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

Demonstrate knowledge and understanding of credit risk insurance 
SAQA US ID UNIT STANDARD TITLE
14982  Demonstrate knowledge and understanding of credit risk 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 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2003-10-08  2006-10-08  SAQA 0150/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-10-08   2010-10-08  

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
242677  Demonstrate knowledge and understanding of trade credit insurance  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who work in the field of credit insurance.

The qualifying learner is capable of:
  • Explaining credit risk insurance.
  • Describing the business cycle of credit risk
  • Differentiating between a good and a bad risk.
  • Matching the type of credit risk to an appropriate product. 

  • 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 and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Information required to assess a good or bad risk includes, but is not limited to, judgements, liquidity, bureau representation, financial statements, banking information, personal visits and adverse information. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain credit risk insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of credit risk is explained and an indication is given of the purpose of credit risk insurance. 

    ASSESSMENT CRITERION 2 
    2. Situations where credit insurance is required are listed and an indication is given of the target market and the legislation regulating credit risk insurance in each market. 

    ASSESSMENT CRITERION 3 
    3. The key players in the credit insurance market are named with reference to the insured, the insurer and the debtor. 

    ASSESSMENT CRITERION 4 
    4. The concept of a judgement is explained with examples. 

    ASSESSMENT CRITERION 5 
    5. The concept of liquidation is explained with examples. 

    ASSESSMENT CRITERION 6 
    6. The concept of sequesration is explained with examples. 

    ASSESSMENT CRITERION 7 
    7. The concept of a default is explained with examples. 

    SPECIFIC OUTCOME 2 
    Describe the business cycle of a credit risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The process followed in establishing a client base is explained with reference to a lead, proposal, quotation, acceptance, policy limits and claims. 

    ASSESSMENT CRITERION 2 
    2. Reasons why the insurer may decide to terminate a policy are explained with examples. 

    ASSESSMENT CRITERION 3 
    3. Reasons why the insured may decide to terminate a policy are explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The role of intermediaries in sales and servicing a policy is explained with reference to limits, claims, product development and documentation. 

    SPECIFIC OUTCOME 3 
    Differentiate between a good and a bad risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of a good risk is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of a bad risk is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. Internal factors that affect the status of a risk are explained with reference to management of a business. 

    ASSESSMENT CRITERION 4 
    4. External factors that affect the status of a risk are explained with reference to the current economic climate, the type of industry, competition, political stability and legislation. 

    ASSESSMENT CRITERION 5 
    5. The information required to assess a good or bad risk is listed and an indication is given of how each type of information contributes to the assessment. 

    ASSESSMENT CRITERION 6 
    6. Three case studies are analysed to determine whether the risk in each case study is acceptable or not. 

    SPECIFIC OUTCOME 4 
    Match the type of credit risk to an appropriate product. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A basic credit insurance policy document is interpreted and an indication is given of the cover provided and the exclusions to the policy. 

    ASSESSMENT CRITERION 2 
    2. Products marketed as credit insurance are named and an indication is given of the purpose of each product and the intended target market. 

    ASSESSMENT CRITERION 3 
    3. The needs of three different companies are analysed and a solution proposed to meet the needs of each company. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the INSQA or with an ETQA that has a Memorandum of Understanding with the INSQA
  • Moderators must be registered as assessors with INSQA, or with an ETQA that has a Memorandum of Agreement with INSQA.
  • Training providers must be accredited by the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners are able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in analysing case studies to determine if the risk is acceptable and proposing potential solutions to meet the credit insurance needs of different companies. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information in indicating the information required to assess a risk and explaining credit insurance products. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively in explaining the business cycle of a credit risk and the role of intermediaries in credit insurance and in interpreting a policy document. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to see the world as a set of related systems in recognising the internal and external factors that affect the status of a risk. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242677, "Demonstrate knowledge and understanding of trade credit 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 


    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.