Assessor Resource

FNSISV402A
Underwrite new business

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to underwriting job roles in a range of insurance sectors 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 conduct underwriting of new business including determining the terms and conditions, risk acceptance, evaluating the response of the customer, negotiating and finalising the cover.

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:

interpret and comply with all legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy

apply sound understanding of relevant organisation products and services

correctly interpret and apply underwriting guidelines and procedures

identify and investigate risk as it relates to new business in accordance with underwriting and organisation guidelines

complete and file documentation in accordance with organisation guidelines.

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 organisation 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.

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

relate effectively to customers

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

well developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

self-management skills for complying with ethical, legal and procedural requirements research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

Required knowledge

e-commerce processes

industry market position relative to product/line of business

industry sector compliance requirements such as the General Insurance Code of Practice

organisation or industry sector policy wording

organisation policy, procedures, underwriting guidelines and authorities (e.g. best underwriting guides (BUG) and loss control guides)

organisation products

reinsurance, treaty and facultative

relative industry hazards

relevant legislation, regulatory guidelines and industry sector compliance requirements, such as:

Insurance Contracts Act

Privacy Act

Trade Practices

Corporations Act

risk prevention methods and application

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.

Risk acceptance information may include:

amendments

assessor reports

broker slips

claims

for NZ: the New Zealand Claims Register

general knowledge

legal cases

pre-underwriting report

previous insurers

proposals

publications (industry associations and trade journals)

stock exchange

surveys

telephone contacts.

Terms and conditions of risk acceptance may include:

additional exclusions

adequate reinsurance cover

endorsements

excesses/deductibles

extensions

insurance history

internal and industry statistics

pricing

quality of risk

risk factors

risk improvement requirements

sub-limits

variations in policy wording.

Risk acceptance criteria may include:

class of business

driving and/or accident history

insurance history

locality

minimum security levels.

The client may be:

represented by an insurance broker or agent (letters of appointment will be necessary if there has been a change of agent or broker).

Rejection of risk refers to:

advising a client or broker/agent of non-acceptance of risk.

Disclosure requirements may be met:

in a variety of ways according to the way the business is written (e.g. proposal, telephone, facsimile, e-commerce).

Initial documentation includes:

any interim cover

revised document (endorsement or new business certificate).

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
Risk acceptance information is collected including determining the terms and conditions of risk acceptance, evaluating the response of the customer, negotiating and finalising the cover is identified and reviewed 
Risk acceptability is determined within authority limitations and capacities 
Terms and conditions of risk acceptance are determined in accordance with risk acceptance criteria 
Referrals are determined, where appropriate 
Facultative reinsurance is placed, where appropriate 
Quotation, if required, is prepared and communicated 
Terms and conditions of risk acceptance, including expiry date of offer and pricing, are advised to client within appropriate timeframes 
Rejection of risk, if applicable, is advised as soon as it is evident that the risk falls outside the guidelines or as soon as a decision is made not to underwrite the risk 
Client response is assessed to determine whether action to modify terms and conditions is required 
Offer is modified as necessary and advice to client is prepared according to operating procedures 
Modified offer complies with underwriting acceptance authorities and criteria, or an appropriate referral approval is sought 
Negotiation is undertaken on revised offer to reach mutually satisfactory agreement, including charge to reinsurance where applicable 
The client is advised of acceptance or rejection of the risk according to operating procedures 
If conditions are placed on the acceptance of risk, a mechanism is established for checking that the conditions have been met 
Disclosure requirements are adhered to in all cases 
Initial documentation is issued to the client in organisation format and according to operating procedures 
Reinsurance cover is confirmed, as appropriate 
Additional information is obtained, as required 
Documents are filed and stored in accordance with organisation operating procedures 
Expiry of interim cover is monitored following standard operating procedures, to ensure that any required terms are met prior to issue of policy 

Forms

Assessment Cover Sheet

FNSISV402A - Underwrite new business
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

FNSISV402A - Underwrite new business

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: