Lesson Notes By Weeks and Term - Senior Secondary 1

Term – 3^rd Term

Week: 6

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Insurance renewals

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

1. Define renewal notice
2. Explain days of grace and return of premium
3. Discuss the method of renewal for insurance policies

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

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

RENEWAL

The re-establishment of the enforce status of a policy the term of which has

expired or will expired unless it is renewed. The establishment of enforce

status attracted by the payment of another premium. Therefore the

continuous existence of an insurance policy is subject to renewal,

depending upon the duration of the policy. In most types of policies the

insurance is expressly stipulated to be for a period that does not normally

exceed one year.

The exception is life insurance where insurers are bound to accept the

renewal premium from the policy holder as long as they wish, with

unconditioned acceptance such as imposition of special terms following the

discoveries of new material facts which cannot be traced to have been

inexistence at the inception of the policy. In life assurance and some other

long term insurance renewal i.e automatic while in non-life insurance it is

not automatic but rather subject to negotiation. In life insurance policy the

mode of payment usually depends on the arrangement made with the

insurer by the insured which may be on yearly (every 12 months) quarterly

(every 3 months) or half yearly (6 months). However, the insurance policies

relatively to fire, burglary motor and good in transit (non life) are annual

insurance policies which run for a period of twelve months.

The principle of Utmost good faith applies at renewal and the insured is

obliged to disclose any material alteration on the risk. In indemnity, policies

such as fire, motor vehicle, liability insurance the contract terminate

automatically on the expiry date, unless renewed. It is believed that the

renewed insurance policy is a new contract separate from the original

policy. There is no law that made it mandatory for both of them (the insured

and the insurer) to renew the insurance contractual relationship between

them.

DAYS OF GRACE

As stated, renewal notices are sent out two weeks or one month before the

expiry date of the policy. If the insured intends to renew his insurance cover

but fails to do so before it expires, the insurer may continue to provide

protection for a period of so – called days of grace, which is usually

restricted to a maximum of 15 days.

EVALUATION:    1. Define renewal

2. Explain days of grace and return of premium

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively