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 understand and apply underwriting risk concepts and practices when assessing extraordinary insurance risks.
It applies to job roles in generalist or specialist areas of insurance and may be applied within organisations of various sizes and across a range of customer bases.
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
Life insurance
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. Determine risk acceptance criteria |
1.1 Establish risk acceptance criteria suitable to type and context of risk within relevant organisational policy 1.2 Use available data to validate risk acceptance criteria |
2. Seek information |
2.1 Identify and collate accurate, reliable and up-to-date information in format suitable for analysis |
3. Negotiate reinsurance for extraordinary risks |
3.1 Identify need for, and level of, reinsurance appropriate to risk 3.2 Determine terms of reinsurance from available sources of information and in accordance with organisational policy 3.3 Negotiate reinsurance appropriate to anticipated exposure |
4. Determine and advise terms and conditions of acceptance |
4.1 Establish terms of acceptance that meet market conditions and organisation’s accepted levels of exposure 4.2 Determine and document terms and conditions, within delegated authority, to meet requirements of relevant underwriting guidelines |
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 |
1.1, 1.2, 2.1, 3.1, 3.2, 4.1 |
|
Writing |
2.1, 4.1, 4.2 |
|
Oral Communication |
2.1, 3.1-3.3, 4.1 |
|
Numeracy |
3.3 |
|
Navigate the world of work |
1.1, 3.2, 4.2 |
|
Interact with others |
3.2, 3.3 |
|
Get the work done |
2.1, 3.1-3.3, 4.1, 4.2 |
|
Unit Mapping Information
Code and title current version |
Code and title previous version |
Comments |
Equivalence status |
FNSILF501 Assess extraordinary risks |
FNSILF501A Assess extraordinary risks |
Updated to meet Standards for Training Packages. Minor rewording to clarify intent of performance criteria. |
Equivalent unit |
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe