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 non-medical risks | 1.1 Review applications and associated documentation to identify relevant financial and lifestyle information 1.2 Interpret financial and lifestyle information to identify non-medical risk factors 1.3 Review need for additional financial and lifestyle information and collect as appropriate |
2. Identify underwriting significance | 2.1 Identify potential life risk implications of supplied lifestyle information 2.2 Identify and address potential moral risk factors 2.3 Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided 2.4 Select and apply appropriate risks rating systems according to organisational procedures |
. Determine risk acceptance criteria | 3.1 Determine risk acceptance criteria to suit type and context of risk in accordance with procedures 3.2 Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures |
4. Prepare life insurance policy | 4.1 Develop terms of acceptance in accordance with market conditions and accepted levels of exposure 4.2 Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements |
Evidence of the ability to:
prepare and document life insurance policy that involves complex non-medical covering:
identification of financial and lifestyle risk factors, and application of appropriate risks rating criteria and systems for underwriting the risk
terms and conditions relevant to underwriting complex non-medical risks.
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:
identify relevant actuarial and underwriting information associated with non-medical risk
explain key features of policy guidelines, administrative requirements and organisational procedures in the underwriting industry
explain life insurance policy terms and conditions
explain life insurance risk management practices
describe the various types of non-medical risks and their implications for life insurance underwriting
identify relevant regulatory requirements
outline sources of relevant financial and lifestyle information
describe types of financial and lifestyle risk and actuarial considerations
distinguish between medical and non-medical risks in the context of life insurance underwriting
outline moral risk factors and their implications to underwriting non-medical risks.
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.