Assessor Resource

FNSASICO503
Provide Tier 1 general advice in general insurance

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to analyse a client’s general insurance needs for current Australian Securities and Investments Commission (ASIC) regulation (Financial Services Reform Act) at Tier 1 (Diploma) level in the insurance specialist and generic knowledge areas.

It applies to individuals who have specialist product knowledge (especially relating to personal sickness and accident insurance) and strong interpersonal skills and are expert communicators. In this role, excellent customer service skills relating to the provision of advice to clients is essential.

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 Ensure client enquiries are attended to 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 client to determine and clarify product of interest to client

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

1.5 Ensure clients are informed 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 Ensure that client is referred to appropriate 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 Provide general advice warning to client in line with legislative and organisational policy

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

3. Provide general advice

3.1 Provide product advice 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 using language that avoids giving impression adviser has considered client’s personal circumstances in providing advice

3.4 Ask client to consider appropriateness of advice in light of 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 general advice in general insurance

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 generic, core and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Core insurance knowledge

explain the operation of insurance markets including:

definition of insurance product

characteristics and participants of the Australian insurance market

roles played by intermediaries

types of insurance products including risk insurance products, investment life insurance products and general insurance products

explain the following aspects of insurance products:

conditions, exclusions and levels of coverage of risk transfer products

pricing

explain taxation issues in relation to general insurance products and markets

describe advisory functions including:

role of insurance adviser, broker or agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

discuss the legal environment including disclosure and compliance covering:

the role of the representative or adviser

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

relationship between ethics and regulatory requirements including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal).

Specialist knowledge

provide a summary of general insurance matters 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

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

discuss relevant legislative and organisational compliance requirements including:

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.

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.

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 Ensure client enquiries are attended to 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 client to determine and clarify product of interest to client

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

1.5 Ensure clients are informed 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 Ensure that client is referred to appropriate 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 Provide general advice warning to client in line with legislative and organisational policy

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

3. Provide general advice

3.1 Provide product advice 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 using language that avoids giving impression adviser has considered client’s personal circumstances in providing advice

3.4 Ask client to consider appropriateness of advice in light of 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 general advice in general insurance

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 generic, core and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Core insurance knowledge

explain the operation of insurance markets including:

definition of insurance product

characteristics and participants of the Australian insurance market

roles played by intermediaries

types of insurance products including risk insurance products, investment life insurance products and general insurance products

explain the following aspects of insurance products:

conditions, exclusions and levels of coverage of risk transfer products

pricing

explain taxation issues in relation to general insurance products and markets

describe advisory functions including:

role of insurance adviser, broker or agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

discuss the legal environment including disclosure and compliance covering:

the role of the representative or adviser

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

relationship between ethics and regulatory requirements including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal).

Specialist knowledge

provide a summary of general insurance matters 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

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

discuss relevant legislative and organisational compliance requirements including:

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.

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.

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
Ensure client enquiries are attended to 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 client to determine and clarify product of interest to client 
Analyse range of products of interest to client to determine categorisation as areas of general advice in line with legislation and organisational policy 
Ensure clients are informed 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 
Ensure that client is referred to appropriate 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 
Provide general advice warning to client in line with legislative and organisational policy 
Consider special communication needs of client when delivering general advice warning 
Provide product advice 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 using language that avoids giving impression adviser has considered client’s personal circumstances in providing advice 
Ask client to consider appropriateness of advice in light of own circumstances 
Advise client to read product disclosure statement before making decision 

Forms

Assessment Cover Sheet

FNSASICO503 - Provide Tier 1 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

FNSASICO503 - Provide Tier 1 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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