DOCUMENT RESUME

ED 423 380 CE 077 108

TITLE The Insurance Educator. Volume VII.INSTITUTION Insurance Education Foundation, Indianapolis, IN.PUB DATE 1998-00-00NOTE 18p.

PUB TYPE Collected Works Serials (022)JOURNAL eIT Insurance Educator; v7 n1-2 Jan-Sep 1998EDRS PRICE MF01/PC01 Plus Postage.DESCRIPTORS *Accident Prevention; Classroom Techniques; *Educational

Resources; *Fire Protection; High Schools; InstructionalMaterials; *Insurance; *Insurance Occupations; *SafetyEducation; Teaching Methods

ABSTRACTThese two issues are intended for secondary school educators

who teach about insurance in any of their courses. The following substantivearticles are contained in the January 1998 issue: "Teen Drivers andAutomobile Insurance: New Laws Safeguard Teen Drivers" (Insurance InformationInstitute); "National Advisory Council of Secondary Teachers"; "A Workshop byAny Other Name..."; "Arson: Protect Yourself"; "Risk Manager Fact Sheet: AConversation with a Risk Manager"; "The Jump$tart Coalition for PersonalFinancial Literacy"; "LIFE Introduces 'Next Generation': Insuring YourFuture"; and "Classroom Resources." Substantive articles in the September1998 issue include the following: "IEF--Who We Are and What We Do"; "James L.Osborne Insurance Educator of the Year"; "Teen Drivers and AutomobileInsurance: Road Rage and Aggressive Driving--How To Temper Yourself";"Teachers' Summer Programs"; "Insurance Trends: Internet Misuse Can LeaveCompanies Exposed"; "InVEST in Your Future"; "New Drivers--TerrifyingStatistics"; and "Classroom Resources." (KC)

********************************************************************************* Reproductions supplied by EDRS are the best that can be made *

* from the original document. *

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The Insurance Educator

Volume VII

1998

U.S. DEPARTMENT OF EDUCATIONOffice of Educational Research and Improvement

ED y CATIONAL RESOURCES INFORMATIONCENTER (ERIC)

This document has been reproduced asreceived from the person or organizationoriginating it.

0 Minor changes have been made toimprove reproduction quality.

Points of view or opinions stated in thisdocument do not necessarily representofficial OERI position or policy.

1

PERMISSION TO REPRODUCE ANDDISSEMINATE THIS MATERIAL HAS

BEEN GRANTED BY

TO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC)

BEST Copy AVAILABLE

2

-7neEM2UIT ErD© CUE

The purpose of this semi-annual newsletter is to provide secondary educators with a greater knowledge of insurance, access to teaching materials, and insurance careerinformation for students. This publication is available free of charge to secondary educators who teach insurance in any subject. Please share it with colleagues.

In This Issue

Teen Drivers and AutomobileInsuranceNew Laws SafeguardTeen Drivers Page I

IEF NewsNational AdvisoryCouncil of SecondaryTeachers Pages I & 2

A Workshop by AnyOther Name Page 2

Can You Use 3Freebies? Pages 2 & 3

The Risk Challenge

Special FeatureArson: ProtectYourself

Page 3

Page 4

Insurance CareersRisk Manager Fact Sheet Page 5

Lessons for the TeachersThe JumpStart Coalitionfor Personal FinancialLiteracy Page 6

The Next Generation:Insuring Your Future Page 7

Classroom ResourcesFree Teaching Materials Page 8

0

New Laws Safeguard Teen DriversReprinted with permission from the

Insurance Information Institute

Teachers: This trend to graduated licensing is sweeping the country. It would provide agood topic for student research and would certainly spark an interesting class discussion.

n 1996 Florida, Georgia andMichigan passed laws restricting thedriving privileges of teenagers. New

Jersey and Ohio are currently debatingsimilar measures. In most cases, the laws.forbid late-night driving by young peo-ple who have just received their licenses.Privileges are expanded as the teens gaindriving experience until, at age 18, theyreceive an unrestricted license. InGeorgia, teens driving with other teensin the car is also prohibited. Brian

O'Neill, spokesman for the InsuranceInstitute for Highway Safety, supportsthis precaution saying that a group ofyoung people together in a vehicle is "aprescription for immature, irresponsiblebehavior." The trend is expected to con-tinue, in spite of protests by some teenswho claim their civil rights are beingviolated, since legislators have learnedthat highway safety measures arefavored by most of their parents.

HGN9g,

National AdvisoryCouncil of Secondary

Teachers--lhe Columbus Ohio Hyatt

Regency was the scene inmid-June of the second meet-

ing of IEF's National AdvisoryCouncil of Secondary Teachers, ameeting held in conjunction with theBoard of Directors' meeting.Members of the advisory arm of thefoundation who were able to attendthis year represented Canada and 17states. Teachers were asked for inputon three projects: The RISKChallenge, new teaching materials

and resources, and a recognition pro-gram for teachers. As always, theirideas were terrific!

Just for starters, staff has revised thestudent contest based on the council'sideas and suggestions, and a new website will introduce educators and theinsurance industry to the InsuranceEducation Foundation. Classroomresources produced by the insuranceindustry and suitable for teenagers(other than IEF's Choice-Chance-Control, teachers' summer institutes,Fast Lanes: Risky Roads, etc.) will belisted on the site. This is an answer toteachers' frequently asked question,

Continued on page 2

Continued from page 1

"What's out there about insurance?"In the months to come, a committeeof council members will be develop-ing a program to recognize highschool teachers who are doing an out-standing job of teaching insurance.The first award for a high schoolinsurance educator of the year will bepresented in Orlando in September1998. More about that project will bemailed to graduates of the founda-

tion's summer workshops.

At the conclusion of two days ofmeetings, tours, and social functions,good-byes and thank-yous wereexchanged as all went their separateways. One IEF board memberremarked, "Every time I hear theseteachers talk about their professionand their students, they just impressthe [heck] out of me!" It would benice if teachers could hear this

1997 Insurance Education Workshop Virginia Commonwealth UniversityRichmond,Virginia

Participants: Jacqueline Armwood (Farmville,VA), Marsha Bailey (Portsmouth,VA), MichelleBailey (Farmville,VA), Marianne Benton (Richmond,VA),Angel Boyd (Highland Springs,VA), LisaBrown (Gonzales,TX),Amy Brown (Doswell,VA), Billie Brown (Chesterfield,VA), StephanieBrown (Chesapeake,VA), Laura Corraro (Richmond,VA), Evalina Carter (Norfolk,VA), KevinClaycomb (Bedford, PA), Cathy Clevenger (Hyndman, PA), Brenda Crawley (Richmond,VA),Joseph Ferrel (Chesterfield,VA), Jan Goodin (Chesterfield,VA), Diane Knight (Yorktown,VA),Sharon Mason (Ashland,VA), David Miller (Essex, MD), Joseph Missal (McLean,VA),AndreaNachmon (Midlothian,VA), Graham Patterson (Baltimore, MD), Nettie Stokes, (HighlandSprings,VA), Helen Wadkins (Quicksburg,VA), Stephanie Youngblood (Milton, FL), and ClarkYoungblood, (Milton, FL)

1.2.1

4

expression of respect and gratitudemore often. Tuck this one away andpull it out when you need it. Youdeserve it. You have the most impor-tant job in the world!

A Workshop By AnyOther Name...

e've been listening toteachers. And we've beenreading the dictionary. And

we think teachers are right: The word"workshop" is not an appropriatedescription of the foundation's insuranceeducation program. The Board ofDirectors has taken your advice andvoted to substitute the word "institute."From now on, the workshops will beknown as:"Insurance Education Institutes for HighSchool Teachers."

Our new name aptly represents theintensity of this program and the hardwork it requires for the tremendousrewards earned. Thank you for yoursuggestions, workshop graduates; con-sider yourselvs.now to be Institute"graduates.

Can You Use 3Freebies?

f you are interested in learning moreabout a two-week program for whichyou earn three graduate credit hours,

indicate your interest on the enclosedreturn card in this newsletter. We willsend you a 1998 brochure. Please let usknow about any colleagues who mightbe interested. The application deadlinefor all schools is April 1, 1998.

CCongratulations are in order toVirginia CommonwealthUniversity for a very successful

first year participating in the IEF sum-mer institutes. Twenty-six enthusiasticteachers from five states attended IEF'snewest institute in Richmond, Virginia.Reasons the majority of attendees citedfor recommending this program to otherteachers included: "excellent experienceacademically, professionally andsocially" and "very valuable for allteachers and students."

''CU has been invited to serve as a host school againduring 1998 along with five other schools:

Drake University

College of Insurance

University of Alabama

Illinois State University

California State University,

Sacramento at San Francisco State

Virginia Commonwealth University

Des Moines, IA

New York, NY

Tuscaloosa, AL

Normal, IL

San Francisco, CA

Richmond, VA

June 14-26

July 12-26

July 12-24

July 12-24

June 14-26

July 5-17

This past summer, 213 high school teachers completed IEF'sInsurance Education Institutes for High School Teachers. Ofthis number, 212 of them stated they would recommend thisprogram to others (We gave it our best, but we weren't able toplease everyone!)an outstanding endorsement by anyone'scalculator!

Merchandise For Saleuy your own IEFsweatshirt or t-shirttoday! We have

Hanes t-shirts and Oneitasweatshirts available in sizeslarge and extra-large. Thesegreat-looking shirts are lightgray and made of a durablepre-shrunk cotton/polyesterblend, with a teacher's appleand "Insurance EducationFoundation" displayedproudly on the upper leftside of the shirt. T-shirtscost $10 and sweatshirts cost$25. Order today - a limitedsupply is available! Pleasesend your request to theInsurance EducationFoundation, PO Box 68700,Indianapolis, IN 46268-

size(s) you desire, and give us0700, indicate the quantityyour mailing address. Make your checks payable to theInsurance Education Foundation. Prices include shipping andhandling.

and

Congratulations to the seven students in Illinois (yes, allwinners happened to be from two high schools inIllinois!) who received $1,500 in cash prizes for their

winning entries in IEF's first annual student contest, The RISKChallenge. The first place prize of $750 went to seniors KerryMaloney and Natalie Benson from Peoria Notre Dame HighSchool for their brochure for middle elementary students enti-tled "Insurance: What a Kid Should Know." Second place and$500 went to freshmen Jamie Seger, Denise Thacker, and AnnWeishaar from Belleville Township High School West for theirbrochure about selecting an insurance company. The thirdplace $250 prize was awarded to seniors Jenny Hancock andErica Arnold for their poster about the components of an auto-mobile insurance policy. Jenny and Erica are also from PeoriaNotre Dame High School.

ECongratulations are also in order for teachers MarshaKrone from Peoria Notre Dame High School andTammie Hettenhausen from Belleville Township High

. _School West for fostering creative, eye catching, interestingcontest entries from their students. Well done! Teachers ofwinning students received $100 gift certificates to Barnes &Noble. The foundation matches students' cash prizes with acheck to the high school to be spent at the direction of thesupervising teacher.

The second annual contest will be held during the 1997-98school year with a few changes in the program:

1. This year the contest is open to students of any highschool teacher who has attended one of IEF's summerinsurance education workshops/institutes. There are1,322 of you from 49 states!

2. The RISK Challenge will be held during the secondsemester. Contest packets will be sent in January 1998!

M_padE_ reArson: Protect Yourself

Reprinted with permission fromSAFECO Insurance Companies: "How to Protect Your Home From Arson."

Teachers: This should provide an interactive discussion - juveniles are the majority being arrested for arson, yet it affects everyone.Encourage them to discuss ways to prevent this crime.

rson kills more people each yearthan natural disasters such asurricanes, floods and earth-

quakes - combined. Arson, the inten-tional setting of fire, has been called theworst man-made disaster in the nationdue to its devastating toll on people andproperty. In a five year period, over $8billion worth of property was destroyed,over 3,500 people were killed and thou-sands more were injured. Estimatesplace arson growth over the past decadeat more than 400%.

Educating children to understand theserious results of fire is the most impor-tant step in reducing arson. Juvenilesare the majority of those arrested forarson. The average arsonist is not anear-bankrupt business owner or a"hired torch" that arsonist is a child.All children are fascinated by fire butsoon comprehend its dangers.Counseling for the "simply curious" andtheir parents is available and will usuallystop the fire setting. Some children mayneed more counseling to uncover theunderlying problems that cause thisdestructive and attention-getting action.

Why do people set fires? Vandalism isthe leading cause of arson. The arsonistusually sets fire to a home or car and isnot trying to kill. Revenge is anotherreason fires are set. The usual reasonsfor a revengeful arsonist to act are being

1411

fired, a difficult divorce, child custodyproceedings or disagreements. As theeconomy remains weak in specific areasof the country, insurance fraud arsoncontinues to increase. Some homeown-ers have used arson to collect insuranceto solve their financial problems. This isespecially true if they have purchased ahome that is too expensive for theirincome or they have lost their job. Thestatistics show that people under age 25account for 67% of all arson arrests with49% of them children under the age of18. Many experts believe that if thefires that are classified as accidental orof an unknown origin were included, theactual percentage of juvenile arrestscould be as high as 80%.

Arson is now a majorcrime, listed by. the._EBI.as,one of the eight majorcrimes along withmurder, robbery, bur-glary andassault.Arsonrates arehighest inlarge cities,with males comprising87% of all arson suspectsarrested, according to theInsurance Committee forArson Control. Civiliandeaths resulting from thesefires increased last year byan alarming 231/2 %.

erty by taking action. Be alert for suspi-cious activity on your property and inyour neighborhood. Arsonists may belooking during the day for locations tostart a fire. Call 911 or the police toreport suspicious behavior. Becomeinvolved in the fight against arson.Anytime you see a fire, cooperate withthe firemen and police officers, offer anyevidence of suspicious behavior, and tes-tify if the arsonist is caught. Protectyourself and your family by making suresmoke detectors work. Make a mapshowing two exits from every room.Practice escape routes from inside yourhouse. The more aware and preparedyou are, the better protected you will be.

A homeowner is devas-tated when the familyhome is lost to fire, andespecially when a memberof the family is injured.Knowing that the homewas selected at random byan arsonist can make theloss even more difficult tohandle. You can help pro-tect your family and prop-

. ..

.

reC;MRisk Manager Fact Sheet: A Conversation with a Risk Manager

Reprinted with permission from the CPCU Society, Malvern, Pennsylvania

Teachers: This article could be shared with the career resource center or guidance counselors at your school.

A risk manager's job is: "...to protectthe corporation from loss by ensuringthat it has good loss control and safetyprograms, and solid insurance coverage.Risk managers must search out and ana-lyze the risks involved in a situation.Then they decide whether the risksshould be retained, insured, transferredor refinanced. Risk managers act likein-house brokers for their corporations,selecting policies and deciding whichcoverages their companies should take."

A risk manager's educational back-ground should be: "... heavy in thebusiness field. A four-year collegedegree in the business field, withfinance, law or accounting is a goodstart. If the person wants to specialize inthe loss control area, a heavy mathemati-cal background with a master's in safetyor:industrial hygiene and an environ-mental background is preferred."

Personal skills important to a riskmanager include: "... the ability tointeract. As a risk manager, a personprovides a service to the company, itspeople, and its departments. Also, afuture risk manager cannot want to workin a very controlled, static environment.A risk manager plays a very dynamic,ever-changing role. He or she needs tobe able to adjust to the little last minuteproblems that always arise. Finally, arisk manager should be capable of work-ing autonomously. No one comes intothe office and gives the risk manager alist of things to do. Risk managers haveto identify where the needs are and goafter them on their own."

An entry level risk manager:"...frequently begins as an assistant to arisk manager. He or she would learn

- fundamental claims analysis, policyreview, and basic administrative duties.

A professional claims adjuster could alsoprovide assistance to the entry levelperson."

A risk manager can expect: "... thefuture of risk management profession tobecome increasingly global. Risk man-agers will need to relate to more thanjust the domestic types of issues andexposures..They will be required tohave greater knowledge of world issues,trends, products, and markets."

One of the most important parts of arisk manager's job is: "... the chal-lenge. A risk manager has a great dealof responsibility for the company'ssafety programs, insurance coverage,and the bottom line. It's an excitingposition for a person who is willing toaccept the challenge."

In an attempt to kill a fly, Idrove into a telephone pole.

The indirect cause of theaccident was a little guy in asmall car with a big mouth.

Yeah, that'scommon.

I told the police that I was notinjured, but on removing my

hat I found that I had afractured skull.

Just For the Fun of It!I I he following are actual

statements found on_ insurance forms where

drivers attempted to summarizethe details of an accident in thefewest possible words.

I had been driving for 40years when I fell asleep at thewheel and had an accident.My car was legally parkedas it backed into the othervehicle.I thought my window wasdown, but I found out it wasup when I put my headthrough it.The pedestrian had no ideawhich direction to run, so Iran over him.

To avoid hitting the bumperof the car in front, I struck thepedestrian.An invisible car came out ofnowhere, stuck my car, andvanished.I had been shopping for plantsall day and was on my wayhome. As I reached an inter-section, a hedge sprang up,obscuring my vision and I didnot see the other car.The other car collided withmine without giving warningof its intentions.

1,Ggwng T©L MI,G7G5gh,QTThe Jump$tart Coalition for Personal Financial Literacy

--I he Jump$tart Coalition forPersonal Financial Literacy, anon-partisan partnership of 25

diverse organizations, has come together toincrease personal financial literacy amongyoung adults. The goal of this coalition is:by the year 2007, all students will have theskills to be financially competent by thetime they graduate from high school.They will be taught how to manage ahousehold budget, how to plan for retire-ment, and how a mortgage works. Theywill be able to establish a good credit his-tory, cover their insurance needs, and bal-ance a checkbook. In short, our youth willbe prepared for the everyday financialrealities that face all consumers.

Clearly, many adults lack the skills andknowledge to make sound financial deci-sions. Based upon the coalition's surveyresults, children are headed in the samedirection - unless this cycle stops repeating

Juidf$ erfitself. Members of the coalition plan toincrease public awareness that personalfinance management, like reading or math,is a fundamental life skill which should betaught to the nation's 50 million studentsin grades K-12.

The coalition has created guidelines toteach personal finance concepts in schoolsnationwide. These guidelines incorporateinput from a panel of elementary, sec-

ondary and high school teachers and edu-cators throughout the country. TheJurnp$tart Coalition is a non-profit organi-zation based in Washington DC and repre-sents diverse organizations from govern-ment, academia, the non-profit sector, andother sponsors of educational programs.The Insurance Education Foundation is acharter member of Jump$tart. Their web-site address is www.jumpstartcoalition.org.

Oops! Please Pardonour Faux Pas!

The Insurance Educator January 1997issue stated (in a big red box, no less)"Are you keeping up with your BAClimits? In most states it's not 1.10 anylonger." Of course, we meant to referto a Blood Alcohol Concentration of.10, not 1.10! The statement that fol-lowed our boo boo is still true: "Anyindividual under the age of 21 with aBlood-Alcohol Concentration of 0.02percent or greater when driving amotor vehicle shall be deemed to bedriving while intoxicated." Fifteenstates have made .08 the legal limit:Alabama, California, Florida, Hawaii,Idaho, Illinois, Kansas, Maine, NorthCarolina, New Hampshire, NewMexico, Oregon, Utah, Virginia andVermont.

LIFE Introduces Next Generation: Insuring Your Future... a program designed to help teachers educate students about life, health and disability insurance

The Life and Health InsuranceFoundation for Education (LIFE) hasannounced the launch of the NextGeneration program, an educationalinitiative designed to teach highschool students in the U.S. andstarting next year in Canada aboutthe role of life, health and disabilityinsurance. The program is designedto enable teachers to better preparetheir students for the "real world"financial decisions they will face aftergraduation. It is also designed forteachers to incorporate into family andconsumer sciences, consumer educa-tion, life skills, business, economics,social studies, health and financialplanning classes.

Why is this program needed?According to a 1996 survey byCareers & Colleges magazine, it wasfound that while the vast majority ofhigh school students recognize theimportance of knowing about insur-ance, most rate their knowledge of life

and health insurance as inadequate.The poll also revealed that educatorsstrongly endorse such an effort, indi-cating that the program would be ahighly effective teaching tool.

What materials are in the NextGeneration kit? The kit consists of a

21-minute teen-to-teen video, 28-pageeducator's guide, and a classroomposter. The video features six youngadults recounting how insurance hashelped them and their families attimes of great financial need. Thisapproach gives students an under-standing of how important insuranceis to people of all ages. The educator'sguide includes detailed informationabout insurance concepts and the dif-ferent types of insurance, reproducibleworksheets, a glossary of terms, and alist of references for additional infor-mation.

To obtain your free set of NextGeneration materials, simply checkthe Next Generation... box on theenclosed order card and return it tothe Insurance Education Foundation.LIFE, the Life and Health InsuranceFoundation for Education, was formed in1984 by seven life and health insurancegroups in the U.S. and Canada in responseto the growing need to educate the publicabout the benefits of insurance.

"Hwy "irtniayiInsurance Educafdon

7oundation: 1988-199$

Announcing. . .

_lhe Insurance EducationFoundation is proud to announce

_ the inauguration of the James L.Osborne Insurance Educator of the YearAward. In honor of the organization'sfounder this recognition will be presentedto a high school teacher who demonstratesexcellence in providing insurance educa-tion to our nation's high school students.

Nominees must be professional educatorswho have completed an InsuranceEducation Workshop (Institute) at one ofthe following universities: DrakeUniversity, Des Moines; The College ofInsurance, New York City; California StateUniversity, Sacramento; The University ofAlabama, Tuscaloosa; Illinois StateUniversity, Normal; or Virginia

Commonwealth University, Richmond.

If you are a workshop graduate, you willreceive further information and an invita-tion to participate in the same packet asThe RISK Challenge student contest. Callthe IEF headquarters with questions at I-800-IEF-4811.

9 BEST COPY AVAILABLEIRA

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The Next Generation: Insuring Your FutureThis kit consists of a 21-minute teen-to-teen video, 28-page educator'sguide and a classroom poster. More information appears in this newsletterunder "Lessons for the Teacher." To obtain your free kit, simply check theNext Generation box on the enclosed card and return it to the InsuranceEducation Foundation.

Fast Lanes: Risky RoadsThis 13-minute video with a teacher's guide and student brochures isavailable at no cost to teachers. The video has been awarded the presti-gious CINE Golden Eagle Award, recognized internationally as a symbolof the highest production standards in filmmaking and videography.Return the enclosed business reply card to order your free copy andaccompanying brochures for students.

Why You Need to Know About Social SecurityNew materials are available to teachers that provide information to helpstudents understand how Social Security is financed and how benefits willbe paid now and in the future. Teachers interested in the Social SecurityTeachers Kit may order it by writing to: Social Security Teachers Kit, POBox 17743, Baltimore, MD 21235. Fax: (410)965-0696. E-mail:http://www.ssa.gov.

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Insurance Education Foundation3601 Vincennes Road

P.O. Box 68700Indianapolis, IN 46268

(317) 876-60461-800-IEF-4811

www.ins-ed-fdn.org

Insurance Education FoundationStaff

Robert L. Nancy M.Harrison ColemanPresident Executive Director

PaigeThompson Mae Billings

Marketing Manager Foundation Assistant

The Insurance EducatorEditorial Advisory Board

Cynthia LyleUSAA

San Antonio, TX

Jim StahlyState Farm Mutual

Automobile Insurance Co.Bloomington, IL

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Irigurance EducatorVolume VII Number 11 September 1998

The Insurance Educator is published twice a year at the beginning of each school semester to provide.information and assistance to secondaryeducators who are teaching insurance in any class. Please share it with colleagues.

Special FeatureIEF Who We Are and What We Do

We are celebrating the BIGTEN! The InsuranceEducation Foundation has

reached the ten year milestone, andwe're eager to fire up ten candles onour birthday cake. Our birthdayparty is in Orlando on Saturday,

n This Issue ...SPECIAL FEATUREIEF Who We Are andWhat We Do pg 1

James.L. Osborne Educatorof the Year pg 2

TEEN DRIVERS andAUTOMOBILE INSURANCERoad Rage and Aggressive DrivingHow to Temper Yourself pg 3

IEF NEWSRisk Challenge pg 4

Teachers' Summer Programs pg 5

IEF on the Web pg 5

Art Auction pg 6

INSURANCE TRENDSInternet Misuse Can LeaveCompanies Exposed pg 6

LESSONS FOR THE TEACHERInVEST in Your Future pg 7

New DriversTerrifying Statistics pg 7

CLASSROOM RESOURCES pg 8

September 19, 1998, at the MarriottWorld Center. The IEF TenthAnniversary Benefit Dinner willfeature the'founders of this organi-zation, the founder of insuranceyes, Ben Franklin!and DeLaneIsaak, the recipient of the firstannual James L. Osborne InsuranceEducator of the Year award.Benefit, you say? Yes, the party is a$75 per plate fund raiser. In thefoundation world, everything is afund raiser.

We want you to become morefamiliar with IEF, so here are a fewget-acquainted facts:

IEF headquarters is inIndianapolis, Indiana.

We became a 501(c)(3) not-for-profit charitable organization inOctober 1988.

We provide education pro-grams (teaching materials, sum-mer institutes, student contests,teacher recognition programs) forhigh school teachers teachinginsurance in any class.

We know that people whounderstand a little about insurancemake wiser consumer decisionsAND people who know how insur-ance works have a better under-standing of the industry.

To pay for these programs, weraise money fromAnsurance com-panies, agents and organizations

more than 340 of them!The year 1998 marks tnither

BEST COPY AVAIIABLE

milestone for IEFwe will raise$1 million this year!

More than 48,000 teachers haveChoice-Chance-Control (CCC) kits.

CCC kit users receive TheInsurance Educator newsletter eachsemester.

Nearly 5,000 teachers haverequested the video, Fast Lanes:Risky Roads.

The RISK Challenge studentcompetition offers cash prizesannually for students' winningentries.

A new teacher recognition pro-gram honors secondary educators.

More than 1,500 teachers haveattended IEF's Insurance EducationInstitutes for High School Teachers,now available at seven universities.

Educators using our programsteach business, consumer econom-ics, social studies, mathematics,family and consumer science.

Presently 26 teachers from 21states and Canada are on IEF'sNational Advisory Council ofSecondary Teachers to help us staycurrent with their needs.

Our Web site address iswww.ins-ed-fdn.org.

If you call IEF at 1-800-IEF-4811,you will speak to Bob, Nancy,Paige or Mae. We are a small staff.

Twenty members of IEF's Boardof Directors represent these compa-nies and organizations: EmployersReinsurance, PEMCO, Farmers

Group, AIG, Aon, Nationwide,Auto-Owners, Heaton Agency,SAFECO, General Reinsurance, StateAuto, Allstate, Insurance Institute ofCanada, Insurance EducationalAssociation, Smith Sawyer andSmith Agency, State Farm, theCollege of Insurance, and USAA.

Studies about how IEF's programsimpact teachers and students arevery encouraging. For this reason,the board and staff remain commit-ted to providing high quality pro-grams for secondary educators whoare teaching insurance to ournation's future voters, legislators,consumers and leaders.

We love talking to teachers, so letus hear from you aboutwhat you need/wantin your classroom tohelp educateteenagers aboutinsurance. Or,just call or e-mail us ahappy birth-day mes-sage!

IEF Staff, from left: Bob Harrison, President; Paige Slover, Marketing Manager;Mae Billings, Foundation Assistant; Nancy Coleman, Executive Director

James L Osborne Insurance Educator of the Year

James L. Osborne, founder of theInsurance Education Foundation

This year marks the inaugurationof the annual James L. OsborneInsurance Educator of the Year

Award. Conceived in honor of theorganization's founder, the contest isdesigned to recognize an outstandingteacher who demonstrates excellence inproviding insurance education to highschool students.

The 1998 Educator of the Year hasbeen announced! Congratulations toDeLane Isaak from Clark, SouthDakota! DeLane has won an all-expense paid trip for two to Orlando,Florida, and a check in the amount of$1,000. In addition, Clark High Schoolwill receive $500 in,honor of DeLane.He will be presented with his award onSeptember 19 at the IEF's Tenth

Anniversary Benefit Dinner. DeLane isshown on page 4 with students fromClark High School who won secondplace in the Risk Challenge.

DeLane is already a member of IEF'sNational Advisoiy Council ofSecondary Teachers and attended theIEF summer program in 1990 at DrakeUniversity in Des Moines, Iowa. Futurerecipients of this award will be asked toserve on this Council.

If you are a graduate of an InsuranceEducation Institute for High SchoolTeachers (formerly called a workshop),you will be receiving information inyour Risk Challenge packet which willbe mailed to you in September. MaybeYOU could be the next recipient of thishonored award! E

2

A 1 I 1

Road Rage and Aggressive Driving How To Temper Yourself

Teachers may want to copy anddistribute this article to students andshare it with colleagues.

Reports of violent traffic inci-dents have increased nearly7% per year since 1990. "Yet

this is only the small tip of a verylarge iceberg," says David K.Willis, President of the AAAFoundation for Traffic Safety. "Forevery aggressive driving incidentserious enough to result in a policereport or newspaper article, thereare hundreds or thousands morewhich never got reported to theauthorities." This study is basedon 10,037 separate incidents ofaggressive driving betweenJanuary 1, 1990 and September 1,1996, assembled by the interna-tional security firm of Mizell & Co.from police reports and newspaperstories. In the reports from this six-year period, a total of 12,828 peo-ple were injured or killed as theresult of aggressive driving (218

were killed and 12,610were injured), including

94 children under theage of 15.

How canyou protectyourself?Never

Printed with permission from the AAA Foundation

underestimate the other driver'scapacity for mayhem. Be patientand keep your cool in traffic. Avoidbeing the target of an aggressivedriver by practicing basic trafficcourtesy.

Don't take your eyes off the roadAvoid eye contact with anaggressive driverStay cool and don't react toprovocationKeep away from drivers behavingerraticalfyDo not make obscene gesturesUse your horn sparinglyDon't block the passing (left) laneDon't switch lanes without signalingAvoid blocking the right-handturn laneDo not take more than one parkingspaceIf you are not disabled, do not parkin a disabled spaceDo not allow your door to hit thecar parked next to youDo not tailgateIf you travel slowly, pull over andallow traffic to pass (it's the law)Avoid unnecessary use of highbeam headlightsDon't let the car phone distract youDon't stop in the road to talk witha pedestrian or other driverDon't inflict loud music onneighboring cars

In addition, you should remem-ber to assume other drivers' mis-

takes are not personal, bepolite and courteous (evenif the other driver isn't), andavoid all conflict if possible

if another driver chal-lenges you, take a deepbreath and-get out of theway.

You can.reduce stress byallowing plenty of time for

13

the trip, listening to soothing music,improving the comfort of your vehi-cle, and understanding that youcan't control the traffic only yourreaction to it. Be advised that (a)cars are not bullet proof, (b) a trulyaggressive driver will follow youhome, and (c) you've got to get outof your car eventually.

Some states have a cellular tele-phone number that motorists canuse to report dangerous driving tothe state police or highway patrol. Ifyou have a cellular telephone, learnwhat the number is in your stateand use it when you see a driverbehaving in an erratic threateningmanner changing lanes often,speeding, flashing lights, tailgatingand so forth. You could prevent atragedy. Finally, if you are temptedto participate in a driving duel, askyourself: "Is it worth being para-lyzed or killed? Is it worth a jail sen-tence?" An impulsive action couldruin the rest of your life:

3

hiay 15, 1998 marked theconclusion of the secondannual Insurance

Education Foundation nationalstudent contest, The RISKChallenge. The contest was open tothe 1300 teachers who have attend-ed one of IEF's InsuranceEducation Institutes for HighSchool Teachers.

Students submitted entries thatdeinonstrated something they havelearned about insurance. Cashprizes of $9,000 went to fifteenwinning students with matchingchecks to their high schools! Firstplace winners received $750, sec-ond place $500 and third place$250.

We are proud to announce thefollowing winners! In the Postercategory, David Santos fromCalhoun High School in Merrick,New York won first place. NataliaPersianov from Clark High Schoolin Clark, South Dakota took sec-ond place. Tim Hill, OmarMarquez, Amadeo Bennetta andDana Howell from Fuqua.HighSchool in Farmville, Virginia wonthird place for their entry.

In the Brochure category, firstplace went to Marisa Hawn from

Risk Challenge

Saydel High School in Des Moines,Iowa. Second place winners wereAndrea Seefeldt and AshleyHallberg from Clark High Schoolin Clark, South Dakota. AlexRodriguez from Kanesville HighSchool in Council Bluffs, Iowa tookthird place.

41-

11,

Power Point presentations and atable-top display took honors inthe Other category. First placewent to Shawnette Dreher andTammy Grummert from HastingsSenior High School in Hastings,Nebraska. Monica Risen and AshlyGoett from Peoria Notre Dame

A. \

Students from Clark High School in Clark, SD are presented with their awards byteacher DeLane Isaak

David Santos is presented with an award for first place in the poster category byteacher Theodore Sapeta. David is a student at Calhoun High School in Merrick, NY

'A.

4 1.4

High School in Peoria, Illinois wonsecond place. And Troy Co ler, alsofrom Hastings Senior High Schoolreceived third place.

Kudos to the participating teach-ers: Theodore Sapeta from CalhounHigh School; De Lane W. Isaak,Clark High School; Deborah Bryan,Fuqua High School; MarshaFrakes, Saydel High School; KevinHansen, Kanesville High School;Darci Karr, Hastings Senior HighSchool; and Marsha Krone, also a1996 RISK Challenge winner, fromPeoria Notre Dame High School.Teachers of winning studentsreceived $100 gift certificates.

Congratulations to the winnersand to all participating studentsfor submitting creative and educa-tional entries!

The RISK Challenge annual con-test will be held during the 1998-99school year during BOTH semes-ters. Your contest packet willarrive in late August. Watch for itand include the competition inyour planning! You and your stu-dents could be next year's win-ners!

IEF on the Web

To access classroom materialsabout insurance, post a mes-sage or share ideas with

other educators, visithttp://www.ins-ed-fdn.org.

Teachers' Summer Programs

This summer, another 186 teach-ers completed this ten-year-oldprogram that has been loving-

ly described as "the most intensive

and enjoyable workshop I've attend-ed in my 28 years of teaching."Nearly 1,500 teachers from 49 stateshave completed this two-weekadventure, earned three graduatecredit hours, and come away withtons of classroom resources, not tomention a wealth of knowledgeabout insurance. For more informa-tion on how you can attend an insti-tute, please call 1-800-IEF-4811 orreturn the attached response card.The foundation provides a fullscholarship for every attendee!

1998 Institute Participants Drake University in Des Moines

5 5

The Insurance EducationFoundation is planning an artauction at the Waldorf Hotel in

New York City on October 19, 1998.Approximately 400 people areexpected to attend this black tie ben-efit dinner. Items to be auctioned

Art Auctioninclude art, jewelry and collectibles.

Honored at this dinner will beEllen Thrower, President of TheCollege of Insurance in New York,New York and the memory of JohnC. Etling, former President and CEOof General Reinsurance in Stamford,

Connecticut. John passed away onJanuary 11, 1997. Ellen is currentlyserving as a member of the IEFBoard of Directors.

If you are interested in attendingthis event, please contact NancyColeman at 1-800-IEF-4811.

Internet Misuse Can Leave Companies ExposedImagine a workplace in whichemployees send pornographicpictures via electronic mail

throughout the office, creating anatmosphere of sexual harassment.Next, imagine the lawsuits that couldbe filed by angry employees. Finally,imagine attorneys recovering the e-mail transmissions and using themas evidence against an employer.

Welcome to the brave new worldof internet and intranet liability.According to two panelists at theVermont Captive InsuranceAssociation's meeting in Burlington,such situations are a reality. Humannature being what it is makes man-aging internet liabilities a dauntingtask for risk managers and compa-nies, said Frederick Lane, III, aVermont attorney and principal withProSeComputing, Inc. in Burlington.

Situations like the one above canoccur, said Mr. Lane, and can opennaïve companies to significant legalliability. Indeed, he cited the legaldoctrine of respondeat superior, whichholds an employer responsible for allthe intentional torts of its employees.To show attendees how easy it is foremployees to access pornographicmaterial on the internet, Mr. Lanedemonstrated a search on the inter-net that revealed thousands of sitesfrom which such information can be

downloaded. Other potential liabili-ties include theft of confidentialinformation, copyright infringementand computer viruses, he noted.

Mr. Lane said the key to reducingthe risks associated with the internetis setting up a formal policy and edu-cation program that shows employ-ees its proper, as well as its inappro-priate uses. He said companies alsocan use special software developedto help track employee access to dif-ferent sites on the internet. Softwarefilters also can be used to preventemployees from getting access to cer-tain sites deemed inappropriate.

Mr. Lane also explained to theaudience that attorneys are begin-ning to understand how useful e-mail can be as a litigation toolagainst defendant companies.Because e-mail is extremely difficultto destroy, he said searches of it canbe used to provide evidence ofimproper activity in lawsuits againstcompanies.

Solutions include educatingemployees about the proper uses ofe-mail and noting to employees thattheir e-mail transmissions are ownedby the company and subject toreview. E-mail transmissions alsoexpose companieslcr'electronic espi-onage by competitors. He saiddevices also are available to block

outside access to e-mail transmis-sions.

Technology is available to allowcompanies to encrypt certain internettransmissions, though its use is cur-rently banned by the federal govern-ment, according to John Foehl, chieffinancial officer and treasurer ofHousing Authority Insurance, Inc., aChelshire, Connecticut based riskmanagement service provider tohousing authorities.

In the meantime, Mr. Foehl said heexpects the internet to become a full-fledged electronic marketplace forinsurance products. Indeed, he saidat least one company PioneerInsurance Company alreadyoffers on-line quotes. He said suchelectronic insurance commercewhich will enable companies to sellpolicies to anyone, anywhere rais-es serious questions about how itshould be regulated. More impor-tantly, he said state insurance regula-tors are ill-equipped to deal withsuch problems.

Although he noted that theNational Association of InsuranceCommissioners recently established anew working group to look intointernet insurance sales, he said thattechnology is changing so rapidlystate regulators will always be play-ing catch-up.

Source: National Underwriter, Property & ualty/Risk and Benefits Management Edition, August 26, 1996, p.17

6 1 i;elninnv AVATI AMR

Lessons for the Teacher

INith the emphasis on school-to-work programs increas-ing, InVEST is a model for

the future," says Dorothy Neal, abusiness education teacher inHiram, Maine. Project InVEST is aone or two semester agency simula-tion program for high school orjunior college courses. TheIndependent Insurance Agents ofAmerica, one of the insuranceindustry's largest associations, creat-ed this high school insurance coursethat is being taught in more than 200schools nationwide.Using a hands-on technique, InVESTclasses work through the process ofproviding insurance to the public,including both agency and companytasks. Although countrywide statis-

InVEST in Your Futuretics show that approximately 60% ofInVEST students become employedin insurance, even those studentswho are not interested in a career inthe insurance industry learn to begood consumers.

The local insurance communityparticipates by furnishing equip-ment, instructors and internship pro-grams. In addition to the high schoolprogram, a communitycollege program has begun to takestudents one step further. For thosestudents interested in pursuing aninsurance career, the community col-lege curriculum introduces moretechnical information and testing toprepare for future employment.

Teachers can prepare themselves toteach InVEST classes by attending

one of the Insurance EducationFoundation's Insurance EducationInstitutes for High School Teachers.In some areas of the country, atten-dance is required. IEF and InVESTwork together to provide teacherswith an insurance background andresources.

If you are interested in starting aprogram in your high school or needassistance with finding insurancepartners, the National InVEST staffhas access to many associationsnationwide that are willing to workwith schools. This program is spon-sored by the Independent InsuranceAgents of America. For more infor-mation about InVEST, call BarbaraMiller-Richards, National InVESTDirector at 1-800-221-7917.

Teenage MotorVehicle Deaths:

Year Male Female Total*

1975 6,532 2,215 8,748

1980 6,932 2,591 9,524

1985 4,715 2,022 6,737

1990 4,420 1,944 6,364

1996 3,846 1,958 5,805

While the overall number of deathshas declined in the past 21 years, youcan clearly see the ratio of male deathsto female deaths. These numbers Mdi-cate why automobile insurance ratesare higher for males than for females.

Source: Insurance Institute forHighway Safety.

* (includes gender unknowns)

New Drivers Terrifying StatisticsPrinted with permission from TheInsurance Institute for Highway Safety.

While overall death ratesin automobile accidentsdeclined from 1975 to

1996, the death rate among 16-year-old drivers has nearly doubled dur-ing the same time, according to astudy by the Insurance Institute forHighway Safety (IIHS).

The combination of inexperienceand immaturity produces a patternof fatal crashes among 16-year-olddrivers that includes the highestpercentage of crashes with the fol-lowing characteristics:high speeds, sin-gle vehicles, dri-ver errors andhigh vehicleoccupancy.

They are also more likely than olderdrivers to underestimate the dan-gers associated with hazardous sit-uations and less able to cope withsuch dangers.

IIHS recommends graduatedlicensing as a possible solution fordecreasing the death rate amongthis age group. Several states haveenacted various graduated licensingprograms in the last two years.

1

"One Earthquake: Not If But When"is a video produced by the USAAFoundation for The EarthquakeProject. The video is about a ficti-tious earthquake in the midwest.Limited quantities are available(1-800-IEF-4811).

Life: The Next Generationis an insurance education programdesigned to introduce the basic con-cepts behind life, health and disabili-ty insurance. Kits are available toyou by indicating such on the postcard enclosed.

"The Insurance Reservoir: HowDoes it Work?"is a 10-minute video produced byMotorist Mutual Insurance inColumbus, Ohio. It likens the insur-

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ance industry to a reservoir, explain-ing how each of these needs to bemonitored to assure that properoperational levels are maintained.Quantities are limited. Call 1-800-IEF-4811 for this free video.

Update Newsletteris a quarterly newsletter publishedby the Jump$tart Coalition forPersonal Financial Literacy. Articlesinclude research findings, new pro-grams, profiles of educational materi-als, highlights of upcoming eventsand more: Each issue is devoted toone of four personal finance guide-lines that the coalition has devel-oped: Saving and Investing, MoneyManagement, Income, and Spending.The annual cost is $8 for four issues.Call (202) 466-8604 to subscribe.

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Eint iIDIG-Exxxxxxxxxxxxxxxxxxx

18

Insurance Education Foundation3601 Vincennes Road

P.O. Box 68700Indianapolis, IN 46268

(317) 876-60461-800-IEF-4811

www.ins-ed-fdn.org

StaffRobert L. Harrison

President

Nancy M. ColemanExecutive Director

Paige SloverMarketing Manager

Mae BillingsFoundation Assistant

The Insurance EducatorEditorial Advisory Board

Michael BennettXaverian High School

Brooklyn, NY

Marva PelanclerClover Park High School

Lakewood, WA

Jim StahlyState Farm Mutual Insurance Co.

Bloomington, IL

BEST COPY AVAILABLE

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