Unit of competency Outline
Date retreived
22/07/2026 8:36 PM AWST
22/07/2026 8:36 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.
Negotiate and effect settlement
Negotiate and effect settlement
Unit of competency
National Code
FNSILA504A
FNSILA504A
State Code
D4221
D4221
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
60
Description
This unit describes the performance outcomes, skills and knowledge required to identify all available options for settlement and to assist in the settlement process relating to loss situations, damage or injury including dispute resolution in the case of contention within the settlement process.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. Prepare for negotiation
- 1.1. All relevant issues and options for settlement are accurately identified in advance
- 1.2. Additional information to support identified options is obtained from relevant sources and parties
- 1.3. Cost-benefit analysis is carried out on the various options identified
- 1.4. Settlement options are documented and prepared accurately and in a professional format prior to negotiations, and are in accordance with client or organisation policy and guidelines and with relevant legislation or codes of practice
2. Attend meetings with involved parties
- 2.1. All information and data needed for settlement meetings are documented and prepared accurately and in a professional format prior to meetings
- 2.2. Meetings of involved parties are arranged and conducted in an orderly, courteous, and professional manner to ensure resolution of issues and settlement
- 2.3. Outcomes of meetings between involved parties are documented accurately and promptly and are conveyed to clients and all other parties
- 2.4. Wherever appropriate, all documents and information processed as part of the loss adjustment activities are made available to other involved parties promptly
3. Represent clients in cases where disputation arises
- 3.1. Clients or organisational interests are satisfactorily represented and all relevant documents and information are provided to other involved parties
- 3.2. Disputations are managed courteously and professionally to ensure the best and most expeditious outcome for clients or organisations at minimum monetary and other costs
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.
Settlement may include:
acceptance or denial of claim
monetary pay out
reinstatement or replacement
repair
withdrawal of claim.
Client or organisation policy and guidelines may include:
Australasian Institute of Chartered Loss Adjusters (AICLA) Charter of Objects and Professional Conduct
claims
clerical
codes of practice
complaints and dispute resolution procedures
information technology and administrative systems
loss
loss recovery
policies and procedures in relation to risks.
Relevant legislation may include:
building or construction
Consumer Credit Codes
contracts law
environmental
hazardous materials
Insurance Agents and Brokers Act
Insurance Contracts Act
motor vehicle
occupational health and safety (OHS)
Privacy Act
Trade Practices Act.
Documents may include:
interview records
legal, government, professional and other documents
meeting notes
minutes
official, general and other correspondence
reasons for adopting/incorporating certain evidence/information preferred over other evidence and information
records of telephone conversations
reference to all evidence and information considered
reports from others such as loss adjusters, assessors, insurers, medical providers and others
the basis on which the decision was determined
time sheets.
Representing clients in disputations may involve:
formal legal proceedings
informal meetings between involved parties
more formal conciliation.
Costs may include:
administrative
legal
money
professional
reputation
time.
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.
Settlement may include:
acceptance or denial of claim
monetary pay out
reinstatement or replacement
repair
withdrawal of claim.
Client or organisation policy and guidelines may include:
Australasian Institute of Chartered Loss Adjusters (AICLA) Charter of Objects and Professional Conduct
claims
clerical
codes of practice
complaints and dispute resolution procedures
information technology and administrative systems
loss
loss recovery
policies and procedures in relation to risks.
Relevant legislation may include:
building or construction
Consumer Credit Codes
contracts law
environmental
hazardous materials
Insurance Agents and Brokers Act
Insurance Contracts Act
motor vehicle
occupational health and safety (OHS)
Privacy Act
Trade Practices Act.
Documents may include:
interview records
legal, government, professional and other documents
meeting notes
minutes
official, general and other correspondence
reasons for adopting/incorporating certain evidence/information preferred over other evidence and information
records of telephone conversations
reference to all evidence and information considered
reports from others such as loss adjusters, assessors, insurers, medical providers and others
the basis on which the decision was determined
time sheets.
Representing clients in disputations may involve:
formal legal proceedings
informal meetings between involved parties
more formal conciliation.
Costs may include:
administrative
legal
money
professional
reputation
time.
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:
maintain and apply thorough knowledge of types and categories of insurance policies, industry codes of practice and relevant legislation
follow loss adjusting practices and principles
apply security practices and principles
use risk management/minimisation practices.
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:
maintain and apply thorough knowledge of types and categories of insurance policies, industry codes of practice and relevant legislation
follow loss adjusting practices and principles
apply security practices and principles
use risk management/minimisation practices.
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 |
|---|---|---|---|
| AUR73 | FNSILA504 | Negotiate and effect settlement | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S730 | FNS51410 | Diploma of Loss Adjusting | Qualification |