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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Establish relationship with client
   • Use range of communication and interpersonal skills relevant to knowledge level of client
   • Respond to enquiries by explaining range of general insurance products and services available and their relevant fees and charging methodology
   • Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
   • Inform client about procedures for complaints handling
2. Identify client objectives and risk situation
   • Use range of communication and interpersonal skills to establish client objectives and goals
   • Ensure appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
3. Analyse client risk information
   • Analyse all information from risk assessment process
   • Make sure that specialist advice is sought if required to address issues that professional judgement indicates may require further consideration
   • Ensure that clients are consulted throughout analysis for further clarification where necessary
4. Identify appropriate risk solution
   • Identify and assess available options using information from risk analysis
   • Conduct relevant product research
   • Prepare statement of advice for presentation to client
   • Confirm that client is referred to appropriate adviser for higher level or specialist advice if required
5. Present appropriate solutions to client
   • Ensure that features of statement of advice are explained to client in clear and unambiguous way
   • Disclose impact of key aspects of recommendations, including possible risks, in clear and concise manner to client
6. Negotiate effectively
   • Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction
   • Obtain from client and confirm preferred insurance plan, policy and/or transaction
7. Coordinate implementation of agreed solution
   • Seek agreement from client about proposed insurance plan, policy and/or transaction, including all associated fees and costs
   • Ensure that timeframes for execution and processing are clearly explained to client
8. Complete and maintain necessary documentation
   • Confirm that proposal and other documents are completed and, where appropriate, are signed off by client
   • Ensure that signed agreement and copies of appropriate documentation are exchanged
   • Create and update client records
9. Provide ongoing service where requested by client
   • Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client
   • Clearly explain fees and costs for defined ongoing services and confirm client understands all details
   • Provide ongoing service as required

Performance Evidence

Evidence of the ability to:

work effectively with clients to analyse their objectives and risk situation

interpret available information about the client’s risk needs and products in preparing an appropriate solution

provide accurate advice and complete all required documentation to implement the solution, complying with organisational procedures and industry regulations.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:

explain the legal environment including disclosure and compliance covering:

role of the broker, representative and/or adviser

relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

relationship between ethics and regulatory requirements including good faith and utmost good faith

full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation

general insurance industry code of practice and organisational codes of conduct

complaints resolution procedures (internal and external)

ASIC guidelines on adviser conduct and training

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries

identify insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

discuss taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

summarise the specific product knowledge for the general insurance products in which advice is given including:

types of general insurance products and policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting

explain terms and conditions of retail general insurance products used by the adviser.

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