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

FNSILF503 Mapping and Delivery Guide
Underwrite complex non-medical risks

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSILF503 - Underwrite complex non-medical risks
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to apply complex non-medical risk assessment to the underwriting of a life insurance application.It applies to those engaged in underwriting functions of companies within the life insurance sector.No licensing, legislative or certification requirements apply to this unit at the time of publication.
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: Identify non-medical risks
  • Review applications and associated documentation to identify relevant financial and lifestyle information
  • Interpret financial and lifestyle information to identify non-medical risk factors
  • Review need for additional financial and lifestyle information and collect as appropriate
       
Element: Identify underwriting significance
  • Identify potential life risk implications of supplied lifestyle information
  • Identify and address potential moral risk factors
  • Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided
  • Select and apply appropriate risks rating systems according to organisational procedures
       
Element: . Determine risk acceptance criteria
  • Determine risk acceptance criteria to suit type and context of risk in accordance with procedures
  • Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures
       
Element: Prepare life insurance policy
  • Develop terms of acceptance in accordance with market conditions and accepted levels of exposure
  • Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements
       


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. Identify non-medical risks

1.1 Review applications and associated documentation to identify relevant financial and lifestyle information

1.2 Interpret financial and lifestyle information to identify non-medical risk factors

1.3 Review need for additional financial and lifestyle information and collect as appropriate

2. Identify underwriting significance

2.1 Identify potential life risk implications of supplied lifestyle information

2.2 Identify and address potential moral risk factors

2.3 Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided

2.4 Select and apply appropriate risks rating systems according to organisational procedures

. Determine risk acceptance criteria

3.1 Determine risk acceptance criteria to suit type and context of risk in accordance with procedures

3.2 Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures

4. Prepare life insurance policy

4.1 Develop terms of acceptance in accordance with market conditions and accepted levels of exposure

4.2 Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements

Evidence of the ability to:

prepare and document life insurance policy that involves complex non-medical covering:

identification of financial and lifestyle risk factors, and application of appropriate risks rating criteria and systems for underwriting the risk

terms and conditions relevant to underwriting complex non-medical risks.

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:

identify relevant actuarial and underwriting information associated with non-medical risk

explain key features of policy guidelines, administrative requirements and organisational procedures in the underwriting industry

explain life insurance policy terms and conditions

explain life insurance risk management practices

describe the various types of non-medical risks and their implications for life insurance underwriting

identify relevant regulatory requirements

outline sources of relevant financial and lifestyle information

describe types of financial and lifestyle risk and actuarial considerations

distinguish between medical and non-medical risks in the context of life insurance underwriting

outline moral risk factors and their implications to underwriting non-medical risks.

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. Identify non-medical risks

1.1 Review applications and associated documentation to identify relevant financial and lifestyle information

1.2 Interpret financial and lifestyle information to identify non-medical risk factors

1.3 Review need for additional financial and lifestyle information and collect as appropriate

2. Identify underwriting significance

2.1 Identify potential life risk implications of supplied lifestyle information

2.2 Identify and address potential moral risk factors

2.3 Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided

2.4 Select and apply appropriate risks rating systems according to organisational procedures

. Determine risk acceptance criteria

3.1 Determine risk acceptance criteria to suit type and context of risk in accordance with procedures

3.2 Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures

4. Prepare life insurance policy

4.1 Develop terms of acceptance in accordance with market conditions and accepted levels of exposure

4.2 Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements

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
Review applications and associated documentation to identify relevant financial and lifestyle information 
Interpret financial and lifestyle information to identify non-medical risk factors 
Review need for additional financial and lifestyle information and collect as appropriate 
Identify potential life risk implications of supplied lifestyle information 
Identify and address potential moral risk factors 
Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided 
Select and apply appropriate risks rating systems according to organisational procedures 
Determine risk acceptance criteria to suit type and context of risk in accordance with procedures 
Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures 
Develop terms of acceptance in accordance with market conditions and accepted levels of exposure 
Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements 

Forms

Assessment Cover Sheet

FNSILF503 - Underwrite complex non-medical 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

FNSILF503 - Underwrite complex non-medical 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: