This unit applies to those engaged in underwriting functions of companies within the life insurance sector.
Not applicable.
1. Identify non-medical risks | 1.1 Review applications and associated documentation to identify relevant financial and lifestyle information 1.2 Interpret financial and lifestyle information to identify non-medical risk factors 1.3 Recognise the need for additional financial and lifestyle information and collect as appropriate |
2. Identify the underwriting significance | 2.1 Identify potential life risk implications of supplied lifestyle information 2.2 Identify and address potential moral risk factors 2.3 Select and apply appropriate risks rating systems |
3. Determine risk acceptance criteria | 3.1 Determine risk acceptance criteria to suit type and context of risk in accordance with procedures 3.2 Assess adequacy of financial and lifestyle information against risk acceptance criteria in accordance with procedures |
4. Prepare life insurance policy | 4.1 Develop terms of acceptance in accordance with market conditions and accepted levels of exposure 4.2 Document the life insurance policy with terms and conditions in accordance with procedures and regulatory requirements |
Required skills
communication skills to:
gather and check information
liaise and share information with others
communicate appropriately with people from diverse backgrounds
IT skills to:
use computer applications (word processing, spreadsheet, database, specific purpose computer systems)
access web-based 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 non-medical risks:
integrated actuarial and underwriting information associated with non-medical 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.
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 non-medical 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 |
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. |
Life insurance
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.