Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including that administered by the Australian Securities and Investments Commission (ASIC). Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC. Tier 1 general insurance products are defined by ASIC as:
Personal sickness and accident insurance may be complex and the choices a client makes may have an increased potential to impact significantly the client's financial situation. Similarly, some general insurance products offered to clients are not straightforward or standard. In both cases, consumers place a greater reliance on an adviser's competence for advice on these products and adviser training at the Tier 1 level is required. Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of advice. It also requires clarification of the broker's role in providing this service. Apart from the advisory skills, there is a substantial generic, insurance core and specialist general insurance product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 1 personal advice. |
Application of the Unit
Application of the unit |
This unit is specifically designed to assist advisers dealing with retail clients but it may have wider application to wholesale clients. The unit may be applied within organisations of various sizes and across a range of customer bases |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
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
ELEMENT |
PERFORMANCE CRITERIA |
1. Establish relationship with client |
1.1. A range of communication and interpersonal skills are used to the knowledge level of client 1.2. Enquiries are responded to by explaining the range of general insurance products and services available and their relevant fee and charging methodology 1.3. Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct 1.4. Client is informed of the procedures for complaints handling |
2. Identify client objectives and risk situation |
2.1. A range of communication and interpersonal skills are used to establish client objectives and goals 2.2. Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details |
3. Analyse client risk information |
3.1. All information from the risk assessment process is analysed 3.2. The need for specialist advice is sought if required to address issues that professional judgement indicates may require further consideration 3.3. Clients are consulted throughout the analysis for further clarification where necessary |
4. Identify appropriate risk solution |
4.1. Available options are identified and assessed using information from risk analysis 4.2. Relevant product research is conducted 4.3. A statement of advice for presentation to the client is prepared 4.4. The client is referred to an appropriate adviser for higher level or specialist advice if required |
5. Present appropriate solutions to client |
5.1. Features of the statement of advice are explained to the client in a clear and unambiguous way 5.2. Impact of key aspects of the recommendations including possible risks are disclosed in a clear and concise manner to the client |
6. Negotiate effectively |
6.1. Concerns and /or issues the client has regarding the proposed insurance plan/policy/transaction are discussed and clarified 6.2. Confirmation is sought from client regarding their preferred insurance plan/policy/transaction |
7. Coordinate implementation of the agreed solution |
7.1. Agreement regarding the proposed insurance plan/policy/transaction is sought from the client including fees and costs 7.2. Timeframes for execution and processing are clearly explained to the client |
8. Complete and maintain necessary documentation |
8.1. Proposal and other documents are completed and, where appropriate, signed off by the client 8.2. Copies of appropriate documentation and the signed agreement are exchanged 8.3. Client records are created or updated |
9. Provide ongoing service where requested by client |
9.1. Type and form of ongoing service including review of insurance plan/policy/transaction is agreed with the client 9.2. Fees and costs for defined ongoing services are clearly explained and confirmation of understanding gained from the client 9.3. Ongoing service is provided as required |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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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, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Adviser may include: |
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Client objectives and goals may include: |
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Risk assessment process might include: |
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Information may include: |
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Concerns and /or issues might include: |
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Unit Sector(s)
Unit sector |
Insurance life/general ASIC |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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