Lesson Notes By Weeks and Term - Senior Secondary 1

Utmost good faith III

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Term – 2nd Term

Week: 3

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Utmost good faith III

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

  1. Discuss the liabilities of agents
  2. Outline the ways by which utmost good faith can be breached
  3. State the effects of the breach of utmost good faith

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 discusses the liabilities of agents

He further outlines the ways by which utmost good faith can b breached 

 

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He states the effects of the breach of utmost good faith

 

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

The liabilities of agents 

  1. He is liable for breach of warranty of authority; if an agent proposes to act as agent when he has not been given that authority
  2. he is liable to compensate the principal for breach of warranty such as acting outside his authority.
  3. He is liable to compensate the principal if he commits fraud, thereby exposing the principal to loss.

Ways by which utmost good faith can be breached 

  1. Non-disclosure

This is the failure to disclose material fact, either by accident or because the fact is not considered to be important.

  1. Concealment

This is the failure to disclose a material fact willfully which is fraudulent.

  1. Fraudulent misrepresentation

This constitutes deliberate supply of false or intentionally misleading information in a material fact.

  1. Innocent misrepresentation

This occurs when incorrect information is given about material facts, but where the error is unintentional.

 

The effects of the breach of utmost good faith

  1. To sue for damages; if the breach was fraudulent, the insured will be guilty of the tort of deceit, which could give rise to an action for damages.
  2. To waive the breach; the insurer may overlook the breach if he so desires, in which case the breach never legally occurred.
  3. To consider the contract void: This requires notification to the offending party. It is virtually unknown for a breach to be committed by the insurer, who is therefore almost the aggrieved party. The insurer would state that he is coming off risk. If the policy had already matured e.g. in life assurance, no payment will be made.

EVALUATION:    1. Discuss two liabilities of the agent

  1. Explain the four ways by which utmost good faith can be breached
  2. State two effects of breach of utmost good faith

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively