Insurance & Risk ManagementCategory: Objective Test
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
Skills: This event provides recognition for FBLA members who demonstrate an understanding of and skill in basic insurance and risk management principles and procedures.
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.
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.
- 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.
- A team shall consist of two or three members. Exceptions are Parliamentary Procedure which must be a team of four or five members, and LifeSmarts which must be a team of two members.
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.
- 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.
- 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.
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).
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.
- Dress for Success—Members must be in business attire. Please review the the FBLA-PBL Dress Code. If you question if you are properly attired, then change.
- Read and follow explicitly the state and national competitive events guidelines. Be aware of differences between state and national guidelines.
- Check the status of membership dues. Students must be dues-paid members by March 1 to compete in national competition. The sooner dues are paid the sooner members will receive FBLA benefits.
- All materials must be received by the national center by the second Friday in May. Normally the state submits these materials, but some states request the local chapters submit their reports, website URLs, interview materials, etc.
- Remember, when competing at the district or state levels, materials are not sent to the national office.
- Become completely familiar with the procedures to be followed for participation in each type of event at the state and national levels.
- Determine from the rating sheets and guidelines the areas that will be judged and the weight given to each area.
- Obtain a variety of updated information on different subject areas and provide access to students for study.
- Contact former and current chapter members who have competed in previous years for suggestions.
- Find mentors and other experts who can help members prepare for competition. Involve faculty, advisory committee members, Professional Division members, businesspeople, community volunteers, and parents in study sessions and event preparation.
- Try to recreate as realistically as possible the conditions under which the competition will take place and PRACTICE.
- Make certain that the copies of materials to be submitted to judges are error-free and in the proper format.
- All objective tests are completed online and consist of 100 multiple choice questions.
- Ask your teachers to share with you the different textbooks they use as resources. Look over the end-of-chapter summary and the glossary words.
- For events such as Agribusiness, Business Calculations, Economics, etc. find other teachers in the school who can give you possible resources to study.
- Avoid talking to others as you enter the room.
- Instructions for online testing will be given to you when you sit down at a computer.
- The calculator function on the computer will be provided for your use. You may not use your own calculator.
- If the equipment doesn’t work, raise your hand until help comes. Review these test-taking tips.
Sample Practice Materials
- The Griffith Insurance Education Foundation
- Public Risk Management Association.
- Risk and Insurance Management Society, Inc.
- Glossary of Insurance Terms - naic.org
- FBLA Personal Finance Initiative
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.
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.
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.
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.
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).
2. Implement data security measures for confidential records.
3. Recognize state and federal regulations regarding privacy violations and public disclosure.
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.
- Career Development
- Information Technology
- Business Management & Administration
- Marketing, Sales, & Service