Lesson Notes By Weeks and Term - Senior Secondary 2

Term – 3^rd Term

Week: 6

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Life assurance

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

1. State exceptions to the rule of financial relationship in life assurance
2. Differentiate between life assurance and non-life assurance

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 life assurance	Students pay attention
STEP 2 EXPLANATION	He states the exceptions to the rule of financial relationship in life assurance	Students pay attention and participates
STEP 3 DEMONSTRATION	He differentiates between life assurance and non-life assurance	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

LIFE ASSURANCE

Exceptions to the rule of financial relationship in life assurance

1. According to Industrial Assurance and Friendly Societies Act 1948, amended by the Amendment Act 1958, a person may assure the life of a parent, step parents or grandparent up to an amount of 30 pounds which is considered to be enough for their burial expenses.
2. An insurable interest to exist between parents and children must involve financial relationship whereby the parents or the children suffer financial loss following destruction of the basis on which the relationship was established. E.g. A father giving out loan to his son for commencement of a business outfit or for the purchase of an item such as vehicle or building of a house.
3. In the case of partnership, a partner can insure the other partner’s life up to the limit of their financial involvement such as they stand to lose on the death of any one of them.
4. In case of a creditor-debtor relationship, a creditor can also stand to lose money if a debtor dies before repaying the loan and therefore has an insurable interest to the extent of the loan plus interest. A debtor has no insurable interest on the life of the creditor.

 

Differences between life assurance and non-life assurance

	Life assurance	Non-life assurance
1	Life assurance is an insurance on someone’s life	Non-life assurance covers something else other than a person’s life
2	Risk is certain though time of death is uncertain in life assurance contracts.	Risk is not certain (occurrence of event is uncertain)
3	Life assurance is generally for longer period	It is always for a short period
4	In life assurance contracts, insurable interest must exist at the time of taking policy	In Non-life insurance contracts, insurable interest must exist both at the time of taking policy and at the time of loss.
5	The principle of indemnity does not apply in life assurance	The principle of indemnity is applied

 

EVALUATION:    1. State four exceptions to the rule of financial relationship in life assurance

2. State three differences between life assurance and non-life assurance

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively