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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 and identify objectives, financial situation
   • Establish client’s knowledge level, objectives, financial and business details
   • Identify client’s expectations of cash flow and relevant taxation obligations
   • Explain range of products and services available according to client objectives and financial situation
   • Outline fees associated with applicable products and services and explain charging methodology
   • Inform client of role of adviser and licensee or principal responsible for adviser’s conduct
   • Inform client of complaints-handling procedures
2. Analyse client’s objectives, needs, financial situation and risk profile
   • Assess client needs using information gathered and taking into account client’s product or service expectations and specific needs
   • Consult client throughout analysis and seek further clarification where necessary
   • Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice as required
   • Assess and agree on product risk profile of client
   • Apply ASIC generic and specialist knowledge applicable to products or services being offered
3. Develop and present strategies and solutions appropriate to client
   • Determine appropriate strategy to provide for identified needs and outcomes
   • Complete required research, analysis and product modelling according to organisational policies and procedures
   • Draft product or service solution for presentation to client that meets client needs and outcomes according to organisational policies and procedures
   • Explain and discuss proposed products or services with client according to organisational policies and procedures, legislative and regulatory requirements
   • Explain required details, terms and conditions of products or services to client and confirm client understanding
   • Disclose impacts and possible risks of products or services to client and confirm client understanding
   • Provide client with written supporting documentation following organisational procedures, and guide client through key aspects of documentation
   • Discuss and clarify any concerns and issues client has regarding proposed products or services
   • Seek client’s preferred products or services and confirm client’s preference
4. Coordinate implementation of agreed products or services
   • Seek formal agreement from client for proposed plan, policy or transaction
   • Explain associated fee and cost structures, and confirm client understands all details
   • Explain timeframes for execution and processing to client and confirm client understanding
   • Confirm that proposal and other documents are completed and signed off by client as required
   • Confirm that signed agreement and copies of appropriate documentation are exchanged
5. Provide arrangements for ongoing service, where requested by client
   • Confirm that type and form of ongoing service, including review of products or services, is agreed with client
   • Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details
   • Implement procedures for agreed ongoing service according to organisational policies and procedures

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide general advice in life insurance to at least two different clients.

In the course of the above, the candidate must:

identify and analyse each client’s objectives, needs and financial details

comply with industry-specific legislative and regulatory requirements for life insurance

advise clients accurately and ethically about specific life insurance products and services, and relevant tax implications

demonstrate knowledge of product or service offered

match product or service to client needs

finalise product or service offering, ensuring required documentation is completed accurately following organisational procedures.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

General knowledge

overview of current economic environment, including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operations of financial markets, including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products

Core insurance knowledge

operation of insurance markets, including:

definition of insurance product

characteristics of and participants in the Australian insurance market

roles played by intermediaries

types of insurance products, including risk insurance products, investment life insurance products and general insurance products

aspects of insurance products, including:

conditions, exclusions and levels of coverage of risk transfer products

organisational standards for documentation

pricing

fee structures and charging methodologies

taxation issues in relation to insurance products and markets

advisory functions for life insurance, including:

role of insurance adviser, broker and agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

ethical considerations relevant to advisory functions

key legal environment factors, including disclosure and compliance covering:

role of representative and adviser

legal principles relating to key Acts relevant to performance evidence

relationship between ethics and regulatory requirements, including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest that may influence adviser’s recommendation

relevant industry standards and codes of conduct

regulators’ guidelines relevant to the provision of general or wholesale advice in life insurance

resolution procedures for internal and external complaints

Specialist knowledge

key aspects of life insurance, including:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

investment strategy in relation to investment components of life insurance products.

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