Lesson Notes By Weeks and Term - Senior Secondary 1
Insurable interest II
Insurable interest II
Term – 1st Term
Week: 13
Class: Senior Secondary School 1
Age: 15 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Insurance
Topic:- Insurable interest II
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
|
PRESENTATION |
TEACHER’S ACTIVITY |
STUDENT’S ACTIVITY |
|
STEP 1 INTRODUCTION |
The teacher reviews the previous lesson on hazard/peril |
Students pay attention |
|
STEP 2 EXPLANATION |
He discusses the methods of acquiring insurable interests in life insurance
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
He discusses the methods of acquiring insurable interests in property insurance
|
Students pay attention and participate |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
METHODS OF ACQUIRING INSURABLE INTEREST IN LIFE
INSURANCE
a. By Marriage: A person who is married has an insurable interest on his or
her spouse. Wife can affect policy on the life of her husband and husband
can also affect policy on the life of his wife.
b. In case of partnership: A partner can insure the other partner’s life up to
the limit of their financial involvement such as they stand to lose on the
death of any one of them.
c. In the case of creditor: A creditor can also stand to lose money if a
debtor dies before repaying the loan thus the creditor has an insurable
interest to the extent of the loan plus interest.
d. By Exception: According to the Industrial Assurance and Friendly
Societies Act 1948, amended by the Amendment Act 1958, a person may
assure the life of a parent, step parent or grandfather up to an amount of 30
pounds which is considered to be enough for their burial expenses.
e. By Financial relationship: An insurable interest can exist between
parents and children however it must involve financial relationship whereby
the parents or the children suffer financial loss following the destruction of
the basis on which the relationship was established.
METHODS OF ACQUIRING INSURABLE INTEREST IN PROPERTY
INSURANCE
a. Ownership: The owner of a property has insurable interest in the
property which allows him to seek the insurance policy.
b. Agent: An agent can affect insurance on behalf of his principal provided
the principal possesses an insurable interest in that circumstance.
c. Mortgagees and mortgagors: This often relates to the purchase of house,
a building society which the mortgagees and the mortgagors who is the
purchaser. Both parties under this arrangement have an insurable interest
in the property. The insurable interest of the mortgagees will be limited to
the extent of the loan granted to the mortgagor.
d. Bailees: The goods or property of another person which is legally in
possession of certain people can be insured by them against their future
financial loss while in their care for its full value since they would be
responsible for the replacement of the goods or properties, if damaged or
destroyed.
e. Husband and wife: A spouse has insurable interest in the property of
his/her partner so they also have mutual interest on each other’s lives.
f. Executor and trustees: There is often need to effect an insurance policy
to cover the property of his upon which an executor or a trustee assumes
control. As a trustee or executor of a will, one is legally responsible for the
property under his charge.
EVALUATION: 1. Discuss three methods of acquiring insurable interests in life insurance
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively