Assessor Resource

FNSIBK302A
Provide general advice in general insurance broking products and services (Tier 2)

Assessment tool

Version 1.0
Issue Date: May 2024


This unit is applicable to individuals working within insurance broking enterprises and in broking adviser job roles. For those brokers seeking to meet ASIC training standards:

General advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the client is seeking general rather than personal product advice and to follow the appropriate steps to provide this level of advice. It also requires clarification of the broker's role in providing this service.

Tier 2 products are defined by ASIC as:

General insurance products other than personal sickness and accident. These products:

Do not have any investment component

Are subject to standard terms and conditions except for previously disclosed variations

Are of a limited life, e.g. 12 months

Travel insurance products including where the product covers losses arising due to sickness or accident while travelling; and

Client credit insurance including where the product covers client credit liabilities that cannot be paid due to sickness or accident.

There is a substantial core and specialist general insurance product and insurance broking knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 2 general advice

The unit may be applied within organisations of various sizes and across a range of customer bases.

This unit describes the performance outcomes, skills and knowledge required to advise retail and wholesale clients and current clients in standard general insurance products.

This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).It covers the functions undertaken by an insurance broker providing general advice in Tier 2 general insurance.

Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC.

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

Co-Requisites

FNSIBK403A

Implement an agreed insurance program for a broking client

Employability Skills

This unit contains employability skills.



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 Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

apply broking advisory procedures to provide appropriate general advice in general insurance broking products and services.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisation records

access to organisational policies and procedures.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Required skills

communication skills to:

determine and confirm information, using questioning and active listening techniques

liaise with others, share information, listen and understand

Interpersonal communication including questioning techniques to gather information and explain products in language that avoids unnecessary industry specific jargon

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

use IT calculators to determine insurance premiums

use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes

access and update records electronically

access web-based information services

literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

research and analysis skills for accessing and interpreting relevant information

effective interpersonal skills

organisational skills, including the ability to plan and sequence work

Required knowledge

core insurance knowledge:

characteristics and participants of the Australian insurance market

types of general insurance products, conditions, inclusions and exclusions, levels of coverage and pricing

advisory functions:

the role of the broker/representative/adviser

participants in the advisory services market

range of services provided

appropriateness of a risk assessment

legal environment - disclosure and compliance:

the role of the broker/representative/adviser

relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act)

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith)

full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation

Insurance Brokers Code of Practice and organisational codes of conduct

complaints resolution procedures (internal and external)

ASIC guidelines on adviser conduct and training

specialist knowledge of insurance broking products and services provided:

types of general insurance products/policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating/risk selection

reporting

product development

underwriting

binder products

legislative and organisational compliance requirements in relation to advice

relevant legislation and ASIC advisory guides relating to the provision of general and personal advice

the role of different advisers within the brokerage

brokerage policy and guidelines related to the provision of general advice

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

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Client enquiries may include:

electronic communication

face-to-face enquiries

telephone enquiries

written communication.

Initial documentation may include:

computer and manual application forms

Legislation and organisation policy may include:

ASIC Act and its regulatory guides

brokerage guidelines, operating and policy manuals

General insurance Brokers code of Practice.

Disclosure documentation may include:

financial services guide

product disclosure statement.

General advice warning:

has a specific definition under the Financial Services Reform Act.

Special communication needs may include

people with a disability or from different cultural backgrounds.

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
Client enquiries are attended to in a timely and courteous manner 
A range of communication and interpersonal skills are used to clarify the general insurance products and broking services the client is requesting to be provided 
Active listening skills are demonstrated in dealing with client enquiries and help and assistance is provided to ensure the full and accurate completion of initial documentation where required. 
The role of the broker and licensee/principal responsible for the adviser's conduct is explained to the client 
The range of products of interest to the client are analysed to determine their categorisation as areas of general advice in line with legislation and organisation policy. 
Clients are informed that general advice will be provided to them in relation to the products of interest and that only personal information for underwriting and calculating the cost of the product will be sought 
An explanation of the relevant fees and charging methodology is provided 
The client is referred to appropriate specialist personnel within the brokerage where required advice is deemed to fall outside the category of general advice 
The correct disclosure documentation is provided in accordance with legislation and organisational policy. 
A general advice warning is given to the clientclient in line with legislative and organisation policy 
Special communication needs of clients or clients are considered in delivering general advice warning 
The product advice is given to the client in a clear and unambiguous way avoiding jargon and in a language appropriate to the receiver and using organisational tools 
Product and industry knowledge appropriate for advice offered is demonstrated when providing advice to the client 
Product advice is explained and discussed with the client in language that avoids giving the impression the adviser has considered the client's personal circumstances in providing the advice 
Client is requested to consider the appropriateness of the advice in the light of their own circumstances 
Client is advised to read the product disclosure statement before making a decision. 

Forms

Assessment Cover Sheet

FNSIBK302A - Provide general advice in general insurance broking products and services (Tier 2)
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:

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Date:

Assessment Record Sheet

FNSIBK302A - Provide general advice in general insurance broking products and services (Tier 2)

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:

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