Assessor Resource

FNSILF503A
Underwrite complex non-medical risks

Assessment tool

Version 1.0
Issue Date: June 2024


This unit applies to those engaged in underwriting functions of companies within the life insurance sector.

This unit describes the performance outcomes, skills and knowledge required to apply complex non-medical risk assessment to the underwriting of a life insurance application.

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

Prerequisites

Not applicable.


Employability Skills

This unit contains employability skills.




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.

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:

apply highly developed analytical skills in relation to non-medical risk assessment

maintain and apply a thorough understanding of policy guidelines and administrative requirements

apply underwriting policies and procedures

perform tasks in accordance with relevant procedures and regulatory requirements.

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 records

access to corporate Privacy Policy

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 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


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.

Required skills

communication skills to:

gather and check information

liaise and share information with others

communicate appropriately with people from diverse backgrounds

IT skills to:

use computer applications (word processing, spreadsheet, database, specific purpose computer systems)

access web-based information services

numeracy skills to interpret numeric data and relevant statistics relative to financial information being assessed

organisational skills to efficiently plan and sequence work

problem solving skills to address errors in life insurance documentation

reading skills to:

read and understand relevant procedures

read and understand life insurance policies

read and interpret life insurance applications and supporting documentation

research and analysis skills to:

identify and interpret relevant information

analyse information and data

maintain currency of products and services knowledge

writing skills to:

accurately record information

prepare professional letters and emails.

Required knowledge

the ability to apply and explain as relevant to the underwriting of complex non-medical risks:

integrated actuarial and underwriting information associated with non-medical risk

life insurance administrative requirements

life insurance policy terms and conditions

life insurance risk management practices

organisational procedures

product information

relevant financial and lifestyle information

relevant regulatory requirements

types of financial and lifestyle risk and actuarial considerations.

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.

Financial and lifestyle information may include:

adviser reports

occupation

employer

position description

term of employment

professional affiliations and memberships

income

tax returns & notices of assessment

balance sheets

profit/loss statements

estate planning documentation

relevant pastimes, hobbies and leisure activities

location of residence

location of occupation

access to medical services

exposure to disease

previous insurance history

supplementary questionnaires.

Non-medical risk factors may include:

financial circumstances

moral hazards

occupation

pastimes and activities

place of residence

travel.

Life risk is a potential change to health or wellbeing that would have an adverse effect on the financial sustainability of an individual, a family or a group, and may include:

death

total and permanent disablement

temporary loss of income resulting from accident or sickness

traumatic sickness or injury.

Moral risk factors may include:

illegal acts

improper acts

wilful acts

criminal history

claims history

over insurance

non-disclosure

an intention to commit suicide

unsustainable or uncertain financial circumstances

other circumstances that increase the likelihood of a claim but are unrelated to any genuine and disclosed risk of mortality or morbidity.

Risks rating systems may include:

cash extra loadings

class systems

numerical systems.

Risk acceptance criteria may include:

exclusions

loadings

other specific terms and conditions

standard cover conditions.

Procedures may include:

organisational complaints handling processes

organisational customer service charter

organisational guidelines

organisational policy

organisational privacy and confidentiality guidelines

organisational procedures.

Regulatory requirements may include:

insurance contracts legislation

life insurance legislation

corporations legislation

privacy legislation

Australian Securities and Investments Commission (ASIC) regulatory guides.

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
Review applications and associated documentation to identify relevant financial and lifestyle information 
Interpret financial and lifestyle information to identify non-medical risk factors 
Recognise the need for additional financial and lifestyle information and collect as appropriate 
Identify potential life risk implications of supplied lifestyle information 
Identify and address potential moral risk factors 
Select and apply appropriate risks rating systems 
Determine risk acceptance criteria to suit type and context of risk in accordance with procedures 
Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures 
Develop terms of acceptance in accordance with market conditions and accepted levels of exposure 
Document the life insurance policy with terms and conditions in accordance with procedures and regulatory requirements 

Forms

Assessment Cover Sheet

FNSILF503A - Underwrite complex non-medical risks
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

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

FNSILF503A - Underwrite complex non-medical risks

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:

Signature:

Date:

Student signature:

Date: