Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 3rd Term
Week: 10
Age: 15 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Insurance
Previous Lesson: Insurance Premium.
Topic: Insurance Premium (Continuation)
Subject Matter: Total return of premium, reasons for total return of premium, partial return of premium, reasons for partial return of premium

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define total return of premium.
State at least three reasons for total return of premium.
Explain what partial return of premium means.
List at least two reasons for partial return of premium.

Affective Domain:

Appreciate the importance of understanding premium returns in insurance.
Show willingness to participate in discussions about insurance terms.

Psychomotor Domain:

Identify scenarios that may lead to total or partial return of premium.
Classify different reasons for premium returns.

Collaborate with peers to discuss different types of premium returns.
Participate actively in group activities related to insurance concepts.

Reference Materials

The following resources were used in planning this lesson:

Nigerian Senior Secondary Education Curriculum
State Unified Scheme of Work
Oludipe, A.O. (2018). Comprehensive Insurance for Senior Secondary Schools. Ibadan: University Press PLC.
Charts illustrating premium return scenarios.

Instructional Materials

The teacher will teach this lesson with the aid of:

Charts showing examples of premium returns.
Word cards with key terms like “total return”, “partial return”, “void ab initio”.

Rationale for the Lesson

This lesson helps pupils understand situations where an insurance premium can be returned, either fully or partially. This knowledge is important for them to grasp the fairness and operational aspects of insurance contracts, connecting theoretical concepts to practical scenarios.

Prerequisite/Previous Knowledge

Pupils have prior knowledge of what insurance premium is and its general purpose in an insurance contract.

Lesson Content/Board Summary

Insurance Premium (Continuation)

Total Return of Premium

Total return of premium occurs when an insurance company returns the full amount of premium paid by the policyholder. This usually happens when the insurance contract is deemed invalid from the start or the risk never commenced.

The following are reasons for total return of premium:

Policy void ab initio (void from the beginning, e.g., lack of insurable interest).
Non-commencement of risk (e.g., the insured event or property never came into existence).
Over-insurance where the risk is indivisible (e.g., insuring a house for more than its value with multiple policies).
Cancellation of the policy by mutual agreement before the risk has attached.

Partial Return of Premium

Partial return of premium occurs when an insurance company returns only a portion of the premium paid by the policyholder. This usually happens when a policy is cancelled mid-term or the risk covered is reduced.

The following are reasons for partial return of premium:

Cancellation of the policy mid-term by mutual agreement between the insurer and policyholder.
Over-insurance where the risk is divisible (e.g., insuring different parts of a large inventory with multiple policies, and some items are not present).
Alteration of risk leading to a reduced hazard (e.g., installing security features that lower the risk of theft).
Change in the sum assured downwards, which reduces the insurer’s liability.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and reviews the previous lesson on insurance premium. The teacher then asks pupils what they understand by ‘return’ in a general sense and relates it to money paid for a service that might not be fully rendered or needed.
Pupils’ Activity: Pupils respond to the teacher’s questions and recall previous knowledge.
Learning Point: Pupils are reminded of the concept of premium and introduced to the idea of its return.

Step 2: Explanation of Total Return of Premium

Time: 10 minutes
Teaching Skill: Explanation/Elucidation
Teacher’s Activity: The teacher explains the concept of total return of premium, defining it and providing clear examples. The teacher uses charts and word cards to illustrate key terms like “void ab initio” and “non-commencement of risk”.
Pupils’ Activity: Pupils listen attentively, ask questions for clarification, and take notes.
Learning Point: Pupils understand the meaning and context of total return of premium.

Step 3: Reasons for Total Return of Premium

Time: 7 minutes
Teaching Skill: Listing/Classification
Teacher’s Activity: The teacher lists and explains the specific reasons why a total return of premium might occur, ensuring each point is understood. The teacher encourages pupils to give examples.
Pupils’ Activity: Pupils enumerate the reasons and discuss examples provided by the teacher.
Learning Point: Pupils can state and explain reasons for total return of premium.

Step 4: Explanation of Partial Return of Premium

Time: 8 minutes
Teaching Skill: Explanation/Comparison
Teacher’s Activity: The teacher introduces the concept of partial return of premium, defining it and differentiating it from total return. The teacher uses examples to clarify the concept.
Pupils’ Activity: Pupils listen, take notes, and identify the differences between total and partial returns.
Learning Point: Pupils grasp the meaning and context of partial return of premium.

Step 5: Reasons for Partial Return of Premium

Time: 7 minutes
Teaching Skill: Listing/Discussion
Teacher’s Activity: The teacher lists and explains the reasons for partial return of premium, encouraging pupils to discuss potential scenarios where these reasons might apply.
Pupils’ Activity: Pupils enumerate the reasons and participate in discussions, contributing their understanding.
Learning Point: Pupils can state and explain reasons for partial return of premium.

Step 6: Class Activity/Discussion

Time: 3 minutes
Teaching Skill: Collaborative Learning
Teacher’s Activity: The teacher divides pupils into small groups to briefly discuss real-life situations where they think premium might be returned, either totally or partially.
Pupils’ Activity: Pupils discuss in groups and share their thoughts with the class.
Learning Point: Pupils apply their knowledge to practical scenarios.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define total return of premium.
State three reasons for total return of premium.
Explain what is meant by partial return of premium.
Mention two reasons for partial return of premium.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 1 minute
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the main points of the lesson, emphasizing the key differences and reasons for total and partial return of premium. The teacher assigns homework.
Pupils’ Activity: Pupils listen and copy down the homework.
Learning Point: Pupils reinforce their understanding of the topic.

Lesson Keywords

Premium – The amount of money an individual or business pays for an insurance policy.
Total Return of Premium – The full refund of an insurance premium to the policyholder.
Partial Return of Premium – The refund of a portion of an insurance premium to the policyholder.
Void ab initio – A contract that is considered invalid from the very beginning.
Non-commencement of risk – When the insured event or subject matter never comes into existence or operation.

Differentiation

The teacher will provide additional support to struggling pupils through simplified explanations and one-on-one guidance. More advanced pupils will be encouraged to research and present on specific case studies involving premium returns.

Note for teachers using this lesson plan

Teachers should ensure to use real-life examples relevant to the pupils’ local context to make the concepts of premium return more relatable and understandable. Visual aids like charts and diagrams can significantly enhance comprehension.