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

Describe financial interactions of insurers and intermediaries in short term insurance 
SAQA US ID UNIT STANDARD TITLE
10372  Describe financial interactions of insurers and intermediaries in short term 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" 
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
120129  Demonstrate knowledge and understanding of financial interactions of insurers, underwriting managers and intermediaries in short term insurance  Level 4  NQF Level 04   

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for learners who wish to follow a career path in short term insurance.

The qualifying learner is capable of:
  • Explaining the basic accounting practices that are used by insurers and intermediaries in financial communication in short term insurance.
  • Reconciling payments on a short term insurance policy.
  • Describing payments made by intermediaries and insurers.
  • Explaining how insurers manage the financial relationship with intermediaries. 

  • 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, Mathematical and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
    1. Ways in which payments are made include stop orders, debit orders, cash payments, credit card payments and bordereaux.
    2. Reconciliation of payments includes individual and bordereaux. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the basic accounting practices that are used. 
    OUTCOME NOTES 
    Explain the basic accounting practices that are used by insurers, underwriting managers and intermediaries in financial communication. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of commission is explained and an indication is given of legislation that applies to the payment of commission on short term insurance policies. 

    ASSESSMENT CRITERION 2 
    2. The concepts of premiums and collections are explained and an indication is given of legislation that applies to premiums and collections on short term insurance policies. 

    ASSESSMENT CRITERION 3 
    3. The different ways in which payments may be made and processed are described for an intermediary, underwriting manager and an insurer. 

    ASSESSMENT CRITERION 4 
    4. The implications if a premium is not paid are explained for three different scenarios. 

    ASSESSMENT CRITERION 5 
    5. The importance of the close off date is explained in terms of amendments to a policy and collection of payment. 

    SPECIFIC OUTCOME 2 
    Reconcile payments on a short term insurance policy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Reasons for an over or under deduction or payment on a short term insurance policy are investigated and possible avenues for taking corrective action are explained for three examples. 

    ASSESSMENT CRITERION 2 
    2. The concepts of debit and credit are explained as applied in the insurance industry. 

    ASSESSMENT CRITERION 3 
    3. The concept of pro rata is explained in relation to amendments, to a short term insurance policy. 

    ASSESSMENT CRITERION 4 
    4. An account is reconciled in response to a query. 

    ASSESSMENT CRITERION 5 
    5. The way in which a pro rata payment is calculated is explained and demonstrated for three examples. 

    SPECIFIC OUTCOME 3 
    Describe payments made by intermediaries, underwriting managers and insurers. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for direct payment to and from clients. 

    ASSESSMENT CRITERION 2 
    2. The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for payment to and from intermediaries. 

    ASSESSMENT CRITERION 3 
    3. The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for direct payment to and from insurers. 

    SPECIFIC OUTCOME 4 
    Explain how insurers and underwriting managers manage the financial relationship with intermediaries 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The terms and conditions of a contract between insurer and intermediary are explained with reference to the financial aspects of a particular contract. 

    ASSESSMENT CRITERION 2 
    2. Levels of authority within the accounts department are known and an indication is given of the implications of non-compliance. 

    ASSESSMENT CRITERION 3 
    3. The concept of a claim fund is explained and an indication is given of how a contract between an intermediary and an insurer regulates the fund. 


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


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner can collect, organise and evaluate information when reconciling an account in response to a query. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner can communicate effectively using visual, mathematical and language skills in oral and written presentation when calculating a pro rata payment and offering the explanations required in the unit standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner can demonstrate an understanding of the world as a set of related systems by explaining the implications of non-compliance with authority levels. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner can manage him/herself and his/her own activities when ensuring that amendments to a policy and the collection of premiums are effected by close off date. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 120129, which is "Demonstrate knowledge and understanding of financial interactions of insurers, underwriting managers and intermediaries in short term insurance", Level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  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.
     
    1. Invuya Institute of Learning (Pty) Ltd 



    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.