Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to underwrite renewal business, including determining the terms and conditions of risk acceptance evaluating the response of the customer, negotiating and finalising the cover. This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC). |
Application of the Unit
Application of the unit |
This unit applies to underwriting job roles in a range of insurance sectors and 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. Determine terms and conditions of risk acceptability |
1.1. Risk acceptance information is identified and reviewed 1.2. Risk acceptability is determined within authority limitations 1.3. Terms and conditions of risk acceptability are checked for changes since the last time it was reviewed for underwriting 1.4. Terms and conditions of risk acceptance are determined in accordance with risk acceptance criteria, including client history 1.5. If appropriate, alternative terms or adjusted benefits are proposed |
2. Communicate result of risk assessment |
2.1. Offer of renewal, if applicable, is made in accordance with legislative requirements 2.2. Provisional notice of expiry is issued to customer 2.3. Renewal is declined , if applicable, in accordance with legislative provisions |
3. Evaluate client response |
3.1. Client response is assessed to determine whether action to modify terms and conditions is required 3.2. Offer is modified, as necessary, and advice to client is prepared according to operating procedures 3.3. Offer complies with underwriting acceptance authorities and criteria, or an appropriate referral approval is sought |
4. Negotiate agreement |
4.1. Negotiation is undertaken on revised offer to reach mutually satisfactory agreement 4.2. The client is advised of acceptance or rejection of the risk according to operating procedures (including information on dispute resolution procedure if necessary) |
5. Cancel/lapse or renew cover |
5.1. Revised documentation is issued to client in organisation format and according to organisation operating procedures and legislative requirements 5.2. Reinsurance cover is confirmed as appropriate 5.3. Lapse notice is issued to client, if applicable, in accordance with organisation procedures 5.4. Documentation is filed and stored according to operating procedures |
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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Risk acceptance information may be sourced from: |
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Terms and conditions of risk acceptability may include: |
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Client history may include: |
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Declining renewal means: |
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Revised documentation includes: |
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Legislative requirements refers to: |
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Unit Sector(s)
Unit sector |
Insurance services |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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