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

FNSILF402 Mapping and Delivery Guide
Settle policy payments and terminations

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSILF402 - Settle policy payments and terminations
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to settle payments and terminations on life insurance policies.It applies to job roles within the specialist area of life insurance and may be applied within organisations of various sizes and across a range of customer bases.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the life insurance field of work and include access to:

office equipment, technology, software and consumables

organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.
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 validation criteria
  • Identify product type to determine payment criteria and facilitate processing of payment or termination
  • Establish payment criteria to ensure compliance with terms and conditions of contract
       
Element: Compile necessary documentation
  • Classify requests according to established payment criteria and obtain required evidence from appropriate parties to confirm that request complies with terms and conditions of policy
  • Complete and distribute forms and documents in accordance with legislation, and organisational policy and procedures
       
Element: Advise client of the consequences of processing settlement
  • Identify consequences relevant to policy type
  • Communicate information clearly and concisely to ensure client understands consequences
  • Record and file result of communication according to organisational procedures to ensure record is complete
       
Element: Assign validity of request
  • Validate request within limits of delegated authority
  • Communicate decision to proceed with payment or termination of contract to relevant parties
       
Element: Review evidence available in support of payment request
  • Establish payment criteria to enable compliance to be determined within terms and conditions of policy, legislation and regulations
  • Review available information on payment request against criteria to ensure compliance
  • Assess request to determine whether terms and conditions of policy have been met
  • Seek additional opinion from relevant parties on validity of request
       
Element: Establish liability for payment under policy
  • Identify liability in accordance with terms and conditions of policy
  • Review evidence against policy to determine benefits payable
  • Accurately calculate and cross-check benefits payable according to organisational procedures
  • Update register and record payment liability and, if appropriate, initiate reinsurance recovery
       
Element: Facilitate payment where required and communicate decision
  • Promptly advise all relevant parties of decision on liability
  • Identify level of payment authority from organisational standards and procedures
  • Check that payment details are within delegated authority and compliant with legislative and organisational requirements
  • Confirm authorisation and obtain discharge as appropriate
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish validation criteria

1.1 Identify product type to determine payment criteria and facilitate processing of payment or termination

1.2 Establish payment criteria to ensure compliance with terms and conditions of contract

2. Compile necessary documentation

2.1 Classify requests according to established payment criteria and obtain required evidence from appropriate parties to confirm that request complies with terms and conditions of policy

2.2 Complete and distribute forms and documents in accordance with legislation, and organisational policy and procedures

3. Advise client of the consequences of processing settlement

3.1 Identify consequences relevant to policy type

3.2 Communicate information clearly and concisely to ensure client understands consequences

3.3 Record and file result of communication according to organisational procedures to ensure record is complete

4. Assign validity of request

4.1 Validate request within limits of delegated authority

4.2 Communicate decision to proceed with payment or termination of contract to relevant parties

5. Review evidence available in support of payment request

5.1 Establish payment criteria to enable compliance to be determined within terms and conditions of policy, legislation and regulations

5.2 Review available information on payment request against criteria to ensure compliance

5.3 Assess request to determine whether terms and conditions of policy have been met

5.4 Seek additional opinion from relevant parties on validity of request

6. Establish liability for payment under policy

6.1 Identify liability in accordance with terms and conditions of policy

6.2 Review evidence against policy to determine benefits payable

6.3 Accurately calculate and cross-check benefits payable according to organisational procedures

6.4 Update register and record payment liability and, if appropriate, initiate reinsurance recovery

7. Facilitate payment where required and communicate decision

7.1 Promptly advise all relevant parties of decision on liability

7.2 Identify level of payment authority from organisational standards and procedures

7.3 Check that payment details are within delegated authority and compliant with legislative and organisational requirements

7.4 Confirm authorisation and obtain discharge as appropriate

Evidence of the ability to:

distinguish between different life insurance product types to classify requests and determine payment types

review entitlements and conditions to be met and complied with, to approve payments within level of authority

calculate benefits payable in accordance with life insurance policy guidelines

review life insurance policies to determine payments or terminations.

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

To complete the unit requirements safely and effectively, the individual must:

explain key features of organisation policy, procedures, guidelines and authorities relevant to policy payments and terminations

outline the industry sector compliance requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and Life Insurance Act

outline the industry sector product terms and conditions

outline relevant medical terminology to assess claims

describe a range of situations that can impact on benefits payable

explain key underwriting principles relevant to life insurance policies.

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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish validation criteria

1.1 Identify product type to determine payment criteria and facilitate processing of payment or termination

1.2 Establish payment criteria to ensure compliance with terms and conditions of contract

2. Compile necessary documentation

2.1 Classify requests according to established payment criteria and obtain required evidence from appropriate parties to confirm that request complies with terms and conditions of policy

2.2 Complete and distribute forms and documents in accordance with legislation, and organisational policy and procedures

3. Advise client of the consequences of processing settlement

3.1 Identify consequences relevant to policy type

3.2 Communicate information clearly and concisely to ensure client understands consequences

3.3 Record and file result of communication according to organisational procedures to ensure record is complete

4. Assign validity of request

4.1 Validate request within limits of delegated authority

4.2 Communicate decision to proceed with payment or termination of contract to relevant parties

5. Review evidence available in support of payment request

5.1 Establish payment criteria to enable compliance to be determined within terms and conditions of policy, legislation and regulations

5.2 Review available information on payment request against criteria to ensure compliance

5.3 Assess request to determine whether terms and conditions of policy have been met

5.4 Seek additional opinion from relevant parties on validity of request

6. Establish liability for payment under policy

6.1 Identify liability in accordance with terms and conditions of policy

6.2 Review evidence against policy to determine benefits payable

6.3 Accurately calculate and cross-check benefits payable according to organisational procedures

6.4 Update register and record payment liability and, if appropriate, initiate reinsurance recovery

7. Facilitate payment where required and communicate decision

7.1 Promptly advise all relevant parties of decision on liability

7.2 Identify level of payment authority from organisational standards and procedures

7.3 Check that payment details are within delegated authority and compliant with legislative and organisational requirements

7.4 Confirm authorisation and obtain discharge as appropriate

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
Identify product type to determine payment criteria and facilitate processing of payment or termination 
Establish payment criteria to ensure compliance with terms and conditions of contract 
Classify requests according to established payment criteria and obtain required evidence from appropriate parties to confirm that request complies with terms and conditions of policy 
Complete and distribute forms and documents in accordance with legislation, and organisational policy and procedures 
Identify consequences relevant to policy type 
Communicate information clearly and concisely to ensure client understands consequences 
Record and file result of communication according to organisational procedures to ensure record is complete 
Validate request within limits of delegated authority 
Communicate decision to proceed with payment or termination of contract to relevant parties 
Establish payment criteria to enable compliance to be determined within terms and conditions of policy, legislation and regulations 
Review available information on payment request against criteria to ensure compliance 
Assess request to determine whether terms and conditions of policy have been met 
Seek additional opinion from relevant parties on validity of request 
Identify liability in accordance with terms and conditions of policy 
Review evidence against policy to determine benefits payable 
Accurately calculate and cross-check benefits payable according to organisational procedures 
Update register and record payment liability and, if appropriate, initiate reinsurance recovery 
Promptly advise all relevant parties of decision on liability 
Identify level of payment authority from organisational standards and procedures 
Check that payment details are within delegated authority and compliant with legislative and organisational requirements 
Confirm authorisation and obtain discharge as appropriate 

Forms

Assessment Cover Sheet

FNSILF402 - Settle policy payments and terminations
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

FNSILF402 - Settle policy payments and terminations

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: