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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Underwrite a standard risk in short term personal/domestic insurance 
SAQA US ID UNIT STANDARD TITLE
10366  Underwrite a standard risk in short term personal/domestic insurance 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2002-06-12  2005-06-12  SAQA 0742/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2006-06-12   2009-06-12  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
120118  Underwrite a standard risk in short term personal insurance  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
  • The key purpose of underwriting risk in short term domestic insurance is to analyse the risk associated with personal/domestic assets. This standard focuses on making a short-term personal/domestic type insurance underwriting decision without referral.


    The qualifying learners is capable of:
  • Investigating the background and circumstances of the proposer.
  • Analysing the assets and liabilities of a personal/domestic proposal.
  • Investigating the loss history of a proposer.
  • Making an underwriting decision for a short-term personal/domestic standard risk.
  • Generating a contract for a standard personal domestic risk using pre-wordings.
  • Describing reinsurance of a standard risk in personal/domestic insurance. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in communication and mathematical literacy at Level 3 and know the products marketed by a short term insurance organisation.

    Before being credited with this unit standard learners are required to have 100 hours of monitored on the job experience. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
    1. Typical short-term personal/domestic insurance is insurance in car, householders, house owners, personal liability and small craft that applies to individuals. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Investigate the background and circumstances of the proposer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of a proposer is explained as it is used in short term insurance. 

    ASSESSMENT CRITERION 2 
    2. The concept of a standard risk is explained with reference to a domestic policy. 

    ASSESSMENT CRITERION 3 
    3. The circumstances under which an individual can be a proposer are explained as applied in short term insurance. 

    ASSESSMENT CRITERION 4 
    4. The concept of the insured is explained and an indication is given of the possible difference between the proposer and the insured. 

    ASSESSMENT CRITERION 5 
    5. The effect of age on premium is indicated as applied in short term insurance. 

    ASSESSMENT CRITERION 6 
    6. Occupations that pose a high risk in personal accident insurance are listed in a table and an indication is given of why each occupation listed is considered a high risk. 

    ASSESSMENT CRITERION 7 
    7. Moral and lifestyle factors that could indicate a high risk are named and an indication is given as to how these could be addressed in underwriting a contract. 

    ASSESSMENT CRITERION 8 
    8. A proposal is analysed and elements that could indicate a higher than usual risk are identified and investigated further. 

    ASSESSMENT CRITERION 9 
    9. The basic purpose of underwriting risk is known and explained with particular reference to short-term domestic insurance. 

    SPECIFIC OUTCOME 2 
    Analyse the assets and liabilities of a personal/domestic proposal. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of subject matter of insurance is explained with reference to a domestic proposal. 

    ASSESSMENT CRITERION 2 
    2. The concept of insurable interest and indemnity is explained with reference to the relationship between the proposer and the subject matter. 

    ASSESSMENT CRITERION 3 
    3. At least six different assets are named and an indication of location, value, use/occupation and type that could affect the risk in each case is indicated in a table. 

    ASSESSMENT CRITERION 4 
    4. Ten domestic assets are identified and reasons are given as to why each would be classified as a high, medium or low risk. 

    ASSESSMENT CRITERION 5 
    5. The risk attached to materials used in the construction of an asset is explained for three examples. 

    ASSESSMENT CRITERION 6 
    6. A simple site survey is conducted and a report written indicating hazards and protections and verifying assets and values. 

    SPECIFIC OUTCOME 3 
    Investigate the loss history of a proposer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The information on the proposal form is verified from the previous insurer. 

    ASSESSMENT CRITERION 2 
    2. Additional information relating to previous losses is requested and corrective measures taken to reduce risk are ascertained from the proposer. 

    ASSESSMENT CRITERION 3 
    3. The financial implications of the size and frequency of previous losses are ascertained and an indication is given of the previous claims' trend and the preferred risk when faced with a low frequency high risk or high frequency low risk. 

    SPECIFIC OUTCOME 4 
    Make an underwriting decision for a short-term personal/domestic standard risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. All the relevant information gathered is analysed and used to determine whether to accept or decline the proposal. 

    ASSESSMENT CRITERION 2 
    2. The premium rate is determined for the gross cost of risk. 

    ASSESSMENT CRITERION 3 
    3. Factors that warrant a loading or reduction are identified in terms of reducing perils, applying deductions, excesses and physical protection of assets. 

    ASSESSMENT CRITERION 4 
    4. The concepts of excess, deductibles and self-insurance are explained with reference to a particular policy document. 

    ASSESSMENT CRITERION 5 
    5. The premiums, terms and conditions applicable to a policy are determined and presented in a quotation. 

    ASSESSMENT CRITERION 6 
    6. The concept of underwriting retentions and insurance reinsurance are explained and an indication is given as to the relationship between the two. 

    ASSESSMENT CRITERION 7 
    7. Underwriting criteria are used to determine the need for reinsurance. 

    SPECIFIC OUTCOME 5 
    Generate a contract for a standard personal/domestic risk using pre-wordings. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Different sections of a policy wording contract are identified and explained in terms of the evidence that each provides of insurance. 

    ASSESSMENT CRITERION 2 
    2. Relevant policy wordings are selected for a particular domestic contract. 

    ASSESSMENT CRITERION 3 
    3. The selected wordings are combined in a contract. 

    SPECIFIC OUTCOME 6 
    Describe reinsurance of a standard risk in personal/domestic insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The importance of reinsurance is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of retention limit is explained and an indication is given of the consequences of non-compliance. 

    ASSESSMENT CRITERION 3 
    3. A facultative slip is completed for a specific policy. 

    ASSESSMENT CRITERION 4 
    4. The premium is calculated and presented as a bordereaux. 

    ASSESSMENT CRITERION 5 
    5. The process to be followed in renewing a policy is explained with reference to the facultative agreement. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA,
    INSQA framework for assessment and moderation. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    To enable competent performance and achievement the learner can
  • Understand and explain company policy.
  • Apply basic computer skills and use an electronic database to access and record information.
  • Know and explain what constitutes a short-term personal/domestic insurance risk. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners can recognise potential problems and make a decision to underwrite as a standard personal/domestic risk or to refer a case to a senior underwriter. 

    UNIT STANDARD CCFO WORKING 
    Learners can recognise the need to work effectively as a member of a team in order to assess a risk to the benefit of the client and acceptable risk to the company. 

    UNIT STANDARD CCFO ORGANISING 
    Learners can organise and manage own activities responsibly and effectively to maximise productivity and provide an efficient service to clients. 

    UNIT STANDARD CCFO COLLECTING 
    Learners can collect, organise and evaluate information in order to underwrite a standard short-term personal/domestic risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively in order to explain the rationale for underwriting decisions and create a written synopsis of information relevant to a case. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can use a computer to assist in processing information required to assess a short-term personal/domestic risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners can recognise that decisions are not made in isolation in assessing short-term personal/domestic risk. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by the unit standard 120118, which is " Underwrite a standard risk in short term personal insurance" , Level 4, 6 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2006-10-08  Was INSETA until Last Date for Achievement 
    Elective  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.