Evidence of the ability to:
work effectively with clients to analyse their objectives and risk situation
interpret available information about the client’s risk needs and products in preparing an appropriate solution
provide accurate advice and complete all required documentation to implement the solution, complying with organisational procedures and industry regulations.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:
explain the legal environment including disclosure and compliance covering:
role of the broker, representative and/or adviser
relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act
relationship between ethics and regulatory requirements including good faith and utmost good faith
full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation
general insurance industry code of practice and organisational codes of conduct
complaints resolution procedures (internal and external)
ASIC guidelines on adviser conduct and training
summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries
identify insurance products including:
definition of an insurance product
conditions, exclusions and level of coverage of risk transfer products
types of insurance products
pricing of risk products
discuss taxation issues relating to insurance products
explain advisory functions including:
role of the representative, broker or adviser
participants in the insurance advisory services market
range of services provided
profile and financial information of the client
appropriateness of a risk assessment
summarise the specific product knowledge for the general insurance products in which advice is given including:
types of general insurance products and policies
standard cover (and deviations)
policy wordings
taxes and charges
insurance claims
premium rating and risk selection
reporting
product development
underwriting
explain terms and conditions of retail general insurance products used by the adviser.