Unit of competency Outline
Date retreived
22/07/2026 8:24 PM AWST
22/07/2026 8:24 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Underwrite renewal business
Underwrite renewal business
Unit of competency
National Code
FNSISV404A
FNSISV404A
State Code
D4236
D4236
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
29/07/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to underwrite renewal business, including determining the terms and conditions of risk acceptance evaluating the response of the customer, negotiating and finalising the cover.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Notes
Elements and Performance Criteria
1. Determine terms and conditions of risk acceptability
- 1.1. Risk acceptance information is identified and reviewed
- 1.2. Risk acceptability is determined within authority limitations
- 1.3. Terms and conditions of risk acceptability are checked for changes since the last time it was reviewed for underwriting
- 1.4. Terms and conditions of risk acceptance are determined in accordance with risk acceptance criteria, including client history
- 1.5. If appropriate, alternative terms or adjusted benefits are proposed
2. Communicate result of risk assessment
- 2.1. Offer of renewal, if applicable, is made in accordance with legislative requirements
- 2.2. Provisional notice of expiry is issued to customer
- 2.3. Renewal is declined, if applicable, in accordance with legislative provisions
3. Evaluate client response
- 3.1. Client response is assessed to determine whether action to modify terms and conditions is required
- 3.2. Offer is modified, as necessary, and advice to client is prepared according to operating procedures
- 3.3. Offer complies with underwriting acceptance authorities and criteria, or an appropriate referral approval is sought
4. Negotiate agreement
- 4.1. Negotiation is undertaken on revised offer to reach mutually satisfactory agreement
- 4.2. The client is advised of acceptance or rejection of the risk according to operating procedures (including information on dispute resolution procedure if necessary)
5. Cancel/lapse or renew cover
- 5.1. Revised documentation is issued to client in organisation format and according to organisation operating procedures and legislative requirements
- 5.2. Reinsurance cover is confirmed as appropriate
- 5.3. Lapse notice is issued to client, if applicable, in accordance with organisation procedures
- 5.4. Documentation is filed and stored according to operating procedures
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Risk acceptance information may be sourced from:
amendments
assessor reports
broker slips
claims
for NZ: the New Zealand Claims Register
general knowledge
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts.
Terms and conditions of risk acceptability may include:
claims history
endorsements
excesses/deductibles
internal and industry statistics
pricing
quality of risk
reinsurance cover
risk factors
risk improvement requirements
variations in policy wording.
Client history may include:
financial results
insurance history
number of type of policies
time insured.
Declining renewal means:
advising client/broker/adviser of non-acceptance of risk and rationale for decision.
Revised documentation includes:
endorsement or renewal certificate.
Legislative requirements refers to:
all activities covered in this unit to be undertaken in line with the relevant current:
legislation
regulations
organisation operating procedures and
codes of practice, where applicable.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Risk acceptance information may be sourced from:
amendments
assessor reports
broker slips
claims
for NZ: the New Zealand Claims Register
general knowledge
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts.
Terms and conditions of risk acceptability may include:
claims history
endorsements
excesses/deductibles
internal and industry statistics
pricing
quality of risk
reinsurance cover
risk factors
risk improvement requirements
variations in policy wording.
Client history may include:
financial results
insurance history
number of type of policies
time insured.
Declining renewal means:
advising client/broker/adviser of non-acceptance of risk and rationale for decision.
Revised documentation includes:
endorsement or renewal certificate.
Legislative requirements refers to:
all activities covered in this unit to be undertaken in line with the relevant current:
legislation
regulations
organisation operating procedures and
codes of practice, where applicable.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with all legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop suitable products
maintain and apply sound understanding of relevant organisation products and services
correctly interpret and apply underwriting guidelines and procedures
identify and investigate risk as it relates to renewal business in accordance with underwriting and organisation guidelines
complete and file relevant documentation in accordance with organisation guidelines.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisation policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with all legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop suitable products
maintain and apply sound understanding of relevant organisation products and services
correctly interpret and apply underwriting guidelines and procedures
identify and investigate risk as it relates to renewal business in accordance with underwriting and organisation guidelines
complete and file relevant documentation in accordance with organisation guidelines.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisation policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS10 | FNSISV404 | Underwrite renewal business | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D713 | FNS41411 | Certificate IV in General Insurance | Qualification |
| S704 | FNS40510 | Certificate IV in Personal Injury Management (Underwriting) | Qualification |