Unit of competency Outline
Date retreived
22/07/2026 6:33 PM AWST
22/07/2026 6:33 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.
Manage contractual obligations for insurance and insurance broking products
Manage contractual obligations for insurance and insurance broking products
Unit of competency
National Code
FNSIBK603A
FNSIBK603A
State Code
D4198
D4198
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
31/07/2014
Nominal Hours
70
Description
This unit describes the performance outcomes, skills and knowledge required to manage contractual requirements including legislative and code of practice obligations in relation to life or general insurance products offered by an insurance brokerage.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 rights and obligations appropriate to each contract or policy
- 1.1. Terms and conditions of all contracts, policies and retirement plans are examined and all legislative, contract and code of practice requirements are identified.
- 1.2. Identified rights, obligations and legislative requirements are documented so that appropriate procedures can be developed.
2. Develop procedures to enable rights, obligations and legislative requirements to be met
- 2.1. Identify and document appropriate system needs in order to meet rights and obligations and legislative and code of practice requirements within organisation objectives.
- 2.2. Contingency plans are developed and documented to ensure that contractual rights, obligations and legislative requirements are met in the event of unusual situations arising.
3. Implement procedures to meet rights, obligations and legislative requirements
- 3.1. Action plan is published so that all relevant areas are briefed concerning procedures to be implemented.
- 3.2. Procedure is implemented according to action plan.
4. Monitor compliance with rights, obligations and legislative requirements
- 4.1. Rights, obligations and legislation requirements are reviewed against terms and conditions of each contract of insurance regularly to ensure reliability and validity of interpretation.
- 4.2. Procedures and processes are altered in response to changes in interpretation.
5. Maintain premium currency of insurance policy
- 5.1. Premium records are accurately maintained in line with organisation procedures.
- 5.2. Premium billings are generated in accordance with organisation procedures and contractual obligations.
- 5.3. All monies received are accurately processed to policy records in accordance with organisation procedures.
- 5.4. Conservation procedures are undertaken within required timelines and organisation 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.
Contracts, policies and retirement plans may relate to:
client
organisation
insured
member
policyholder
trustee.
System needs may include:
budgets
cost-effective processes
electronic systems
manual systems
quality.
Action plan may include:
accounting
authorised representatives
branches
customer service
customers
other financial institutions.
Legislation may include:
Consumer Affairs Act
contract law
Financial Services Reform Act
Insurance Contracts Act
Life Insurance Act
Privacy Act
regulatory bodies including ASIC, Australian Taxation Office (ATO)
Trade Practices Act
trust law
workers compensation Acts.
Reviewed will include pro-active and reactive steps taken to:
deal with customer complaints
comply with legislation
assess market trends.
Billings can include:
direct debit
group payments
notices.
Conservation procedures include:
agent/office intervention
non-forfeiture provisions
reinstatement procedures.
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.
Contracts, policies and retirement plans may relate to:
client
organisation
insured
member
policyholder
trustee.
System needs may include:
budgets
cost-effective processes
electronic systems
manual systems
quality.
Action plan may include:
accounting
authorised representatives
branches
customer service
customers
other financial institutions.
Legislation may include:
Consumer Affairs Act
contract law
Financial Services Reform Act
Insurance Contracts Act
Life Insurance Act
Privacy Act
regulatory bodies including ASIC, Australian Taxation Office (ATO)
Trade Practices Act
trust law
workers compensation Acts.
Reviewed will include pro-active and reactive steps taken to:
deal with customer complaints
comply with legislation
assess market trends.
Billings can include:
direct debit
group payments
notices.
Conservation procedures include:
agent/office intervention
non-forfeiture provisions
reinstatement procedures.
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 manage compliance requirements relating to contracts of insurance.
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 organisational 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
setting and reviewing workplace projects and business simulations or scenarios.
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 manage compliance requirements relating to contracts of insurance.
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 organisational 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
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR58 | FNSIBK603 | Manage contractual, legislative and code of practice obligations and requirements | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S734 | FNS60110 | Advanced Diploma of Insurance Broking | Qualification |