Assessor Resource

FNSASICM513
Provide general advice in life insurance

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to analyse and advise on general life insurance needs in line with current Australian Securities and Investments Commission (ASIC) regulation (Financial Services Reform Act) in the insurance specialist and generic knowledge areas.

The unit applies to those who apply specialist product knowledge and well-developed interpersonal and communication skills in the provision of general advice in life insurance.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant regulatory authorities to confirm those requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client and identify objectives, financial situation

1.1 Establish client’s knowledge level, objectives, financial and business details

1.2 Identify client’s expectations of cash flow and relevant taxation obligations

1.3 Explain range of products and services available according to client objectives and financial situation

1.4 Outline fees associated with applicable products and services and explain charging methodology

1.5 Inform client of role of adviser and licensee or principal responsible for adviser’s conduct

1.6 Inform client of complaints-handling procedures

2. Analyse client’s objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered and taking into account client’s product or service expectations and specific needs

2.2 Consult client throughout analysis and seek further clarification where necessary

2.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice as required

2.4 Assess and agree on product risk profile of client

2.5 Apply ASIC generic and specialist knowledge applicable to products or services being offered

3. Develop and present strategies and solutions appropriate to client

3.1 Determine appropriate strategy to provide for identified needs and outcomes

3.2 Complete required research, analysis and product modelling according to organisational policies and procedures

3.3 Draft product or service solution for presentation to client that meets client needs and outcomes according to organisational policies and procedures

3.4 Explain and discuss proposed products or services with client according to organisational policies and procedures, legislative and regulatory requirements

3.5 Explain required details, terms and conditions of products or services to client and confirm client understanding

3.6 Disclose impacts and possible risks of products or services to client and confirm client understanding

3.7 Provide client with written supporting documentation following organisational procedures, and guide client through key aspects of documentation

3.8 Discuss and clarify any concerns and issues client has regarding proposed products or services

3.9 Seek client’s preferred products or services and confirm client’s preference

4. Coordinate implementation of agreed products or services

4.1 Seek formal agreement from client for proposed plan, policy or transaction

4.2 Explain associated fee and cost structures, and confirm client understands all details

4.3 Explain timeframes for execution and processing to client and confirm client understanding

4.4 Confirm that proposal and other documents are completed and signed off by client as required

4.5 Confirm that signed agreement and copies of appropriate documentation are exchanged

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide general advice in life insurance to at least two different clients.

In the course of the above, the candidate must:

identify and analyse each client’s objectives, needs and financial details

comply with industry-specific legislative and regulatory requirements for life insurance

advise clients accurately and ethically about specific life insurance products and services, and relevant tax implications

demonstrate knowledge of product or service offered

match product or service to client needs

finalise product or service offering, ensuring required documentation is completed accurately following organisational procedures.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

General knowledge

overview of current economic environment, including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operations of financial markets, including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products

Core insurance knowledge

operation of insurance markets, including:

definition of insurance product

characteristics of and participants in the Australian insurance market

roles played by intermediaries

types of insurance products, including risk insurance products, investment life insurance products and general insurance products

aspects of insurance products, including:

conditions, exclusions and levels of coverage of risk transfer products

organisational standards for documentation

pricing

fee structures and charging methodologies

taxation issues in relation to insurance products and markets

advisory functions for life insurance, including:

role of insurance adviser, broker and agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

ethical considerations relevant to advisory functions

key legal environment factors, including disclosure and compliance covering:

role of representative and adviser

legal principles relating to key Acts relevant to performance evidence

relationship between ethics and regulatory requirements, including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest that may influence adviser’s recommendation

relevant industry standards and codes of conduct

regulators’ guidelines relevant to the provision of general or wholesale advice in life insurance

resolution procedures for internal and external complaints

Specialist knowledge

key aspects of life insurance, including:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

investment strategy in relation to investment components of life insurance products.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

office equipment, technology, software and consumables used to provide general advice in life insurance

clients requiring general advice in life insurance

organisational records

organisational policies and procedures.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client and identify objectives, financial situation

1.1 Establish client’s knowledge level, objectives, financial and business details

1.2 Identify client’s expectations of cash flow and relevant taxation obligations

1.3 Explain range of products and services available according to client objectives and financial situation

1.4 Outline fees associated with applicable products and services and explain charging methodology

1.5 Inform client of role of adviser and licensee or principal responsible for adviser’s conduct

1.6 Inform client of complaints-handling procedures

2. Analyse client’s objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered and taking into account client’s product or service expectations and specific needs

2.2 Consult client throughout analysis and seek further clarification where necessary

2.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice as required

2.4 Assess and agree on product risk profile of client

2.5 Apply ASIC generic and specialist knowledge applicable to products or services being offered

3. Develop and present strategies and solutions appropriate to client

3.1 Determine appropriate strategy to provide for identified needs and outcomes

3.2 Complete required research, analysis and product modelling according to organisational policies and procedures

3.3 Draft product or service solution for presentation to client that meets client needs and outcomes according to organisational policies and procedures

3.4 Explain and discuss proposed products or services with client according to organisational policies and procedures, legislative and regulatory requirements

3.5 Explain required details, terms and conditions of products or services to client and confirm client understanding

3.6 Disclose impacts and possible risks of products or services to client and confirm client understanding

3.7 Provide client with written supporting documentation following organisational procedures, and guide client through key aspects of documentation

3.8 Discuss and clarify any concerns and issues client has regarding proposed products or services

3.9 Seek client’s preferred products or services and confirm client’s preference

4. Coordinate implementation of agreed products or services

4.1 Seek formal agreement from client for proposed plan, policy or transaction

4.2 Explain associated fee and cost structures, and confirm client understands all details

4.3 Explain timeframes for execution and processing to client and confirm client understanding

4.4 Confirm that proposal and other documents are completed and signed off by client as required

4.5 Confirm that signed agreement and copies of appropriate documentation are exchanged

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide general advice in life insurance to at least two different clients.

In the course of the above, the candidate must:

identify and analyse each client’s objectives, needs and financial details

comply with industry-specific legislative and regulatory requirements for life insurance

advise clients accurately and ethically about specific life insurance products and services, and relevant tax implications

demonstrate knowledge of product or service offered

match product or service to client needs

finalise product or service offering, ensuring required documentation is completed accurately following organisational procedures.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

General knowledge

overview of current economic environment, including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operations of financial markets, including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products

Core insurance knowledge

operation of insurance markets, including:

definition of insurance product

characteristics of and participants in the Australian insurance market

roles played by intermediaries

types of insurance products, including risk insurance products, investment life insurance products and general insurance products

aspects of insurance products, including:

conditions, exclusions and levels of coverage of risk transfer products

organisational standards for documentation

pricing

fee structures and charging methodologies

taxation issues in relation to insurance products and markets

advisory functions for life insurance, including:

role of insurance adviser, broker and agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

ethical considerations relevant to advisory functions

key legal environment factors, including disclosure and compliance covering:

role of representative and adviser

legal principles relating to key Acts relevant to performance evidence

relationship between ethics and regulatory requirements, including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest that may influence adviser’s recommendation

relevant industry standards and codes of conduct

regulators’ guidelines relevant to the provision of general or wholesale advice in life insurance

resolution procedures for internal and external complaints

Specialist knowledge

key aspects of life insurance, including:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

investment strategy in relation to investment components of life insurance products.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

office equipment, technology, software and consumables used to provide general advice in life insurance

clients requiring general advice in life insurance

organisational records

organisational policies and procedures.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Establish client’s knowledge level, objectives, financial and business details 
Identify client’s expectations of cash flow and relevant taxation obligations 
Explain range of products and services available according to client objectives and financial situation 
Outline fees associated with applicable products and services and explain charging methodology 
Inform client of role of adviser and licensee or principal responsible for adviser’s conduct 
Inform client of complaints-handling procedures 
Assess client needs using information gathered and taking into account client’s product or service expectations and specific needs 
Consult client throughout analysis and seek further clarification where necessary 
Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice as required 
Assess and agree on product risk profile of client 
Apply ASIC generic and specialist knowledge applicable to products or services being offered 
Determine appropriate strategy to provide for identified needs and outcomes 
Complete required research, analysis and product modelling according to organisational policies and procedures 
Draft product or service solution for presentation to client that meets client needs and outcomes according to organisational policies and procedures 
Explain and discuss proposed products or services with client according to organisational policies and procedures, legislative and regulatory requirements 
Explain required details, terms and conditions of products or services to client and confirm client understanding 
Disclose impacts and possible risks of products or services to client and confirm client understanding 
Provide client with written supporting documentation following organisational procedures, and guide client through key aspects of documentation 
Discuss and clarify any concerns and issues client has regarding proposed products or services 
Seek client’s preferred products or services and confirm client’s preference 
Seek formal agreement from client for proposed plan, policy or transaction 
Explain associated fee and cost structures, and confirm client understands all details 
Explain timeframes for execution and processing to client and confirm client understanding 
Confirm that proposal and other documents are completed and signed off by client as required 
Confirm that signed agreement and copies of appropriate documentation are exchanged 
Confirm that type and form of ongoing service, including review of products or services, is agreed with client 
Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details 
Implement procedures for agreed ongoing service according to organisational policies and procedures 

Forms

Assessment Cover Sheet

FNSASICM513 - Provide general advice in life insurance
Assessment task 1: [title]

Student name:

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I declare that the assessment tasks submitted for this unit are my own work.

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Assessment Record Sheet

FNSASICM513 - Provide general advice in life insurance

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

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Overall assessment result: Competent Not yet competent

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