Lesson Notes By Weeks and Term - Senior Secondary 1

Utmost good faith

Get it on Google Play
Get it on the Apple App Store
  1. Home
  2. Lesson Notes By Weeks and Term
  3. Senior Secondary 1
  4. Utmost good faith

Term – 2nd Term

Week: 1

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Utmost good faith

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define utmost good faith
  2. State the principle of insured and insurer duty of disclosure
  3. State the concept of material fact
  4. Outline the facts that needs to be disclosed

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 insurable interests

Students pay attention

STEP 2

EXPLANATION

He defines utmost good faith and states the principle of insured and insurer duty of disclosure

 

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He states the concept of material fact and further outlines the facts that need to be disclosed

 

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

UTMOST GOOD FAITH

Utmost good faith is the minimum standard that requires both buyer and seller in a transaction to act honestly toward each other and not to mislead or withhold critical information from each other.

 

The principle of insured and insurer duty of disclosure 

This is a principle that requires both the insurer and the insured to observe the doctrine of utmost good faith in their transactions. 

This is a principle that requires mutual trust and confidence between the insurer and the insured.

The concept of material fact 

A material fact is the material which will influence the judgement of a prudent insurer in fixing premium or determining whether he will take the risk or not.  It is a fact which expression would reasonably result in a different decision.  Facts which need to be disclosed must include such facts which would guide the insurer in rejecting or accepting a risk as in determining the premium chargeable.

THE FACTS THAT NEED TO BE DISCLOSED

  1. Previous proposal made by the proposer but declined by the insurer.
  2. Information on special terms imposed in previous insurance proposal if any
  3. Facts which lessen or improve risk.
  4. Those that would make the risk to appear higher externally than expected.
  5. The previous losses or claims made under other insurance policies.
  6. Those that are likely to increase the amount of loss than normally expected.
  7. Facts capable of discovery by the insurer from information supplied.
  8. Those relating to the full description of the subject matter of the insurance.
  9. The existence of other non-indemnity insurance policies if any.

EVALUATION:    1. Define utmost good faith

  1. State the principle of insured and insurer duty of disclosure
  2. Discuss the concept of material fact
  3. Outline five facts that needs to be disclosed

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively