Application
This unit applies to the management of the specific requirements that arise from offering insurance contracts. It also has application in a general or life insurance organisation. The unit may be applied within organisations of various sizes and across a range of customer bases. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Determine rights and obligations appropriate to each contract or policy | 1.1. Terms and conditions of all contracts, policies and retirement plans are examined and all legislative, contract and code of practice requirements are identified. 1.2. Identified rights, obligations and legislative requirements are documented so that appropriate procedures can be developed. |
2. Develop procedures to enable rights, obligations and legislative requirements to be met | 2.1. Identify and document appropriate system needs in order to meet rights and obligations and legislative and code of practice requirements within organisation objectives. 2.2. Contingency plans are developed and documented to ensure that contractual rights, obligations and legislative requirements are met in the event of unusual situations arising. |
3. Implement procedures to meet rights, obligations and legislative requirements | 3.1. Action plan is published so that all relevant areas are briefed concerning procedures to be implemented. 3.2. Procedure is implemented according to action plan. |
4. Monitor compliance with rights, obligations and legislative requirements | 4.1. Rights, obligations and legislation requirements are reviewed against terms and conditions of each contract of insurance regularly to ensure reliability and validity of interpretation. 4.2. Procedures and processes are altered in response to changes in interpretation. |
5. Maintain premium currency of insurance policy | 5.1. Premium records are accurately maintained in line with organisation procedures. 5.2. Premium billings are generated in accordance with organisation procedures and contractual obligations. 5.3. All monies received are accurately processed to policy records in accordance with organisation procedures. 5.4. Conservation procedures are undertaken within required timelines and organisation procedures. |
Required Skills
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Required skills |
highly-developed communication skills to: determine and confirm information, using questioning and active listening techniques write clear procedures liaise with others, share information, listen and understand use language and concepts appropriate to cultural differences numeracy and IT skills to: perform calculations related to achieving required outcomes use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes access and update records electronically access web-based information services well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information and for policy interpretation and application research and analysis skills for accessing and interpreting relevant information interpersonal skills organisational skills, including the ability to plan and sequence work |
Required knowledge |
industry sector compliance requirements organisation policy, procedures, underwriting guidelines and authorities reinsurance relevant common law, legal systems and procedures, codes of practice |
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: interpret and manage compliance requirements relating to contracts of insurance. |
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 organisation records 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, in combination, 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. | |
Contracts, policies and retirement plans may relate to: | client organisation insured member policyholder trustee. |
System needs may include: | budgets cost-effective processes electronic systems manual systems quality. |
Action plan may include: | accounting authorised representatives branches customer service customers other financial institutions. |
Legislation may include: | Consumer Affairs Act contract law Financial Services Reform Act Insurance Contracts Act Life Insurance Act Privacy Act regulatory bodies including ASIC, Australian Taxation Office (ATO) Trade Practices Act trust law workers compensation Acts. |
Reviewed will include pro-active and reactive steps taken to: | deal with customer complaints comply with legislation assess market trends. |
Billings can include: | direct debit group payments notices. |
Conservation procedures include: | agent/office intervention non-forfeiture provisions reinstatement procedures. |
Sectors
Unit sector | Insurance broking |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.