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

FNSISV402 Mapping and Delivery Guide
Underwrite new business

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSISV402 - Underwrite new business
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to conduct underwriting of new business, including determining the terms and conditions, risk acceptance, evaluating the response of the client, negotiating and finalising the cover.It applies to individuals in a range of insurance sectors and may be applied within organisations of various sizes and across a range of client 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 insurance services field of work and include access to:

organisational records

organisational policy, procedures, legislation and regulations as they relate to contracts of insurance

a range of common technology and software.

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 terms and conditions of risk acceptability
  • Collect risk acceptance information and determine terms and conditions of acceptance
  • Determine risk acceptability within authority limitations and capacities
  • Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria
  • Determine referrals, where appropriate
  • Place facultative reinsurance, where appropriate
       
Element: Communicate result of risk assessment
  • Prepare and communicate quotation, if required
  • Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes
  • Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk
       
Element: 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 modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval
       
Element: Negotiate agreement
  • Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable
  • Advise client of acceptance or rejection of risk according to operating procedures
  • Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk
       
Element: Issue interim cover where required
  • Specify disclosure requirements in all cases
  • Issue initial documentation to client in organisation’s format and according to operating procedures
  • Confirm reinsurance cover, as appropriate
  • Obtain additional information, as required
  • File and store documents in accordance with organisational operating procedures
  • Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy
       


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 terms and conditions of risk acceptability

1.1 Collect risk acceptance information and determine terms and conditions of acceptance

1.2 Determine risk acceptability within authority limitations and capacities

1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria

1.4 Determine referrals, where appropriate

1.5 Place facultative reinsurance, where appropriate

2. Communicate result of risk assessment

2.1 Prepare and communicate quotation, if required

2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes

2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk

3. Evaluate client response

3.1 Assess client response to determine whether action to modify terms and conditions is required

3.2 Modify offer as necessary and prepare advice to client according to operating procedures

3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval

4. Negotiate agreement

4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable

4.2 Advise client of acceptance or rejection of risk according to operating procedures

4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk

5. Issue interim cover where required

5.1 Specify disclosure requirements in all cases

5.2 Issue initial documentation to client in organisation’s format and according to operating procedures

5.3 Confirm reinsurance cover, as appropriate

5.4 Obtain additional information, as required

5.5 File and store documents in accordance with organisational operating procedures

5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy

Evidence of the ability to:

thoroughly assess risks and develop a suitable insurance policy

accurately interpret and comply with all legal obligations and organisational procedures

comply with underwriting guidelines and procedures

investigate risk as it relates to new business and products

complete and file documentation in accordance with organisational guidelines.

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 and describe key features of appropriate e-commerce processes

describe the potential market share for a product or line of business

outline the compliance requirements for insurance policies

explain the importance of wording of insurance policies in keeping with the organisation or industry sector

identify the organisational policy, procedures, guidelines and level of authorities for underwriting (such as best underwriting guides (BUGs) and loss control guides)

describe underwriting principles for insurance products

define the difference between treaty and facultative reinsurance

outline relative industry hazards

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements

describe risk prevention methods and application.

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 terms and conditions of risk acceptability

1.1 Collect risk acceptance information and determine terms and conditions of acceptance

1.2 Determine risk acceptability within authority limitations and capacities

1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria

1.4 Determine referrals, where appropriate

1.5 Place facultative reinsurance, where appropriate

2. Communicate result of risk assessment

2.1 Prepare and communicate quotation, if required

2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes

2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk

3. Evaluate client response

3.1 Assess client response to determine whether action to modify terms and conditions is required

3.2 Modify offer as necessary and prepare advice to client according to operating procedures

3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval

4. Negotiate agreement

4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable

4.2 Advise client of acceptance or rejection of risk according to operating procedures

4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk

5. Issue interim cover where required

5.1 Specify disclosure requirements in all cases

5.2 Issue initial documentation to client in organisation’s format and according to operating procedures

5.3 Confirm reinsurance cover, as appropriate

5.4 Obtain additional information, as required

5.5 File and store documents in accordance with organisational operating procedures

5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy

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
Collect risk acceptance information and determine terms and conditions of acceptance 
Determine risk acceptability within authority limitations and capacities 
Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria 
Determine referrals, where appropriate 
Place facultative reinsurance, where appropriate 
Prepare and communicate quotation, if required 
Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes 
Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk 
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 modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval 
Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable 
Advise client of acceptance or rejection of risk according to operating procedures 
Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk 
Specify disclosure requirements in all cases 
Issue initial documentation to client in organisation’s format and according to operating procedures 
Confirm reinsurance cover, as appropriate 
Obtain additional information, as required 
File and store documents in accordance with organisational operating procedures 
Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy 

Forms

Assessment Cover Sheet

FNSISV402 - Underwrite new business
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

FNSISV402 - Underwrite new business

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: