Lesson Plan for Senior Secondary 1 - Insurance - Insurable And Uninsurable Risks

Lesson Plan: Insurable and Uninsurable Risks **Grade Level:** Senior Secondary 1 **Subject:** Insurance **Duration:** 60 minutes **Topic:** Insurable and Uninsurable Risks --- ### Objectives: 1. **Knowledge**: Students will understand the differences between insurable and uninsurable risks. 2. **Comprehension**: Students will be able to identify examples of both types of risks. 3. **Application**: Students will analyze various scenarios to determine whether a risk is insurable or uninsurable. ### Materials Needed: - Whiteboard and markers - Projector and laptop for presentation - Handouts with case studies and examples - Index cards - Internet access for research ### Lesson Structure: #### 1. Introduction (10 minutes) - Begin the lesson by explaining the importance of insurance and the concept of risk. - Introduce the terms "Insurable Risks" and "Uninsurable Risks". - Provide definitions: - **Insurable Risks**: Risks that can be covered by insurance policies because they are measurable, predictable, and not catastrophic. - **Uninsurable Risks**: Risks that are too unpredictable, immeasurable, or catastrophic for insurers to cover. - Briefly mention the objective of the lesson. #### 2. Teaching Content (20 minutes) - **Discussion and Explanation**: - Elaborate on **Insurable Risks**: - Examples include property damage, life, health, and automobile insurance. - Characteristics: Probability can be calculated, reasonable premium costs, non-catastrophic, large number of similar exposure units. - Elaborate on **Uninsurable Risks**: - Examples include natural disasters of great magnitude (like major earthquakes or floods in certain areas), war, certain regulatory or governmental actions, and entrepreneurial risks. - Characteristics: Extremely high unpredictability, immense potential for loss, lack of statistical data to calculate premiums. - **Visual Aids**: - Use slides to show graphical representations and real-life examples. - Display an infographic to differentiate between insurable and uninsurable risks. ### Activity Part (15 minutes) - **Group Activity**: - Divide students into small groups and provide each group with index cards, each containing a brief description of different types of risks. - Groups will discuss and categorize each risk as insurable or uninsurable. - Each group will then share their classifications and reasoning with the class. ### Case Study Analysis (10 minutes) - **Case Study Handouts**: - Distribute handouts containing different case studies. - Each case study will describe a scenario involving a risk. - Students will read through the case studies and decide whether the risk described is insurable or uninsurable, supporting their answer with reasons. ### Review and Summary (5 minutes) - **Class Discussion**: - Review the main points of the lesson. - Allow students to ask questions or express any uncertainties. - Summarize the fundamental differences between insurable and uninsurable risks. ### Assessment (if applicable; HW or Exit Ticket) - **Homework Assignment or Exit Ticket**: - Have students write a brief paragraph on an example of an insurable risk and an uninsurable risk they have learned about. - Make sure they explain why each risk falls into its category. ### Wrap-Up and Next Steps: - **Conclusion**: - Reinforce the importance of understanding risks in the context of insurance. - Introduce what will be covered in the next class, building on today's lesson. ### Homework (Optional) - Research on recent news articles involving insurance claims and identify if the risks were insurable or uninsurable, including a brief explanation. This lesson plan aims to provide students with a clear understanding of the key concepts of insurable and uninsurable risks through explanations, discussions, and interactive activities.