Lesson Plan for Senior Secondary 1 - Insurance - Insurable Interest Ii

**Lesson Plan for Senior Secondary 1 - Topic: Insurable Interest II** --- **Lesson Title:** Understanding Insurable Interest in Insurance **Subject:** Economics **Class Level:** Senior Secondary 1 **Duration:** 60 minutes **Core Objectives:** 1. Define 'Insurable Interest' in the context of insurance. 2. Identify situations where insurable interest exists. 3. Explain why insurable interest is a fundamental principle in insurance contracts. 4. Illustrate the consequences of lacking insurable interest in insurance policies. **Materials Needed:** - Whiteboard and markers - Projector and computer (for PowerPoint presentation) - Handouts with key terms and examples - Case studies for group discussions **Lesson Plan Outline:** --- **Introduction (10 minutes):** 1. **Greeting and Quick Review:** - Greet the students and take attendance. - Quickly recap the previous lesson on the basics of insurance and the concept of risk. 2. **Ice-Breaker Activity:** - Ask students to discuss in pairs: "What is one valuable possession they wouldn't want to lose, and why?" **Teaching Segment (20 minutes):** 1. **Definition and Explanation:** - Present the formal definition of insurable interest: "A stake in the value of an entity or event for which a loss or damage would cause the insured to suffer a financial loss or certain other kinds of losses." - Explain the importance of insurable interest: it ensures only those who face a personal financial loss can claim insurance benefits, preventing moral hazard and fraud. 2. **Criteria for Insurable Interest:** - Economic relationship: Insured must have a financial relationship with the subject matter. - Legal relationship: Ownership, custody, or a contract can establish insurable interest. 3. **Examples:** - Tangible Property: Homeowners insuring their houses. - Life Insurance: Policies taken out on immediate family members or business partners. - Liability: Professionals insuring against potential lawsuits. **Class Activity (15 minutes):** - **Group Discussion:** 1. Divide the students into small groups and give each group a case study illustrating different scenarios. 2. Case Study Examples: - A person buying insurance for a car they don’t own. - A company insuring the life of a key employee. - A tenant insuring the building they are renting. 3. **Guided Questions for Discussion:** - Does an insurable interest exist in this scenario? Why or why not? - What are the potential consequences if insurable interest does not exist? **Interactive Segment (10 minutes):** 1. **Q&A Session:** - Allow students to ask questions about any part of the lesson they didn't understand. - Use real-life examples to clarify doubts and reinforce learning. 2. **Quick Quiz:** - Conduct a short quiz to test their immediate understanding of insurable interest with multiple-choice or true/false questions. **Conclusion (5 minutes):** 1. **Summary:** - Recap the key points: definition of insurable interest, criteria for its existence, and examples. - Emphasize why having insurable interest is vital for valid insurance contracts. 2. **Homework Assignment:** - Ask students to write a one-page essay on "Why Insurable Interest is Essential in Preventing Insurance Fraud," providing examples. **Closing:** - Thank students for their participation. - Provide an overview of the next lesson: Introduction to Indemnity in Insurance. --- **Assessment:** - Participation in group discussions. - Quiz performance. - Quality of the homework essay and engagement in the lesson. **Differentiation:** - For advanced students, provide more complex case studies. - For struggling students, use simplified definitions and more guided support. --- This lesson plan ensures that students understand the concept of insurable interest and recognize its importance in the field of insurance, setting a strong foundation for further study in economics and business.