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Elements and Performance Criteria

Identify non-medical risks
Identify the underwriting significance
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
Prepare life insurance policy
- 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

Required Skills

Required skills

communication skills to

gather and check information

liaise and share information with others

communicate appropriately with people from diverse backgrounds

use computer applications word processing spreadsheet database specific purpose computer systems

access webbased 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 nonmedical risks

integrated actuarial and underwriting information associated with nonmedical 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

Evidence Required

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 nonmedical 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

Range Statement

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.