Unit of competency Outline
Date retreived
22/07/2026 8:32 PM AWST
22/07/2026 8:32 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.
Process life insurance contract maturity and surrender payment requests
Process life insurance contract maturity and surrender payment requests
Unit of competency
National Code
FNSILF408A
FNSILF408A
State Code
WC241
WC241
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
30
Description
This unit describes the performance outcomes, skills and knowledge required to process applications for surrender and maturity payment requests relating to non-risk-based life insurance policies.
Notes
Elements and Performance Criteria
1. Receive notification
- 1.1 Receive request for surrender or notification of maturity of a relevant life insurance contract
- 1.2 Check that documentation is correct and complete
- 1.3 Check request is valid
- 1.4 Determine organisational authority level required to process the request and refer it to an appropriately authorised individual or department as necessary
2. Advise claimant of the consequences of processing the settlement
- 2.1 Advise claimant of the consequences of proceeding with settlement
- 2.2 Inform the client of alternatives to surrender where appropriate
- 2.3 Obtain discharge as appropriate
3. Calculate payment
- 3.1 Verify entitlements on the basis of supplied evidence and the terms and conditions of the life insurance policy
- 3.2 Calculate and check entitlements in accordance with procedures and regulatory requirements
4. Finalise settlement
- 4.1 Confirm method of payment with client
- 4.2 Enter and confirm payment information on appropriate systems to make payment
- 4.3 Communicate settlement details to relevant stakeholders, as required, in accordance with procedures and regulatory requirements
- 4.4 Update records and file documentation in accordance with procedures and regulatory requirements
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.
Relevant life insurance contract may include:
annuities
endowment policies
investment account contracts
investment-linked contracts
whole of life policies.
Valid must include:
policy exists
policy is current
claimant is authorised to deal with the policy.
Consequences may include:
lump sum payment
loss of future benefits
loss of linked insurance cover.
Alternatives to surrender may include:
loan against policy
rollover
partial surrender
non surrender.
Entitlements may include:
sums based on:
cancellation
commutation (for annuities and other income streams)
maturity
surrender
retirement
rollover
satisfying another condition of release.
Evidence may include:
proof of title
proof of survival
proof of age.
Terms and conditions may include:
policy term
policy exclusions.
Procedures may include:
organisational complaints handling processes
organisational customer service charter
organisational guidelines
organisational policy
organisational privacy and confidentiality guidelines
organisational procedures.
Regulatory requirements may include:
life insurance legislation
corporations legislation
privacy legislation
Australian Securities and Investments Commission (ASIC) regulatory guides.
Appropriate systems may include:
policy administration systems
document management systems.
Relevant stakeholders may include:
internal parties
administrators
trustees
underwriters
claimant and associated parties
advisers
assignees
beneficiaries
executors
lawyers
life insured
next of kin
policy owners.
Relevant life insurance contract may include:
annuities
endowment policies
investment account contracts
investment-linked contracts
whole of life policies.
Valid must include:
policy exists
policy is current
claimant is authorised to deal with the policy.
Consequences may include:
lump sum payment
loss of future benefits
loss of linked insurance cover.
Alternatives to surrender may include:
loan against policy
rollover
partial surrender
non surrender.
Entitlements may include:
sums based on:
cancellation
commutation (for annuities and other income streams)
maturity
surrender
retirement
rollover
satisfying another condition of release.
Evidence may include:
proof of title
proof of survival
proof of age.
Terms and conditions may include:
policy term
policy exclusions.
Procedures may include:
organisational complaints handling processes
organisational customer service charter
organisational guidelines
organisational policy
organisational privacy and confidentiality guidelines
organisational procedures.
Regulatory requirements may include:
life insurance legislation
corporations legislation
privacy legislation
Australian Securities and Investments Commission (ASIC) regulatory guides.
Appropriate systems may include:
policy administration systems
document management systems.
Relevant stakeholders may include:
internal parties
administrators
trustees
underwriters
claimant and associated parties
advisers
assignees
beneficiaries
executors
lawyers
life insured
next of kin
policy owners.
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:
apply analytical and administrative skills in the settlement of non-risk-based requests
maintain and apply a thorough and up-to-date understanding of life insurance terms and conditions and claims processing
maintain and apply a thorough and up-to-date understanding of life insurance administrative requirements
perform tasks in accordance with relevant procedures and regulatory requirements.
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 records
access to corporate Privacy Policy
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 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
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply analytical and administrative skills in the settlement of non-risk-based requests
maintain and apply a thorough and up-to-date understanding of life insurance terms and conditions and claims processing
maintain and apply a thorough and up-to-date understanding of life insurance administrative requirements
perform tasks in accordance with relevant procedures and regulatory requirements.
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 records
access to corporate Privacy Policy
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 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 |
|---|---|---|---|
| AUR74 | FNSILF408 | Process life insurance contract maturity and surrender payment requests | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D775 | FNS41512 | Certificate IV in Life Insurance | Qualification |