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

FNSILF501 Mapping and Delivery Guide
Assess extraordinary risks

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSILF501 - Assess extraordinary risks
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to understand and apply underwriting risk concepts and practices when assessing extraordinary insurance risks.It applies to job roles in generalist or specialist areas of 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: Determine risk acceptance criteria
  • Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy
  • Use available data to validate risk acceptance criteria
       
Element: Seek information
  • Identify and collate accurate, reliable and up-to-date information in format suitable for analysis
       
Element: Negotiate reinsurance for extraordinary risks
  • Identify need for, and level of, reinsurance appropriate to risk
  • Determine terms of reinsurance from available sources of information and in accordance with organisational policy
  • Negotiate reinsurance appropriate to anticipated exposure
       
Element: Determine and advise terms and conditions of acceptance
  • Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure
  • Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines
       


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. Determine risk acceptance criteria

1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy

1.2 Use available data to validate risk acceptance criteria

2. Seek information

2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis

3. Negotiate reinsurance for extraordinary risks

3.1 Identify need for, and level of, reinsurance appropriate to risk

3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy

3.3 Negotiate reinsurance appropriate to anticipated exposure

4. Determine and advise terms and conditions of acceptance

4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure

4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

Evidence of the ability to:

establish criteria and undertake risk assessment for extraordinary risks

negotiate reinsurance and establish and document appropriate terms and conditions.

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:

describe the types of extraordinary risks within the life insurance sector

define relevant medical terminology, and identify diseases and injuries that lead to extraordinary risks

describe the nature of liability arising out of extraordinary risks

list the relevant information required to assist with negotiating reinsurance

outline the relevant actuarial, financial and legislative requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and the Life Insurance Act

describe the methods used to mitigate risk through reinsurance

describe the key players in the reinsurance industry and their involvement in reinsurance.

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. Determine risk acceptance criteria

1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy

1.2 Use available data to validate risk acceptance criteria

2. Seek information

2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis

3. Negotiate reinsurance for extraordinary risks

3.1 Identify need for, and level of, reinsurance appropriate to risk

3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy

3.3 Negotiate reinsurance appropriate to anticipated exposure

4. Determine and advise terms and conditions of acceptance

4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure

4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

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
Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy 
Use available data to validate risk acceptance criteria 
Identify and collate accurate, reliable and up-to-date information in format suitable for analysis 
Identify need for, and level of, reinsurance appropriate to risk 
Determine terms of reinsurance from available sources of information and in accordance with organisational policy 
Negotiate reinsurance appropriate to anticipated exposure 
Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure 
Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines 

Forms

Assessment Cover Sheet

FNSILF501 - Assess extraordinary risks
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

FNSILF501 - Assess extraordinary risks

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: