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RM: case study 2

Discussion in 'Financial Planning Study Group' started by Jennylichen, 4th Oct, 2009.

  1. Jennylichen

    Jennylichen Member

    Joined:
    14th Mar, 2009
    Posts:
    20
    Location:
    Sydney, NSW
    Hi, to anyone who want to discuss or give me some ideas about this case study 2.
    I nearly finish the whole assignment but stop at the last case study.

    Not like case study 1, there is no similar case study or example in text book, so I am not quite sure about my answers.

    I mainly look at chapter 4 and chapter 6 for those two questions.

    If someone has already finish those questions, or is currently doing that, please give me some ideas.


    For general insurance, I recommended that they consider commercial insurance with options of fire, business interruption, accident damage, electronic equtipment,machinery breakdown, etc, public liability and product liability insurances.

    I am not looking for the answers for those questions, just want to know i am in the right direction. Really appreciate any helps!


    case study2
    christopher and petra, two universtiy friends, have just purchased a small pie manufacutring business. The business currently employs one full -time pastry chef, one kitchen hand, one part-time driver and two shop assistants. Chrisopher will assist in the manufacuring side of the business while petra will act as manager. They are planning to employ an apprentice chef. They have each borrowd$150,000 to purchase the business.

    In addition, they have borrowed $200,000 to help them with cash flow until the business is able to generate enough income to cover all its expenses.

    They are leasing the premises, but eventually want to purchase some premises and their delivery vans. As the business graows they would like to increase this to three or more vans.
    Both christopher and petra have sufficient personal life insurance. However, they are concerned that they may not have adequate insurance to cover their exposure to the business in the event that either of them is no longer be able to participate in the business.
    They have come to you for advice

    a) describe the type of life insurance they should take out to cover the business in the event that either or both were unable to participate in the business. Provide an explanation of each product you recommend and justifications for your recommendations.where appropriate, you should provide dallar amounts for any insurance cover you recommend

    b) outline the types of general insurance they should take out to cover their new business. provide an explanation of each product you recommend and the reason for your recommendations.
     
  2. CJ. Wentworth

    CJ. Wentworth Well-Known Member

    Joined:
    9th Mar, 2008
    Posts:
    92
    Location:
    Cairns, QLD
    Sounds like you're on the right track. I mentioned Key Person Insurance for both of at least 350,000 (to pay out business loans).

    By law they are required that all employees have worker's compensation, and as the business owners must have WC insurance.



    Being blunt I'm not very happy with my answer as it is a very messy one, I threw it together just to be able to submit my assignment in time, but I did pass well. If you (and anyone else) would like to discuss in more detail you're welcome to add me to MSN

    cj.wentworth@live.com
     
  3. Jennylichen

    Jennylichen Member

    Joined:
    14th Mar, 2009
    Posts:
    20
    Location:
    Sydney, NSW
    Thanks for your advices!
    It helps me to clear my mind now.
    I am much confident about my answers.
     
  4. Classic

    Classic Member

    Joined:
    17th Nov, 2010
    Posts:
    19
    Location:
    Melbourne
    Hi CJ,

    I just have a problem with applying CIMER template for case study-1 in risk management. Can you please give me suggestions in that?

    Thank you
     
  5. Pragya_C

    Pragya_C Member

    Joined:
    2nd Nov, 2011
    Posts:
    6
    Location:
    Brisbane, QLD
    RM Case study1 resubmission help

    Hi CJ, I have failed in my first submission of RM assignment. Can u or aAnyone who has passed this case study willing to help me please? I am having trouble a couple of things.....I have some questions.....Please help me I am new here.....

    1: They asked me to Resubmit Case study 1 they asked me to provide insurance for Simone's husband they asked for recommendation including sum insured.
    2: And they asked Please use CIMER to estimate the appropriate sum insured for life and TPD and make assumptions where you feel it is necessary.

    I am really confused..... Please help needed ASAP

    I am doing CIMER for Simone can u pls give me a guide of how to calculate the I in the CIMER ? As in the case of Simone, you will have surplus rather than short fall!,

    it would be great help if you could share some knowledge with me. I am not from this industry and need help lil urgent pls....thanks a lot mate.

    My email is pragya_chandna@yahoo.com