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Evidence Guide: FNSISV402 - Underwrite new business

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

 

FNSISV402 - Underwrite new business

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

Determine terms and conditions of risk acceptability

  1. Collect risk acceptance information and determine terms and conditions of acceptance
  2. Determine risk acceptability within authority limitations and capacities
  3. Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria
  4. Determine referrals, where appropriate
  5. Place facultative reinsurance, where appropriate
Collect risk acceptance information and determine terms and conditions of acceptance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine risk acceptability within authority limitations and capacities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine referrals, where appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Place facultative reinsurance, where appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate result of risk assessment

  1. Prepare and communicate quotation, if required
  2. Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes
  3. Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk
Prepare and communicate quotation, if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate client response

  1. Assess client response to determine whether action to modify terms and conditions is required
  2. Modify offer as necessary and prepare advice to client according to operating procedures
  3. Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval
Assess client response to determine whether action to modify terms and conditions is required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Modify offer as necessary and prepare advice to client according to operating procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate agreement

  1. Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable
  2. Advise client of acceptance or rejection of risk according to operating procedures
  3. Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk
Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise client of acceptance or rejection of risk according to operating procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Issue interim cover where required

  1. Specify disclosure requirements in all cases
  2. Issue initial documentation to client in organisation’s format and according to operating procedures
  3. Confirm reinsurance cover, as appropriate
  4. Obtain additional information, as required
  5. File and store documents in accordance with organisational operating procedures
  6. Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy
Specify disclosure requirements in all cases

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Issue initial documentation to client in organisation’s format and according to operating procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirm reinsurance cover, as appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain additional information, as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

File and store documents in accordance with organisational operating procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy

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 terms and conditions of risk acceptability

1.1 Collect risk acceptance information and determine terms and conditions of acceptance

1.2 Determine risk acceptability within authority limitations and capacities

1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria

1.4 Determine referrals, where appropriate

1.5 Place facultative reinsurance, where appropriate

2. Communicate result of risk assessment

2.1 Prepare and communicate quotation, if required

2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes

2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk

3. Evaluate client response

3.1 Assess client response to determine whether action to modify terms and conditions is required

3.2 Modify offer as necessary and prepare advice to client according to operating procedures

3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval

4. Negotiate agreement

4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable

4.2 Advise client of acceptance or rejection of risk according to operating procedures

4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk

5. Issue interim cover where required

5.1 Specify disclosure requirements in all cases

5.2 Issue initial documentation to client in organisation’s format and according to operating procedures

5.3 Confirm reinsurance cover, as appropriate

5.4 Obtain additional information, as required

5.5 File and store documents in accordance with organisational operating procedures

5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy

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 terms and conditions of risk acceptability

1.1 Collect risk acceptance information and determine terms and conditions of acceptance

1.2 Determine risk acceptability within authority limitations and capacities

1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria

1.4 Determine referrals, where appropriate

1.5 Place facultative reinsurance, where appropriate

2. Communicate result of risk assessment

2.1 Prepare and communicate quotation, if required

2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes

2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk

3. Evaluate client response

3.1 Assess client response to determine whether action to modify terms and conditions is required

3.2 Modify offer as necessary and prepare advice to client according to operating procedures

3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval

4. Negotiate agreement

4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable

4.2 Advise client of acceptance or rejection of risk according to operating procedures

4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk

5. Issue interim cover where required

5.1 Specify disclosure requirements in all cases

5.2 Issue initial documentation to client in organisation’s format and according to operating procedures

5.3 Confirm reinsurance cover, as appropriate

5.4 Obtain additional information, as required

5.5 File and store documents in accordance with organisational operating procedures

5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy

Evidence of the ability to:

thoroughly assess risks and develop a suitable insurance policy

accurately interpret and comply with all legal obligations and organisational procedures

comply with underwriting guidelines and procedures

investigate risk as it relates to new business and products

complete and file documentation in accordance with organisational guidelines.

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:

identify and describe key features of appropriate e-commerce processes

describe the potential market share for a product or line of business

outline the compliance requirements for insurance policies

explain the importance of wording of insurance policies in keeping with the organisation or industry sector

identify the organisational policy, procedures, guidelines and level of authorities for underwriting (such as best underwriting guides (BUGs) and loss control guides)

describe underwriting principles for insurance products

define the difference between treaty and facultative reinsurance

outline relative industry hazards

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements

describe risk prevention methods and application.