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Flashcards in Module 7 Deck (37):
1

Module 7 Overview

-Describe risks faced by individuals along three elements of a loss exposure
-Apply risk management process to individual risks
-Describe the problem in the --US healthcare system outlined by the "smart" pills reading
-Explain some of the ethical considerations involved with cognitive enhancements

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Lots of ways (categories of looking at risk at the individual level)

-Property (also have financial components, ex of overlap)
-Liability
-Life
-Health
-Financial
-Why categorize?
-R.M technique
- Categories are not mutually exclusive, and some of them overlap

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Loss exposure

- Any condition or situation that presents a possibility of loss, regardless of whether that loss actually occurs.

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Three Elements to a los exposure

-Asset exposed to loss
-Cause of loss
-Financial consequences of the loss

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Property

Asset exposed to loss
-Real Property
-Land, buildings, crops, etc
-Personal Property
-Your stuff: furniture, jewelry, art, autos, watercraft

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Property- Cause loss

-Fire, theft, windstorm, accidents, lost, pretty much anything you can think of

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Financial consequence

-Reduction in property value
- Increased expenses (ex car- going in the shop, car, Ubers when its broken)
- Lost income (Income that is generated by that property, ex car as uber and now u can use it)

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Liability

Asset exposed to loss
-Usually lose money or other financial assets

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Juries award what kinds of damages

General- Noneconomic damges (ex- backhurts, how much is that worth)
Special- Economic damages (ex- amount of damage to your vehicle, salary lost by not working for a 2 weeks)
Punitive damages- Punishment payments.

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Causes of Loss

Claim / Lawsuit
Civil law (Large amount of evidence, not free) vs Criminal Law (beyond reasonable doubt, OJ free)

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Causes of Loss Pt. 2

Tort, contract, statutory

Negligence (didn't properly secure air conditioner, falls out and hits someone off the head)

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Statutory

Violate a statute (speed limit)

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Contract

Violate terms of contract (destroy your apartment, lease)

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Tort

Can still be held liable even though it may not be your fault, no law or statue may apply. (Driving see kid in road swerve and hit other car)

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Financial Consequences

-Defense cost
-Monetary damages
(barfight, sued, hire lawyer, pay 5G)

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Specific types of liability

-Property owners
-Automobiles (misuse of car)
-Employer-employee
-Parents and children
-Animals

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Example of liability for property owners

Attractive nuisance.
-Pool
-According to FL law a pool is an attractive nuisance if a local kid wanders into your pool an drowns, you are held liable.
-Therefore a fence must be placed around and locked up in a heigh to reach place

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Life-Premature Death

***Death with financial responsibilities remaining
Asset exposed to loss
- Your life
Cause of loss
-Premature death:illnes, accident, etc
-Financial Consequences

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Financial Impact of Premature Death

If single/young financial tragedy is not as bad.
Wage earning adult:
-Married
-Single w Dependents (biggest risk)
-Single w no dependents (not that big)

Non-wage earning adult:
-Married
-Singles with dependents
-Single with no dependents

-Child (financial impact is not that big)

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Life: Long Life

Asset exposed to loss
-Your savings/ retirement/ wealth

-Cause of Loss
-Outliving how long you expected yourself to live

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Life- Long Life Pt. 2

Financial Consequences
-Income
-Expenses
-Which increase
-Which decrease

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How do you know ho much to save

-Retirement Calculator
- Social Security, benefits

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Health

Asset exposed to loss
-Your livelihood, health
Cause of Loss
-Poor care, bad genes, bad luck

Financial Consequences
-Ability to earn income may decrease, or cease
-Living expenses may continue/increase

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Financial (crisis)

Asset exposed to loss
-your wealth

Cause of Loss
-Health, disability, unemployment

Financial Consequences
-Inadequate savings
-Back to work, can't retire

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How do you manage these Individual Risk

Risk Management Process
-Determine Objectives
-Identify Risks
-Evaluate Risk
-Choose your alternatives
-Implement
-Review and Evaluate

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How to Apply Risk Management Process

Change throughout life
-Think about your objectives for your age group
20 (lowest risk)
30
40(grown up) Highest risk

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What are smart pills

Stimulant drugs such as Ritalin and adderall have been developed to manage ADHD
-Classified as Schedule II drugs by the DEA (same as cocaine)
-Illegal to take without a scrim
Have proven succesful in managing ADHD
Evidence suggest helps many people focus, and improves performance on some learning tasks

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Risks of Smart Pills

Insomnia, weight loss, decreased appetite, jitteriness
Increased risk of cardiovascular
Exacerbate depression, psychosis, anxiety
-1-in-400 in doctor managed patients
-Potentially addictive
-10 percent according to 2016 study
-Decreased performance over time
-Paranoia, aggression, irritability

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Reward

Improved preformance on learning and retaining information

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Who is using it

Prescription use doubled from 2007 to 2011.
-25-35 percent of college students have used Ritalin, adderall off-prescription
- 3-4 percent of population are ADHD, skewed toward younger children

Users are also more likely to smoke marijuana, skip class, and lower GPA

31

CNN article

Movie director, talks about this and how he uses it to grind.
talks about how some employers may expect employees to do these drugs and fulfill their potential

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Stats on the Smart Pill

The amount of ER visits for the drug has 4x in the past five years.

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They are dangerous

Case of Richard Fee, got addicted to adder all and killed himself

34

Points out problems in our healthcare system

Quick Diagnosis
Ability to manipulate/feign symptoms
quick to medicate
doctor shopping

35

Yes it's bad
Points out problems in our healthcare system

Quick Diagnosis
Ability to manipulate/feign symptoms
quick to medicate
doctor shopping

36

No it's not bad

Joshua Gowin
No diff than other stimulants
More sophisticated
they work so use them

37

Take aways

What is a smart pill?
What is the risk/reward
Is it cheating?
Is it ethical?