Unit of competency Outline
Date retreived
22/07/2026 4:16 AM AWST
22/07/2026 4:16 AM 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.
Assess extraordinary risks
Assess extraordinary risks
Unit of competency
National Code
FNSILF501A
FNSILF501A
State Code
D4176
D4176
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
15/05/2012
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
15/05/2012
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to understand and apply underwriting risk concepts and practices when assessing extraordinary insurance risks.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. Determine risk acceptance criteria
- 1.1. Risk acceptance criteria are established to suit type and context of risk within relevant organisation policy
- 1.2. Availability of data on acceptance criteria is determined to ensure criteria are valid
2. Seek information
- 2.1. Accurate, reliable and up-to-date information is identified and collated in a form suitable for analysis
3. Negotiate reinsurance for extraordinary risks
- 3.1. Need for, and level of, reinsurance for the risk is identified
- 3.2. Terms of reinsurance are determined from available sources and in accordance with organisation policy
- 3.3. Reinsurance is negotiated which provides required protection for anticipated exposure
4. Determine and advise terms and conditions of acceptance
- 4.1. Terms of acceptance are established that meet market conditions and are within organisation accepted levels of exposure
- 4.2. Terms and conditions are clearly documented and meet the requirements of relevant underwriting guidelines and are determined within delegated authorities
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.
Risk assessment criteria refers to:
criteria against which a risk may be measured for acceptability.
Risk factors vary according to:
potential impact on the organisation
value and type of produce.
Sources of information may include:
actuaries
brokers
clients
financiers
intermediaries
lawyers/solicitors
medical practitioners
product developers
reinsurers
underwriters.
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.
Risk assessment criteria refers to:
criteria against which a risk may be measured for acceptability.
Risk factors vary according to:
potential impact on the organisation
value and type of produce.
Sources of information may include:
actuaries
brokers
clients
financiers
intermediaries
lawyers/solicitors
medical practitioners
product developers
reinsurers
underwriters.
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:
apply highly developed analytical skills
maintain and apply a thorough understanding of all aspects of risk assessment in the current industry sector market.
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:
apply highly developed analytical skills
maintain and apply a thorough understanding of all aspects of risk assessment in the current industry sector market.
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 |
|---|---|---|---|
| AUR83 | FNSILF501 | Assess extraordinary risks | Unit of competency |
