Unit of competency Outline

Date retreived
22/07/2026 9:18 PM AWST

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Underwrite new business

Underwrite new business

Unit of competency
National Code
FNSISV402
State Code
AUS01
TGA Status
Replaced
DTWD Status
Transition (Replaced)
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
16/09/2015
Nominal Hours
50
Description
This unit describes the skills and knowledge required to conduct underwriting of new business, including determining the terms and conditions, risk acceptance, evaluating the response of the client, negotiating and finalising the cover.It applies to individuals in a range of insurance sectors and may be applied within organisations of various sizes and across a range of client bases.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Determine terms and conditions of risk acceptability
  • 1.1 Collect risk acceptance information and determine terms and conditions of acceptance
  • 1.2 Determine risk acceptability within authority limitations and capacities
  • 1.3 Determine terms and conditions of risk acceptance in accordance with risk acceptance criteria
  • 1.4 Determine referrals, where appropriate
  • 1.5 Place facultative reinsurance, where appropriate
2. Communicate result of risk assessment
  • 2.1 Prepare and communicate quotation, if required
  • 2.2 Advise client of terms and conditions of risk acceptance, including expiry date of offer and pricing, within appropriate timeframes
  • 2.3 Advise rejection of risk, if applicable, as soon as it is evident that risk falls outside guidelines or as soon as decision is made not to underwrite risk
3. Evaluate client response
  • 3.1 Assess client response to determine whether action to modify terms and conditions is required
  • 3.2 Modify offer as necessary and prepare advice to client according to operating procedures
  • 3.3 Ensure modified offer complies with underwriting acceptance authorities and criteria, or seek appropriate referral approval
4. Negotiate agreement
  • 4.1 Undertake negotiation on revised offer to reach mutually satisfactory agreement, including change to reinsurance where applicable
  • 4.2 Advise client of acceptance or rejection of risk according to operating procedures
  • 4.3 Establish mechanism to check that conditions have been met, if conditions have been placed on acceptance of risk
5. Issue interim cover where required
  • 5.1 Specify disclosure requirements in all cases
  • 5.2 Issue initial documentation to client in organisation’s format and according to operating procedures
  • 5.3 Confirm reinsurance cover, as appropriate
  • 5.4 Obtain additional information, as required
  • 5.5 File and store documents in accordance with organisational operating procedures
  • 5.6 Monitor expiry of interim cover following standard operating procedures, to ensure any required terms are met prior to issue of policy
No information
No information
Replaces
State Code National Code Title Type
D4234 FNSISV402A Underwrite new business Unit of competency
Replaced By
State Code National Code Title Type
OCZ21 FNSISV412 Underwrite insurance business Unit of competency