This unit applies to job roles involving customer services, claims and processing in a range of insurance sectors and may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Identify policy for cancellation

1.1. Request to cancel a policy is received in appropriate format and verified with client or relevant personnel

1.2. Reason for cancellation is established and recorded according to the organisation's operating procedures

2. Process cancellation details

2.1. Details of the cancellation are entered into the organisation's database

2.2. Insured or relevant parties are contacted where necessary to obtain further details required to process the cancellation

3. Finalise refunds or payments owing

3.1. Refunds are calculated according to the organisation's policies and procedures and verified by relevant personnel

3.2. Authority to remit refund or amounts owing is obtained from relevant personnel

3.3. Payments are dispatched within the required timeframe

3.4. Documents are copied and filed for auditing purposes according to organisation operating procedures

4. Issue relevant documentation

4.1. Notices required by legislation and codes of practice are sent to insured parties within required timeframes and according to operating procedures

4.2. Where necessary, financiers are advised of cancellation of insurance

Required skills

communication skills to:

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

relate to customers

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

research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

Required knowledge

relevant industry legislation

organisation and departmental policy, procedures and authorities and industry sector policy wording

organisation products

IT and communication systems

basic industry sector compliance requirements

duty of disclosure

privacy principles

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:

comply with industry codes of practice

apply organisation operating policies and procedures in relation to issuing cancellation advice

use accuracy and attention to detail in issuing cancellation advice.

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 organisation 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.

Requests to cancel insurance policies may be initiated by

claims department

financiers

the insured.

Appropriate formats may include:

in writing from the insured

in writing from the financier

on appropriate internal memo documentation.

Relevant personnel may include:

accounts personnel

administration department

claims manager

customer service manager.

Reasons for cancellation of policy may include:

insured has been found to have submitted a fraudulent claim with the insurance organisation

insured has breached of duty of disclosure

insured wants to take out insurance with another insurance organisation or underwriter and needs to cancel policy mid-term.

Legislation and codes of practice may include:

Corporations Act

Financial Services Reform Act (FSRA)

General Insurance Code of Practice

Industry codes of practice

Insurance Contracts Act.

Refunds or payments owing will depend on:

date of policy cancellation

nature of cancellation

organisational policies in relation to cancellation of policies.

Unit sector

Insurance services

This unit contains employability skills.