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.

ELEMENT

PERFORMANCE CRITERIA

1. Deal with initial client enquiry for general insurance

1.1. Consumer enquiries are attended to in a timely and courteous manner

1.2. Active listening skills are demonstrated in dealing with consumer enquiries and help and assistance is provided to ensure the full and accurate completion ofinitial documentation where required

1.3. Clear and unambiguous communication is undertaken with the consumer to determine and clarify the product of interest to them

1.4. The range of products of interest to the consumer are analysed to determine their categorisation as areas of general advice in line with legislation and organisation policy

1.5. Consumers are informed that general advice will be provided to them in relation to the products of interest and that only personal information for underwriting and calculating the cost of the product will be sought

1.6. The consumer is referred to appropriate specialist personnel where required advice is deemed to fall outside the category of general advice

2. Prepare general advice to client

2.1. The correct disclosure documentation is provided in accordance with legislation and organisational policy

2.2. A general advice warning is given to the consumer in line with legislative and organisation policy

2.3. Special communication needs of clients or consumers are considered in delivering general advice warning

3. Provide general advice

3.1. The product advice is given to the consumer in a clear and unambiguous way avoiding jargon and in a language appropriate to the receiver and using organisational tools

3.2. Product and industry knowledge appropriate for advice offered is demonstrated when providing advice to the client

3.3. Product advice is explained and discussed with the client in language that avoids giving the impression the adviser has considered the consumer's personal circumstances in providing the advice

3.4. Client is requested to consider the appropriateness of the advice in the light of their own circumstances

3.5. Client is advised to read the product disclosure statement before making a decision

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

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

Required knowledge

genericinsurance knowledge:

operation of insurance markets: definition of an insurance risk product, characteristics and participants of the Australian insurance market, the roles played by intermediaries

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

taxation: awareness of taxation issues in relation to the products

advisory functions:

the role of the representative/adviser

participants in the advisory services market

range of services provided

appropriateness of a risk assessment

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 (e.g. 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

legislative and organisational compliance requirements in relation to advice

relevant legislation affecting the provision of general and personal advice eg.ASIC Regulatory Guide 175 on conduct and disclosure

the role of different advisers within the organisation

organisation policy and guidelines related to the provision of general advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products

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 procedures to deal with consumer and clients to whom general rather than personal advice is to be provided at the Tier 1 level.

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

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.

Consumer enquiries may include:

electronic communication

face-to-face enquiries

telephone enquiries

written communication.

Initial documentation may include:

computer and manual application forms.

Legislation and organisation policy may include:

ASIC Act and its regulatory guides

organisation guidelines, operating and policy manuals

general insurance code of conduct.

Disclosure documentation may include:

financial services guide

product disclosure statement.

General advice warning:

has a specific definition under the Financial Services Reform Act.

Special communication needs include:

people from different cultural backgrounds

people with a disability.

Organisational tools may include:

brochures

computer prompts and systems

financial services guides

telephone or face-to-face scripts.

Product and industry knowledge may include:

insurance policy terms and conditions.

Unit sector

Insurance life/general ASIC

This unit contains employability skills.