Assessor Resource

FNSILF401
Contribute to the life risk underwriting process

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to undertake risk assessments of applications for life insurance including gathering the risk information, and reviewing and assessing it against appropriate risk criteria.

It applies to individuals who use specialised knowledge and systematic approaches to analyse and evaluate information and make judgements within limits of delegated authority.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on 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. Identify risk

1.1 Identify product type to ensure that nature of risk can be assessed and handled accordingly

2. Evaluate proposal against risk assessment criteria

2.1 Assess proposal against risk assessment criteria to clearly identify risk factors

2.2 Identify need for additional information to further evaluate proposal

3. Obtain further information

3.1 Identify appropriate sources of further information to enable comprehensive evaluation of proposal

3.2 Safeguard privacy of parties involved in providing information by complying with legislative and compliance requirements

3.3 Obtain all further information within specified timeframes to satisfy outstanding risk assessment criteria

3.4 Provide ongoing advice to concerned parties on status of assessment of proposal

4. Determine and advise terms and conditions of risk acceptability

4.1 Assess acceptability of risk against all available information and in accordance with appropriate underwriting guidelines

4.2 Within delegated authority, establish terms and conditions that minimise risk liability

4.3 Promptly advise all relevant parties on acceptance or rejection of proposal

Evidence of the ability to:

undertake basic risk assessment of a life insurance product using sound analytical skills

provide timely advice to relevant parties regarding a life insurance proposal.

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:

outline basic life insurance underwriting principles

identify the types of liability that can arise in life insurance

outline the nature of the life insurance industry sector

identify relevant legislative and compliance requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and Life Insurance Act

define key medical terminology relevant to life insurance

list appropriate sources of further information to enable comprehensive evaluation of a proposal

identify risk prevention methods and application

identify the types of risk in life insurance products and probability of occurrence.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the life insurance field of work and include access to:

office equipment, technology, software and consumables

organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.

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. Identify risk

1.1 Identify product type to ensure that nature of risk can be assessed and handled accordingly

2. Evaluate proposal against risk assessment criteria

2.1 Assess proposal against risk assessment criteria to clearly identify risk factors

2.2 Identify need for additional information to further evaluate proposal

3. Obtain further information

3.1 Identify appropriate sources of further information to enable comprehensive evaluation of proposal

3.2 Safeguard privacy of parties involved in providing information by complying with legislative and compliance requirements

3.3 Obtain all further information within specified timeframes to satisfy outstanding risk assessment criteria

3.4 Provide ongoing advice to concerned parties on status of assessment of proposal

4. Determine and advise terms and conditions of risk acceptability

4.1 Assess acceptability of risk against all available information and in accordance with appropriate underwriting guidelines

4.2 Within delegated authority, establish terms and conditions that minimise risk liability

4.3 Promptly advise all relevant parties on acceptance or rejection of proposal

Evidence of the ability to:

undertake basic risk assessment of a life insurance product using sound analytical skills

provide timely advice to relevant parties regarding a life insurance proposal.

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:

outline basic life insurance underwriting principles

identify the types of liability that can arise in life insurance

outline the nature of the life insurance industry sector

identify relevant legislative and compliance requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and Life Insurance Act

define key medical terminology relevant to life insurance

list appropriate sources of further information to enable comprehensive evaluation of a proposal

identify risk prevention methods and application

identify the types of risk in life insurance products and probability of occurrence.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the life insurance field of work and include access to:

office equipment, technology, software and consumables

organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.
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 product type to ensure that nature of risk can be assessed and handled accordingly 
Assess proposal against risk assessment criteria to clearly identify risk factors 
Identify need for additional information to further evaluate proposal 
Identify appropriate sources of further information to enable comprehensive evaluation of proposal 
Safeguard privacy of parties involved in providing information by complying with legislative and compliance requirements 
Obtain all further information within specified timeframes to satisfy outstanding risk assessment criteria 
Provide ongoing advice to concerned parties on status of assessment of proposal 
Assess acceptability of risk against all available information and in accordance with appropriate underwriting guidelines 
Within delegated authority, establish terms and conditions that minimise risk liability 
Promptly advise all relevant parties on acceptance or rejection of proposal 

Forms

Assessment Cover Sheet

FNSILF401 - Contribute to the life risk underwriting process
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

FNSILF401 - Contribute to the life risk underwriting process

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: