Lesson Notes By Weeks and Term - Senior Secondary 2

Credit insurance II

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Term – 1st Term

Week: 12

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Credit insurance II

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

  1. State the uses of credit insurance
  2. Discuss the risks covered by credit insurance

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 credit insurance

Students pay attention

STEP 2

EXPLANATION

He states the uses credit insurance

 

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He highlights the risks covered by credit insurance

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

CREDIT INSURANCE

Uses of credit insurance

  1. It protects the asset of a trading organization.
  2. It restores the working capital lost through bad debt.
  3. It serves as a defense for divided maintenance.
  4. It reinforces credit control management through information made available by the insurer to establish those losses that can be avoided by the policy holder.
  5. It helps to minimize debts.
  6. It is used as a substitute to the provision for bad debts in the profit and loss account of the seller.
  7. It helps to check the excesses of sales staff whose desires for high turnover may make them imprudent in granting trade credit.

The risks covered by credit insurance

a. Loss due to inability or unwillingness on the part of the buyer to pay for

goods sold and delivered to him, or service rendered on credit terms.

b. The seller could be protected up to seventy percent (70%) to ninety

percent (90%) but not 100% to make him an insurer of himself in order to

be very careful in granting of credit.

c. Credit insurance excludes hire purchase business considered to be the

legitimate field of the banking sector and members of public because of the

difficulties in the assessment of such risk.

d. It deals with the normal trade involving sales and delivery of goods and

provision of services.

EVALUATION:    1. Mention three uses of credit insurance

  1. Name three risks covered by credit insurance

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively