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Module 2 Risk Management (kaplan)

Discussion in 'Financial Planning' started by Steanie, 5th Mar, 2010.

  1. Steanie

    Steanie Member

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    Hi is anyone currently studying this module? im confused on q3 which is asking to "describe agreed and indemnity value and who would suit each one being either a employed or self-employed person. not sure who should have what?

    Any help would be great.
     
  2. SteelMonkey

    SteelMonkey Member

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    Hi Steanie

    I would describe agreed value as a policy where the financial justifcation is provided up front, whereas an indemnity style policy you need to provide financial justifcation at claim time.

    Agreed value would suit a self employed person due to fluctuating income(may go up or down significantly each year) whereas an employee generally has a very stable income or salary which will not change from month to month so they should have no trouble justifying their benefit amount at claim time so it would be suited more to indemnity.

    Hope this helps and let me know if you have any more questions!
     
  3. Steanie

    Steanie Member

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    Hi, thank you ery much for your response. That helps a lot.

    I'm kind of stuck on questions

    2 - Which is asking to identify two pieces of legislation that impact on the sale of life insurance. I cant seem to find this information in my Kaplan book or i must just be missing it, are you able to recall where this was mentioned?

    5- its asking to identify two policies that are available to the market and discuss how the definitions vary. I'm comparing Allianz to Suncorp but when they say definitions what exactly am i looking for?

    Thanks in advance :)

    Steanie.
     
  4. SteelMonkey

    SteelMonkey Member

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    I dont have the notes in front of me but I think it was module 2 regulating the life insurance industry under life industry regulation, Privacy act and disability discrimination Act.

    For the definitions have a look in the PDS's and their should be a list of definitions for illnesses such as Cancer, Stroke, etc etc for when they will pay out

    Compare these and try and find some differences, I think when i did my assignment I did two companies and one would pay for carcinoma in situ and one wouldnt unless it was a certain size or something along them lines.
     
  5. Steanie

    Steanie Member

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    Okay, thanks will have a look at module 2.

    so are they just asking to describe the differences of the four typical conditions, or just any condition? i think im following you. ill let you know how i go thank you.
    Your very helpful
     
  6. Steanie

    Steanie Member

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    Hey, sorry to ask so many questions but i've just had a look at module 2 for question 2.

    So, I just have to briefly describe two legislations that impact the sale of life insurance... - Disability Discrimination Act 1992 and Privacy Act?
     
  7. Ludmilla

    Ludmilla New Member

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    Hey Steanie,

    Did you end up comparing the 4 standard conditions covered under trauma insurance or did you just select a couple that had differing conditions?