Modification History
Release |
Comments |
Release 1 |
This Unit of Competency first released with FNS10 Financial Services Training Package version 3.0. |
Unit Descriptor
This unit describes the performance outcomes, skills and knowledge required to calculate benefits and settle claims made under risk-based life insurance policies.
Application of the Unit
This unit applies to those processing and settling claims against insurance policies covering life risks.
Licensing/Regulatory Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Pre-Requisites
Not applicable.
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Element |
Performance Criteria |
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
1. Review claim settlement advice |
1.1 Receive settlement advice for a claim against a risk-based life insurance policy 1.2 Check that documentation is correct and complete in accordance with procedures 1.3 Confirm that organisational authority levels have been observed |
2. Calculate benefits |
2.1 Identify the extent of liability on the basis of collected evidence and the terms and conditions of the life insurance policy 2.2 Calculate and check benefits payable in accordance with procedures |
3. Finalise claim settlement |
3.1 Advise client of the consequences of proceeding with the payment in accordance with procedures 3.2 Obtain policy discharge as appropriate 3.3 Confirm method of payment with claimant 3.4 Enter and confirm payment information on appropriate systems to make payment 3.5 Communicate settlement details to appropriate stakeholders in accordance with procedures and regulatory requirements 3.6 Update records and file documentation in accordance with procedures and regulatory requirements |
Required Skills and Knowledge
This section describes the skills and knowledge required for this unit.
Required skills
- communication skills to:
- gather and check information
- liaise and share information with others
- communicate appropriately with people from diverse backgrounds
- numeracy skills to:
- interpret numeric data and relevant statistics
- calculate life insurance payments
- IT skills to:
- use computer applications (word processing, spreadsheet, database, specific purpose computer systems)
- access and update records electronically
- access web-based information services
- reading skills to:
- read and understand relevant procedures
- read and understand life insurance policies
- read and interpret life insurance claims and supporting documentation
- organisational skills to efficiently plan and sequence work
- problem solving skills to address errors in life insurance 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 settlement of life insurance claims:
- life insurance administrative requirements
- life insurance policy payment criteria
- life insurance policy terms and conditions
- organisational procedures
- organisational systems for data entry and filing
- product information
- relevant regulatory requirements.
Evidence Guide
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 |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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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.
Risk-based life insurance policy may include: |
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Documentation may include: |
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Procedures may include: |
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Evidence may include: |
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Life insurance policy may include |
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Consequences may include: |
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Policy discharge may include: |
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Appropriate systems may include: |
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Appropriate stakeholders may include: |
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Regulatory requirements may include: |
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Unit Sector(s)
Life insurance