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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 non-medical risks
   • Review applications and associated documentation to identify relevant financial and lifestyle information
   • Interpret financial and lifestyle information to identify non-medical risk factors
   • Review need for additional financial and lifestyle information and collect as appropriate
2. Identify underwriting significance
   • Identify potential life risk implications of supplied lifestyle information
   • Identify and address potential moral risk factors
   • Consult with relevant personnel within organisation where clarification is sought on adequacy of information provided
   • Select and apply appropriate risks rating systems according to organisational procedures
3. . Determine risk acceptance criteria
   • 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
4. Prepare life insurance policy
   • Develop terms of acceptance in accordance with market conditions and accepted levels of exposure
   • Document life insurance policy with terms and conditions in accordance with procedures and regulatory requirements

Performance Evidence

Evidence of the ability to:

prepare and document life insurance policy that involves complex non-medical covering:

identification of financial and lifestyle risk factors, and application of appropriate risks rating criteria and systems for underwriting the risk

terms and conditions relevant to underwriting complex non-medical risks.

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:

identify relevant actuarial and underwriting information associated with non-medical risk

explain key features of policy guidelines, administrative requirements and organisational procedures in the underwriting industry

explain life insurance policy terms and conditions

explain life insurance risk management practices

describe the various types of non-medical risks and their implications for life insurance underwriting

identify relevant regulatory requirements

outline sources of relevant financial and lifestyle information

describe types of financial and lifestyle risk and actuarial considerations

distinguish between medical and non-medical risks in the context of life insurance underwriting

outline moral risk factors and their implications to underwriting non-medical risks.

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