Unit of competency Outline

Date retreived
22/07/2026 1:32 PM AWST

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Underwrite financial risk in life insurance policies

Underwrite financial risk in life insurance policies

Unit of competency
National Code
FNSILF410
State Code
ODR78
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
27/01/2022
View on TGA
State Implementation and Classification
Approved Date
08/04/2022
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
08/04/2022
Nominal Hours
50
Description
This unit describes the skills and knowledge required to assess applications for a life insurance policy to identify and underwrite associated financial risks.The unit applies to individuals who use specialised knowledge to determine financial risk, within a level of delegated authority, and to complete underwriting functions in the life insurance industry.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Collect information and identify financial risks
  • 1.1 Review application and associated documentation and identify required financial information according to organisational policies and procedures
  • 1.2 Interpret financial information and identify financial risk factors
  • 1.3 Assess need for additional financial information and collect supporting documents according to organisational policies and procedures and code of professional practice
2. Assess level of financial risk
  • 2.1 Identify potential risk implications of supplied financial information according to organisational policies and procedures
  • 2.2 Identify long-term risk implications of financial position and overall financial risk
  • 2.3 Select and apply financial risk-rating systems and risk-handling techniques
  • 2.4 Confirm outcome of financial risk-rating system with persons of authority according to organisational policies and procedures
3. Establish risk-acceptance criteria
  • 3.1 Identify risk-acceptance criteria to suit type and context of risk according to organisational policies and procedures
  • 3.2 Assess adequacy of financial information against risk-acceptance criteria according to organisational policies and procedures
  • 3.3 Consult with required personnel where clarification is required on adequacy of financial information provided
4. Prepare life insurance policy
  • 4.1 Develop policy terms of acceptance according to accepted levels of exposure
  • 4.2 Document life insurance policy with terms according to organisational policies and procedures and legislative and regulatory requirements
  • 4.3 Seek approval of drafted policy from required persons of authority
  • 4.4 Action feedback provided as required
  • 4.5 Resubmit for approval according to organisational policies and procedures, as required
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State Code National Code Title Type
BHK4 FNS41521 Certificate IV in Life Insurance Qualification