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: 

Apply the law of contract to insurance 
SAQA US ID UNIT STANDARD TITLE
14991  Apply the law of contract to 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  2 
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
120128  Apply the law of contract to insurance  Level 4  NQF Level 04  3   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in insurance and those who manage asset risk in insurance and other organisations.

The qualifying learner is capable of:
  • Explaining the law of contract as applied in insurance.
  • Explaining the application of legal capacity in an insurance contract.
  • Interpreting the basic principles required for an insurance contract to be legally binding.
  • Evaluating a proposed insurance contract. 
    		•

    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 a NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is legislation relevant to a sector
  • Essential elements of the law of contract are offer, acceptance, consensus, legal capacity and bona fides.
  • The basic principles of an insurance contract are insurable interest, bona fides and disclosures of material facts. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the law of contract as applied in insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of the law of contract is explained with reference to its essential elements. 

    ASSESSMENT CRITERION 2 
    2. The difference between a law of contract and an insurance contract is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. Evidence that is required for an insurance contract to be legally binding is named and compared for short term and long term insurance. 

    ASSESSMENT CRITERION 4 
    4. The parties to a contract are named for a selected sub sector. 

    ASSESSMENT CRITERION 5 
    5. The application of the Insurance Act in insurance is explained and an indication is given of when the Insurance Act takes precedence over the law of contract. 

    SPECIFIC OUTCOME 2 
    Explain the application of legal capacity in an insurance contract. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of legal capacity is explained with examples of how it is applied in insurance. 

    ASSESSMENT CRITERION 2 
    2. The difference between legal capacity in a contract and legal capacity in an insurance contract is explained with reference to the application of insurance legislation, entering into a policy and borrowing against a policy. 

    ASSESSMENT CRITERION 3 
    3. Three examples of case law are analysed and discussed in terms of the precedents set. 

    SPECIFIC OUTCOME 3 
    Interpret the basic principles required for an insurance contract to be legally binding. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The basic principles of an insurance contract are explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Conditions under which a contract is not legally binding are explained with reference to three case studies. 

    SPECIFIC OUTCOME 4 
    Evaluate a proposed insurance contract. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. A proposal is analysed in terms of liability and the law of contract as applied to insurance. 

    ASSESSMENT CRITERION 2 
    2. Instances where company policy is applied in addition to legal requirements are identified and an indication is given of why the company applies the requirement(s). 


    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 capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in identifying conditions under which a contract is not legally binding from case studies. 

    UNIT STANDARD CCFO ORGANISING 
    Learners are capable of collecting, organising and critically evaluating information in analysing case law in terms of precedents. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in discussing case law and explaining the issues in the Unit Standard. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 120128, which is "Apply the law of contract to insurance", 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
    Core  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Core  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Core  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Core  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  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 


    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.