Assessor Resource

FNSASICY513
Provide advice in insurance broking

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to analyse a client’s insurance needs and provide ethical and professional advice that complies with industry regulations and codes of practice. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian Financial Services (AFS) licensing at Tier 1 level.

The unit applies to those who use well-developed interpersonal, communication and self-management skills and general insurance knowledge to perform a specialist advisory role in insurance broking and address the needs of both retail and wholesale clients.

At the time of publication, no licensing requirements apply to this unit. However, given potential future changes in the licensing environment, users must check with the relevant licensing body to confirm whether this unit is required to complete a licence.

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.

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 insurance broking to at least three different clients.

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:

legislative and organisational compliance requirements in relation to advice, including:

legislation affecting the provision of general and personal advice, including relevant regulatory guidelines on conduct and disclosure

roles and responsibilities of different advisers within the organisation

organisational policies and guidelines relating to provision of advice and communication

legal environment, including disclosure and compliance covering:

role of the representative or adviser and applicable fiduciary duty obligations

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 which may influence the adviser’s recommendation

required industry standards and codes of practice

regulators’ guidelines, including Australian Securities and Investments Commission (ASIC) Regulatory Guides applicable to the insurance broking sector and advisory role of a broker and Australian Financial Services (AFS) licensing

internal and external complaints resolution procedures

legal principles relating to legislation and regulations that impact on the general insurance and general insurance broking sector, including the Corporations Act, ASIC Act, Insurance Contracts Act, privacy regulations, Competition and Consumer Act

broking practices in respect to assisting clients with insurance claims

methods for assessing insurable risk exposures

organisational procedures for delivering insurance broking services

impact of economic environment on general insurance sector

operation of insurance markets, including:

definition of insurance product and service

characteristics and participants of the Australian insurance market

roles played by intermediaries

key features of general insurance products and services, including retail and wholesale products and:

conditions, exclusions and levels of coverage of risk transfer products

pricing

aspects of ongoing service provision, including:

reporting on performance

review of plan, policy or transaction

available ways of communication

taxation issues in relation to insurance products and markets

advisory functions, including:

roles and responsibilities of insurance adviser, broker or agent

role of licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be applied

participants in the insurance advisory services market

relationship between industry sectors.

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:

organisational equipment, technology, software and consumables

insurance broking product information.

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.

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 insurance broking to at least three different clients.

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:

legislative and organisational compliance requirements in relation to advice, including:

legislation affecting the provision of general and personal advice, including relevant regulatory guidelines on conduct and disclosure

roles and responsibilities of different advisers within the organisation

organisational policies and guidelines relating to provision of advice and communication

legal environment, including disclosure and compliance covering:

role of the representative or adviser and applicable fiduciary duty obligations

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 which may influence the adviser’s recommendation

required industry standards and codes of practice

regulators’ guidelines, including Australian Securities and Investments Commission (ASIC) Regulatory Guides applicable to the insurance broking sector and advisory role of a broker and Australian Financial Services (AFS) licensing

internal and external complaints resolution procedures

legal principles relating to legislation and regulations that impact on the general insurance and general insurance broking sector, including the Corporations Act, ASIC Act, Insurance Contracts Act, privacy regulations, Competition and Consumer Act

broking practices in respect to assisting clients with insurance claims

methods for assessing insurable risk exposures

organisational procedures for delivering insurance broking services

impact of economic environment on general insurance sector

operation of insurance markets, including:

definition of insurance product and service

characteristics and participants of the Australian insurance market

roles played by intermediaries

key features of general insurance products and services, including retail and wholesale products and:

conditions, exclusions and levels of coverage of risk transfer products

pricing

aspects of ongoing service provision, including:

reporting on performance

review of plan, policy or transaction

available ways of communication

taxation issues in relation to insurance products and markets

advisory functions, including:

roles and responsibilities of insurance adviser, broker or agent

role of licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be applied

participants in the insurance advisory services market

relationship between industry sectors.

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:

organisational equipment, technology, software and consumables

insurance broking product information.

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
Identify client enquiry and inform client about role of adviser and licensee or principal responsible for adviser’s conduct 
Establish client’s objectives and goals and obtain personal, financial and business details to identify client’s needs 
Respond to enquiries about insurance broking products and services by explaining range of products and services available and their relevant fee and charging methodology 
Establish risk profile in relation to client’s business activities according to organisational procedures 
Assess client needs taking into account client’s information, product expectations and specific needs 
Consult client throughout analysis for further clarification where necessary 
Analyse need for higher level or specialist advice and ensure client is referred to appropriate adviser if required 
Assess and confirm risk profile of client, demonstrating ASIC-identified generic and specialist knowledge relevant to products and services being offered 
Determine appropriate strategy to provide for identified needs and outcomes, based on analysis of products and services, client risk profile and assessment of client needs 
Conduct relevant research, analysis and product modelling, and draft appropriate solution and plan, policy or transaction for presentation to client 
Apply appropriate knowledge for product or service offered when presenting outcomes of analysis 
Clearly and unambiguously explain proposed transaction to client 
Reinforce required details, terms and conditions of product or service 
Disclose impacts and possible risks of solution in clear and concise manner 
Provide supporting written documentation and guide client through key aspects of documentation 
Discuss and clarify concerns and issues that client has regarding proposed plan, policy or transaction 
Confirm that client understands proposed plan, policy or transaction 
Obtain client’s formal agreement to confirmed plan, policy or transaction 
Explain and confirm client understanding of fees, cost structures and timeframes for execution and processing of agreed plan, policy or transaction 
Obtain signed proposal and statutory and transactional documents required from client 
Exchange copies of signed agreement and other required documentation according to organisational procedures 
Agree to type and form of client-preferred ongoing service to be provided 
Clearly explain fees and costs for ongoing and specifically defined services, and confirm client understanding 
Implement arrangements for agreed ongoing service according to organisational policies and procedures 

Forms

Assessment Cover Sheet

FNSASICY513 - Provide advice in insurance broking
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

FNSASICY513 - Provide advice in insurance broking

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: