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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Identify risk
   • Identify product type to ensure that nature of risk can be assessed and handled accordingly
2. Evaluate proposal against risk assessment criteria
   • Assess proposal against risk assessment criteria to clearly identify risk factors
   • Identify need for additional information to further evaluate proposal
3. Obtain further information
   • Identify appropriate sources of further information to enable comprehensive evaluation of proposal
   • Safeguard privacy of parties involved in providing information by complying with legislative and compliance requirements
   • Obtain all further information within specified timeframes to satisfy outstanding risk assessment criteria
   • Provide ongoing advice to concerned parties on status of assessment of proposal
4. Determine and advise terms and conditions of risk acceptability
   • Assess acceptability of risk against all available information and in accordance with appropriate underwriting guidelines
   • Within delegated authority, establish terms and conditions that minimise risk liability
   • Promptly advise all relevant parties on acceptance or rejection of proposal

Performance Evidence

Evidence of the ability to:

undertake basic risk assessment of a life insurance product using sound analytical skills

provide timely advice to relevant parties regarding a life insurance proposal.

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

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Knowledge Evidence

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

outline basic life insurance underwriting principles

identify the types of liability that can arise in life insurance

outline the nature of the life insurance industry sector

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

define key medical terminology relevant to life insurance

list appropriate sources of further information to enable comprehensive evaluation of a proposal

identify risk prevention methods and application

identify the types of risk in life insurance products and probability of occurrence.

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