### Lesson Plan: Insurable Interest
#### Senior Secondary 1 - Insurance Class
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**Subject:** Insurance
**Grade Level:** Senior Secondary 1
**Lesson Topic:** Insurable Interest
**Duration:** 60 minutes
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#### Objectives:
By the end of this lesson, students will be able to:
1. Define insurable interest.
2. Understand the importance of insurable interest in insurance contracts.
3. Identify the conditions that give rise to insurable interest.
4. Provide examples of insurable interest in various types of insurance policies.
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#### Materials:
- Whiteboard and markers
- PowerPoint presentation
- Handouts with definitions and examples
- Case studies for group discussion
- Projector and laptop
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#### Lesson Plan:
**1. Introduction (10 minutes)**
- **Start with an engaging question:** "What do you think makes a person eligible to buy insurance for something or someone?"
- **Briefly explain the day’s agenda** and what students are expected to learn.
- **Define insurance** in simple terms, as a mutual agreement to protect against financial loss.
**2. Direct Instruction (15 minutes)**
- **Introduce the concept of Insurable Interest:**
- Define insurable interest as the financial interest a person or entity has in the insured item or person, the loss of which will cause a financial loss or other hardship to the insured.
- **Explain its importance:**
- Insurance contracts require insurable interest to be valid.
- Prevents moral hazard and reduces fraudulent claims.
- **Conditions that give rise to insurable interest:**
- Ownership: A person who owns an asset.
- Possession: A person who holds or uses an asset.
- Relationship: A financial or blood relationship causing economic loss if an insured event occurs (e.g., family members, business partners).
**3. Guided Practice (10 minutes)**
- **Give detailed examples:**
- Home insurance: A homeowner has an insurable interest in their residence.
- Life insurance: A spouse has an insurable interest in their partner.
- Auto insurance: A car owner has an insurable interest in their vehicle.
- **Interactive Q&A session** to discuss these examples.
**4. Group Activity (15 minutes)**
- **Divide students into small groups**, provide each group with a case study.
- **Task:** Identify whether there is an insurable interest present in each case study.
- **Discuss:** Groups will present their findings to the class. Encourage other students to ask questions and provide their insights.
**5. Independent Practice (5 minutes)**
- **Worksheet Assignment:** Distribute worksheets with multiple scenarios. Students will individually decide whether insurable interest exists in each scenario and justify their reasoning.
**6. Conclusion (5 minutes)**
- **Recap key points** covered in the lesson.
- **Reiterate the importance of understanding insurable interest** in the context of insurance.
- **Ask for any remaining questions** from the students.
**7. Assessment (Post-lesson)**
- **Collect worksheets** to assess understanding.
- **Feedback:** Provide feedback to the students, highlighting areas of strength and areas needing improvement.
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#### Homework Assignment:
- **Research Project:** Ask students to choose an asset (like a car, home, or valuable item) or a person and detail why they have insurable interest in that subject. They should present their findings in the next class.
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### Additional Notes:
- Ensure to adapt the lesson according to the students' understanding levels.
- Be patient and give real-life examples to help students relate better.
- Encourage students to participate actively and ask questions whenever they feel the need.