Engage the Class in a Conversation About Auto Insurance

question 3

Essay

Engage the class in a conversation about auto insurance.Why do people feel their premium is wasted if they do not file a claim? Steer the class towards an understanding of put options and potential gain should a loss occur.It may also be beneficial to ask students to relate insurers' pooling of losses with the concept of risk management.

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Definitions:

Steamboats

Paddlewheelers that could travel both up- and downriver in deep or shallow waters; they became commercially viable early in the nineteenth century and soon developed into America’s first inland freight and passenger service network.

Upstream Commerce

The activities involved in the sourcing and procurement processes before goods reach the retailer or final consumer.

Water Transportation

A method of transporting goods and people using waterways, including oceans, rivers, lakes, and canals, utilizing various types of vessels.

Road Transportation

The movement of goods and people from one place to another over roads, using vehicles such as cars, trucks, and buses.