Assessor Resource

FNSASIC304
Provide Tier 2 general advice in general insurance

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to assess a client’s insurance prerequisites and accurately advise clients about financial products and services at the Australian Services and Investment Commission (ASIC) Tier 2 level.

It applies to individuals whose roles as non-broker insurance advisers require proficient communication and well-developed interpersonal skills to provide general advice in Tier 2 (standard retail general insurance) products to clients.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Deal with initial client enquiry for general insurance

1.1 Attend to client enquiries in timely and courteous manner

1.2 Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required

1.3 Communicate clearly and unambiguously with clients to determine and clarify product of interest to them

1.4 Analyse range of products of interest to clients to determine their categorisation as areas of general advice in line with legislation and organisational policy

1.5 Inform clients that general advice will be provided to them in relation to products of interest and that only personal information for underwriting and calculating cost of product will be sought

1.6 Refer clients to suitable specialist personnel where required advice is deemed to fall outside category of general advice

2. Prepare general advice to client

2.1 Provide correct disclosure documentation in accordance with legislation and organisational policy

2.2 Ensure that general advice warning is given to client in line with legislative and organisational policy

2.3 Consider special communication needs of clients or client when delivering general advice warning

3. Provide general advice

3.1 Ensure that product advice is given to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools

3.2 Demonstrate appropriate product and industry knowledge when providing advice to client

3.3 Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice

3.4 Ensure that client is asked to consider appropriateness of advice for own circumstances

3.5 Advise client to read product disclosure statement before making decision

Evidence of the ability to:

respond to client enquiries and prepare relevant general advice

provide accurate general insurance advice, complying with organisational procedures and industry regulations.

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 satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:

explain the legal environment including disclosure and compliance covering:

role of the broker, representative and/or adviser

relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

relationship between ethics and regulatory requirements including good faith and utmost good faith

full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation

general insurance industry code of practice and organisational codes of conduct

complaints resolution procedures (internal and external)

ASIC guidelines on adviser conduct and training

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries

describe insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

discuss taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

identify legislative and organisational compliance requirements in relation to advice:

relevant legislation affecting the provision of general and personal advice including ASIC Regulatory Guide 175 on conduct and disclosure

role of different advisers within the organisation

organisational policy and guidelines related to the provision of general advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products

summarise the specific product knowledge for the general insurance products in which advice is given including:

types of general insurance products and policies

standard cover and deviations

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting

explain terms and conditions of retail general insurance products used by the adviser.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

office equipment, technology, software and consumables

organisational records

organisational policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Deal with initial client enquiry for general insurance

1.1 Attend to client enquiries in timely and courteous manner

1.2 Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required

1.3 Communicate clearly and unambiguously with clients to determine and clarify product of interest to them

1.4 Analyse range of products of interest to clients to determine their categorisation as areas of general advice in line with legislation and organisational policy

1.5 Inform clients that general advice will be provided to them in relation to products of interest and that only personal information for underwriting and calculating cost of product will be sought

1.6 Refer clients to suitable specialist personnel where required advice is deemed to fall outside category of general advice

2. Prepare general advice to client

2.1 Provide correct disclosure documentation in accordance with legislation and organisational policy

2.2 Ensure that general advice warning is given to client in line with legislative and organisational policy

2.3 Consider special communication needs of clients or client when delivering general advice warning

3. Provide general advice

3.1 Ensure that product advice is given to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools

3.2 Demonstrate appropriate product and industry knowledge when providing advice to client

3.3 Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice

3.4 Ensure that client is asked to consider appropriateness of advice for own circumstances

3.5 Advise client to read product disclosure statement before making decision

Evidence of the ability to:

respond to client enquiries and prepare relevant general advice

provide accurate general insurance advice, complying with organisational procedures and industry regulations.

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 satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:

explain the legal environment including disclosure and compliance covering:

role of the broker, representative and/or adviser

relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

relationship between ethics and regulatory requirements including good faith and utmost good faith

full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation

general insurance industry code of practice and organisational codes of conduct

complaints resolution procedures (internal and external)

ASIC guidelines on adviser conduct and training

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries

describe insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

discuss taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

identify legislative and organisational compliance requirements in relation to advice:

relevant legislation affecting the provision of general and personal advice including ASIC Regulatory Guide 175 on conduct and disclosure

role of different advisers within the organisation

organisational policy and guidelines related to the provision of general advice

details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products

summarise the specific product knowledge for the general insurance products in which advice is given including:

types of general insurance products and policies

standard cover and deviations

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting

explain terms and conditions of retail general insurance products used by the adviser.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

office equipment, technology, software and consumables

organisational records

organisational policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Attend to client enquiries in timely and courteous manner 
Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required 
Communicate clearly and unambiguously with clients to determine and clarify product of interest to them 
Analyse range of products of interest to clients to determine their categorisation as areas of general advice in line with legislation and organisational policy 
Inform clients that general advice will be provided to them in relation to products of interest and that only personal information for underwriting and calculating cost of product will be sought 
Refer clients to suitable specialist personnel where required advice is deemed to fall outside category of general advice 
Provide correct disclosure documentation in accordance with legislation and organisational policy 
Ensure that general advice warning is given to client in line with legislative and organisational policy 
Consider special communication needs of clients or client when delivering general advice warning 
Ensure that product advice is given to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools 
Demonstrate appropriate product and industry knowledge when providing advice to client 
Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice 
Ensure that client is asked to consider appropriateness of advice for own circumstances 
Advise client to read product disclosure statement before making decision 

Forms

Assessment Cover Sheet

FNSASIC304 - Provide Tier 2 general advice in general insurance
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

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Assessor name:

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Assessment Record Sheet

FNSASIC304 - Provide Tier 2 general advice in general insurance

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

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Student signature:

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