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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. Determine terms and conditions of risk acceptability
   • Identify and review risk acceptance information
   • Determine risk acceptability within authority limitations
   • Check terms and conditions of risk acceptability for changes since last time it was reviewed for underwriting
   • Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria, including client history
   • Propose alternative terms or adjusted benefits, if applicable
2. Communicate result of risk assessment
   • Make offer of renewal, if applicable, in accordance with legislative requirements
   • Issue provisional notice of expiry to client
   • Decline renewal, if applicable, in accordance with legislative provisions
3. Evaluate client response
   • Assess client response to determine whether action to modify terms and conditions is required
   • Modify offer as necessary and prepare advice to client according to operating procedures
   • Ensure offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval
4. Negotiate agreement
   • Undertake negotiation on revised offer to reach mutually satisfactory agreement
   • 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
   • Issue revised documentation to client in organisational format and according to organisational operating procedures and legislative requirements
   • Confirm reinsurance cover as appropriate
   • Issue lapse notice to client, if applicable, in accordance with organisational procedures
   • File and store documentation according to operating procedures

Performance Evidence

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.

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Knowledge Evidence

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.

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