Assessor Resource

FNSASICN513
Provide advice in general insurance

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to analyse and advise on a client’s general 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 communications skills in the provision of advice in general 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

1.1Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available according to client objectives and goals

1.3 Outline fees associated with applicable products and services and explain charging methodology and relevant tax implications

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

1.5 Inform client of complaints-handling procedures

1.6 Collect applicable personal, financial and business details using organisational risk-assessment processes and tools

1.7 Respond to client enquiries as required according to organisational policies and procedures

2. Analyse client risk information and identify risk solutions

2.1 Analyse information from risk assessment process according to organisational policies and procedures

2.2 Identify issues that may require further consideration and seek specialist advice to address risks as required

2.3 Identify and assess available options using information from risk analysis

2.4 Conduct product research according to objectives, goals and risk profile of client

2.5 Prepare statement of advice for presentation to client according to client objectives, goals and risk profile

2.6 Refer client to adviser for higher level or specialist advice as required

3. Present and confirm solutions with client

3.1 Explain features of statement of advice to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Discuss impacts and possible risks of solution with client and confirm understanding

3.3 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction

3.4 Confirm client’s preferred plan, policy and/or transaction according to organisational policies and procedures

4. Coordinate implementation of agreed solution

4.1 Confirm client agreement with proposed insurance plan, policy and/or transaction, incorporating all associated fees and costs

4.2 Explain timeframes for execution and processing according to organisational policies and procedures

4.3 Confirm proposal and other documents are completed and signed off by client where required

4.4 Exchange signed agreement and copies of required documentation with client

4.5 Create and update client records according to organisational policies and procedures

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

5.1 Confirm type and form of ongoing service is agreed with client, including review of insurance plan, policy and/or transaction

5.2 Explain 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 advice in general 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 general insurance

develop a potential strategy or solution that meets client needs

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

consult with client throughout risk-assessment process and obtain further clarification and information where required

finalise plan, policy and/or transaction, 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

organisational policies and procedures relating to providing advice in general insurance

characteristics of the economic environment, including:

impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operation 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

general insurance products

different aspects of insurance products, including:

conditions, exclusions and levels of coverage of risk transfer products

pricing

fee structures and charging methodologies

taxation issues in relation to tax implications regarding insurance products and markets

advisory functions for general insurance, including:

role of insurance adviser, broker or 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

legal environment, 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 advice in general insurance

resolution procedures for internal and external complaints

Specialist knowledge

key aspects of general insurance:

types and classes of insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

reporting

terms and conditions of general retail insurance products used by the organisation

relevant legislative and organisational compliance requirements, including:

legislation and regulatory guidelines affecting the provision of general advice

role of different advisers in the organisation

organisational policy and guidelines related to the provision of general or wholesale advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant 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

clients requiring advice in general 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

1.1Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available according to client objectives and goals

1.3 Outline fees associated with applicable products and services and explain charging methodology and relevant tax implications

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

1.5 Inform client of complaints-handling procedures

1.6 Collect applicable personal, financial and business details using organisational risk-assessment processes and tools

1.7 Respond to client enquiries as required according to organisational policies and procedures

2. Analyse client risk information and identify risk solutions

2.1 Analyse information from risk assessment process according to organisational policies and procedures

2.2 Identify issues that may require further consideration and seek specialist advice to address risks as required

2.3 Identify and assess available options using information from risk analysis

2.4 Conduct product research according to objectives, goals and risk profile of client

2.5 Prepare statement of advice for presentation to client according to client objectives, goals and risk profile

2.6 Refer client to adviser for higher level or specialist advice as required

3. Present and confirm solutions with client

3.1 Explain features of statement of advice to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Discuss impacts and possible risks of solution with client and confirm understanding

3.3 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction

3.4 Confirm client’s preferred plan, policy and/or transaction according to organisational policies and procedures

4. Coordinate implementation of agreed solution

4.1 Confirm client agreement with proposed insurance plan, policy and/or transaction, incorporating all associated fees and costs

4.2 Explain timeframes for execution and processing according to organisational policies and procedures

4.3 Confirm proposal and other documents are completed and signed off by client where required

4.4 Exchange signed agreement and copies of required documentation with client

4.5 Create and update client records according to organisational policies and procedures

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

5.1 Confirm type and form of ongoing service is agreed with client, including review of insurance plan, policy and/or transaction

5.2 Explain 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 advice in general 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 general insurance

develop a potential strategy or solution that meets client needs

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

consult with client throughout risk-assessment process and obtain further clarification and information where required

finalise plan, policy and/or transaction, 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

organisational policies and procedures relating to providing advice in general insurance

characteristics of the economic environment, including:

impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operation 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

general insurance products

different aspects of insurance products, including:

conditions, exclusions and levels of coverage of risk transfer products

pricing

fee structures and charging methodologies

taxation issues in relation to tax implications regarding insurance products and markets

advisory functions for general insurance, including:

role of insurance adviser, broker or 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

legal environment, 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 advice in general insurance

resolution procedures for internal and external complaints

Specialist knowledge

key aspects of general insurance:

types and classes of insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

reporting

terms and conditions of general retail insurance products used by the organisation

relevant legislative and organisational compliance requirements, including:

legislation and regulatory guidelines affecting the provision of general advice

role of different advisers in the organisation

organisational policy and guidelines related to the provision of general or wholesale advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant 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

clients requiring advice in general 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 knowledge level, objectives, risk profile and goals of client 
Explain range of products and services available according to client objectives and goals 
Outline fees associated with applicable products and services and explain charging methodology and relevant tax implications 
Inform client of role of adviser and licensee or principal responsible for adviser’s conduct 
Inform client of complaints-handling procedures 
Collect applicable personal, financial and business details using organisational risk-assessment processes and tools 
Respond to client enquiries as required according to organisational policies and procedures 
Analyse information from risk assessment process according to organisational policies and procedures 
Identify issues that may require further consideration and seek specialist advice to address risks as required 
Identify and assess available options using information from risk analysis 
Conduct product research according to objectives, goals and risk profile of client 
Prepare statement of advice for presentation to client according to client objectives, goals and risk profile 
Refer client to adviser for higher level or specialist advice as required 
Explain features of statement of advice to client according to organisational policies and procedures, legislative and regulatory requirements 
Discuss impacts and possible risks of solution with client and confirm understanding 
Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction 
Confirm client’s preferred plan, policy and/or transaction according to organisational policies and procedures 
Confirm client agreement with proposed insurance plan, policy and/or transaction, incorporating all associated fees and costs 
Explain timeframes for execution and processing according to organisational policies and procedures 
Confirm proposal and other documents are completed and signed off by client where required 
Exchange signed agreement and copies of required documentation with client 
Create and update client records according to organisational policies and procedures 
Confirm type and form of ongoing service is agreed with client, including review of insurance plan, policy and/or transaction 
Explain 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

FNSASICN513 - Provide advice in general insurance
Assessment task 1: [title]

Student name:

Student ID:

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

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSASICN513 - Provide advice in general insurance

Student name:

Student ID:

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

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: