Connelly, Carlisle, Fields & Nichols, USAmeriBank and Chubb are sponsoring a continuing education seminar geared specifically for financial planning and wealth management practitioners on November 14, 2012 at the Belleair Country Club, from 8:30 am – 11:30 am.

The seminar will include two courses, each certified for one CE credit:

• Course #RM101 – The Changing Nature of Personal Risk
• Course #RM104 – What’s in a Rating?  Evaluating the Strength of an Insurance Company

Complete course descriptions are provided below.  To learn more or to register, CLICK HERE.

Course Title:   The Changing Nature of Personal Risk
Course Nbr:      RM101
CE Credits:       1.00 (Insurance)

Overview:

Societal trends in technology, globalization and the American legal system are increasing the frequency and financial severity of personal risks. People today are threatened by diverse risks that eluded their forebears. Financial security is jeopardized by identity fraud, children’s Internet habits and hectic travel schedules. As individuals accumulate wealth, complex risks emerge from the ownership of homes, luxury automobiles, boats, fine art and other valuable possessions. The employment of domestic staff raises liability issues, as does the sale of an owned business.

Never have personal risks been more confounding or financially perilous. Loss exposures are being spawned at an alarming rate, materially affecting the goals of wealth accumulation and asset preservation. As individuals mature, their risk profiles evolve. By the time people reach middle age, an unforeseen uninsured or under-insured risk-based financial loss can be devastating, costlier in many cases than a plunge in the value of an investment portfolio. To nurture and protect personal assets, health and security, individuals must develop a holistic personal risk management program.

Personal risk management is a critical component of wealth management and financial planning.  This course will help financial planners recognize the unique exposures confronted by high-networth individuals, i.e. “Red flags”, that create personal risk and identify solutions for addressing these risks so that a significant loss or claim does not erode an individual’s financial position.

The major themes of the course are:

• The forces of technology, globalization and the American legal system have spawned an array of new and costly personal risks and financial liabilities.
• As individuals age and accumulate wealth, their risk profile evolves.
• High-net-worth individuals are subject to an extraordinary array of complex exposures.
• There is a dire need for more comprehensive management of the assets and liabilities of all people, especially the affluent.
• Risk management is the cornerstone of personal safety, security and wealth preservation, and it must be integrated into the financial planning/wealth management process.
• Independent insurance agents and brokers are in the best position to identify, assess and mitigate personal risks, in addition to being able to effectively transfer the financial liabilities associated with them.
• A partnership approach to managing risk – which includes sophisticated advisers in wealth management, law, accounting and property and casualty risks – will benefit the client most.

Course Title:   What’s in a Rating?  Evaluating the Strength of an Insurance Company
Course Nbr:      RM104
CE Credits:       1.00 (Property and Casualty Insurance)

Overview:

The economic turbulence of the past few years has caused individuals to ask whether or not their insurance company is financially sound and can honor its claims commitments. After all, an insurance policy is only as good as the insurance company that stands behind it.

Fortunately, there are key measurements that are readily available for evaluating the financial strength of an insurance company. Ratings agencies such as A.M. Best and Moody’s provide independent financial strength ratings which provide a third party opinion of an insurer’s ability to pay under its insurance policies and contracts.

An understanding of the underpinnings of a financial rating is critical to determining whether or not an insurer is a good fit for a client. Financial advisors should know what comprises an independent financial strength rating and ensure that their clients are insured by highly rated, financially stable insurers. This isn’t a one-time assessment but rather an ongoing assessment that occurs much like the review of a financial portfolio.

This course deciphers the components of an independent financial strength rating and provides insights into the metrics that indicate financial strength or weakness. It helps advisors identify the “early warning signs” that can indicate that an insurer is in financial trouble. Finally, it looks beyond individual insurance companies to the industry and asks whether the insurance industry, or any one insurance company, poses a systemic risk to the economy.

The major themes of the course are:

• Identify the stressors for troubled insurance companies
• Share case studies of recent events that have threatened the financial stability of some insurers
• Define the tests that independent financial rating companies use to develop a rating
• Explain how business practices such as underwriting, pricing and loss reserving impact financial strength
• Discuss how to best use independent financial strength ratings
• Look at recent insurance industry results and discuss the components that drive industry financial strength or weakness.

(Photo credited to: 123rf.com)

DISCLAIMER: Because of the generality of this update, and based on particular situations, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice, financial advice and/or the advice of a licensed insurance or certified human resource professional.

© Connelly, Carlisle, Fields & Nichols 2012