Standard 6 : Protecting and Insuring



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General Information

Number: SS.912.FL.6
Title: Protecting and Insuring
Type: Standard
Subject: Social Studies
Grade: 912
Strand: Financial Literacy

Related Benchmarks

This cluster includes the following benchmarks
Code Description
SS.912.FL.6.1: 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:
Discuss whether or not a premium paid to insure against an accident that never happens is wasted.
SS.912.FL.6.2: Analyze how judgment regarding risky events is subject to errors because people tend to overestimate the probability of infrequent events, often because they’ve heard of or seen a recent example.
Clarifications:
Discuss how an extended warranty on a consumer product is like insurance. Evaluate the cost-effectiveness of extended warranties on three consumer products: a new automobile, a smart phone, and a dishwasher, considering the likelihood that the product will fail, the cost of replacing the item, and the price of the warranty.
SS.912.FL.6.3: 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.
Clarifications:
Given hypothetical profiles for three types of individuals who differ with respect to occupation, age, lifestyle, marital status, and financial profile, assess the types and levels of personal financial risk faced by each and make recommendations for appropriate insurance.
SS.912.FL.6.4: Explain that people may be required by governments or by certain types of contracts (e.g., home mortgages) to purchase some types of insurance.
Clarifications:
Explain why homeowners insurance is required by a lender when a homeowner takes out a mortgage.
Investigate Florida’s regulations regarding the amount of auto insurance that drivers are required to purchase as well as federal health insurance regulations.
SS.912.FL.6.5: Describe how an insurance contract can increase the probability or size of a potential loss because having the insurance results in the person taking more risks, and that policy features such as deductibles and copayments are cost-sharing features that encourage the policyholder to take steps to reduce the potential size of a loss (claim).
Clarifications:
Given an accident scenario, calculate the amount that would be paid on an insurance claim after applying exclusions and deductibles.
SS.912.FL.6.6: Explain that people can lower insurance premiums by behaving in ways that show they pose a lower risk.
Clarifications:
Explain why taking a safe-driving course can lower an auto insurance premium and why not smoking can lower the health insurance premium.
SS.912.FL.6.7: Compare the purposes of various types of insurance, including that health insurance provides for funds to pay for health care in the event of illness and may also pay for the cost of preventative care; disability insurance is income insurance that provides funds to replace income lost while an individual is ill or injured and unable to work; property and casualty insurance pays for damage or loss to the insured’s property; life insurance benefits are paid to the insured’s beneficiaries in the event of the policyholder’s death.
Clarifications:
Compare the coverage and costs of hypothetical plans for a set of scenarios for various types of insurance.
SS.912.FL.6.8: Discuss the fact that, in addition to privately purchased insurance, some government benefit programs provide a social safety net to protect individuals from economic hardship created by unexpected events.
Clarifications:
Describe examples of government transfer programs that compensate for unexpected losses, including Social Security Disability benefits, Medicare, Medicaid, unemployment insurance, and workers’ compensation.
SS.912.FL.6.9: Explain that loss of assets, wealth, and future opportunities can occur if an individual’s personal information is obtained by others through identity theft and then used fraudulently, and that by managing their personal information and choosing the environment in which it is revealed, individuals can accept, reduce, and insure against the risk of loss due to identity theft.
Clarifications:
Describe problems that can occur when an individual is a victim of identity theft.
Give specific examples of how online transactions, online banking, email scams, and telemarketing calls can make consumers vulnerable to identity theft.
Describe the conditions under which individuals should and should not disclose their Social Security number, account numbers, or other sensitive personal information.
SS.912.FL.6.10: Compare federal and state regulations that provide some remedies and assistance for victims of identity theft.
Clarifications:
Recommend actions a victim of identity theft should take to limit losses and restore personal security.


Related Access Points

This cluster includes the following access points.

Independent

Access Point Number Access Point Title
SS.912.FL.6.In.a: Discuss 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.
SS.912.FL.6.In.b: Discuss how judgment regarding risky events is often influenced by information from others.
SS.912.FL.6.In.c: Discuss why people choose different amounts of insurance coverage.
SS.912.FL.6.In.d: Discuss that people may be required by governments or by certain types of contracts to purchase some types of insurance.
SS.912.FL.6.In.e: Discuss costs involved in using an insurance policy.
SS.912.FL.6.In.f: Discuss that people can lower insurance premiums by behaving in ways that show they pose a lower risk.
SS.912.FL.6.In.g: Compare the purposes of various types of insurance.
SS.912.FL.6.In.h: Discuss that government benefit programs provide a social safety net.
SS.912.FL.6.In.i: Discuss ways to manage personal information to prevent identity theft.
SS.912.FL.6.In.j: Discuss federal and state regulations that provide assistance for victims of identity theft.

Supported

Access Point Number Access Point Title
SS.912.FL.6.Su.a: Identify why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
SS.912.FL.6.Su.b: Identify information that can affect judgment regarding risky events.
SS.912.FL.6.Su.c: Identify why people choose different amounts of insurance coverage.
SS.912.FL.6.Su.d: Identify that people may be required to purchase some types of insurance.
SS.912.FL.6.Su.e: Identify costs involved in using an insurance policy.
SS.912.FL.6.Su.f: Identify behaviors that can lower insurance premiums.
SS.912.FL.6.Su.g: Discuss the purposes of various types of insurance.
SS.912.FL.6.Su.h: Identify government benefit programs that provide a social safety net.
SS.912.FL.6.Su.i: Identify ways to manage personal information to prevent identity theft.
SS.912.FL.6.Su.j: Identify government regulations that provide assistance for victims of identity theft.

Participatory

Access Point Number Access Point Title
SS.912.FL.6.Pa.a: Recognize that paying a small cost now can avoid a possible larger loss later.
SS.912.FL.6.Pa.b: Recognize information can affect judgment regarding risky events.
SS.912.FL.6.Pa.c: Recognize that people choose different amounts of insurance coverage.
SS.912.FL.6.Pa.d: Identify a type of insurance that people may be required to purchase.
SS.912.FL.6.Pa.e: Recognize that there are costs involved in using an insurance policy.
SS.912.FL.6.Pa.f: Recognize behaviors that can lower insurance premiums.
SS.912.FL.6.Pa.g: Identify the purposes of various types of insurance.
SS.912.FL.6.Pa.h: Recognize a government benefit program that provides a social safety net.
SS.912.FL.6.Pa.i: Recognize a way to manage personal information to prevent identity theft.
SS.912.FL.6.Pa.j: Recognize that there are government regulations that provide assistance for victims of identity theft.


Related Resources

Vetted resources educators can use to teach the concepts and skills in this topic.

Perspectives Video: Experts

Name Description
Mathematically Modeling Hurricanes:

Entrepreneur and meteorologist Mark Powell discusses the need for statistics in his mathematical modeling program to help better understand hurricanes.

How Math Models Help Insurance Companies After a Hurricane Hits:

Hurricanes can hit at any time! How do insurance companies use math and weather data to help to restore the community?

Download the CPALMS Perspectives video student note taking guide.