This unit applies to the management of the specific requirements that arise from offering insurance contracts. It also has application in a general or life insurance organisation. The unit may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Determine rights and obligations appropriate to each contract or policy

1.1. Terms and conditions of all contracts, policies and retirement plans are examined and all legislative, contract and code of practice requirements are identified.

1.2. Identified rights, obligations and legislative requirements are documented so that appropriate procedures can be developed.

2. Develop procedures to enable rights, obligations and legislative requirements to be met

2.1. Identify and document appropriate system needs in order to meet rights and obligations and legislative and code of practice requirements within organisation objectives.

2.2. Contingency plans are developed and documented to ensure that contractual rights, obligations and legislative requirements are met in the event of unusual situations arising.

3. Implement procedures to meet rights, obligations and legislative requirements

3.1. Action plan is published so that all relevant areas are briefed concerning procedures to be implemented.

3.2. Procedure is implemented according to action plan.

4. Monitor compliance with rights, obligations and legislative requirements

4.1. Rights, obligations and legislation requirements are reviewed against terms and conditions of each contract of insurance regularly to ensure reliability and validity of interpretation.

4.2. Procedures and processes are altered in response to changes in interpretation.

5. Maintain premium currency of insurance policy

5.1. Premium records are accurately maintained in line with organisation procedures.

5.2. Premium billings are generated in accordance with organisation procedures and contractual obligations.

5.3. All monies received are accurately processed to policy records in accordance with organisation procedures.

5.4. Conservation procedures are undertaken within required timelines and organisation procedures.

Required skills

highly-developed communication skills to:

determine and confirm information, using questioning and active listening techniques

write clear procedures

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

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

well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information and for policy interpretation and application

research and analysis skills for accessing and interpreting relevant information

interpersonal skills

organisational skills, including the ability to plan and sequence work

Required knowledge

industry sector compliance requirements

organisation policy, procedures, underwriting guidelines and authorities

reinsurance

relevant common law, legal systems and procedures, codes of practice

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:

interpret and manage compliance requirements relating to contracts of insurance.

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.

Contracts, policies and retirement plans may relate to:

client

organisation

insured

member

policyholder

trustee.

System needs may include:

budgets

cost-effective processes

electronic systems

manual systems

quality.

Action plan may include:

accounting

authorised representatives

branches

customer service

customers

other financial institutions.

Legislation may include:

Consumer Affairs Act

contract law

Financial Services Reform Act

Insurance Contracts Act

Life Insurance Act

Privacy Act

regulatory bodies including ASIC, Australian Taxation Office (ATO)

Trade Practices Act

trust law

workers compensation Acts.

Reviewed will include pro-active and reactive steps taken to:

deal with customer complaints

comply with legislation

assess market trends.

Billings can include:

direct debit

group payments

notices.

Conservation procedures include:

agent/office intervention

non-forfeiture provisions

reinstatement procedures.

Unit sector

Insurance broking

This unit contains employability skills.