Lesson Notes By Weeks and Term - Senior Secondary 1

Term – 2^nd Term

Week: 2

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Utmost good faith II

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

1. Give examples of facts that can be disclosed in different classes of insurance
2. Outline the features that can make an agent to be considered as the agent of the proposer
3. State the duties of agents to the principal and the duties of principal to the agents

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 utmost good faith	Students pay attention
STEP 2 EXPLANATION	He gives examples of facts that can be disclosed in different classes of insurance. He further outlines the features that can make an agent to be considered as an agent of the proposer	Students pay attention and participates
STEP 3 DEMONSTRATION	He states the duties of agents to the principal and the duties of the principal to the agents.	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

EXAMPLES OF FACTS THAT MUST BE DISCLOSED IN DIFFERENT

CLASSES OF INSURANCE

Motor insurance

(a) the use to which the vehicle will be put, whether for the carriage of

goods belonging to the insured or general carriage

(b) whether the vehicle will be driven regularly by another person other than

the insured

(c) modification to the vehicle. Life insurance: Previous medical history

Personal accident:

Nature of occupation, salaries and wages, age.

Theft insurance:

Previous theft cases in the premises, nature of the stock, method of

packaging, employment of night watchmen.

Fire insurance:

(a) The material used for construction

(b) what the building is used for

(c) location of the building.

Marine insurance:

The mode of packaging with respect to marine cargo.

 

THE FACTS THAT NEED NOT TO BE DISCLOSED 

1. Facts about law
2. Facts of which insurer deemed to know
3. Those that lessen or improve the risk
4. Facts about which insurer has been put on enquiry
5. Facts which insurance survey should have noted
6. Those that are unknown to the proposer

 

The duration of duty of disclosure

At the common law, the duty of disclosure commences when the

discussion to establish the contract relationship begins, which will be

concluded when the contract is formed.

 

The insurance intermediaries and their duty of information disclosure

Insurance intermediaries are made up of agents and brokers; agents are

usually agents of the insured while brokers in most cases act as agents for

the insurer.  Legally, agents are intermediaries that represent the interest of

the principal.  At the common law, an agent is a person appointed by

another person called the principal to bring the principal into legal relations

with the third parties.

Note:

Information acquired by the agent in the course of his duty is regarded as

information acquired by his principal.

Agent of the proposer

An agent is considered to be agent of the proposer if the following features

are present:

(a) Provide the insured with advice on claims with the insurer.

(b) Carrying out alteration as well as providing additional information on

behalf of the proposer.

(c) By completing the insurance proposal form with the knowledge of the

proposer.

(d) Offer advice to the proposer on his insurance needs.

(e) Provide answers to the questions asked in the proposal form on behalf

of the proposer.

 

Duties of agents to principal

(a) He must act with due care and for that class of agent.

(b) Handling the insurance contract along with the terms of his agency

either orally, written or implied.

(c) Carrying out all lawful instructions.

(d) He must account to the principal for all money on his behalf.

(e) Acting in perfect good faith with his principal by making available all

information essential to the insurance contract.

(f) Avoiding the acceptance of secret commission.

(g) He must not delegate his duties to another person.

 

Duties of principal to agents

(a) Ensuring the payment of agreed commission.

(b) Avoiding the payment of secret commission.

(c) Settling all the expenses incurred by the agents in the discharge of their

duties.

(d) Settling the premium paid by the agent on behalf of the principal where

the insured is the principal.

EVALUATION:    1. Give an example of facts that can be disclosed in these classes of insurance

                        a. motor insurance

                        b. life insurance

                        c. personal accident

                        d. theft insurance

2. What is the duration of the duty of disclosure?

3. State four features to be considered in the choice of an agent of proposer

4. Outline four duties of

a. agents to principal

b. principal to agents

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively