Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSASIC305A Mapping and Delivery Guide
Provide Tier 2 personal advice in general insurance

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSASIC305A - Provide Tier 2 personal advice in general insurance
Description This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including that administered by the Australian Securities and Investments Commission (ASIC).This unit covers the functions undertaken by non-broker insurance advisers providing general advice in Tier 2 (standard retail general insurance) products to a consumer or current client.Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC. Tier 2 products are defined by ASIC as:General insurance products other than personal sickness and accident. These products:do not have any investment componentare subject to standard terms and conditions except for previously disclosed variationsare of a limited life (e.g. 12 months);Travel insurance products including where the product covers losses rising due to sickness or accident while travelling; andConsumer credit insurance including where the product covers consumer credit liabilities that cannot be paid due to sickness or accident.Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of advice.Apart from the advisory skills, there is a substantial generic, insurance core and specialist general insurance product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 2 personal advice.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit is specifically designed to assist advisers dealing with retail clients but it may have wider application to wholesale clients.The unit may be applied within organisations of various sizes and across a range of customer bases
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Establish relationship with client
  • A range of communication and interpersonal skills are used to the knowledge level of client
  • Enquiries are responded to by explaining the range of general insurance products and services available and their relevant fees and charging methodology
  • Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct
  • Client is informed of the procedures for complaints handling
       
Element: Identify client objectives and risk situation
  • A range of communication and interpersonal skills are used to establish client objectives and goals
  • Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
       
Element: Analyse client risk information
  • All information from the risk assessment process is analysed
  • The need for specialist advice is sought if required to address issues that professional judgement indicates may require further consideration.
  • Clients are consulted throughout the analysis for further clarification where necessary
       
Element: Identify appropriate risk solution
  • Available options are identified and assessed using information from risk analysis
  • Relevant product research is conducted
  • A statement of advice for presentation to the client is prepared
  • The client is referred to an appropriate adviser for higher level or specialist advice if required
       
Element: Present appropriate solutions to client
  • Features of the statement of advice are explained to the client in a clear and unambiguous way
  • Impact of key aspects of the recommendations, including possible risks, are disclosed in a clear and concise manner to the client
       
Element: Negotiate effectively
  • Concerns and/or issues the client has regarding the proposed insurance plan/policy/transaction are discussed and clarified
  • Confirmation is sought from client regarding their preferred insurance plan/policy/transaction
       
Element: Coordinate implementation of the agreed solution
  • Agreement regarding the proposed insurance plan/policy/transaction is sought from the client including fees and costs
  • Timeframes for execution and processing are clearly explained to the client
       
Element: Complete and maintain necessary documentation
  • Proposal and other documents are completed and, where appropriate, signed off by the client
  • Copies of appropriate documentation and the signed agreement are exchanged
  • Client records are created or updated
       
Element: Provide ongoing service where requested by client
  • Type and form of ongoing service including review of insurance plan/policy/transaction is agreed with the client
  • Fees and costs for defined ongoing services are clearly explained and confirmation of understanding gained from the client
  • Ongoing service is provided as required
       


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:

apply core and specialist knowledge about the general insurance market in practical situations

demonstrate application of knowledge to a variety of known customer service and technical situations

interpret available information about the client's risk needs and products and 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

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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

communication skills to:

determine and confirm information, using questioning and active listening as required

gather information and explain products in language that avoids unnecessary industry specific jargon

literacy and presentation to prepare and present information to clients and insurers

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

obtain product information

use IT calculators to determine insurance premiums

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

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

research and analysis skills for accessing and interpreting relevant information

interpersonal skills

organisational skills, including the ability to plan and sequence work

data collection and analysis skills to identify client needs

product research and analysis skills to formulate recommendations

time management and record keeping skills

Required knowledge

core insurance knowledge:

characteristics and participants of the Australian insurance market

insurance products: types of insurance general insurance and risk insuranceproducts, conditions, inclusions and exclusions, levels of coverage of risk transfer products, pricing

legal environment - disclosure and compliance:

the role of the broker/representative/adviser

relevant legal principles (e.g. 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 remuneration/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

specialist general insurance knowledge:

types of general insurance products/policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating/risk selection

reporting

product development

underwriting

terms andconditions of retail general insuranceproducts used by the adviser

taxation issues in relation to the products and markets in which they operate

advisory functions, including:

the role of the representative or adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

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.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Clients objectives and goals may include:

business needs

expectations of product coverage.

Risk assessment process might include:

checklists

surveys.

Information may include:

details of the customer's needs and objectives for coverage, insurer security

disclosures.

Concerns and/or issues might include:

beliefs about security and coverage.

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
A range of communication and interpersonal skills are used to the knowledge level of client 
Enquiries are responded to by explaining the range of general insurance products and services available and their relevant fees and charging methodology 
Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct 
Client is informed of the procedures for complaints handling 
A range of communication and interpersonal skills are used to establish client objectives and goals 
Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details 
All information from the risk assessment process is analysed 
The need for specialist advice is sought if required to address issues that professional judgement indicates may require further consideration. 
Clients are consulted throughout the analysis for further clarification where necessary 
Available options are identified and assessed using information from risk analysis 
Relevant product research is conducted 
A statement of advice for presentation to the client is prepared 
The client is referred to an appropriate adviser for higher level or specialist advice if required 
Features of the statement of advice are explained to the client in a clear and unambiguous way 
Impact of key aspects of the recommendations, including possible risks, are disclosed in a clear and concise manner to the client 
Concerns and/or issues the client has regarding the proposed insurance plan/policy/transaction are discussed and clarified 
Confirmation is sought from client regarding their preferred insurance plan/policy/transaction 
Agreement regarding the proposed insurance plan/policy/transaction is sought from the client including fees and costs 
Timeframes for execution and processing are clearly explained to the client 
Proposal and other documents are completed and, where appropriate, signed off by the client 
Copies of appropriate documentation and the signed agreement are exchanged 
Client records are created or updated 
Type and form of ongoing service including review of insurance plan/policy/transaction is agreed with the client 
Fees and costs for defined ongoing services are clearly explained and confirmation of understanding gained from the client 
Ongoing service is provided as required 

Forms

Assessment Cover Sheet

FNSASIC305A - Provide Tier 2 personal advice in general insurance
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

FNSASIC305A - Provide Tier 2 personal advice in general insurance

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: