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 and obtain risk information | 1.1 Identify, record and gather all sources of risk information and rectify deficiencies 1.2 Review information to determine its relevance and reliability, and the integrity of its source 1.3 Format data for easy access 1.4 Adhere to legislative and compliance requirements in all cases |
2. Assess information against established risk acceptance criteria | 2.1 Assess all relevant risk information to determine if it is comprehensive and pertinent to nature of the risk 2.2 Review and commission surveys and/or reports, if applicable to risk 2.3 Interpret data on risk exposure from survey report 2.4 Compare risk information against risk acceptance criteria and organisational capacity to assess and accept risk according to terms and conditions of risk assessment 2.5 Liaise with other internal departments to assess impact on business, if applicable 2.6 Review and compare proposed amendments to organisational wording and compare to acceptance criteria 2.7 Document risk assessment data according to organisational policy and procedures |
3. Issue quotation | 3.1 Prepare quote based on all risk assessment data 3.2 Communicate information regarding quote to relevant personnel if required |
Evidence of the ability to:
interpret and comply with all relevant legal obligations and organisational procedures
identify and thoroughly assess risks to develop a suitable insurance quote for a new business
prepare a quote accurately, applying relevant underwriting guidelines
identify and investigate risk as it relates to new business in accordance with underwriting and organisational guidelines
accurately document risk assessment data in accordance with organisational guidelines
identify and apply risk acceptance criteria for insurance products.
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:
describe key features of relevant legislative requirements and industry regulations in the context of insurance risk
describe the potential market share for the product or line of business
explain the importance of wording of insurance policies in line with industry norms
identify key features of organisational policy, procedures, underwriting guidelines and authorities
describe insurance risks associated with organisational products
define the difference between treaty and facultative reinsurance
outline relative industry hazards associated with insurance products
explain the application of relevant common law, legal systems and procedures relating to:
insurance contracts
insurance agents and brokers
competition and consumer practices
describe ‘interim cover’ as it relates to expiry and cancellations of contracts
describe risk prevention methods and application.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance services field of work and include access to:
organisational records
organisational policy, procedures, legislation and regulations as they relate to insurance risk
a range of common technology and software.
Assessors must satisfy NVR/AQTF assessor requirements.