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Unit of competency details

FNSASIC304 - Provide Tier 2 general advice in general insurance (Release 1)

Summary

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to FNSASIC304A - Provide Tier 2 general advice in general insuranceUpdated to meet Standards for Training Packages 24/Mar/2015

Release Status:
Current
Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Training packages that include this unit

Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081103 Insurance And Actuarial Studies  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081103 Insurance And Actuarial Studies  30/Jul/2015 
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Unit Of competency

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Application

This unit describes the skills and knowledge required to assess a client’s insurance prerequisites and accurately advise clients about financial products and services at the Australian Services and Investment Commission (ASIC) Tier 2 level.

It applies to individuals whose roles as non-broker insurance advisers require proficient communication and well-developed interpersonal skills to provide general advice in Tier 2 (standard retail general insurance) products to clients.

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.

Unit Sector

ASIC units

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Deal with initial client enquiry for general insurance

1.1 Attend to client enquiries in timely and courteous manner

1.2 Demonstrate active listening skills when dealing with client enquiries and provide help and assistance to ensure full and accurate completion of initial documentation where required

1.3 Communicate clearly and unambiguously with clients to determine and clarify product of interest to them

1.4 Analyse range of products of interest to clients to determine their categorisation as areas of general advice in line with legislation and organisational policy

1.5 Inform clients that general advice will be provided to them in relation to products of interest and that only personal information for underwriting and calculating cost of product will be sought

1.6 Refer clients to suitable specialist personnel where required advice is deemed to fall outside category of general advice

2. Prepare general advice to client

2.1 Provide correct disclosure documentation in accordance with legislation and organisational policy

2.2 Ensure that general advice warning is given to client in line with legislative and organisational policy

2.3 Consider special communication needs of clients or client when delivering general advice warning

3. Provide general advice

3.1 Ensure that product advice is given to client in clear and unambiguous way, avoiding jargon, in language appropriate to receiver and using organisational tools

3.2 Demonstrate appropriate product and industry knowledge when providing advice to client

3.3 Explain and discuss product advice with client in language that avoids giving impression adviser has considered client’s personal circumstances in providing advice

3.4 Ensure that client is asked to consider appropriateness of advice for own circumstances

3.5 Advise client to read product disclosure statement before making decision

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance

Skill 

Performance Criteria 

Description 

Reading

1.4, 2.1

  • Recognises and interprets textual information from relevant sources

Writing

1.2, 1.3, 2.2, 2.3, 3.1, 3.5

  • Uses clear, specific and industry related terminology to complete and update workplace documentation

Oral Communication

1.2, 1.3, 1.5, 2.2, 2.3, 3.1, 3.3-3.5

  • Clearly articulates product and service information unambiguously, using language and non-verbal signals appropriate to the audience and environment
  • Confirms the client’s understanding through active listening and questioning

Numeracy

1.4, 3.1-3.3

  • Interprets financial product information and completes calculations to achieve required outcomes

Navigate the world of work

1.4, 1.6, 2.1, 2.2, 3.2, 3.5

  • Takes responsibility for adherence to legal, regulatory and organisational requirements that relate to own work role
  • Ensures industry and product knowledge is current and is used in compliance with implicit and explicit organisational protocols

Interact with others

1.2, 2.3, 3.3

  • Considers communication strategies to achieve effective connection with a diverse range of clients encountered in the work context
  • Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others

Get the work done

1.1, 1.2, 1.4, 1.6, 2.1, 3.1

  • Takes responsibility for routine tasks and decisions relating to client advice and support that comply with legal and organisational requirements, and recognises when client requires specialist assistance
  • Uses the main features and functions of digital tools to complete work tasks

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

FNSASIC304 Provide Tier 2 general advice in general insurance

FNSASIC 304A Provide Tier 2 general advice in general insurance

Updated to meet Standards for Training Packages

Equivalent unit

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • respond to client enquiries and prepare relevant general advice
  • provide accurate general insurance advice, complying with organisational procedures and industry regulations.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must satisfy knowledge requirements relevant to the products and activities in which advice is given. They must:

  • explain the legal environment including disclosure and compliance covering:
  • role of the broker, representative and/or adviser
  • relevant legal principles relating to the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act
  • relationship between ethics and regulatory requirements including good faith and utmost good faith
  • full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation
  • general insurance industry code of practice and organisational codes of conduct
  • complaints resolution procedures (internal and external)
  • ASIC guidelines on adviser conduct and training
  • summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries
  • describe insurance products including:
  • definition of an insurance product
  • conditions, exclusions and level of coverage of risk transfer products
  • types of insurance products
  • pricing of risk products
  • discuss taxation issues relating to insurance products
  • explain advisory functions including:
  • role of the representative, broker or adviser
  • participants in the insurance advisory services market
  • range of services provided
  • profile and financial information of the client
  • appropriateness of a risk assessment
  • identify legislative and organisational compliance requirements in relation to advice:
  • relevant legislation affecting the provision of general and personal advice including ASIC Regulatory Guide 175 on conduct and disclosure
  • role of different advisers within the organisation
  • organisational policy and guidelines related to the provision of general advice
  • details of relevant marketing and disclosure documents, including product disclosure statements and marketing brochures on the relevant products
  • summarise the specific product knowledge for the general insurance products in which advice is given including:
  • types of general insurance products and policies
  • standard cover and deviations
  • policy wordings
  • taxes and charges
  • insurance claims
  • premium rating and risk selection
  • reporting
  • product development
  • underwriting
  • explain terms and conditions of retail general insurance products used by the adviser.

Assessment Conditions

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.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe