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Elements and Performance Criteria

  1. Establish relationship with client
  2. Identify client objectives and risk situation
  3. Determine submission resource requirements
  4. Apply risk assessment methodology
  5. Analyse client risk information
  6. Identify appropriate insurance program
  7. Identify market availability
  8. Make submission to prospective client

Required Skills

Required skills

welldeveloped communication skills to

negotiate with clients and others

determine and confirm information using questioning and active listening techniques

gather information and negotiate to obtain agreed outcomes

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

collect and analyse data to identify client needs

use appropriate calculators or statistics to determine insurance cover requirements

identify product information and access appropriate databases and spreadsheets

use computer applications word processing spreadsheet database specific purpose computer systems to assist in achieving required outcomes

access and update records electronically

access webbased information services

welldeveloped literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information and prepare submissions

research and analysis skills for accessing and interpreting relevant information and product research and analysis to formulate recommendations

organisational skills including the ability to plan and sequence work

presentation skills for information to clients and insurers

needs analysis skills

data analysis and interpretation skills

Required knowledge

core insurance knowledge

operation of life insurance markets definition of a life insurance product characteristics and participants of the Australian insurance market the roles played by intermediaries

Types of insurance life insurance products conditions inclusions and exclusions levels of coverage of risk transfer products pricing investment strategy for those products with an investment component

taxation awareness of taxation issues in relation to the products

advisory functions

the role of the brokerrepresentativeadviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

legal environment disclosure and compliance

the role of the brokerrepresentativeadviser

relevant legal principles eg Corporations Act Financial Services Reform Act FSRA Trade Practices Act

the relationship between ethics and regulatory requirements eg good faith utmost good faith

full disclosure of remunerationfees and any other conflicts of interest which may influence the advisers recommendation

Insurance Brokers Code of Practice and organisational codes of conduct

internal and external FOS complaints resolution procedures

ASIC guidelines on adviser conduct and training

specialist life insurance knowledge

types of life insurance productspolicies

standard cover and deviations

policy wordings

taxes and charges

insurance claims

premium ratingrisk selection

reporting

product development

underwriting

specialist knowledge on insurance broking products and services used by the life broker

legislative and organisational compliance requirements in relation to advice

relevant legislation and ASIC regulatory guides affecting the provision of general and personal advice the role of different advisers within the organisation

brokerage policy and guidelines related to the provision of personal advice

details of relevant marketing and disclosure documents including product disclosure statements and marketing brochures on the relevant products

Evidence Required

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

maintain and apply knowledge of products and specialist knowledge of general insurance products practices global markets and exposures

apply knowledge in practical situations to tailor specific advice to the client

comply with industry and of organisation obligations and objectives

interpretavailable information about the clients riskneeds and products

apply discretion and judgement in developing an appropriate solution

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 organisational 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

setting and reviewing workplace projects and business simulations or scenarios

Guidance information for assessment


Range Statement

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.

Level of insurance broking advice may include:

extent of the client's enquiry, the complexity of the advice requested and the financial literacy of the client.

Disclosure documents and information may include:

financial services guide

product disclosure statement

statement of advice.

Short, medium and long term goals may include:

beliefs about performance and risk

business needs

expectations of access to the product

expectations of lifecycle and length of the product

expectations of product coverage

family income

insurer security.

Risk assessment processes may include:

amendments

broker slips

legal cases

pre-underwriting report

previous insurers

proposals

surveys.

Significant changes may involve:

complex technical determinations

high monetary impact

important client base.

Scaled and suitable:

advice has a specific definition in the ASIC guidelines on disclosure and conduct of advisers in its regulatory guides.

Restricted words may include:

impartial

independent

unbiased.

Terms of cover may include:

deductibles/excesses required

limit of liability/sub-limits

price

scope of cover

security of carrier.

Submission may include:

conceptual quotation

firm quotation

to prospective clients.