loss exposures
    7. Identify the parties that may be insured by a liability insurance policy
    8. Describe the various types of injury or damage that are typically covered in liability insurance policies
    9. Describe loss exposures typically excluded in liability insurance policies
    10. Describe the costs typically covered in liability insurance policies and how these costs are determined
    11. Explain the difference between occurrence basis and claims-made coverage
    12. Explain how claim payments are affected by policy limits and defense cost provisions
  Plus J. Explain the process of recognizing and managing risk
    1. Describe the six steps in the risk management process
    2. Describe the three primary methods of identifying loss exposures
    3. Explain why measuring loss frequency and loss severity is important in analyzing loss exposure
    4. Describe the risk management techniques of risk control and risk financing
    5. Describe the financial criteria and guidelines for selecting risk management techniques
    6. Describe procedures for implementing risk management techniques
    7. Explain procedures for monitoring and revising a risk management program
    8. Explain the benefits of sound risk management
    9. Recommend risk management techniques appropriate for an individual, a family or a business
Plus II. Personal Insurance
  Plus A. Provide an overview of personal insurance
    1. Review the three elements of loss exposures
    2. Describe the property loss exposures that individuals and families might face
    3. Describe the liability loss exposures that individuals and families might face
    4. Describe the personal financial planning loss exposures that individuals and families might face
    5. Demonstrate how the six steps of the risk management process can guide individuals and families in the risk management decisions
    6. Describe how risk control and risk financing techniques are used by individuals and families
    7. Explain how personal insurance is used as a risk management technique
    8. Summarize the contents of the six common categories of a property-casualty policy
    9. Describe the primary methods of insurance policy analysis
  Plus B. Describe the role of automobile insurance to society
    1. Evaluate six approaches to compensating automobile accident victims
    2. Describe no-fault automobile laws, with special emphasis on Michigan no-fault
    3. Explain how high-risk drivers may obtain auto insurance
    4. Describe automobile insurance regulations, focusing on rating factors, matching price to exposure and competition
  Plus C. Describe the personal auto policy: liability, medical pay and uninsured motorists
    1. Summarize the sections of the personal auto policy
    2. Identify the types of information typically contained on the declarations page of a personal auto policy
    3. Define the terms and phrases included in the definitions section of the personal auto policy
    4. Summarize each of the provisions in Part A-Liability
    5. Describe the claims process, using the DICE method to evaluate auto liability claims
    6. Summarize each of the provisions in Part B-Medical Payments
    7. Describe the claims process, using the DICE method to evaluate auto medical payment claims
    8. Summarize each of the provisions in Part C-Uninsured Motorists
    9. Describe the purpose of underinsured motorists insurance and state variations
    10. Describe the claims process, using the DICE method to evaluate uninsured motorists' claims
  Plus D. Describe the personal auto policy: physical damage, duties after an accident, endorsements
    1. Summarize each of the provisions in Part D-Auto Damage
    2. Describe the claims process, using the DICE method to evaluate auto damage claims
    3. Describe the insured's duties following a covered auto accident or loss
    4. Summarize each of the provisions in Part F-General Provisions
    5. Describe personal auto policy endorsements
    6. Reinforce the DICE method for evaluating auto policy claims the claims process
  Plus E. Describe homeowners property coverage
    1. Describe how individuals and families can use the ISO homeowners insurance program to address their personal risk management needs
    2. Summarize the factors and adjustments important to rating homeowners' insurance
    3. Describe the structure of the Homeowners policy (HO3)
    4. Summarize each of the HO3 policy provisions in Section I-Property Coverages
    5. Summarize each of the HO3 policy revisions in Section I-Perils Insured Against
    6. Summarize each of the HO3 policy provisions in Section I-Exclusions
    7. Summarize each of the HO3 policy provisions in Section I-Conditions
    8. Explain the DICE method for evaluating HO3 policy Section I claims
  Plus F. Explain homeowners liability coverage
    1. Summarize each of the HO3 policy provisions in Section I-Coverages E and F, as well as Section II-Additional Coverages
    2. Summarize each of the HO3 policy provisions in Section II-Exclusions
    3. Summarize each of the HO3 policy provisions in Section I-Conditions and Section II-Conditions
    4. Explain the DICE method for evaluating HO3 policy Section II-Liability Coverages claims
  Plus G. Describe homeowners coverage forms and endorsements
    1. Compare the HO3 policy to HO2, HO4, HO5, HO6 and HO8
    2. Summarize the coverages provided by various ISO homeowners policy endorsements
  Plus H. Distinguish between other residential insurance policies
    1. Compare and contrast the DP3 policy with the HO3 policy
    2. Explain how the coverages under the HO3 policy are modified by the MH0401 and other endorsements unique to mobile home coverage
    3. Describe the operation of the national flood insurance program
    4. Describe the operation of FAIR, beachfront and windstorm plans
  Plus I. Describe other personal property and liability insurance
    1. Summarize the coverages provided by personal inland marine policies
    2. Compare the coverages typically provided for watercraft under HO3, PAP, small boat policies and boat owner/yacht policies
    3. Summarize the coverage provided by the typical personal umbrella policy
    4. Given a case describing a liability claim, determine the coverages and dollar amounts
  Plus J. Explain life insurance planning
    1. Describe the financial impact of the premature personal loss exposure on various family structures
    2. Describe the needs approach and the human life value approach for determining the appropriate amount of life insurance
    3. Summarize the various types of life insurance
    4. Summarize the distinguishing characteristics of individual, group and government-provided life insurance
    5. Summarize the common life insurance contractual provisions and riders
    6. Given a case regarding a particular family structure, recommend an appropriate life insurance product
  Plus K. Describe retirement planning
    1. Describe the financial impact of the retirement personal loss exposure on individuals and families
    2. Describe strategies that financial planners use to assist individuals in investing for retirement
    3. Describe investment objectives, risks and investments as they apply to retirement investing
    4. Compare the characteristics of traditional IRAs and Roth IRAs
    5. Summarize eight popular tax-deferred retirement plans
    6. Describe three employer-sponsored retirement plans
    7. Summarize the various types of individual annuities
    8. Describe the basic characteristics and benefits of the U.S. social security program
  Plus L. Describe disability and health insurance planning strategies
    1. Describe the financial impact of disability and other health-related personal loss exposures on individuals and families
    2. Summarize the distinguishing characteristics of three disability income programs
    3. Summarize the distinguishing characteristics of three health insurance plans
    4. Describe the characteristics of traditional health insurance plans, managed-care plans and consumer directed health plans
    5. Describe the characteristics of Medicare, Medicare Part D and Medicaid
    6. Describe the considerations an individual should review when choosing long-term care insurance policies
Plus III. Commercial Insurance
  Plus A. Provide an overview of commercial property insurance
    1. Describe major categories of loss exposure and components of a commercial property coverage part
    2. Determine which categories and items of property qualify for coverage
    3. Determine possible additional coverages and extensions
    4. Determine whether the cause of loss is covered, based upon Basic Form, Broad Form or Special Form
    5. Apply limits of insurance and deductible provisions to described losses
  Plus B. Understand commercial property insurance in-depth
    1. Explain how loss conditions and additional conditions affect coverage under the Building and Personal Property Coverage Form
    2. Explain how optional coverages, such as agreed value, inflation guard, replacement cost and property of others, may modify coverage
    3. Summarize each of the commercial property conditions
    4. Explain how documents, such as ordinance or law, spoilage, flood, earthquake, volcano, peak season, modify the contractual form and requirements for reporting value
    5. Identify factors that affect premiums
    6. Explain the DICE method for determining the amount payable pursuant to a claim
  Plus C. Describe business income insurance
    1. Describe business income loss exposures, including measurement, effect on expenses, types of income
    2. Summarize provisions of the insuring agreements, using Insurance Service Office (ISO) boilerplate forms
    3. Explain how to use supplements to provide additional coverages and coverage extensions
    4. Summarize insurance limits, loss conditions and co-insurance of the business income coverage forms
    5. Explain how optional coverages can modify business income coverage forms
    6. Given a case, determine whether, and for what amount, a described loss would be covered depending on the form used.
  Plus D. Describe commercial crime and equipment breakdown insurance
    1. Describe basic characteristics of ISO commercial crime program and financial institution bonds
    2. Summarize eight insuring agreements of the commercial crime coverage form in terms of covered causes of loss, covered property and where coverage applies
    3. Identify losses that the commercial crime coverage form typically excluded
    4. Explain how the commercial crime coverage form's conditions address interests insured, where and when coverage applies, duties and procedures, and conditions applicable to employee theft
    5. Given a case, determine whether, and for how much a described loss would be covered by the commercial crime coverage form
    6. Describe equipment breakdown insurance in terms of why such insurance is needed, insuring agreements and conditions that distinguish equipment breakdown insurance from other types of insurance
  Plus E. Describe inland and ocean marine insurance
    1. Describe inland marine insurance in terms of the role of the Nationwide Marine definition, the difference between filed and non-filed classes of business, and the role of judgment rating
    2. Summarize key provisions of non-filed classes, including contractors equipment, builders risk, transit, motor truck cargo liability, electronic data processing equipment, bailees, and instrumentalities of transportation and communication
    3. Describe filed inland marine insurance coverages, including commercial articles, camera and musical instrument dealers, equipment dealers, physicians and surgeons equipment, signs theatrical property, film, floor plans, jewelers blocks, mails, accounts receivable, and valuable papers and records
    4. Describe ocean marine insurance in terms of loss exposures that can potentially be covered and the role of judgment rating
    5. Describe ocean marine insurance policies, focusing on cargo insurance, hull insurance and protection and indemnity insurance
    6. Discuss the process of and considerations when recommending inland and/or ocean marine coverage, including steps in the process, identifying loss exposures that can be covered by marine insurance, and recommendation most appropriate to the client's situation
  Plus F. Describe commercial general liability Insurance
    1. Understand the types of losses covered and the components of a commercial general liability coverage part, specifically the promise to pay damages on behalf of the insurance, and the promise to defend the insured against claims or suits seeking damages covered under the policy
    2. Describe Coverage A-Insuring Agreement and many specified limitations or exclusions
    3. Describe Coverage B-Personal and Advertising Injury Liability, including offenses such as libel, slander and wrongful eviction. Again, this insurance includes a lengthy list of exclusions
    4. Describe Coverage C-Medical Payments, including the insuring agreement and exclusions
    5. Summarize the supplementary payments of the commercial general liability coverage form
    6. Describe whether a person or organization is an insured and entitled to coverage
    7. Explain limits, including each occurrence, damage to premises rented by the insured, general aggregate, products-completed operation aggregate
    8. Describe conditions and other interactions required between the insurer and the insured
    9. Explain how premium is determined
    10. Explain the DICE method for determining the amount payable pursuant to a claim
  Plus G. Summarize the sections of the commercial auto insurance
    1. Describe the commercial auto insurance in terms of loss exposures that can be covered and the components of a commercial auto coverage part
    2. Select the symbols needed to provide a described organization with appropriate coverages
    3. Summarize the provisions in Section II-Liability Coverage
    4. Summarize the provision in Section III-Physical Damage of the Business Auto
    5. Describe the conditions contained in the business auto coverage form
    6. Describe possible endorsements, including medical payments, personal injury protection, uninsured and underinsured motorists
    7. Explain how to rate private passenger vehicles, trucks, tractors and trailers
    8. Explain the DICE method for determining the amount payable pursuant to a claim
  Plus H. Describe workers compensation
    1. Understand statutes, purpose, benefits and persons covered
    2. Differentiate between extraterritorial provisions, federal jurisdiction and methods for meeting employers' obligations
    3. Identify and understand the Information Page, General Section and Part One
    4. Identify and understand employers liability insuring agreement, liability exclusions and endorsements
    5. Understand how workers compensation insurance rates are determined
    6. Explain the DICE method for determining the amount payable pursuant to a claim
  Plus I. Describe businessowners policy (BOP)
    1. BOP: the need, the advantage, loss exposures covered and rating
    2. Businessowners property coverage provisions, including causes of loss and valuation provisions, no co-insurance, seasonal income issues, business income and extra expense
    3. Businessowners Liability coverage provisions: limits, professional liability, hired and non-owned autos, employee benefits, liabilities generally not available
    4. Describe the ISO farm program and specialty farm coverages
  Plus J. Discuss specialty and emerging coverages
    1. Describe commercial excess and umbrella liability insurance, including drop-down coverage, required underlying coverages, aggregate limits, insuring agreement, exclusions and conditions
    2. Describe liability and management liability insurance policy provisions
    3. Describe environmental insurance policies and features
    4. Recognize aircraft insurance provisions, including liability and hull, as well as specialty aircraft
    5. Recognize the types of cyber risk insurance
    6. Explain terrorism endorsements for commercial property and liability forms
    7. Recognize and explain types of surety bonds, including contract bonds, license and permit bonds, public official bonds, court bonds and miscellaneous bonds

Plus Pathway

Plus I. Finance: Insurance Pathway Standards
  Plus A. Determine client needs and wants and respond through planned, personalized communication to guide purchase decisions and enhance future insurance business opportunities.
    Plus 1. Describe insurance products and their benefits.
        a. Explain the nature of liability insurance.
        b. Describe components of automobile insurance coverage.
        c. Discuss components of homeowners insurance.
        d. Discuss components of flood and earthquake insurance.
        e. Describe components of commercial property insurance.
        f. Explain the nature of commercial liability insurance.
        g. Discuss the nature of title insurance.
        h. Discuss the nature of health insurance coverage.
        i. Discuss the nature of long-term care insurance.
        j. Explain the nature of Medicare.
        k. Discuss the nature of Medicaid.
        l. Discuss the nature of unemployment insurance.
        m. Explain the nature of workers compensation insurance.
        n. Describe the nature of disability insurance.
        o. Discuss the nature of life insurance.
        p. Discuss the role of life insurance in investment and estate planning.
    Plus 2. Evaluate existing client insurance and risk management needs.
        a. Evaluate a client's insurance needs.
        b. Recommend coverage upgrades to clients where appropriate.
    Plus 3. Complete an insurance sale.
        a. Identify prospective clients.
        b. Schedule appointments with prospective clients.
        c. Interview client.
        d. Determine client's insurance needs.
        e. Prepare sales presentation materials.
        f. Present insurance recommendation to client.
        g. Complete the insurance sale.
        h. Manage objections.
        i. Prepare insurance documentation.
  Plus B. Describe and follow laws and regulations to manage business operations and transactions in the insurance industry.
    Plus 1. Define regulations that ensure compliance and demonstrate adherence to insurance industry regulations.
        a. Discuss federal and state regulations governing the insurance industry.
        b. Explain the significance of the Consolidated Omnibus Budget Reconciliation Act (COBRA).
        c. Discuss Title I of the Health Insurance Portability and Accountability Act (HIPAA).
    Plus 2. Explain legal concepts pertinent to the insurance industry.
        a. Discuss fundamental legal principles that pertain to insurance (e.g., indemnity, insurable interest, subrogation, utmost good faith).
        b. Describe the nature of insurance contracts.
  Plus C. Plan, monitor and manage day-to-day insurance organization activities.
    Plus 1. Use investigative techniques to identify insurance fraud.
        a. Discuss the nature of insurance fraud.
        b. Investigate suspected insurance fraud.
        c. Conduct surveillance work.
    Plus 2. Manage agency/company policies to protect the insurance company's financial well-being.
        a. Notify client in writing when policy is cancelled.
        b. Monitor agency accounts.
    Plus 3. Process a claim to fulfill company's legal obligation to client.
        a. Discuss the nature of insurance claims.
        b. Process an insurance claim.
        c. Interview claimant and witnesses.
        d. Inspect property damage.
        e. Compile claim report.
        f. Negotiate with claimant.
        g. Settle insurance claim.
  Plus D. Utilize career-planning concepts, tools and strategies to explore, obtain and/or develop a career in insurance.
    Plus 1. Describe essential knowledge and skills needed to be employed in the insurance industry.
        a. Describe the nature of the insurance industry.
        b. Discuss the manner in which insurance companies generate income.
        c. Explain the use of state risk pool programs.
        d. Discuss trends in the insurance industry (e.g., hacker insurance, identity theft insurance, etc.).
        e. Discuss licensing and certification in the insurance industry.
    Plus 2. Describe roles and responsibilities in insurance.
        a. Discuss the role and responsibilities of an underwriter.
        b. Discuss the role and responsibilities of an insurance sales representative.
        c. Discuss the role and responsibilities of an actuary.
        d. Discuss the role and responsibilities of claims personnel.
        e. Explain the role and responsibilities of a loss control specialist.
    Plus 3. Describe insurance licensing and certification programs.
        a. Identify insurance licensing and certification laws, rules, and/or regulations.
        b. Describe steps in insurance licensing and certification.
  Plus E. Demonstrate underwriting techniques and strategies to evaluate the risk posed by potential insurance clients.
    Plus 1. Analyze the risk posed by potential clients in order to make insurance approval/denial decisions.
        a. Explain the importance of actuarial science in the insurance industry.
        b. Discuss the nature of credit-based insurance scores.
        c. Underwrite an insurance policy.

Plus Finance Career Cluster

Plus I. Finance Career Cluster
  Plus A. Utilize mathematical concepts, skills and problem solving to obtain necessary information for decision making in the finance industry.
    Plus 1. Employ numbers and operations in finance.
        a. Recognize relationships among numbers.
        b. Employ mathematical operations.
        c. Perform computations successfully.
        d. Predict reasonable estimations.
    Plus 2. Apply algebraic skills to make business decisions.
        a. Recognize patterns and mathematical relations.
        b. Use algebraic symbols to represent, solve, and analyze mathematical problems.
        c. Create mathematical models from real-life situations.
        d. Represent changes in quantities mathematically.
        e. Determine rate of change mathematically.
        f. Interpret graphical and numerical data.
    Plus 3. Perform data analysis to make business decisions.
        a. Formulate questions effectively.
        b. Collect relevant data.
        c. Organize useful data.
        d. Answer questions appropriately.
        e. Employ appropriate statistical methods in data analysis.
        f. Develop and evaluate inferences and predictions.
        g. Apply basic concepts of probability.
    Plus 4. Use problem-solving techniques to evaluate the accuracy of mathematical responses in finance.
        a. Identify problem-solving techniques.
        b. Apply a variety of problem-solving strategies.
        c. Adjust problem-solving strategies, when needed.
  Plus B. Utilize tools, strategies and systems to plan, monitor, manage and maintain the use of financial resources.
    Plus 1. Describe the nature and scope of finance.
        a. Explain the role of finance in business.
        b. Discuss the role of ethics in finance.
        c. Explain legal considerations for finance.
        d. Discuss trends in the current financial environment (i.e., consolidation, regulatory burden, role of technology, and globalization).
  Plus C. Plan, staff, lead and organize human resources in finance to enhance employee productivity and job satisfaction.
    Plus 1. Describe the role and function of human resources management.
        a. Discuss the nature of human resources management.
        b. Explain the role of ethics in human resources management.
        c. Describe the use of technology in human resources management.
  Plus D. Determine effective tools, techniques and systems to communicate and deliver value to finance customers.
    Plus 1. Discuss marketing's role and function.
        a. Explain marketing and its importance in a global economy.
        b. Describe marketing functions and related activities.
    Plus 2. Describe customer/client/business behavior in finance.
        a. Explain customer/client/business buying behavior.
        b. Discuss actions employees can take to achieve the company's desired results.
        c. Demonstrate connections between company actions and results (e.g., influencing consumer buying behavior, gaining market share, etc.).
    Plus 3. Explain a finance organization's unique selling proposition.
        a. Identify company's unique selling proposition.
        b. Identify internal and external service standards.
  Plus E. Create and maintain positive, ongoing relationships with finance customers.
    Plus 1. Foster positive relationships with finance customers.
        a. Explain the nature of positive customer relations.
        b. Demonstrate a customer service mindset.
        c. Explain management's role in customer relations.
    Plus 2. Reinforce finance organization's image by exhibiting the company's brand promise.
        a. Identify company's brand promise.
        b. Determine ways of reinforcing the company's image through employee performance.
    Plus 3. Explain the nature and scope of customer relationship management in finance.
        a. Discuss the nature of customer relationship management.
        b. Explain the role of ethics in customer relationship management.
        c. Describe the use of technology in customer relationship management.
        d. Discuss customer relationship management as a key factor to success in the finance industry.
        e. Explain trends in customer relationship management that impact finance.
  Plus F. Plan, monitor and manage day-to-day activities to ensure effective and efficient finance operations.
    Plus 1. Describe production's role and function.
        a. Explain the concept of production.
        b. Describe production activities.
    Plus 2. Discuss operation's role and function in finance.
        a. Explain the nature of operations.
        b. Discuss the role of ethics in operations.
        c. Describe the use of technology in operations.
    Plus 3. Implement purchasing activities in finance.
        a. Explain the nature and scope of purchasing.
        b. Place orders/reorders.
        c. Maintain inventory of supplies.
        d. Manage the bid process in purchasing.
        e. Select vendors.
        f. Evaluate vendor's performance.
    Plus 4. Implement quality-control processes in finance.
        a. Identify quality-control measures.
        b. Utilize quality control methods at work.
        c. Describe crucial elements of a quality culture.
        d. Describe the role of management in the achievement of quality.
        e. Establish efficient operating systems.
  Plus G. Implement safety, health and environmental controls to ensure a safe and productive finance work workplace.
    Plus 1. Adhere to health and safety regulations in finance.
        a. Describe health and safety regulations in business.
        b. Report noncompliance with business health and safety regulations.
    Plus 2. Implement safety procedures in finance.
        a. Follow instructions for use of equipment, tools, and machinery.
        b. Follow safety precautions.
        c. Maintain a safe work environment.
        d. Explain procedures for handling accidents.
        e. Handle and report emergency situations.
    Plus 3. Determine needed safety policies/procedures in finance.
        a. Identify potential safety issues.
        b. Establish safety policies and procedures.
    Plus 4. Implement security policies/procedures in finance.
        a. Explain routine security precautions.
        b. Follow established security procedures/policies.
        c. Protect company information and intangibles.
    Plus 5. Develop policies/procedures to protect workplace security in finance.
        a. Identify potential security issues.
        b. Establish policies to protect company information and intangibles.
        c. Establish policies to maintain a non-hostile work environment.
        d. Establish policies and procedures to maintain physical security of the work environment.
  Plus H. Describe and follow laws, regulations and ethical standards that affect finance operations and transactions.
    Plus 1. Employ ethical actions in obtaining and providing finance information.
        a. Respect the privacy of others.
        b. Explain ethical considerations in providing information.
        c. Protect confidential information.
        d. Determine information appropriate to obtain from a client or another employee.
    Plus 2. Apply ethics in finance.
        a. Explain the nature of business ethics.
        b. Demonstrate responsible behavior.
        c. Demonstrate honesty and integrity.
        d. Demonstrate ethical work habits.
    Plus 3. Manage internal and external business relationships in finance.
        a. Treat others fairly at work.
        b. Describe ethics in human resources issues.
    Plus 4. Explain the nature and scope of business laws and regulations.
        a. Discuss the nature of law and sources of law in the United States.
        b. Describe the United States' judicial system.
        c. Describe legal issues affecting businesses.
    Plus 5. Discuss the civil foundations of the legal environment of business.
        a. Identify the basic torts relating to business enterprises.
        b. Describe the nature of legally binding contracts.
    Plus 6. Explore the regulatory environment of United States' businesses.
        a. Describe the nature of legal procedures.
        b. Discuss the nature of debtor-creditor relationships.
        c. Explain the nature of agency relationships.
        d. Discuss the nature of environmental law.
        e. Discuss the role of administrative law.
    Plus 7. Describe human resources laws and regulations.
        a. Explain the nature of human resources regulations.
        b. Explain the nature of workplace regulations (including OSHA, ADA).
        c. Discuss employment relationships.
    Plus 8. Determine form of business ownership.
        a. Explain types of business ownership.
        b. Select form of business ownership.
    Plus 9. Explain commerce laws and regulations.
        a. Explain the nature of trade regulations.
        b. Describe the impact of anti-trust legislation.
    Plus 10. Discuss tax laws and regulations.
        a. Explain the nature of tax regulations on business.
        b. Explain the nature of businesses' reporting requirements.
        c. Develop strategies for legal/government compliance.
    Plus 11. Describe government regulation of the finance industry.
        a. Explain federal legislation impacting the finance industry (e.g., Gramm-Leach-Bliley Act, Sarbanes-Oxley Act, Uniform Commercial Code, etc.).
        b. Discuss the effect of tax laws and regulations on financial transactions.
    Plus 12. Discuss the nature and scope of compliance in finance.
        a. Discuss the nature and scope of compliance in the finance industry.
        b. Describe the use of technology in compliance.
        c. Explain the role of business ethics in compliance.
  Plus I. Plan, manage and maintain the use of financial resources to protect solvency.
    Plus 1. Discuss the fundamental principles of money
        a. Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.).
        b. Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes, etc.).
        c. Describe functions of money (medium of exchange, unit of measure, store of value).
        d. Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.).
        e. Explain the time value of money.
        f. Explain the purposes and importance of credit.
        g. Explain legal responsibilities associated with financial exchanges.
    Plus 2. Describe the use of financial services providers.
        a. Describe types of financial services providers.
        b. Discuss considerations in selecting a financial services provider.
    Plus 3. Use investment strategies.
        a. Explain types of investments.
        b. Explain the nature of capital investment.
        c. Establish investment goals and objectives.
    Plus 4. Identify potential business threats and opportunities to protect a business's financial well-being.
        a. Describe the concept of insurance.
        b. Obtain insurance coverage.
        c. Settle insurance losses.
        d. Identify speculative business risks.
        e. Explain the nature of risk management.
    Plus 5. Obtain business credit and control its use.
        a. Explain the purposes and importance of obtaining business credit.
        b. Analyze critical banking relationships.
        c. Make critical decisions regarding acceptance of bank cards.
        d. Determine financing needed for business operations.
        e. Identify risks associated with obtaining business credit.
        f. Explain sources of financial assistance.
        g. Explain loan evaluation criteria used by lending institutions.
        h. Complete loan application package.
    Plus 6. Manage financial resources to ensure solvency.
        a. Describe the nature of budgets.
        b. Explain the nature of operating budgets.
        c. Describe the nature of cost/benefit analysis.
        d. Determine relationships among total revenue, marginal revenue, output, and profit.
        e. Develop company's/department's budget .
        f. Forecast sales.
        g. Calculate financial ratios.
        h. Interpret financial statements.
        i. Describe types of financial statement analysis (e.g., ratio analysis, trend analysis, etc.).
        j. Spot problems in/issues with financial statements.
    Plus 7. Explain the importance of financial markets in business.
        a. Describe the role of financial institutions.
        b. Explain types of financial markets (i.e., money markets, securities markets, property market, market for risk transfer).
    Plus 8. Explain the nature of assets' values.
        a. Discuss factors that affect the value of an asset (e.g., cash flows, growth rate, timing, inflation, interest rate, opportunity cost, risk, and required return).
    Plus 9. Utilize sources of securities information to make informed financial decisions.
        a. Describe sources of securities information.
        b. Read/interpret securities table.
    Plus 10. Use debt and equity capital to raise funds for business growth.
        a. Describe the financial needs of a business at different stages of its development.
        b. Discuss factors to consider in choosing between debt and equity capital.
        c. Explain the significance of a firm's capital structure.
  Plus J. Plan, organize and manage a finance organization/department.
    Plus 1. 1. Explain management's role in business success.
        a. Explain the concept of management.
        b. Explain the nature of managerial ethics.
    Plus 2. Utilize planning tools that can guide finance organization's/department's activities.
        a. Explain the nature of business plans.
        b. Develop company goals/objectives.
        c. Define business mission.
        d. Conduct an organizational SWOT.
        e. Explain external planning considerations.
        f. Identify and benchmark key performance indicators (e.g., dashboards, scorecards, etc.).
        g. Develop action plans.
        h. Develop business plan.
    Plus 3. Control a finance organization's/department's activities.
        a. Describe the nature of managerial control (control process, types of control, what is controlled).
        b. Analyze operating results in relation to budget/industry.
        c. Track performance of business plan.
  Plus K. Plan, monitor and manage day-to-day activities required to sustain continued business functioning.
    Plus 1. Implement expense-control strategies.
        a. Explain the nature of overhead/operating costs.
        b. Explain employee's role in expense control.
        c. Control use of supplies.
        d. Conduct breakeven analysis.
        e. Negotiate service and maintenance contracts.
        f. Negotiate lease or purchase of facility.
        g. Develop expense-control plans.
        h. Use budgets to control operations.
    Plus 2. Maintain property and equipment.
        a. Identify routine activities for maintaining business facilities and equipment.
        b. Plan maintenance program.
  Plus L. Access, evaluate and disseminate financial information to enhance financial decision-making processes.
    Plus 1. Explain the nature and scope of financial information management.
        a. Describe the need for financial information.
        b. Explain the nature and scope of the financial information management function.
        c. Explain the role of ethics in financial information management.
    Plus 2. Discuss the importance of accurately reporting a business's financial position.
        a. Describe the need to accurately report a business's financial position.
        b. Describe the relationship between accounting (with an emphasis on cash flow) and finance (with an emphasis on decision-making).
        c. Discuss types of accounting systems used to report a business's financial position (i.e., financial, tax, management, cost, accrual).
    Plus 3. Discuss the nature and scope of financial information analysis.
        a. Discuss the impact of economic conditions on finance.
        b. Explain the use of financial information to identify trends.
        c. Describe the need to analyze customer financial information.
        d. Identify reasons to analyze financial data (e.g., to understand accounting treatment, to verify information, to analyze variances, to guide financial decision-making).
    Plus 4. Utilize financial information technology tools.
        a. Describe the use of technology in the financial information management function.
        b. Demonstrate data mining techniques.
        c. Demonstrate budgeting applications.
        d. Demonstrate financial analysis applications.
        e. Demonstrate advanced database applications.
  Plus M. Manage a financial product or service mix in order to respond to market opportunities.
    Plus 1. Explain the nature and scope of product/service management.
        a. Explain the nature and scope of the product/service management function.
        b. Identify the impact of product life cycles on business decisions.
        c. Explain the use of technology in the product/service management function.
        d. Discuss business ethics in product/service management.
    Plus 2. Develop a financial product/service mix.
        a. Explain the concept of financial product/service mix.
        b. Describe the nature of financial product/service bundling.
        c. Identify financial product/service to fill a customer need.
    Plus 3. Position financial products/services to acquire desired business image.
        a. Describe factors used to position financial products/services.
        b. Explain the nature of financial product/service branding.
        c. Explain the role of customer service in positioning/image.
    Plus 4. Position company to acquire desired business image.
        a. Explain the nature of corporate branding.
        b. Describe factors used by businesses to position corporate brands.
  Plus N. Employ financial risk-management strategies and techniques used to minimize business loss.
    Plus 1. Describe the nature and scope of risk management in finance.
        a. Explain the role of ethics in risk management.
        b. Describe the use of technology in risk management.
        c. Discuss legal considerations affecting risk management.
    Plus 2. Use risk-management techniques in finance.
        a. Discuss the relationship between risk and business objectives.
        b. Develop a risk-management program.
        c. Evaluate a risk-management program.
    Plus 3. Describe risk-control methods in finance.
        a. Discuss the nature of risk control (i.e., internal and external).
        b. Explain ways to assess risk.
        c. Describe the importance of auditing risk control.
        d. Discuss risk-control systems.

Plus Career Ready Practices

Plus I. Career Ready Practices
  Plus A. Career Ready Skills
    1. Act as a responsible and contributing citizen and employee.
    2. Apply appropriate academic and technical skills.
    3. Attend to personal health and financial well-being.
    4. Communicate clearly, effectively and with reason.
    5. Consider the environmental, social and economic impacts of decisions.
    6. Demonstrate creativity and innovation.
    7. Employ valid and reliable research strategies.
    8. Model integrity, ethical leadership and effective management.
    9. Plan education and career path aligned to personal goals.
    10. Use technology to enhance productivity.
    11. Utilize critical thinking to make sense of problems and persevere in solving them.
    12. Work productively in teams while using cultural/global competence.