Unit of competency Outline

Information current as of
23/10/2026 11:48 PM AWST

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Settle policy payments and terminations

Settle policy payments and terminations

Unit of competency
National Code
FNSILF402
State Code
AUR88
TGA Status
Deleted
DTWD Status
Deleted
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Original Release Date
25/03/2015
Nominal Hours
50
Field of Education
081103 - Insurance And Actuarial Studies
Description
This unit describes the skills and knowledge required to settle payments and terminations on life insurance policies.It applies to job roles within the specialist area of life insurance and may be applied within organisations of various sizes and across a range of customer 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.
General notes
N/A
Elements and Performance Criteria
1. Establish validation criteria
  • 1.1 Identify product type to determine payment criteria and facilitate processing of payment or termination
  • 1.2 Establish payment criteria to ensure compliance with terms and conditions of contract
2. Compile necessary documentation
  • 2.1 Classify requests according to established payment criteria and obtain required evidence from appropriate parties to confirm that request complies with terms and conditions of policy
  • 2.2 Complete and distribute forms and documents in accordance with legislation, and organisational policy and procedures
3. Advise client of the consequences of processing settlement
  • 3.1 Identify consequences relevant to policy type
  • 3.2 Communicate information clearly and concisely to ensure client understands consequences
  • 3.3 Record and file result of communication according to organisational procedures to ensure record is complete
4. Assign validity of request
  • 4.1 Validate request within limits of delegated authority
  • 4.2 Communicate decision to proceed with payment or termination of contract to relevant parties
5. Review evidence available in support of payment request
  • 5.1 Establish payment criteria to enable compliance to be determined within terms and conditions of policy, legislation and regulations
  • 5.2 Review available information on payment request against criteria to ensure compliance
  • 5.3 Assess request to determine whether terms and conditions of policy have been met
  • 5.4 Seek additional opinion from relevant parties on validity of request
6. Establish liability for payment under policy
  • 6.1 Identify liability in accordance with terms and conditions of policy
  • 6.2 Review evidence against policy to determine benefits payable
  • 6.3 Accurately calculate and cross-check benefits payable according to organisational procedures
  • 6.4 Update register and record payment liability and, if appropriate, initiate reinsurance recovery
7. Facilitate payment where required and communicate decision
  • 7.1 Promptly advise all relevant parties of decision on liability
  • 7.2 Identify level of payment authority from organisational standards and procedures
  • 7.3 Check that payment details are within delegated authority and compliant with legislative and organisational requirements
  • 7.4 Confirm authorisation and obtain discharge as appropriate
No information
No information
Replaces
State Code National Code Title Type
D4175 FNSILF402A Settle policy payments and terminations Unit of competency
No information