Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSASICN503 Mapping and Delivery Guide
Provide Tier 1 personal advice in general insurance

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSASICN503 - Provide Tier 1 personal advice in general insurance
Description
Employability Skills
Learning Outcomes and Application 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 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.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

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

organisational policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Establish relationship with client
  • Use range of communication and interpersonal skills to establish knowledge level of client
  • Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology
  • Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
  • Inform client about procedures for complaints handling
       
Element: Identify client objectives and risk situation
  • Use range of communication and interpersonal skills to establish client objectives and goals
  • Use appropriate risk assessment processes and tools to collect relevant personal, financial and business details
       
Element: Analyse client risk information
  • Analyse all information from risk assessment process
  • Seek specialist advice if required to address issues that professional judgement indicates may require further consideration
  • Consult clients throughout analysis for further clarification where necessary
       
Element: Identify appropriate risk solution
  • Identify and assess available options using information from risk analysis
  • Conduct relevant product research
  • Prepare statement of advice for presentation to client
  • Refer client to appropriate adviser for higher level or specialist advice, if required
       
Element: Present appropriate solutions to client
  • Explain features of statement of advice clearly and unambiguously
  • Discuss impacts and possible risks of solution in clear and concise manner
       
Element: Negotiate effectively
  • Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction
  • Seek client’s preferred plan, policy and/or transaction and confirm client’s preference
       
Element: Coordinate implementation of agreed solution
  • Ensure that client agrees to proposed insurance plan, policy and/or transaction, including all associated fees and costs
  • Ensure that timeframes for execution and processing are clearly explained to client
       
Element: Complete and maintain necessary documentation
  • Confirm that proposal and other documents are completed and, where appropriate, are signed off by client
  • Ensure that signed agreement and copies of appropriate documentation are exchanged
  • Create and update client records
       
Element: Provide ongoing service where requested by client
  • Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client
  • Clearly explain fees and costs for ongoing and specifically defined service, and confirm client understands all details
  • Provide ongoing service as required
       


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. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Inform client about procedures for complaints handling

2. Identify client objectives and risk situation

2.1 Use range of communication and interpersonal skills to establish client objectives and goals

2.2 Use appropriate risk assessment processes and tools to collect relevant personal, financial and business details

3. Analyse client risk information

3.1 Analyse all information from risk assessment process

3.2 Seek specialist advice if required to address issues that professional judgement indicates may require further consideration

3.3 Consult clients throughout analysis for further clarification where necessary

4. Identify appropriate risk solution

4.1 Identify and assess available options using information from risk analysis

4.2 Conduct relevant product research

4.3 Prepare statement of advice for presentation to client

4.4 Refer client to appropriate adviser for higher level or specialist advice, if required

5. Present appropriate solutions to client

5.1 Explain features of statement of advice clearly and unambiguously

5.2 Discuss impacts and possible risks of solution in clear and concise manner

6. Negotiate effectively

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction

6.2 Seek client’s preferred plan, policy and/or transaction and confirm client’s preference

7. Coordinate implementation of agreed solution

7.1 Ensure that client agrees to proposed insurance plan, policy and/or transaction, including all associated fees and costs

7.2 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

8.3 Create and update client records

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client

9.2 Clearly explain fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice in providing Tier 1 personal advice in general insurance

analyse client’s objectives, risk situation and a range of financial products to develop a risk profile and potential strategy or solution to meet client needs

advise clients accurately and ethically about specific general insurance products and services

finalise plan, policy and/or transaction, ensuring all documentation is completed accurately following organisational procedures.

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 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:

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

outline the following aspects of general insurance products:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

reporting

explain terms and conditions of retail general insurance products used by the organisation.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Inform client about procedures for complaints handling

2. Identify client objectives and risk situation

2.1 Use range of communication and interpersonal skills to establish client objectives and goals

2.2 Use appropriate risk assessment processes and tools to collect relevant personal, financial and business details

3. Analyse client risk information

3.1 Analyse all information from risk assessment process

3.2 Seek specialist advice if required to address issues that professional judgement indicates may require further consideration

3.3 Consult clients throughout analysis for further clarification where necessary

4. Identify appropriate risk solution

4.1 Identify and assess available options using information from risk analysis

4.2 Conduct relevant product research

4.3 Prepare statement of advice for presentation to client

4.4 Refer client to appropriate adviser for higher level or specialist advice, if required

5. Present appropriate solutions to client

5.1 Explain features of statement of advice clearly and unambiguously

5.2 Discuss impacts and possible risks of solution in clear and concise manner

6. Negotiate effectively

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction

6.2 Seek client’s preferred plan, policy and/or transaction and confirm client’s preference

7. Coordinate implementation of agreed solution

7.1 Ensure that client agrees to proposed insurance plan, policy and/or transaction, including all associated fees and costs

7.2 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

8.3 Create and update client records

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client

9.2 Clearly explain fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

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
Use range of communication and interpersonal skills to establish knowledge level of client 
Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology 
Inform client about role of adviser and licensee or principal responsible for adviser’s conduct 
Inform client about procedures for complaints handling 
Use range of communication and interpersonal skills to establish client objectives and goals 
Use appropriate risk assessment processes and tools to collect relevant personal, financial and business details 
Analyse all information from risk assessment process 
Seek specialist advice if required to address issues that professional judgement indicates may require further consideration 
Consult clients throughout analysis for further clarification where necessary 
Identify and assess available options using information from risk analysis 
Conduct relevant product research 
Prepare statement of advice for presentation to client 
Refer client to appropriate adviser for higher level or specialist advice, if required 
Explain features of statement of advice clearly and unambiguously 
Discuss impacts and possible risks of solution in clear and concise manner 
Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy and/or transaction 
Seek client’s preferred plan, policy and/or transaction and confirm client’s preference 
Ensure that client agrees to proposed insurance plan, policy and/or transaction, including all associated fees and costs 
Ensure that timeframes for execution and processing are clearly explained to client 
Confirm that proposal and other documents are completed and, where appropriate, are signed off by client 
Ensure that signed agreement and copies of appropriate documentation are exchanged 
Create and update client records 
Ensure that type and form of ongoing service, including review of insurance plan, policy and/or transaction, is agreed with client 
Clearly explain fees and costs for ongoing and specifically defined service, and confirm client understands all details 
Provide ongoing service as required 

Forms

Assessment Cover Sheet

FNSASICN503 - Provide Tier 1 personal 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

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSASICN503 - Provide Tier 1 personal 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:

Signature:

Date:

Student signature:

Date: