SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Describe short term insurance

SAQA US ID	UNIT STANDARD TITLE
8989	Describe 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 3	NQF Level 03	2
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2002-02-13	2004-08-11	SAQA 0540/02
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2005-08-11		2008-08-11

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
114964	Describe short term insurance	Level 3	NQF Level 03	3

PURPOSE OF THE UNIT STANDARD

This unit standard introduces the basic concepts of short term insurance and provides a broad introduction to short term insurance.

The qualifying learner is capable of:

Knowing and understanding the concept of short term insurance.

Identifying different products that a short-term insurance organisation/provider markets.

Categorising the different types of short-term insurance.

Recognising events that impact on short-term insurance.

Applying knowledge of customer profiles and risk to short-term insurance.

Asking questions to obtain information.

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 2.

UNIT STANDARD RANGE

The typical scope of this unit standard is
1. Target market: personal lines, corporate and commercial.

2. Insurance classes:

Fire or Interruption,

Engineering, Liability,

Motor,

Transit,

Marine,

Breakdown,

Personal Accident,

Professional Indemnity,

Aviation, and

Crime Classes, etc.

3. Specialist categories: marine, aviation and engineering.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Know and explain the concept of short-term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concept of insuring for a fortuitous event is understood and examples are used to illustrate the concept.

ASSESSMENT CRITERION 2

2. The concept of different insurance needs at different times in a person's life is illustrated on a time line.

ASSESSMENT CRITERION 3

3. The possibility of needing insurance is compared for three different events.

ASSESSMENT CRITERION 4

4. Basic terms associated with short term insurance such as insurable interest and indemnity are understood and explained with reference to a specific policy.

ASSESSMENT CRITERION 5

5. The advantages and disadvantages of short-term insurance are listed from the point of view of a policy holder.

ASSESSMENT CRITERION 6

6. The effects of a particular event on a short-term insurance organisation are compared for a scenario with or without reinsurance.

ASSESSMENT CRITERION 7

7. The implication of non-disclosure for the individual and the organisation are explained for short-term insurance.

SPECIFIC OUTCOME 2

Identify the different products that a short-term insurance organisation/provider markets.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Five different short-term insurance products are named with examples of each.

ASSESSMENT CRITERION 2

2. The excess on different products is compared based on the risk and characteristics of the product.

ASSESSMENT CRITERION 3

3. The benefits of products are compared with reference to policies.

ASSESSMENT CRITERION 4

4. The concept of outsurance is compared to that of traditional short-term insurance and a decision is made as to which type of insurance best suits own circumstances.

SPECIFIC OUTCOME 3

Categorise the different types of short-term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The basis for the classification of a short-term policy is indicated according to its target market.

ASSESSMENT CRITERION 2

2. The type of risk in two short-term policies is compared and reasons are given for the difference in risk.

ASSESSMENT CRITERION 3

3. The classes applied to short-term insurance are named with an example of each type of insurance.

ASSESSMENT CRITERION 4

4. Two examples of specialist categories of short-term insurance are listed with examples of each type of insurance.

SPECIFIC OUTCOME 4

Recognise events that impact on short-term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The impact of location, circumstances and claims history on policy premiums is explained with reference to actual examples.

ASSESSMENT CRITERION 2

2. The frequency of claims is explained in terms of nature of risk with reference to a claims statistics report.

ASSESSMENT CRITERION 3

3. The concept of size of risk is explained using a graph to illustrate the underlying principles.

ASSESSMENT CRITERION 4

4. A peril is explained with reference to difference classes of insurance.

SPECIFIC OUTCOME 5

Apply knowledge of customer profiles and risk to short term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Various consumer profiles are established and compared using a case study.

ASSESSMENT CRITERION 2

2. The risk categories most likely to apply to the customers in the case study are identified and linked to the customer profile.

ASSESSMENT CRITERION 3

3. The advantages and disadvantages of taking out short-term insurance are compared with examples from case studies involving self insurance and insurance.

ASSESSMENT CRITERION 4

4. A table is compiled that indicates the most typical customer profiles and the types of insurance cover best suited to their needs.

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.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

Learners can identify and solve problems by comparing the need for insurance, by explaining the implications of non-disclosure and by matching the customer`s profile to short-term insurance classes of business.

UNIT STANDARD CCFO ORGANISING

Learners can collect, organise and evaluate information when comparing the risk element of 2 short-term policies and by giving reasons for the differences in risk.

UNIT STANDARD CCFO COMMUNICATING

Learners can communicate effectively using visual, mathematics and language skills when using case studies of customer profiles and when graphically presenting their findings.

UNIT STANDARD CCFO DEMONSTRATING

Learners are able to demonstrate an understanding of the world as a set of related systems when comparing the effects of a particular event on a short-term insurance organisation for a scenario with or without reinsurance.

UNIT STANDARD CCFO CONTRIBUTING

A learner is able to participate as a responsible citizen in his/her work community when explaining the implications of non-disclosure for the individual and the organisation.

UNIT STANDARD NOTES

This unit standard has been replaced by unit standard 114964, which is "Describe short term insurace", Level 3, 3 credits as from 11 Aug 2004

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	20177	National Certificate: Insurance	Level 3	NQF Level 03	Passed the End Date - Status was "Registered"	2004-10-10	Was INSETA until Last Date for Achievement
Core	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
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.

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