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 Identify and review risk acceptance information 1.2 Determine risk acceptability within authority limitations 1.3 Check terms and conditions of risk acceptability for changes since last time it was reviewed for underwriting 1.4 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria, including client history 1.5 Propose alternative terms or adjusted benefits, if applicable |
2. Communicate result of risk assessment | 2.1 Make offer of renewal, if applicable, in accordance with legislative requirements 2.2 Issue provisional notice of expiry to client 2.3 Decline renewal, if applicable, in accordance with legislative provisions |
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 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 4.2 Advise client of acceptance or rejection of risk according to operating procedures (including information on dispute resolution procedure if necessary) |
5. Cancel, lapse or renew cover | 5.1 Issue revised documentation to client in organisational format and according to organisational operating procedures and legislative requirements 5.2 Confirm reinsurance cover as appropriate 5.3 Issue lapse notice to client, if applicable, in accordance with organisational procedures 5.4 File and store documentation according to operating procedures |
Evidence of the ability to:
comply with all legal obligations and organisational procedures
identify and assess risks, and develop suitable proposals for underwriting renewal business
negotiate agreements
interpret and apply underwriting guidelines
complete and file relevant 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:
describe the industry market position relative to product or line of insurance business
identify key features of relevant legislation, regulatory guidelines and industry sector compliance requirements
explain the importance of wording of insurance policies in keeping with the organisation or industry sector
outline possible terms and conditions relating to risk acceptability
outline organisational policy, procedures, underwriting guidelines and levels of authority
describe relevant organisational products that relate to insurance underwriting
describe the difference between treaty and facultative reinsurance
outline relative industry hazards
explain 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.