Unit of competency Outline
Date retreived
22/07/2026 8:12 AM AWST
22/07/2026 8:12 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.
Underwrite new business
Underwrite new business
Unit of competency
National Code
FNSISV402A
FNSISV402A
State Code
D4234
D4234
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
50
Description
This unit describes the performance outcomes, skills and knowledge required to conduct underwriting of new business including determining the terms and conditions, risk acceptance, evaluating the response of the customer, negotiating and finalising the cover.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 terms and conditions of risk acceptability
- 1.1. Risk acceptance information is collected including determining the terms and conditions of risk acceptance, evaluating the response of the customer, negotiating and finalising the cover is identified and reviewed
- 1.2. Risk acceptability is determined within authority limitations and capacities
- 1.3. Terms and conditions of risk acceptance are determined in accordance with risk acceptance criteria
- 1.4. Referrals are determined, where appropriate
- 1.5. Facultative reinsurance is placed, where appropriate
2. Communicate result of risk assessment
- 2.1. Quotation, if required, is prepared and communicated
- 2.2. Terms and conditions of risk acceptance, including expiry date of offer and pricing, are advised to client within appropriate timeframes
- 2.3. Rejection of risk, if applicable, is advised as soon as it is evident that the risk falls outside the guidelines or as soon as a decision is made not to underwrite the risk
3. Evaluate client response
- 3.1. Client response is assessed to determine whether action to modify terms and conditions is required
- 3.2. Offer is modified as necessary and advice to client is prepared according to operating procedures
- 3.3. Modified offer complies with underwriting acceptance authorities and criteria, or an appropriate referral approval is sought
4. Negotiate agreement
- 4.1. Negotiation is undertaken on revised offer to reach mutually satisfactory agreement, including charge to reinsurance where applicable
- 4.2. The client is advised of acceptance or rejection of the risk according to operating procedures
- 4.3. If conditions are placed on the acceptance of risk, a mechanism is established for checking that the conditions have been met
5. Issue interim cover where required
- 5.1. Disclosure requirements are adhered to in all cases
- 5.2. Initial documentation is issued to the client in organisation format and according to operating procedures
- 5.3. Reinsurance cover is confirmed, as appropriate
- 5.4. Additional information is obtained, as required
- 5.5. Documents are filed and stored in accordance with organisation operating procedures
- 5.6. Expiry of interim cover is monitored following standard operating procedures, to ensure that any required terms are met prior to issue of policy
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 acceptance information may include:
amendments
assessor reports
broker slips
claims
for NZ: the New Zealand Claims Register
general knowledge
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts.
Terms and conditions of risk acceptance may include:
additional exclusions
adequate reinsurance cover
endorsements
excesses/deductibles
extensions
insurance history
internal and industry statistics
pricing
quality of risk
risk factors
risk improvement requirements
sub-limits
variations in policy wording.
Risk acceptance criteria may include:
class of business
driving and/or accident history
insurance history
locality
minimum security levels.
The client may be:
represented by an insurance broker or agent (letters of appointment will be necessary if there has been a change of agent or broker).
Rejection of risk refers to:
advising a client or broker/agent of non-acceptance of risk.
Disclosure requirements may be met:
in a variety of ways according to the way the business is written (e.g. proposal, telephone, facsimile, e-commerce).
Initial documentation includes:
any interim cover
revised document (endorsement or new business certificate).
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 acceptance information may include:
amendments
assessor reports
broker slips
claims
for NZ: the New Zealand Claims Register
general knowledge
legal cases
pre-underwriting report
previous insurers
proposals
publications (industry associations and trade journals)
stock exchange
surveys
telephone contacts.
Terms and conditions of risk acceptance may include:
additional exclusions
adequate reinsurance cover
endorsements
excesses/deductibles
extensions
insurance history
internal and industry statistics
pricing
quality of risk
risk factors
risk improvement requirements
sub-limits
variations in policy wording.
Risk acceptance criteria may include:
class of business
driving and/or accident history
insurance history
locality
minimum security levels.
The client may be:
represented by an insurance broker or agent (letters of appointment will be necessary if there has been a change of agent or broker).
Rejection of risk refers to:
advising a client or broker/agent of non-acceptance of risk.
Disclosure requirements may be met:
in a variety of ways according to the way the business is written (e.g. proposal, telephone, facsimile, e-commerce).
Initial documentation includes:
any interim cover
revised document (endorsement or new business certificate).
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:
interpret and comply with all legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy
apply sound understanding of relevant organisation products and services
correctly interpret and apply underwriting guidelines and procedures
identify and investigate risk as it relates to new business in accordance with underwriting and organisation guidelines
complete and file documentation in accordance with organisation guidelines.
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 organisation 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.
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:
interpret and comply with all legal obligations and organisation procedures in order to identify and thoroughly assess risks, and develop a suitable policy
apply sound understanding of relevant organisation products and services
correctly interpret and apply underwriting guidelines and procedures
identify and investigate risk as it relates to new business in accordance with underwriting and organisation guidelines
complete and file documentation in accordance with organisation guidelines.
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 organisation 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.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS01 | FNSISV402 | Underwrite new business | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D713 | FNS41411 | Certificate IV in General Insurance | Qualification |
| S704 | FNS40510 | Certificate IV in Personal Injury Management (Underwriting) | Qualification |