Alexa Campbell - Insurance 101
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School
Lone Star College System, Woodlands *
*We aren’t endorsed by this school
Course
1307
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
3
Uploaded by ProfFlowerWolverine28
Students will be able to:
●
Illustrate how everyone risks financial loss and how insurance shares that risk
●
Identify factors that impact insurance premiums and the relationship between premiums, deductibles,
and coverage limits
●
Explain how the insurance industry uses risk pooling and math to provide insurance coverage and make
a profit
INTRO
QUESTION OF THE DAY:
What is the cost to repair an iPhone screen?
Answer the question on the first slide in the space below. Then, compare your answer to the
answer on the second slide.
1.
What is the cost to repair an iPhone Screen?
$250
LEARN IT
EDPUZZLE:
Intro to Insurance
AppleCare+ is basically an insurance plan, and like any insurance, before you can decide if it’s a
good plan to purchase, you need to understand how it works.
NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in
the lesson here.
1.
The purpose of insurance is to…
a.
build wealth
b.
transfer risk
c.
manage assets
d.
build relationships
2.
Why is it important for insurance companies to have a large risk pool of people paying
premiums?
a.
If a large pool of people pay premiums, insurance company employees will get more
bonuses included in their next paycheck
b.
The premium payments of all the insured clients will cover the costs for the
emergencies of the few who need it
c.
The more people that pay premiums, the more careful each insured client becomes
with their lifestyle choices
1
d.
A large pool of people paying premiums allows insurance companies to have a larger
social media following
3.
What role does math play in the insurance industry?
a.
Insurance companies use statistics to find how likely a client will need to use the
insurance so they can set premiums in order to have the highest chance of making a
profit
b.
Insurance companies use algebra and geometry to calculate the distance from
clients' major emergencies to nearest hospitals
c.
Insurance companies use statistics to hypothesize how likely clients are to switch
over to competitive companies
d.
Insurance companies use calculus to find out how likely a client will need to use the
insurance so they can set premiums in order to have the highest chance of making a
profit
VIDEO:
How Does Insurance Work?
This final video will explain how insurance companies manage to make money, when it seems
they might be stuck paying out huge claims for ruined houses, wrecked cars, and stolen laptops.
Watch the video and answer the questions.
1.
Why do you think the mathematical models used by insurance companies are so
complex?
Many uncertainties and need several solutions to several issues a client may have
2.
What is at stake if an insurance company’s models aren’t particularly good at
predicting risk?
They could become bankru[t and not be able to pay for clients coverage
3.
Provide at least two reasons why self-insurance for risks involving your car or home
isn’t feasible for most Americans.
Not total coverage and not always legal to be self- insured
DO IT
2
ACTIVITY: INTERACTIVE: Bummer!
Every day is filled with risks, and insurance companies exist to sell you insurance to help alleviate
the financial damage of those possible risks. In this game, you’ll spin the Wheel of Bummers to
find out which risks are coming your way. Follow the directions on the worksheet to complete this
activity.
3
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