This unit applies to job roles within the specialist area of life insurance and may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Identify risk

1.1. Product type is determined so that nature of the risk can be identified and handled accordingly

2. Evaluate proposal against risk assessment criteria

2.1. Proposal is assessed against risk assessment criteria to clearly identify risk factors

2.2. Need for additional information is identified in order to further evaluate the proposal

3. Obtain further information

3.1. Appropriate sources of further information are identified to enable comprehensive evaluation of proposal

3.2. Confidentiality of the parties involved from which further information is obtained and protected

3.3. All further information to satisfy outstanding risk assessment criteria is obtained within specified timeframes

3.4. Advice on proposal assessment status is provided to concerned parties on an ongoing basis

4. Determine and advise terms and conditions of risk acceptability

4.1. Acceptability of the risk is assessed against all available information in accordance with appropriate underwriting guidelines

4.2. Terms and conditions that minimise risk liability are established within delegated authority

4.3. Decisions are promptly advised to all relevant parties on acceptance or rejection of proposal

Required skills

well-developed communication skills to:

describe terms and conditions of insurance to clients

determine and confirm information, using questioning and active listening as required

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

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

well-developed research and analysis for accessing and interpreting relevant information and risk identification and assessment

organisational skills, including the ability to plan and sequence work

Required knowledge

basic actuarial principles

nature of liability

nature of the industry sector

reinsurance process

financial legislative and compliance requirements including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA)

relevant medical terminology

risk prevention methods and application

type of risk and probability of likely occurrence

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 sound analytical skills when undertaking a life insurance risk assessment

comprehensively understand relevant aspects of risk assessment in the industry sector market

adhere to and comply with all relevant legislative and compliance requirements.

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.

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.

Risk assessment criteria means:

criteria against which a risk may be measured for acceptability.

Additional information or opinions may be obtained from:

actuaries

financiers

lawyers/solicitors

medical practitioners

product developers

reinsurers

underwriters.

Concerned parties may include:

accountants

agents

brokers

financial planners

life insured

policy owners

solicitors.

Unit sector

Insurance life

This unit contains employability skills.