### Lesson Plan: Understanding Subrogation in Insurance
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**Class:** Senior Secondary 1
**Subject:** Commerce/ Business Studies
**Topic:** Subrogation in Insurance
**Duration:** 60 minutes
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#### **Objectives:**
By the end of this lesson, students will be able to:
1. Define subrogation in the context of insurance.
2. Understand the purpose and significance of subrogation.
3. Illustrate how subrogation works with examples.
4. Differentiate subrogation from other insurance principles like indemnity and contribution.
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#### **Materials:**
- Whiteboard and markers
- Projector and screen or PowerPoint slides
- Handouts with definitions and examples
- Case studies for group discussions
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#### **Lesson Outline:**
1. **Introduction to Subrogation (10 minutes)**
- **Engage & Motivate**: Start with a brief discussion on recent high-profile insurance claims that might be in the news. Ask the students if they have ever heard of the word subrogation and write it on the board.
- **Definition**: Explain that subrogation is a legal right held by most insurance carriers to pursue a third party responsible for an insurance loss to the insured.
2. **Purpose and Significance (10 minutes)**
- **Discussion**: Discuss why insurance companies use subrogation. Explain that insurance companies aim to reduce their losses by recovering from the party at fault. This helps keep insurance premiums lower for the consumers.
- **Real-life Example**: Simplify with an example. If a policyholder's car is damaged by another driver, the insurance company may pay for the damages and then seek compensation from the at-fault driver or their insurance company.
3. **How Subrogation Works (15 minutes)**
- **Step-by-Step Process**: Use a projected slide or handout to break down the steps involved in subrogation.
- The policyholder files a claim.
- The insurance company pays the policyholder.
- The insurance company identifies the third party at fault.
- The insurance company seeks reimbursement from the responsible party or their insurer.
- **Short Skit/Role Play**: Assign roles to a few students (policyholder, insurance agent, at-fault party) and ask them to perform a short skit to visualize the subrogation process.
4. **Comparison with Other Insurance Principles (10 minutes)**
- **Interactive Session**: Divide the class into smaller groups and give them short briefs on different insurance principles like indemnity, contribution, and subrogation.
- **Group Activity**: Have each group compare subrogation with one of the other principles. Encourage them to discuss the following points:
- How is it different?
- Why is it important?
- Provide scenarios where each principle applies.
5. **Case Study and Group Discussion (10 minutes)**
- **Distribute Case Studies**: Hand out simplified real-world cases involving subrogation.
- **Group Discussion**: Allow students to discuss within their groups how subrogation was applied in each case.
- **Share Findings**: Let each group share their findings with the class.
6. **Q&A and Recap (5 minutes)**
- Invite any questions from the students.
- Recap key points learned during the session.
- Highlight the importance of understanding subrogation as future professionals or consumers.
7. **Assignment (5 minutes)**
- Assign a homework task where students must explain subrogation in their own words and provide a real-life example or scenario.
### **Conclusion:**
Reiterate the significance of subrogation in maintaining a balanced insurance system, keeping premiums fair, and ensuring that the responsibility is placed on the rightful party. Encourage students to research further about other insurance principles for a broader understanding.
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**Assessment:**
- Participation in group discussions and activities.
- Evaluation of the homework assignments.
- Feedback through a short quiz in the next class to ensure retention of key concepts.
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**Follow-Up:**
- Plan a deeper dive in future classes into related topics such as liability insurance, the claims process, and other principles of insurance like insurable interest and utmost good faith.
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This lesson plan aims to provide a structured approach to understanding subrogation in insurance, ensuring students not only grasp theoretical knowledge but also how it applies practically.