| Code |
Description |
| SS.912.FL.7.1: | Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.Clarifications:
Clarification 1: Instruction includes understanding self-insurance and the practice of having an emergency fund. Clarification 2: Instruction includes understanding the potential effects on premium costs if in an emergency fund.
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| SS.912.FL.7.2: | Understand that insurance companies charge premiums to create a pool of money from which the company uses to pay for losses incurred by policyholders.Clarifications:
Clarification 1: Instruction includes understanding that insurance companies allow the risk of loss to be spread amongst all policyholders. |
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| SS.912.FL.7.3: | Analyze and evaluate the cost-effectiveness of supplemental insurance.Clarifications:
Clarification 1: Instruction includes understanding how an extended warranty on a consumer product is a type of supplemental insurance. |
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| SS.912.FL.7.4: | Describe why people choose different amounts of insurance coverage based on their willingness to accept risk, as well as their occupation, lifestyle, age, financial profile, and the price of insurance. |
| SS.912.FL.7.5: | Explain how governments and contractual obligations can influence the decisions and responsibilities of individuals to obtain different forms of insurance.Clarifications:
Clarification 1: Instruction includes understanding why homeowners’ insurance is required by a lender when a homeowner takes out a mortgage. |
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| SS.912.FL.7.6: | Describe how an insurance contract can increase the probability or size of a potential loss.Clarifications:
Clarification 1: Instruction includes understanding that having insurance may result in the policyholder taking more risks. Clarification 2: Instruction includes understanding that deductibles and copayments are cost-sharing features that encourage the policyholder to take steps to reduce the potential size of an insurance claim.
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| SS.912.FL.7.7: | Explain that people can lower insurance premiums by behaving in ways that show they pose a lower risk.Clarifications:
Clarification 1: Instruction includes factors that potentially lower insurance rates such as taking a safe-driving course to lower auto insurance cost or lower health insurance premiums for non-smokers. |
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| SS.912.FL.7.8: | Identify the purposes of various types of insurance.Clarifications:
Clarification 1: Instruction includes understanding multiple types of insurance: health, disability, long-term care, travel, auto, renter, life, homeowner, and property and casualty. Clarification 2: Instruction includes comparing the coverage and costs of hypothetical plans for a set of scenarios utilizing various types of insurance.
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| SS.912.FL.7.9: | Explain how government programs provide a social safety net that protects an individual from an economic hardship created by unexpected events.Clarifications:
Clarification 1: Instruction includes understanding that workers’ compensation is a government-mandated program that provides benefits to workers that become injured or ill on a job or because of the job. |
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| SS.912.FL.7.10: | Identify how responsible use of personal information can prevent identity theft.Clarifications:
Clarification 1: Instruction includes describing problems that can occur when an individual is a victim of identity theft. Clarification 2: Instruction includes giving specific examples of how online transactions, online banking, email frauds, and telemarketing calls can make consumers vulnerable to identity theft. Clarification 3: Instruction includes describing the conditions under which individuals should and should not disclose their Social Security number, account numbers, or other sensitive personal information. |
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| SS.912.FL.7.11: | Compare federal and state regulations that provide some remedies and assistance for victims of identity theft.Clarifications:
Clarification 1: Instruction includes recommending actions a victim of identity theft should take to limit losses and restore personal security. |
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| SS.912.FL.7.12: | Identify the implications of social networking sites and other online activity on an individual’s digital footprint.Clarifications:
Clarification 1: Instruction includes understanding that employers may check a prospective employee’s digital footprint as part of the hiring process. |
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| SS.912.FL.7.13: | Explain that financial planning includes preparing for all contingencies, including death.Clarifications:
Clarification 1: Instruction includes estate planning: preparing wills and living wills, power of attorney documents and trusts, and estate tax planning for larger estates. Clarification 2: Instruction includes discussing the difference between trusts and wills.
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| SS.912.FL.7.14: | Explain the implications of receiving an inheritance.Clarifications:
Clarification 1: Instruction includes understanding that an inheritance is money or assets a person has been bequeathed when someone passes. Clarification 2: Instruction includes creating a detailed plan for an inheritance. Clarification 3: Instruction includes understanding the impact to one’s taxes from receiving an inheritance.
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| SS.912.FL.7.15: | Examine laws and regulations concerning personal finance.Clarifications:
Clarification 1: Instruction includes understanding state and federal laws concerning personal finance. Clarification 2: Instruction includes identifying state and federal agencies regulating personal finance. |
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