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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Underwrite a standard risk in long term insurance 
SAQA US ID UNIT STANDARD TITLE
14433  Underwrite a standard risk in long term insurance 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  40 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2005-10-12  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2006-10-12   2009-10-12  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
119266  Underwrite a standard risk in Long-term insurance  Level 4  NQF Level 04  5   

PURPOSE OF THE UNIT STANDARD 
The key purpose of underwriting risk in long term insurance is to protect the company from unfavourable claims experienced due to mortality, morbidity and anti-selection.

The qualifying learners is capable of:
  • Gathering information and assessing the risk.
  • Interpreting and evaluating medical data for underwriting purposes.
  • Demonstrating knowledge and understanding of the risks involved in underwriting lives.
  • Making use of resources in assessing long term risk
  • Making an underwriting decision within own authority limit. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in communication and mathematical literacy at Level 3 and know the products marketed by a long term insurance organisation. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:

    1. Sources of information include company products; rating manual (company or reinsurance company); underwriter's easy guidelines; medical dictionaries; the Merc manual and other text books; MIMS index; SAMDC register of doctors and dentists; underwriting reference library; LOA life registry system; Internet; relevant Insurance Acts; the Chief Medical Officer.
    2. A high risk includes financial, legal, medical abnormalities, avocation, occupation and environmental risks.
    3. Terminology related to pathology includes all systems of the body, anatomy, physiology and health impairments.
    4. Protocols include: replacement agreement; disability agreement
    5. Authority limits determined by the amount of the sum insured in relation to a particular product. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Gather information and assess the risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The basic purpose of underwriting risk is known and explained with particular reference to long term insurance. 

    ASSESSMENT CRITERION 2 
    2. The underwriting criteria to be considered for long term insurance are known and explained according to company policy and/or treaties with reinsurers. 

    ASSESSMENT CRITERION 3 
    3. The proposal form is analysed for factors of more than average risk based on the specific product and company guidelines. 

    ASSESSMENT CRITERION 4 
    4. Broad underwriting specific knowledge and company guidelines are applied to the information gathered and any additional information that may be required is identified and collected in accordance with the relevant protocols. 

    ASSESSMENT CRITERION 5 
    5. Any high risk is identified in accordance with company policy. 

    ASSESSMENT CRITERION 6 
    6. All relevant information is considered and used to create a synopsis in accordance with company policy. 

    SPECIFIC OUTCOME 2 
    Interpret and evaluate medical data for underwriting purposes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Terminology associated with pathology and the normal functioning of the body is known and understood as detailed in company specific reference manuals. 

    ASSESSMENT CRITERION 2 
    2. Medical information is interpreted and a decision is made to underwrite as a standard life or to refer the case to a senior underwriter. 

    SPECIFIC OUTCOME 3 
    Know and understand the risks involved in underwriting lives. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The rationale for classifying occupations, avocations and hazardous pursuits into categories is known and explained and a loading is applied in accordance with the rules of the company. 

    ASSESSMENT CRITERION 2 
    2. The concept of a nominated occupation and the significance of avocations are known and understood relative to the disability risk. 

    ASSESSMENT CRITERION 3 
    3. Occupation categories are defined and used to assess occupation risk based on a risk profile. 

    ASSESSMENT CRITERION 4 
    4. All the risks that affect mortality are known and identified in accordance with the company policy. 

    ASSESSMENT CRITERION 5 
    5. All the risks that affect morbidity are known and identified in accordance with the company policy. 

    ASSESSMENT CRITERION 6 
    6. Automatic exclusions, the rationale for such exclusions and the implications for the applicant are known and applied according to company and life insurance industry practice. 

    ASSESSMENT CRITERION 7 
    7. Rules regarding the limitation of disability and exclusions relating to disability claims are known and implemented according to company policy and procedure. 

    ASSESSMENT CRITERION 8 
    8. Financial risks associated with age, income and total cover are identified and decisions are made to restrict the cover or grant the cover according to company policy and life insurance industry practice. 

    ASSESSMENT CRITERION 9 
    9. Underwriting restrictions that can be imposed by a Healthcare Benefits Administrator are identified in terms of the Medical Schemes Act and Regulations. 

    ASSESSMENT CRITERION 10 
    10. The concept of insurable interest is understood and applied in accordance with financial and legal practices. 

    SPECIFIC OUTCOME 4 
    Make use of resources in assessing long term risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Variety of sources of information is used, and the relative value of each source, and the consequences of not having/using such a source is known and understood in the context of assessing long term risk. 

    ASSESSMENT CRITERION 2 
    2. LOA protocols are known and understood in the context of assessing long term risk. 

    SPECIFIC OUTCOME 5 
    Make an underwriting decision. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The principles of assessing risk are known and understood in terms of the company's products and industry practice. 

    ASSESSMENT CRITERION 2 
    2. The rationale for the application of underwriting criteria is understood and explained in relation to the company's products and industry practice. 

    ASSESSMENT CRITERION 3 
    3. A decision is made in accordance with own authority limit or product and the case is referred to a senior underwriter if it exceeds this level. 

    ASSESSMENT CRITERION 4 
    4. The implications of a signed declaration are understood and interpreted according to company and legal requirements. 

    ASSESSMENT CRITERION 5 
    5. The protocols to be followed with reinsurers are known and applied according to company policy and treaties with reinsurers. 

    ASSESSMENT CRITERION 6 
    6. Decisions with regard to interpretation limits are made according to company policy. 

    ASSESSMENT CRITERION 7 
    7. Underwriting principles and practices are applied consistently making decisions. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    To enable competent performance and achievement the learner can:
  • Understand and explain company policy.
  • Understand and explain relevant LOA codes.
  • Apply basic computer skills and use an electronic data base to access and record information.
  • Understand and explain the normal functioning of the body and associated pathology.
  • Know and explain what constitutes a long term insurance risk. 
    		•


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Recognise potential problems and make a decision to underwrite as a standard risk or to refer a case to a senior underwriter. 

    UNIT STANDARD CCFO WORKING 
    Recognise the need to work effectively as a member of a team in order to assess a risk to the benefit of the client and acceptable risk to the company. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage own activities responsibly and effectively to maximise productivity and provide an efficient service to clients. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, organise and evaluate information in order to underwrite a standard long term risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively in order to explain the rationale for underwriting decisions and create a written synopsis of information relevant to a case. 

    UNIT STANDARD CCFO SCIENCE 
    Use a computer to assist in processing information required to assess long term risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Recognise that decisions are not made in isolation and that a variety of systems are involved in assessing long term risk. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard, 119266 which is "Underwrite a standard risk in Long-term insurance", Level 4, 5 credits.

    Practical work experience:
    Before being credited with this unit standard learners are required to have a minimum of 40 hours experience in long term underwriting. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20774   National Certificate: Insurance: Long Term: Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.