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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The Answer of 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.

Engage the Class in a Conversation About Auto Insurance