1. I am so happy to have you all in class today 
Wednesday, January 3, 2018
Welcome!
I am so happy to have you all in class today 
Do Now:
Make sure your cell phones are on silent and off to the side.
Have something to write with and something to write on.
Be seated before the bell rings.

2. Objectives:
Explain the concept of risk and list several types of risk.
Explain the concept of insurance and how risks are spread.

3. Types of Risk Risk Uncertainty Two types of risk:
is a state of uncertainty, where certain situations will result in some sort of loss or another undesirable outcome
Uncertainty
is the likelihood that something will or will not happen
Two types of risk:
Pure Risk
Insurable Risk

4. Types of Risk: Pure Risk
Has to deal with a chance of loss with no chance for gain.
Completely random, having the ability to happen to anyone at any time
Examples?
Acts of nature
Illnesses
Accidents resulting in injury (physical or property)

5. Types of Risk: Insurable Risk
Being able to reduce the negative consequences of pure risk by purchasing insurance
Insured Risk is often faced and calculated by a large number of people
Gender comparison  Auto Insurance
Natural Disaster  Home/Renters/Business Insurance
Insurable Interest must be present to purchase insurance!!!

6. Types of Risk: Insurable Risk
Is is possible to get discounts on your insurance policy?
Insurable Risk = Umbrella Coverage
Personal Risk
Property Risk
Liability Risk

7. Personal Risk
The chance of loss involving your income and/or a standard of living
How to protect yourself and/or others:
Purchasing life, health, and disability insurance

8. Property Risk The chance of loss or harm to personal or real property
Includes home, car, or other possessions
Destruction comes in form of fire, wind, rain, accident, etc.
How to protect your property?
Property Insurance

9. Liability Risk
The chance of loss that occurs when your errors or actions results in the injuries to others or damages to their property
Damages comes from accidents while driving car, reckless injury on your property from your property, etc.
How to protect your self?
Liability Insurance

10. I am so happy to have you all in class today 
Thursday, January 4, 2018
Welcome!
I am so happy to have you all in class today 
Do Now:
Make sure your cell phones are on silent and off to the side.
Have something to write with and something to write on.
Be seated before the bell rings.

11. Common Risks, Causes, Ways to Protect

12. Spreading the Risk: How Insurance Works
Example: Suppose you textbook for a class costs $60.
What happens if you lose the book, and you don’t have an insurance policy on that book?
What happens if you lose the book, but you have an insurance policy for the book?

13. Spreading the Risk: How Insurance Works
When you purchase insurance, you join a risk-sharing group (receiving a policy)
Policy received informs the insurer to assume an identified risk for a fee (premium)
Note that insurance is not there to help enrich, rather to compensate
When compensation is paid, the indemnification process has begun

14. Assignment: Complete the handout provided.
Define the following vocab terms on the back of the handout.