Scenario 4: Home Insurance Name: Blake Name: Evan Name: Cecille Value of Home: $200,000 Value of Home: $250,000 Value of Home: $150,000 Living Area: 1200 sq. ft. Living Area: 1500 sq. ft. Living Area: 1100 sq. ft. Area Statistics: Low Crime Area Statistics: Low Crime, Area Statistics: High Crime Flood Zone Security: Impact Windows, Security: N/A Security Alarm, Fire Alarm Security: Storm Shutters Annual Premium: ________ Annual Premium: ________ Annual Premium: ________ Possible Premiums: $2000 per year, $3000 per year, $4000 per year Rationale for Assigning Insurance Premium: $2000 Annual Premium: Blake would pay the least beause he as the smallest home and several added security features that protect his home from damage/loss. $3000 Annual Premium: Cecille would pay more than Blake because her home is in a high crime neighborhood and is at greater risk. $4000 Annual Premium: Evan would pay the most as his home has the greatest value and is located in a flood zone. Scenario 5: Health Insurance Name: Andrea Name: Martin Name: Isabella Age: 16 Age: 35 Age: 25 Health: No pre-existing Health: Cholesterol, High Blood Health: No preexisting conditions Pressure conditions Weight: Athletic Weight: Obese Weight: Average Smoke: No Smoke: Yes Smoke: No Alcohol: No Alcohol: No Alcohol: No Annual Premium: ________ Annual Premium: ________ Annual Premium: ________ Possible Premiums: $1000 per year, $2000 per year, Rationale for Assigning Insurance Premium: $1000 Annual Premium: Isabella and Andrea would pay lower premiums because neither have health conditions and neither smoke or drink – reducing their risk of illness and disease. $2000 Annual Premium: Martin would have the highest premiums due to his obesity and related health concerns. He is also at greater risk of additional health concerns due to smoking.
Scenario 4: Home Insurance Name: Blake Value of Home: $200,000 Living Area: 1200 sq. ft. Area Statistics: Low Crime Security: Impact Windows, Security Alarm, Fire Alarm Annual Premium: ________ Name: Evan Value of Home: $250,000 Living Area: 1500 sq. ft. Area Statistics: Low Crime, Flood Zone Security: Storm Shutters Annual Premium: ________ Name: Cecille Value of Home: $150,000 Living Area: 1100 sq. ft. Area Statistics: High Crime Security: N/A Annual Premium: ________ Possible Premiums: $2000 per year, $3000 per year, $4000 per year Rationale for Assigning Insurance Premium: $2000 Annual Premium: Blake would pay the least beause he as the smallest home and several added security features that protect his home from damage/loss. $3000 Annual Premium: Cecille would pay more than Blake because her home is in a high crime neighborhood and is at greater risk. $4000 Annual Premium: Evan would pay the most as his home has the greatest value and is located in a flood zone. Scenario 5: Health Insurance Name: Andrea Age: 16 Health: No pre-existing conditions Weight: Athletic Smoke: No Alcohol: No Annual Premium: ________ Name: Martin Age: 35 Health: Cholesterol, High Blood Pressure Weight: Obese Smoke: Yes Alcohol: No Annual Premium: ________ Name: Isabella Age: 25 Health: No preexisting conditions Weight: Average Smoke: No Alcohol: No Annual Premium: ________ Possible Premiums: $1000 per year, $2000 per year, Rationale for Assigning Insurance Premium: $1000 Annual Premium: Isabella and Andrea would pay lower premiums because neither have health conditions and neither smoke or drink – reducing their risk of illness and disease. $2000 Annual Premium: Martin would have the highest premiums due to his obesity and related health concerns. He is also at greater risk of additional health concerns due to smoking.
Grade%205%20Lesson%2015%20Risks%20and%20Insurance%20Premiums.docx