Lesson Notes By Weeks and Term - Senior Secondary 1

Term – 2^nd Term

Week: 9

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Proposal forms

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

1. Define a proposal form
2. Highlight the features of an insurance proposal form
3. State the functions of insurance proposal form
4. State the uses of the proposal form

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

PROPOSAL FORM

Proposal form is a document which the person intending to be insured has to complete and submit to the Insurance Company (Insurer). This is a means by which insurers collect information from the proposer on the proposed risk which makes it possible to access the risk and be able to take decision on the acceptability of the risk. The proposal form usually contains the declaration that warrants the truth of the proposer.

Features of insurance proposal form:

1. General questions

This consists of the following;

1. Proposer’s name
2. Proposer’s address
3. The location of the proposed risk where it is different from the address of the proposer.
4. The occupation of the proposer
5. Information of the present and previous Insurance Industry.

2. Particular questions

These are questions which specifically related to information about a particular class of Insurance with regards to the proposed risk. The form is designed to reflect the hazards attached to the class of Insurance and also the information on the values or limit of liability of the proposed risk. Examples are:

In motor Insurance,

1. Type of vehicle
2. Make of vehicle
3. Registration number
4. Cubic capacity
5. Chasis and engine number
6. Year of manufacturer
7. Good carrying capacity
8. Passenger capacity including driver
9. Age of the proposer
10. Years of driving experience
11. Records of claims and accidents of regular drivers.

In fire insurance,

1. Construction of the building
2. Method of construction
3. Materials used for construction
4. Method of roofing
5. Number of floors
6. The age and state of building.

In life and personal accident Insurance

1. The age of the proposer
2. The occupation of the proposer
3. The height and weight of the proposer
4. The medical history of the life to be insured

3. Declaration: This is usually at the foot of the proposal form, declaring that all information by the proposer is true and no information has been withheld. It further confirms the readiness of the proposer to accept unusual form of Insurance contract like adjustment in premium if need be

4. Signature and date: The proposed form is to be signed by the proposer. It is boldly printed below and date that the completion of the form does not represent the acceptance of the form proposed risk until the form deposit premium is received by the insurance Company.

Functions of Insurance proposal form

1. It serves as a convenient means by which the insurer obtains information on the proposed risk.
2. It serves as the basis of contract where the proposer is expected to provide truthful information to the questions asked and if otherwise such contract will be void based on misrepresentation.
3. The information provided in the proposal form is used to access the proposed risk, whether it is acceptable or not.
4. It aids in the offer and acceptance of risk.
5. It serves as a method of advertising through which insuring public obtain information on the particular class of insurance.

Uses of Proposal form

1. A proposal form is a platform in which insurance Company is based and all information given by the insured forms part of the contract.
2. It is the basic means by which insurer is able to access information regarding the risk proposed.
3. It also enables the insurer to determine premium charged, and any discount to be allowed.
4. Proposal form contains three main sections: personal data, information relating to subject matter of insurance and information about insurance industry.

Contracts where proposal forms are used

The following are the classes of insurance where proposal form is prominently used;

1. Motor insurance
2. Life assurance
3. Burglary insurance
4. Fidelity guarantee insurance
5. Money insurance

EVALUATION:    1. Define proposal forms

2. Outline the features of an insurance proposal form
3. State four functions of the insurance proposal form
4. Outline three uses of the insurance proposal form

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively