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Evidence Guide: FNSILF501 - Assess extraordinary risks

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

 

FNSILF501 - Assess extraordinary risks

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

Determine risk acceptance criteria

  1. Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy
  2. Use available data to validate risk acceptance criteria
Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use available data to validate risk acceptance criteria

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek information

  1. Identify and collate accurate, reliable and up-to-date information in format suitable for analysis
Identify and collate accurate, reliable and up-to-date information in format suitable for analysis

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate reinsurance for extraordinary risks

  1. Identify need for, and level of, reinsurance appropriate to risk
  2. Determine terms of reinsurance from available sources of information and in accordance with organisational policy
  3. Negotiate reinsurance appropriate to anticipated exposure
Identify need for, and level of, reinsurance appropriate to risk

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine terms of reinsurance from available sources of information and in accordance with organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate reinsurance appropriate to anticipated exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine and advise terms and conditions of acceptance

  1. Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure
  2. Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines
Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine risk acceptance criteria

1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy

1.2 Use available data to validate risk acceptance criteria

2. Seek information

2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis

3. Negotiate reinsurance for extraordinary risks

3.1 Identify need for, and level of, reinsurance appropriate to risk

3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy

3.3 Negotiate reinsurance appropriate to anticipated exposure

4. Determine and advise terms and conditions of acceptance

4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure

4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine risk acceptance criteria

1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy

1.2 Use available data to validate risk acceptance criteria

2. Seek information

2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis

3. Negotiate reinsurance for extraordinary risks

3.1 Identify need for, and level of, reinsurance appropriate to risk

3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy

3.3 Negotiate reinsurance appropriate to anticipated exposure

4. Determine and advise terms and conditions of acceptance

4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure

4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines

Evidence of the ability to:

establish criteria and undertake risk assessment for extraordinary risks

negotiate reinsurance and establish and document appropriate terms and conditions.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe the types of extraordinary risks within the life insurance sector

define relevant medical terminology, and identify diseases and injuries that lead to extraordinary risks

describe the nature of liability arising out of extraordinary risks

list the relevant information required to assist with negotiating reinsurance

outline the relevant actuarial, financial and legislative requirements including the Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) and the Life Insurance Act

describe the methods used to mitigate risk through reinsurance

describe the key players in the reinsurance industry and their involvement in reinsurance.