Assessor Resource

FNSILF402A
Settle policy payments and terminations

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to job roles within the specialist area of life insurance and 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 settle payments and terminations on life insurance policies.

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).

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

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:

maintain awareness of situations requiring more extensive underwriting or assessment

apply clear understanding of superannuation beneficiary entitlements and conditions to be met and complied with.

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

setting and reviewing workplace projects and business simulations or scenarios.

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

well-developed communication skills to:

determine and confirm information, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

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 for policy interpretation and application and 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

organisational skills, including the ability to plan and sequence work

Required knowledge

relevant common law, legal systems and procedures

organisation policy, procedures, guidelines and authorities

industry sector compliance requirements including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA)

industry sector product terms and conditions

regulatory body requirements

relevant medical terminology

underwriting guidelines

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.

Product types may include:

allocated pensions

disability income

endowment

immediate/deferred annuities

personal superannuation

singular or regular premium investments

term life

trauma

whole of life.

Payment criteria may include:

cancellation

death

expiry

invalidity

lapse

maturity

past surrender

pension

roll over

surrender

Temporary and Permanent Disability (TPD)

trauma

withdrawal

withdrawal annuities.

Terms and conditions of the contract may be determined by:

legislation and/or policy provisions.

Appropriate parties may include:

accountants

administrators

assignees

Australian Securities and Investments Commission (ASIC)

Australian Taxation Office (ATO)

chief medical officers

claims tribunals

courts

doctors

employers

executors

forensic scientists

investigation agencies

life insured

liquidators

next of kin

other life companies

personnel officers

police

policy owners

reinsurers

solicitors

trustees

underwriters.

Documentation may include:

ASIC reports

cheques

final statement

group certificates

medical reports

payment statements

tax forms.

Consequences of processing the settlement may include:

additional costs/charges if transferring to an alternative contract/policy

cessation of life cover in the event of a TPD claim

possible difficulty in obtaining optimal cover at a later date in the event of a deterioration in health

recommencement of the suicide clause.

Validation criteria means:

criteria against which a claim/withdrawal may be measured for validity.

Termination may include:

automatic cancellation because of non-payment of premium.

Benefits payable could be affected by:

age at death

cause of death

contributions made to policy

date of death

length of policy

non-disclosure

policy maturity

preserved nature of the funds in the policy

previous withdrawals

reason for withdrawal

surrender conditions.

Payment methods may include:

cheques

direct credit.

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
Product type is identified so that payment criteria can be determined and the payment or termination processed accordingly 
Payment criteria are established to ensure compliance with the terms and conditions of the contract 
Requests are classified according to established payment criteria and required evidence is obtained from appropriate parties to confirm that the request complies with the terms and conditions of the policy 
Required forms and documents are completed and distributed in accordance with legislation, organisation policies and procedures 
Consequences relevant to policy type are identified 
Information is communicated clearly and concisely to ensure customer/client understands the consequences 
Result of communication is recorded and filed according to organisation procedures to ensure record is complete 
Request is validated within limits of delegated authority 
Decision to proceed with payment/termination of the contract is communicated to relevant parties 
Payment criteria is established to enable compliance to be determined within the terms and conditions of the policy, legislation and regulations 
Available information on the payment request is reviewed against criteria to ensure compliance 
Request is assessed to determine whether terms and conditions of the policy have been met 
Additional opinion on the validity of the request is sought from relevant parties 
Liability is identified in accordance with the terms and conditions of the policy 
Evidence is reviewed against the policy to determine the benefits payable 
Benefits payable are accurately calculated and cross-checked according to organisation procedures 
Register is updated to record payment liability and if appropriate, reinsurance recovery is made 
Decision on liability is promptly advised to all relevant parties 
Level of payment authority is identified from organisation standards and procedures 
Payment details are checked for compliance with legislative and organisation requirements within delegated authority 
Authorisation is confirmed and discharge obtained as appropriate 

Forms

Assessment Cover Sheet

FNSILF402A - Settle policy payments and terminations
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

FNSILF402A - Settle policy payments and terminations

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: