APPLY WHAT YOU KNOW

$101-1$

Based on Figure $21\mathrm{.}1,$ list any current or anticipated risks that you and your family face or will face in the near future. Analyze your current personal, property, and liability risks. Then assume that you are now ten years older. Based on being where you would like to be and doing what your current goals dictate, analyze your personal, property, and liability risks for this stage in your life.

$101-2$

Insurance premiums are based on statistical probability. Explain what this means and what you can do to improve your position.

L$02-1$

$3.$ Using the three$-$step risk management process $($see Figure $21\mathrm{.}4),$ interview a family member or another person at a later life stage than your own to help identify, assess, and handle their risks. Then using Figure $21\mathrm{.}5$ as a guide, prepare a risk management plan for them.

L$\mathrm{.}02-34.$ Visit the website of your state insurance commissioner. Print out the complaint form, if one is available, and write a paragraph about what recourse you have when you feel that an insurer is treating you unfairly.

L$\mathrm{.}02-3$

$5.$ Visit Standard & Poor's website and look up the financial strength ratings for insurance companies until you find two with different ratings. Then look up the meaning of these ratings. Which company did Standard & Poor's judge to be financially stronger? Why?

MAKE ACADEMIC CONNECTIONS

L$0116.$ Economics Write a report about the business cycle $($see Figure $21\mathrm{.}2).$ Compare business cycles over time. How long do slowdowns usually last? When was our last trough? How long did it last? Explain how to survive financially during the different stages of the business cycle.

$01-1$

$7.$ History Using the Internet, search for the "Great Depression" and locate several sources of information. Write a paper presenting a narrative of what it was, how long it lasted, how people were affected, and what President Franklin D$.$ Roosevelt did to help end the Depression and get people working again.

L$02-18.$ Research The design of the automobile has changed significantly throughout the years, with safety becoming a bigger factor. Conduct research to learn about safety features that have been incorporated in the design of automobiles over the years. Present your findings to the class. Use visual aids to showcase the safety features. Explain how these safety features have reduced risks faced by consumers.

L$02\mathrm{.}39.$ Technology Describe how technology has affected the insurance industry. Discuss how consumers apply for insurance coverage, how insurance agents use the Internet, and how costs for premiums are affected because information is readily available online. Interview an insurance agent to discuss how his or her life has changed because of technology.

Chapter $21$ Introduction to Risk