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Evidence Guide: FNSILF402A - Settle policy payments and terminations

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSILF402A - Settle policy payments and terminations

What evidence can you provide to prove your understanding of each of the following citeria?

Determine validation criteria

  1. Product type is identified so that payment criteria can be determined and the payment or termination processed accordingly
  2. Payment criteria are established to ensure compliance with the terms and conditions of the contract
Product type is identified so that payment criteria can be determined and the payment or termination processed accordingly

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Payment criteria are established to ensure compliance with the terms and conditions of the contract

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compile necessary documentation

  1. Requests are classified according to established payment criteria and required evidence is obtained from appropriate parties to confirm that the request complies with the terms and conditions of the policy
  2. Required forms and documents are completed and distributed in accordance with legislation, organisation policies and procedures
Requests are classified according to established payment criteria and required evidence is obtained from appropriate parties to confirm that the request complies with the terms and conditions of the policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Required forms and documents are completed and distributed in accordance with legislation, organisation policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise customer/client of the consequences of processing the settlement

  1. Consequences relevant to policy type are identified
  2. Information is communicated clearly and concisely to ensure customer/client understands the consequences
  3. Result of communication is recorded and filed according to organisation procedures to ensure record is complete
Consequences relevant to policy type are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Information is communicated clearly and concisely to ensure customer/client understands the consequences

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Result of communication is recorded and filed according to organisation procedures to ensure record is complete

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assign validity of request

  1. Request is validated within limits of delegated authority
  2. Decision to proceed with payment/termination of the contract is communicated to relevant parties
Request is validated within limits of delegated authority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Decision to proceed with payment/termination of the contract is communicated to relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review evidence available in support of payment request

  1. Payment criteria is established to enable compliance to be determined within the terms and conditions of the policy, legislation and regulations
  2. Available information on the payment request is reviewed against criteria to ensure compliance
  3. Request is assessed to determine whether terms and conditions of the policy have been met
  4. Additional opinion on the validity of the request is sought from relevant parties
Payment criteria is established to enable compliance to be determined within the terms and conditions of the policy, legislation and regulations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Available information on the payment request is reviewed against criteria to ensure compliance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Request is assessed to determine whether terms and conditions of the policy have been met

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Additional opinion on the validity of the request is sought from relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish liability for payment under the policy

  1. Liability is identified in accordance with the terms and conditions of the policy
  2. Evidence is reviewed against the policy to determine the benefits payable
  3. Benefits payable are accurately calculated and cross-checked according to organisation procedures
  4. Register is updated to record payment liability and if appropriate, reinsurance recovery is made
Liability is identified in accordance with the terms and conditions of the policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evidence is reviewed against the policy to determine the benefits payable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Benefits payable are accurately calculated and cross-checked according to organisation procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Register is updated to record payment liability and if appropriate, reinsurance recovery is made

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Authorise payment where required and communicate decision

  1. Decision on liability is promptly advised to all relevant parties
  2. Level of payment authority is identified from organisation standards and procedures
  3. Payment details are checked for compliance with legislative and organisation requirements within delegated authority
  4. Authorisation is confirmed and discharge obtained as appropriate
Decision on liability is promptly advised to all relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Level of payment authority is identified from organisation standards and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Payment details are checked for compliance with legislative and organisation requirements within delegated authority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Authorisation is confirmed and discharge obtained as appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

maintain awareness of situations requiring more extensive underwriting or assessment

apply clear understanding of superannuation beneficiary entitlements and conditions to be met and complied with.

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

Required Skills and Knowledge

Required skills

well-developed communication skills to:

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 for policy interpretation and application and 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 common law, legal systems and procedures

organisation policy, procedures, guidelines and authorities

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

industry sector product terms and conditions

regulatory body requirements

relevant medical terminology

underwriting guidelines

Range Statement

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.

Product types may include:

allocated pensions

disability income

endowment

immediate/deferred annuities

personal superannuation

singular or regular premium investments

term life

trauma

whole of life.

Payment criteria may include:

cancellation

death

expiry

invalidity

lapse

maturity

past surrender

pension

roll over

surrender

Temporary and Permanent Disability (TPD)

trauma

withdrawal

withdrawal annuities.

Terms and conditions of the contract may be determined by:

legislation and/or policy provisions.

Appropriate parties may include:

accountants

administrators

assignees

Australian Securities and Investments Commission (ASIC)

Australian Taxation Office (ATO)

chief medical officers

claims tribunals

courts

doctors

employers

executors

forensic scientists

investigation agencies

life insured

liquidators

next of kin

other life companies

personnel officers

police

policy owners

reinsurers

solicitors

trustees

underwriters.

Documentation may include:

ASIC reports

cheques

final statement

group certificates

medical reports

payment statements

tax forms.

Consequences of processing the settlement may include:

additional costs/charges if transferring to an alternative contract/policy

cessation of life cover in the event of a TPD claim

possible difficulty in obtaining optimal cover at a later date in the event of a deterioration in health

recommencement of the suicide clause.

Validation criteria means:

criteria against which a claim/withdrawal may be measured for validity.

Termination may include:

automatic cancellation because of non-payment of premium.

Benefits payable could be affected by:

age at death

cause of death

contributions made to policy

date of death

length of policy

non-disclosure

policy maturity

preserved nature of the funds in the policy

previous withdrawals

reason for withdrawal

surrender conditions.

Payment methods may include:

cheques

direct credit.