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: 

Explain fidelity insurance as a means of managing people related financial risk 
SAQA US ID UNIT STANDARD TITLE
14987  Explain fidelity insurance as a means of managing people related financial risk 
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  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2003-10-08  2006-02-09  SAQA 0150/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-02-09   2010-02-09  

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
120114  Apply technical knowledge and understanding of fidelity insurance as a means of managing people related financial risk  Level 4  NQF Level 04  3   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who manage asset risk in insurance and other organisations. It will be useful for risk management generalists and managers of small businesses.

The qualifying learner is capable of:
  • Explaining why a business may need a fidelity insurance policy.
  • Explaining the circumstances that could result in fidelity related loss.
  • Evaluating the potential risk in a proposal.
  • Interpreting a standard fidelity insurance policy. 
    		•

    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
  • Fidelity insurance refers to pecuniary loss suffered by the organisation caused by an insured person as a result of improper financial gain for that person.
  • It excludes instances where the person committing the fraud is not enriched personally. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why a business may need a fidelity insurance policy. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of fidelity insurance is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The financial advantages of having fidelity insurance are explained with reference to an entity's bottom line. 

    ASSESSMENT CRITERION 3 
    3. The importance of the Board of Directors determining the need for fidelity insurance and the value of indemnity is explained with reference to good corporate governance. 

    ASSESSMENT CRITERION 4 
    4. Reasons why an insurance market may refuse to underwrite fidelity risk are explained and an indication is given of the implications on corporate institutions and the economy. 

    SPECIFIC OUTCOME 2 
    Explain the circumstances that could result in fidelity related loss. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Personal circumstances as a means of detecting potential employee dishonesty are explained and an indication is given of why personal circumstances can be a useful indicator. 

    ASSESSMENT CRITERION 2 
    2. Annual leave as a means of detecting potential employee dishonesty is explained and an indication is given of why annual leave can be a useful indicator. 

    ASSESSMENT CRITERION 3 
    3. Circumstances that could possibly indicate that fraud has occurred are identified from two case studies. 

    ASSESSMENT CRITERION 4 
    4. The concept of fraud is explained in terms of improper financial gain. 

    ASSESSMENT CRITERION 5 
    5. Extent of indemnity is explained with reference to circumstances in an entity that could impact on levels of indemnity required by an organisation. 

    SPECIFIC OUTCOME 3 
    Evaluate the potential risk in a proposal for fidelity insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. A blank fidelity proposal document is analysed to determine the potential circumstances that could result in a claim. 

    ASSESSMENT CRITERION 2 
    2. Potential risks that can be inferred from responses to three questions in a fidelity proposal document are identified and an indication is given of the consequences of each potential risk. 

    ASSESSMENT CRITERION 3 
    3. Three claims against a fidelity insurance policy are analysed and the circumstances of each are related back to the original proposal in order to identify possible malicious intent and improper financial gain. 

    SPECIFIC OUTCOME 4 
    Interpret a standard fidelity insurance policy. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The conditions of a standard fidelity insurance policy are interpreted in terms of period of insurance with reference to retroactive date and run over cover. 

    ASSESSMENT CRITERION 2 
    2. Defined events in a standard fidelity insurance policy are interpreted and explained with reference to the persons and circumstances covered by the policy. 

    ASSESSMENT CRITERION 3 
    3. The concept of an employee is explained with reference to a fidelity insurance policy. 

    ASSESSMENT CRITERION 4 
    4. Exclusions in a fidelity insurance policy are identified and an indication is given of the people and circumstances that would not be covered in the insured entity. 

    ASSESSMENT CRITERION 5 
    5. Conditions that are exclusive to a fidelity insurance policy are identified and an indication is given of why the conditions apply. 

    ASSESSMENT CRITERION 6 
    6. Additional cover provided in a specific fidelity insurance policy is identified with reference to additional clauses and warranties. 


    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 evaluating the potential risk in a proposal for fidelity insurance. 

    UNIT STANDARD CCFO ORGANISING 
    Learners are able to collect, organise and critically evaluate information in interpreting a fidelity insurance policy and in analysing the circumstances of claims and relating the circumstances back to the original proposal. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to understand the world as a set of related systems by explaining relationships between personal circumstances and annual leave as indicators of potential employee dishonesty. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 120114, which is "Apply technical knowledge and understanding of fidelity insurance as a means of managing people related financial risk", Level 4, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    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  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.