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. Determine terms and conditions of risk acceptability | 1.1 Collect risk acceptance information and determine terms and conditions of acceptance 1.2 Determine risk acceptability within authority limitations and capacities 1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria 1.4 Determine referrals, where appropriate 1.5 Place facultative reinsurance, where appropriate |
2. Communicate result of risk assessment | 2.1 Prepare and communicate quotation, if required 2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes 2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk |
3. Evaluate client response | 3.1 Assess client response to determine whether action to modify terms and conditions is required 3.2 Modify offer as necessary and prepare advice to client according to operating procedures 3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval |
4. Negotiate agreement | 4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable 4.2 Advise client of acceptance or rejection of risk according to operating procedures 4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk |
5. Issue interim cover where required | 5.1 Specify disclosure requirements in all cases 5.2 Issue initial documentation to client in organisation’s format and according to operating procedures 5.3 Confirm reinsurance cover, as appropriate 5.4 Obtain additional information, as required 5.5 File and store documents in accordance with organisational operating procedures 5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy |
Evidence of the ability to:
thoroughly assess risks and develop a suitable insurance policy
accurately interpret and comply with all legal obligations and organisational procedures
comply with underwriting guidelines and procedures
investigate risk as it relates to new business and products
complete and file documentation in accordance with organisational guidelines.
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 and describe key features of appropriate e-commerce processes
describe the potential market share for a product or line of business
outline the compliance requirements for insurance policies
explain the importance of wording of insurance policies in keeping with the organisation or industry sector
identify the organisational policy, procedures, guidelines and level of authorities for underwriting (such as best underwriting guides (BUGs) and loss control guides)
describe underwriting principles for insurance products
define the difference between treaty and facultative reinsurance
outline relative industry hazards
identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements
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 contracts of insurance
a range of common technology and software.
Assessors must satisfy NVR/AQTF assessor requirements.