Insurance & Risk Management

Category: Objective Test
Type: Individual

Overview

60-minute test administered during the NLC.

Objective Test Competencies: Risk Management; Property and Liability Insurance; Health, Disability, and Life Insurance; Insurance Knowledge; Decision Making; Ethics; Careers


Guidelines

Objective Test Guidelines
Objective Test Guidelines
  • No materials may be brought to the testing site.
  • Electronic devices must be turned off and out of sight.
  • No calculators may be brought into the testing site; calculators will be provided.
  • Bring a writing instrument.
General Guidelines

The general event guidelines below are applicable to all national competitive events. Please review and follow these guidelines when competing at the national level. When competing at the state level, check the state guidelines since they may differ.

Eligibility

  • Dues: Competitors must have paid FBLA national and state dues by 11:59 p.m. Eastern Time on March 1 of the current school year.
  • NLC Registration: Participants must be registered for the NLC and pay the national conference registration fee in order to participate in competitive events.
  • Deadlines: The state chair, or designee, must register each state competitor on the official online entry forms by 11:59 p.m. Eastern Time on the second Friday in May.
  • Each state may submit four (4) entries in all events except LifeSmarts, Virtual Business Finance Challenge, and Virtual Business Management Challenge.
  • Each competitor can only compete in one (1) individual/ team event and one (1) chapter event.
  • Each competitor must compete in all parts of an event for award eligibility.

Repeat Competitors

Competitors are not permitted to compete in an event more than once at the NLC unless one of the following circumstances applies:

  • Modified Events: A competitor may compete in the same event when the event is modified. Note, if the only modification is a name change, competitors may not compete in the renamed event.
  • Team Events: One (1) competitor of the team may have competed in the same event at one (1) previous NLC; however, they may not compete more than twice in the event at the national level.
  • Chapter Events: Competitors may compete in a chapter event more than once (American Enterprise Project, Community Service Project, and Partnership with Business Project).
  • Individual Entry: A competitor who competed as an individual entry in a team event at the national level may compete in the same event a second time as part of a team, but not a second time as an individual.
  • Parliamentary Procedure: Two (2) competitors of the team may have competed in this event at a previous NLC; however, they may not compete more than twice at the national level.
  • Pilot Event: Competition in a pilot event does not disqualify a competitor from competing in the same event if it becomes an official competitive event. The participant may compete in another event as well as a pilot event.

Breaking Ties

  • Objective Tests: Ties are broken by comparing the correct number of answers to the last 10 questions on the exam. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher. If this does not break the tie, answers to the last 20 questions will be reviewed and determine the winner.
  • Objective and Production Tests: The production test scores will be used to break a tie.
  • Objective Tests and Performances: The objective test score will be used to break a tie based on the tie-breaking criteria of objective tests.
  • Reports/Projects and Performances: The report/project scores will be used to break a tie.
  • Performances: Judges must break ties and all judges’ decisions are final.

National Deadlines

  • State chair/adviser must register all competitors for NLC competitive events online by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged components (reports, websites, projects, statement of assurance) must be received by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged projects and reports must be submitted electronically.
  • All Statements of Assurance must be submitted online.
  • All production tests must be received at FBLA-PBL by 11:59 p.m. Eastern Time on the third Friday in May.
  • All production tests must be uploaded online.
  • State chair/adviser may make name changes only (no additional entries) by 11:59 p.m. Eastern Time on the first Friday in June. Competitor drops are the only changes allowed after this date and onsite.

National Awards

The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 10. Only one (1) award is given to the schools competing in chapter events (American Enterprise Project, Community Service Project, Local Chapter Annual Business Report, and Partnership with Business Project).

Additional Materials

Certain events may allow the use of additional materials. Please refer to event guidelines.

Americans with Disabilities Act (ADA)

FBLA‑PBL meets the criteria specified in the Americans with Disabilities Act for all participants who submit a special needs form.

Recording of Presentations

No unauthorized audio or video recording devices will be allowed in any competitive event. Participants in the performance events should be aware the national association reserves the right to record any performance for use in study or training materials.


Preparation

Sample Practice Materials

Format Guide

Competencies
Competency
Tasks
Risk Management
1. Understand the risk management model (identify hazards, assess and prioritize risks, choose control measures, implement controls, and monitor and review results).
2. Understand the enterprise risk management model -- ERM (state goal, identify risks, evaluate risks, treat risks, monitor and review results, and communicate results).
3. Adapt risk management model to meet organization's needs.
4. Understand how risk creates value.
5. Know the risk management process of creating a risk program.
6. Create valid risk forecasts.
7. Perform risk mapping and risk profiling.
8. Determine the cost of risk.
9. Apply risk control theories to create prevention, reduction, enablement, and enhancement tactics.
10. Create emergency response and business continuity plans.
11. Understand risk retention plans and risk financing transfers.
12. Understand how to prepare risk management reports.
13. Understand legal components of risk management industry.
14. Recommended insurance for the types of risk commonly faced by young adults.
Property and Liability Insurance
1. Differentiate between the main types of auto insurance coverage.
2. List facts that can increase or reduce auto insurance premiums.
3. Determine the legal minimum amounts of auto insurance coverage required in one’s state of residence and recommended optimal amounts.
4. Calculate the amount paid on insurance claims after applying exclusions and deductibles.
5. Compare costs of auto insurance, given different deductibles and liability coverage limits.
6. Explain renter’s insurance benefits.
7. What are worker’s compensation benefits in states and how are they paid.
Health, Disability, and Life Insurance
1. Analyze conditions when people need health, disability, and life insurance
2. Identify government programs, including social security, that provide financial assistance for income loss due to illness, disability, or premature death.
3. Compare sources of health and disability insurance.
4. Explain purpose of long-term care insurance.
5. Create a basic financial plan, and explain both the benefits and how the plan will change over time.
Insurance Knowledge
1. Recognize basic policy types and basic policy features.
2. Determine how companies underwrite life insurance.
3. Define term insurance and permanent insurance.
4. Understand the basics of contract provisions and legal doctrines.
5. Understand claims management.
6. Create portfolios and place insurance coverage.
7. Be knowledgeable of global insurance markets.
8. Understand the importance of pricing, risk aversion, and regulation.
9. Negotiate, write, and renew insurance contracts.
10. Define regulations that ensure compliance and demonstrate adherence to insurance industry regulations.
11. Explain legal concepts pertinent to the insurance industry
12. Describe insurance products and their benefits.
13. Discuss the nature of insurance fraud.
14. Investigate suspected insurance fraud.
15. Process a claim to fulfill company's legal obligation to client.
16. Ensure regulatory compliance of EPA, OSHA, NFPA, ERISA, and COBRA laws and regulations.
Decision Making
1. Recognize and analyze problems and make decisions based on global environments.
2. Use benchmarking to compare data.
3. Understand the techniques and processes for optimizing risk taking decisions with in an organization (Enterprise Risk Management).
4. Analyze the risk posed by potential clients in order to make insurance approval/denial decisions.
5. Demonstrate ethical decision making by compliance with fiduciary duties of care (competency and due diligence).
Ethics
1. Understand the process and importance of confidentiality agreements.
2. Implement data security measures for confidential records.
3. Recognize state and federal regulations regarding privacy violations and public disclosure.
Careers
1. Identify insurance industry jobs.
2. Recognize industry organizations.
3. Describe essential knowledge and skills needed to be employed in the insurance industry.
4. Describe roles and responsibilities in insurance (e.g., underwriter, insurance sales representative, actuary, claims personnel, and loss control specialist).
5. Describe insurance licensing and certification programs.

Alignment

NBEA Standards
  • Accounting
  • Career Development
  • Economics & Pers. Finance
  • Information Technology
  • Management
Career Clusters
  • Business Management & Administration
  • Finance
  • Marketing, Sales, & Service

Eligibility

States may submit up to 4 entries.
Competitors must be registered for NLC and pay registration fee.
Competitors must pay dues by 11:59 p.m. Eastern on March 1.

Timeline

Test: 1 hour