Assessor Resource

FNSISV404A
Underwrite renewal business

Assessment tool

Version 1.0
Issue Date: April 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 underwrite renewal business, including determining the terms and conditions of 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 suitable products

maintain and 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 renewal business in accordance with underwriting and organisation guidelines

complete and file relevant 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

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 processes

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 be sourced from:

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 acceptability may include:

claims history

endorsements

excesses/deductibles

internal and industry statistics

pricing

quality of risk

reinsurance cover

risk factors

risk improvement requirements

variations in policy wording.

Client history may include:

financial results

insurance history

number of type of policies

time insured.

Declining renewal means:

advising client/broker/adviser of non-acceptance of risk and rationale for decision.

Revised documentation includes:

endorsement or renewal certificate.

Legislative requirements refers to:

all activities covered in this unit to be undertaken in line with the relevant current:

legislation

regulations

organisation operating procedures and

codes of practice, where applicable.

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 identified and reviewed 
Risk acceptability is determined within authority limitations 
Terms and conditions of risk acceptability are checked for changes since the last time it was reviewed for underwriting 
Terms and conditions of risk acceptance are determined in accordance with risk acceptance criteria, including client history 
If appropriate, alternative terms or adjusted benefits are proposed 
Offer of renewal, if applicable, is made in accordance with legislative requirements 
Provisional notice of expiry is issued to customer 
Renewal is declined, if applicable, in accordance with legislative provisions 
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 
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 
The client is advised of acceptance or rejection of the risk according to operating procedures (including information on dispute resolution procedure if necessary) 
Revised documentation is issued to client in organisation format and according to organisation operating procedures and legislative requirements 
Reinsurance cover is confirmed as appropriate 
Lapse notice is issued to client, if applicable, in accordance with organisation procedures 
Documentation is filed and stored according to operating procedures 

Forms

Assessment Cover Sheet

FNSISV404A - Underwrite renewal 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

FNSISV404A - Underwrite renewal 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: