-37919-762000 Assessment

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General Insurance

Legislation

31870 v1

New Zealand Certificate in Financial Services v2

Module 4

NZQA credits12274558301990Unit Standard Description

00Unit Standard Description

-651820-124667Contents

020000Contents

TOC o "1-3" h z u

Introduction PAGEREF _Toc126330505 h 2Assessment Guidance PAGEREF _Toc126330506 h 2The Assessment Process PAGEREF _Toc126330507 h 2Students with Specific Needs PAGEREF _Toc126330508 h 3The Assessor Role PAGEREF _Toc126330509 h 3The Appeals Process PAGEREF _Toc126330510 h 3Resources PAGEREF _Toc126330511 h 4References PAGEREF _Toc126330512 h 4Definition PAGEREF _Toc126330513 h 4Student Declaration Form PAGEREF _Toc126330514 h 5Assessment Tasks PAGEREF _Toc126330515 h 6Task 1 (US 31870 PC 1.1 and 1.2) PAGEREF _Toc126330516 h 6Task 2 (US 31870 PC 2.1 and 2.2) PAGEREF _Toc126330517 h 7Task 3 (US 31870 PC 3.1) PAGEREF _Toc126330519 h 7Task 4 (US 31870 PC 3.2) PAGEREF _Toc126330521 h 7Task 5 (US 31870 PC 3.3) PAGEREF _Toc126330523 h 8Task 6a (US 31870 PC 4.1) PAGEREF _Toc126330525 h 8Task 6b (US 31870 PC 4.2) PAGEREF _Toc126330527 h 10Assessment Decision Form PAGEREF _Toc126330529 h 11Assessment Schedule PAGEREF _Toc126330530 h 11

Assessment

General Insurance

IntroductionThis assessment contains the information you need to determine competency for General Insurance for:

Unit Standard 31870 v1 Demonstrate knowledge of general insurance services roles, concepts, and regulatory framework.

This document contains:

Assessment Guidance

Assessment Tasks 1-6

Student Declaration Form

Assessment Decision and Schedule Form

Important information to note there are three assessment documents in the General Insurance module. In the last assessment 31873v1 you are required to submit a Verification Declaration Form covering all the assessments in the General Insurance module.

This document is strictly confidential and the contents must not be disclosed to students or any unauthorised persons or used in any unethical or illegal manner. All copyright laws apply.

Assessment GuidanceThe Assessment ProcessTo achieve the unit standard you must complete and return to Professional IQ College the following documents:

Assessment answers for all questions or tasks

Student declaration form completed and signed

The assessment is competency based and focuses on the application of learning in your role in your normal working environment. The study guide provided for this unit standard contains the information necessary to develop your knowledge and understanding of general insurance concepts and principles.

The assessor will use their professional judgement as a qualified assessor and subject matter expert to evaluate your assessment ensuring that it is:

Valid: meets the outcomes and evidence requirements of the unit standard being assessed

Fair: a fair representation of what you can do and or know against the outcomes of the unit standard

Authentic: it must be your own work and must not be copied from any course materials or other text

Sufficient: answers must be full and complete enough for the assessor to judge competency

Consistent: answers are consistent with the assessor guidelines and national consistency requirements

The evidence you submit must comply with any policies and procedures of your organisation; codes of practice of relevant professional bodies or; any relevant legislative and regulatory requirements.

For example, where client files are used as evidence, they must not contain any identifiable information that would link the submitted evidence to an individual.

Students with Specific NeedsIf you have specific learning needs, you should have informed the College of these at the time of enrolment. This will enable the Academic Manager to discuss with you what appropriate support is required to complete your study and assessments.

The Assessor RoleThe assessor will consider all written evidence provided by you and decide if it is competent or not yet competent.

The assessor may require you to provide more evidence on one or more questions or tasks if in their judgement they feel the answer is insufficient or incorrect.

Where there is not enough evidence to make a decision on competency your assessor will send you a request for further information (additional questions) which means you will need to supply further information. They may call you to have a professional conversation or to clarify a point in your answer.

The assessor will complete the Assessment Decision Form, including any feedback and return the result to you within 10 working days from receipt, by the assessor of your assessment.

Please retain a copy of your assessment and assessment result.

The Appeals ProcessThe explanation for the appeals process can be found in both the (Level 5) Student Handbook Form 7.3, Appendix 6 and in the Student Form section of the Professional IQ College website www.professionaliq.co.nz

If you disagree with an assessment decision, please follow this guide and complete an Assessment Appeal Form and send it to the Academic Manager at Professional IQ College. An independent assessor will be asked to investigate the appeal. Resources

A copy of the unit standard can be downloaded from the NZQA website www.nzqa.govt.nz

It is important you fully understand the assessment questions. The study guide should be your main resource for answering the assessment questions.

ReferencesThis list is provided as a guide for students who are seeking further sources of information on this module:

Code of Professional Conduct for Financial Advice Services;

Consumer Guarantees Act 1993;

Fair Insurance Code 2016;

Fair Trading Act 1986;

Financial Markets Conduct Act 2013;

Financial Services Legislation Amendment Act 2019

Financial Service Providers (Registration and Dispute Resolution) Act 2008;

Health and Safety at Work Act 2015;

Insurance Intermediaries Act 1994;

Insurance Law Reform Act 1977;

Insurance Law Reform Act 1985;

Privacy Act 1993;

relevant industry codes of conduct;

and all subsequent amendments and replacements.

DefinitionRegulatory framework legislation, regulations, codes of conduct and/or practice as they apply to financial services and the provision of general insurance services.

Student Declaration FormComplete and attach to your assessment answers before submitting for assessment.

Full Name NSN Number Contact

Details Organisation Phone Email Unit Standard 31870 v1 Date Submitted The Tasks you submit for assessment must be your own work and cannot be completed by another person. Initial each item on the list below to show you have read and understood the requirements of the assessment and that the submitted work is your own then sign the declaration.

Your own work means it cannot be copied from course materials or other text, either hard or electronic copy. Your answers must be in your own words.

I ... (full name) understand: Initial

The assessment guidance How I will be assessed and what is expected of me What information or material is required to be submitted for assessment That, if it is found that the answers submitted is not my own work further action may be taken which may include, but is not limited to, termination of my enrolment with Professional IQ College and may result in removal of any credit achieved from my Record of learning with NZQA. No refund for fees will be paid. The appeals process should I wish to appeal the assessment decision I am aware that the evidence I submit may be subject to the quality assurance process of Professional IQ College and the Skills Organisation I certify that

All the work in the assessment submitted is my own and uses my own words. No work has been directly copied from other sources All sources used to prepare this assessment have been appropriately referenced where applicable When necessary I have removed identifiable client information to protect client confidentiality All of my work complies with the policies, procedures and requirements of my organisation and professional bodies I belong to. All of my work complies with any relevant legislative, regulatory and professional codes of practice I agree where my employer has paid for my course a copy of my results may be made available to them I agree for my information to be passed to the Skills Organisation, NZQA or MoE for the purposes of moderation to ensure consistency and for verifying, recording and management of results.

Signed: Date: ..Assessment TasksAnswer all the following questions in the blue shaded cells and save your assessment document with a new name e.g. 31870 John Smith 17 August

Task 1 (US 31870 PC 1.1 and 1.2) Using the table below, identify the main purposes and key provisions of the listed Acts and Codes, and how each may constrain or impact on your daily work activities. You need to include at least 2 key points from each Act unless otherwise specified.

Answer Box: Task 1 (US 31870 PC 1.1 and 1.2

Act or Code Main purpose and key provisions Constraint or impact on daily work activities (as they apply to companies who are required to comply with the Code)

Code of Professional Conduct for Financial Advice Services

(Approx. 150 words in total) Financial Markets Conduct Act 2013 and Financial Services Legislation Amendment Act 2019

(approx. 150 words and three key points) Financial Service Providers (Registration and Dispute Resolution) Act 2008

(approx. 80 words) Fair Insurance Code 2016

(approx. 80 words in total) Insurance Intermediaries Act 1994

(approx. 80 words) Insurance law Reform Act 1977

(approx. 150 words and at least 3 provisions to be provided) Insurance Law Reform Act 1985

(approx. 100 words) Task 2 (US 31870 PC 2.1 and 2.2)For each of the following key roles within general insurance organisations and the general insurance industry explain their purpose and responsibilities. Your answer should be approximately 100-120 words for each function.

Actuaries

Product Development

Risk underwriting

Claims Processing

Loss adjustors and assessors

Advisers and other distributors

Reinsurers

Complaints handling

Answer Box: Task 2 (US 31870 PC 2.1 and 2.2)Role Purpose and responsibilities

Actuaries Product Development Risk underwriting

Claims Processing Loss adjustors and assessors Advisers and other distributors Reinsurers

Complaints handling Task 3 (US 31870 PC 3.1)In approximately 50 words each, explain the following concepts. In your answer, discuss whether or not general insurance products can be applied to each of these types of risk and why/why not.

pure risk,

speculative risk,

insurable risk, and the relevance of general insurance products to each of the above risks.

Answer Box: Task 3 (US 31870 PC 3.1)Pure risk Speculative risk Insurable risk Task 4 (US 31870 PC 3.2)In your own words explain how each of the below principles and concepts relate to general insurance. Your answer should be approximately 50 words for each concept.

Indemnity (compensation not enrichment)

Reinsurance

Correct policy ownership

Tax implications

Risk transferral through insurance (loss associated with the risk)

Answer Box: Task 4 (US 31870 PC 3.2)Indemnity

(compensation not enrichment) Reinsurance Correct policy ownership Tax implications Risk transferral through insurance (loss associated with the risk) Task 5 (US 31870 PC 3.3)In approximately 100 words, explain how a persons attitude and capacity to cope with risk reflect their personal tolerance.

Answer Box: Task 5 (US 31870 PC 3.3)Task 6a (US 31870 PC 4.1)As the Katoas financial adviser you work with them to evaluate their exposure to risks, and what the probability, potential severity and impacts of these risks are.

Based on the case study below, identify 6 insurable risks the Katoas business could be exposed to.

For each of the risks you identify, evaluate the probability of the risk occurring and the potential severity (or impact) of the risk consequences.

Risk consequences include:

direct losses

consequential losses

hidden losses

515620234950Case Study:

John and Kay Katoa are considering buying a business.

Details of the business they are looking to buy:

The business is an existing one, selling blinds, curtains and soft furnishings. The business offers measure & quote and make-up & install services for blinds and curtains.

The main details of the business are:

Established 15 years

Retail shop, with workroom and storage at the rear, well sited in a CBD area. Open 6 days a week.

Turnover $450,000 p.a. with net earnings before owners drawings and income tax of $125,000.

Stock-in-trade value averages $8,000 with more stock being ordered in to meet clients specific orders.

Retiring vendor is offering to train John to measure, quote and install the curtains and blinds and says he will stay on for 3 months in a part-time role after a 2 week handover period. He wants to be paid $600 net per week for the first 2 weeks then $300 a week after that.

The business employs a person who cuts out and sews up the curtains plus some part-timers who run the shop.

Blinds are sourced made-to-order from 2 suppliers.

The business owns a van that is fitted out for carrying made-up orders as well as sample stock and display swatches of material.

They have given you their budgets and cash-flow forecasts and these indicate that they could not tolerate much unexpected cost.

00Case Study:

John and Kay Katoa are considering buying a business.

Details of the business they are looking to buy:

The business is an existing one, selling blinds, curtains and soft furnishings. The business offers measure & quote and make-up & install services for blinds and curtains.

The main details of the business are:

Established 15 years

Retail shop, with workroom and storage at the rear, well sited in a CBD area. Open 6 days a week.

Turnover $450,000 p.a. with net earnings before owners drawings and income tax of $125,000.

Stock-in-trade value averages $8,000 with more stock being ordered in to meet clients specific orders.

The business employs a person who cuts out and sews up the curtains plus some part-timers who run the shop.

Blinds are sourced made-to-order from 2 suppliers.

The business owns a van that is fitted out for carrying made-up orders as well as sample stock and display swatches of material.

They have given you their budgets and cash-flow forecasts and these indicate that they could not tolerate much unexpected cost.

Answer Box: Task 6a (US 31870 PC 4.1)Identified Risk Risk consequences (direct, consequential and hidden losses) Severity

Low/Moderate/High Probability

Low/Moderate/High

Example

Damage to the main shop window, costing $2,500 to fix. Direct loss Moderate Moderate

Task 6b (US 31870 PC 4.2)Using the above case study, identify at least one non-insurable risk the Katoas face, and using the below risk management techniques, identify ways they could manage this risk. Your answer should be about 100 words and include all the risk management techniques except for risk transfer.

Identification

Avoidance

Mitigation

Financing

Acceptance

Transfer

Answer Box: Task 6b (US 31870 PC 4.2)Assessment Decision FormAssessment Schedule The Assessment Decision Form is completed by the assessor and the results will be returned to you within 10 working days of receipt by the assessor of your assessment Unit Standard 31870 v1 Level 5 Credits 5 Unit Standard

Title Demonstrate and apply knowledge of the general insurance services environment and concepts

Student Name: Date Assessed: Outcome 1: Explain and apply knowledge of the relevant regulatory framework when providing general insurance services.

Task C NYC Assessor Feedback Further Evidence Required Result Outcome Performance Criteria Range

1 1.1 Explain key provisions of relevant legislation, regulations, and codes of conduct that impact the daily operations of general insurance service providers. 1 1.2 Apply knowledge of key provisions of relevant legislation, regulations, and codes of conduct when providing general insurance services. Evidence of three examples.

Outcome 2: Explain roles in general insurance organisations.

Key roles may include but are not limited to underwriters, claims processing, loss adjustors and assessors, actuaries, complaints handlers, product developers, advisers and other distributors, reinsurers.

2 2.1 Explain the purpose of key roles in general insurance organisations. 2 2.2 Explain the responsibilities of key roles in general insurance organisations. Outcome 3: Demonstrate knowledge of risk types and key general insurance principles and concepts.

3 3.1 Describe types of risk and the relevance of general insurance products to those risks. General insurance risk types may include but are not limited to pure risk, speculative risk, insurable risk.

4 3.2 Explain how key insurance principles and concepts relate to general insurance. Insurance principles and concepts may include but are not limited to risk transferral through insurance, compensation not enrichment, reinsurance, correct policy ownership, tax implications.

5 3.3 Explain personal tolerance for risk in terms of attitude and capacity to cope with risk. Outcome 4: Apply risk assessment and risk management approaches to general insurance situations.

6a 4.1 Evaluate exposures to risk in terms of probability of risk, potential severity and/or impact of risk consequences.

Exposures may include but are not limited to direct losses, consequential losses, hidden losses.

6b 4.2 Apply risk management approaches to general insurance situations.

Evidence of three examples with a range of requirements and complexities;

must include one non-insurable risk; risk management approaches may include but are not limited to identification, avoidance, mitigation, financing, acceptance, transfer.

Student Declaration received Y N Further Evidence Required C NYC Reassessment Assessor Decision Verification Declaration received Y N Date of Further Evidence Required Date of Reassessment Assessment

Decision Competent

Assessor Feedback:

Not Yet Competent Assessor Name: Signature: Date:

For office use only (to be completed in house)

Note to Administrator (Update records of learning / Update NZQA and PIQ College Records accordingly)

Notes for Assessor and Internal Moderation (When Further Evidence Required is returned a second time and still does not contain evidence of competency then Assessor to consider judgement as Not Yet Competent)

-4445-1841500

-37919-762000Assessment

General Insurance

Portfolio of Evidence

31871, 31872, & 31874 v1

New Zealand Certificate in Financial Services v2

Module 4

NZQA credits12274558301990Unit Standard Description

00Unit Standard Description

-713682-13038Contents

020000Contents

TOC o "1-3" h z u

Introduction PAGEREF _Toc126332393 h 2Assessment Guidance PAGEREF _Toc126332394 h 2The Assessment Process PAGEREF _Toc126332395 h 2Students with Specific Needs PAGEREF _Toc126332396 h 3The Assessor Role PAGEREF _Toc126332397 h 3The Appeals Process PAGEREF _Toc126332398 h 3Resources PAGEREF _Toc126332399 h 4References PAGEREF _Toc126332400 h 4Definitions PAGEREF _Toc126332401 h 4Student Declaration Form PAGEREF _Toc126332402 h 5Assessment Tasks PAGEREF _Toc126332403 h 6Task 1 (related PCs on the evidence checklist below) PAGEREF _Toc126332404 h 6Task 2 (US 31872 PC 2.2) PAGEREF _Toc126332406 h 10Task 3 (US 31872 PC 2.3) PAGEREF _Toc126332408 h 10Task 4 (US 31872 PC 2.4) PAGEREF _Toc126332411 h 11Task 5 (US 31871 PC 2.2) PAGEREF _Toc126332413 h 11

Assessment

General Insurance

IntroductionThis assessment contains the information you need to determine competency for General Insurance for:

Unit Standard 31871 v1 Gather and analyse information to determine client general insurance needs.

Unit Standard 31872 v1 Apply knowledge of general insurance products and services to meet client needs.

Unit Standard 31874 v1 Provide advice in a general insurance context using the Six Step Process.

This document contains:

Assessment Guidance

Assessment Tasks 1-5

Student Declaration Form

Assessment Decision and Schedule Form

This document is strictly confidential and the contents must not be disclosed to students or any unauthorised persons or used in any unethical or illegal manner. All copyright laws apply.

Assessment GuidanceThe Assessment ProcessTo achieve the unit standard you must complete and return to Professional IQ College the following documents:

Assessment answers for all questions or tasks

Student declaration form completed and signed

The assessor will use their professional judgement as a qualified assessor and subject matter expert to evaluate your assessment ensuring that it is:

Valid: meets the outcomes and evidence requirements of the unit standard being assessed

Fair: a fair representation of what you can do and or know against the outcomes of the unit standard

Authentic: it must be your own work and must not be copied from any course materials or other text

Sufficient: answers must be full and complete enough for the assessor to judge competency

Consistent: answers are consistent with the assessor guidelines and national consistency requirements

The evidence you submit must comply with any policies & procedures of your organisation; codes of practice of relevant professional bodies or; any relevant legislative and regulatory requirements.

For example, where client files are used as evidence, they must not contact any identifiable information that would link the submitted evidence to an individual.

The Assessor RoleThe assessor will consider all written evidence provided by you and decide if it is competent or not yet competent.

The assessor may require you to provide more evidence on one or more questions or tasks if in their judgement they feel the answer is insufficient or incorrect.

The assessor will complete the Assessment Decision Form, including any feedback and return the result to you within 10 working days from receipt, by the assessor of your assessment.

Please retain a copy of your assessment and assessment result.

Resources

A copy of the unit standard can be downloaded from the NZQA website www.nzqa.govt.nz

It is important you fully understand the outcomes and evidence requirements of the Unit Standard including any special notes, references and definitions applicable. The study guide is your main resource for this assessment.

You should also be familiar with the study guide for Unit Standard 31870, 38171, 31872, 31873, 31874 available from the College, so you can correlate the responses given by the student.

ReferencesThis list is provided as a guide for students who are seeking further sources of information on this module:

Code of Professional Conduct for Financial Advice Services;

Consumer Guarantees Act 1993;

Fair Insurance Code 2016;

Fair Trading Act 1986;

Financial Markets Conduct Act 2013;

Financial Service Providers (Registration and Dispute Resolution) Act 2008;

Financial Services Legislation Amendment Act 2019

Health and Safety at Work Act 2015;

Insurance Intermediaries Act 1994;

Insurance Law Reform Act 1977;

Insurance Law Reform Act 1985;

Privacy Act 1993;

relevant industry codes of conduct;

and all subsequent amendments and replacements.

DefinitionsRegulatory framework legislation, regulations, codes of conduct and/or practice as they apply to financial services and the provision of general insurance services.

Consequential loss risks flow on costs or losses such as alternative accommodation (domestic), recovery, salvage (vehicles), business interruption (businesses).

Direct asset risks loss of or damage to the asset (for example any building, any contents, vehicles, boats etc) whether domestic or business.

Insurance needs may include needs in respect of direct asset risks, consequential loss risks, and liability risks.

Liability risks risks arising from activity or ownership such as liability to pay compensation and costs to others, cost of legal defence, liability to rectify, liability to pay sanctions.

Six Step Process the financial services industry standard for the provision of personal financial advice internationally, derived from ISO 22222 Personal Financial Planning.

Student Declaration FormComplete and attach to your assessment answers before submitting for assessment.

Full Name NSN Number Contact

Details Organisation Phone Email Unit Standard 31871, 31872 & 31874 Date Submitted The Tasks you submit for assessment must be your own work and cannot be completed by another person. Initial each item on the list below to show you have read and understood the requirements of the assessment and that the submitted work is your own then sign the declaration.

Your own work means it cannot be copied from course materials or other text, either hard or electronic copy. Your answers must be in your own words.

I . .. (full name) understand: Initial

Signed: Date: ..Assessment TasksAnswer all the following questions in the blue shaded cells and save your assessment document with a new name e.g. 31871 72 74 John Smith 17 August

Task 1 (related PCs on the evidence checklist below)

For this assessment, you are required to provide THREE sets of evidence, for THREE different clients, (three sets of evidence in full) demonstrating how you have applied the following requirements within the six-step advice process to a range of client general insurance needs and scenarios.

Client Types

The three sets of evidence will need to have three different client types selected from the following range:

Individual

Joint tenants (or tenants in common)

Partnership

Limited Liability Company

Trust

Product Types

The three sets of evidence need to have three different product types; these can come from the same class of insurance (Domestic, Business or Liability)

Domestic Business

(Asset and loss of income) Liability, etc.

- Car

- Caravan

- Boat

- Classic Car

- Motorcycle

- Contents

- House

- Corporate

- Rural

- SMEs

- Marine Cargo

- Commercial Marine Hull

- Aviation

- Special nondomestic Risks

- Public liability

- Statutory liability

- Employers liability

- Professional indemnity

- Directors and Officers

- Crime and Fidelity

- Cyber Insurance

Example of Client and Product types for 3 clients:

Clients Client Type Product Type

Client 1 Individual House and Contents

Client 2 Limited Liability Company Material Damage / Business Interruption

Client 3 Trust Liability

You will need to provide a range of client general insurance needs and solutions to meet the requirements of this assessment at least one solution per client file.

To enable you to fully demonstrate the required evidence for this assessment, Steps 1 to 5 should be examples of new business and Step 6 examples of renewals or mid-term reviews.

If you are an existing general insurance adviser and are providing real client files, please ensure you blank out identifying information to meet your obligations under the Privacy Act (or gain your clients consent to provide).

This assessment is NOT assessing what you do in your daily practice; this is assessing your ability to meet the requirements of the unit standard (US) outcomes listed in the Client Files Checklist table. If you have to develop specific templates or documents to meet these requirements, that is OK. The unit standards also align to the Code of Professional Conduct for Financial Advice Services and therefore demonstrate your use of best practice.

You may use the template documents of your business or networking group, provided you have personally completed each of the steps (i.e. you input the information to a Client Relationship Management (CRM) system that then provides a statement of advice).

If you do not have clients, we will provide you scenarios and template documents to use, you will still use the same checklist of evidence.

You can use the Client Files Checklist below to check off the documents you have submitted for each client; this will help ensure you are compiling and providing the correct documentation for each client.

-215900210997Guidance Note

There are two distinct parts to this assessment. The first part, Task 1, requires three sets of documents while the second is your answers for Tasks 2, 3, 4 and 5. The latter is completed in the normal way; however, Task 1 requires a number of documents, so to assist in the successful assessment of your portfolio we suggest you take the following approach:

Task 1 - submission of documents

For this you are required to provide THREE full sets of evidence. Each of these sets consist of documents demonstrating how you have applied the requirements within the six-step advice process to a range of client general insurance needs and scenarios.

The assessment question provides a checklist of possible documents that relate to each step. You should use this to ensure you include the necessary relevant documentation; your organisation may have a different document name than that listed, which meets the same purpose.

Document presentation

So that the assessor can clearly evidence your process please prepare three separate PDFs, each containing one set of client documents clearly labelled as Clients 1, 2, 3.

Each set should contain the following items in this order:

Brief summary of the type of client (business, individual, trust etc), what you are doing for them (new business / renewal / remarket) and any other relevant background information.

A list of Steps 1 to 6 (you could use the checklist supplied) naming the documents you have included in each step. You could number the documents sequentially, so they follow the order in your PDF.

Documents should follow the 6 step process. Ideally the documents should be in date order within each step, from oldest first to the most recent last. This so the assessor can read down through your PDF file starting from the first enquiry through to final placement.

Common Documentation you may have documents common to most or all clients such as your disclosure statement or about us document. For these, rather than include them within each client set, load them separately and refer to them in your client summary.

Exceptions in your brief summary you should also mention any exceptions to the standard set of documents. This might include where you have used templates rather than live client documents. Templates are available from the College if you do not have your own clients. Where you do not have clients please talk to your colleagues who can assist with templates from the workplace.

File size this can be an issue as files larger than 10Mb will not load onto the College system. If you need to split each client set, please ensure they are clearly labelled and remain in sequence.

Contact your Student Liaison if you have any issues. Most importantly, if you want to ensure the assessment goes smoothly for you and your assessor, please follow the above instructions.

00Guidance Note

Task 1 - submission of documents

Document presentation

So that the assessor can clearly evidence your process please prepare three separate PDFs, each containing one set of client documents clearly labelled as Clients 1, 2, 3.

Each set should contain the following items in this order:

Brief summary of the type of client (business, individual, trust etc), what you are doing for them (new business / renewal / remarket) and any other relevant background information.

A list of Steps 1 to 6 (you could use the checklist supplied) naming the documents you have included in each step. You could number the documents sequentially, so they follow the order in your PDF.

File size this can be an issue as files larger than 10Mb will not load onto the College system. If you need to split each client set, please ensure they are clearly labelled and remain in sequence.

Contact your Student Liaison if you have any issues. Most importantly, if you want to ensure the assessment goes smoothly for you and your assessor, please follow the above instructions.

Client Files Checklist (Evidence Required Cover Sheet & Diary Note): Task 1

Step One

US31874 1.1 Establish the relationship

Your disclosure statement

Written and signed scope of service, including specific objectives and limitations of the advice

Agreement on the adviser remuneration (whether commission or client fee)

The obligations of the adviser and the client

Client 1 Client 2 Client 3

Step Two

US31871 1.1

US31871 1.2

US31871 1.3

US31871 1.4

US31871 1.5

US31874 1.1

US31874 1.2

Gather Information

Documents you may submit to evidence the following include (but are not limited to):

Insurance application form OR

fact find document OR

business checklist

Personal/business information relevant to the advice

Financial Information relevant to the advice

Client goals and objectives that could impact on their general insurance needs

Document clients risk attitude to and capacity for managing risk for general insurance solutions

Document information about the clients other specialists (e.g. solicitor or accountant)

Privacy Acknowledgements

Client 1 Client 2 Client 3

Step Three

US31874 1.3

US31872 1.1

US31871 2.3

US31871 1.5 Analyse and evaluate client information

Complete calculations to determine appropriate levels of required general insurance cover

You may provide rough workings or other information to demonstrate how you have analysed and evaluated the clients situation (for example, adding up asset values for plant and stock; using financials to determine loss of profits figures; calculating per square metre rates for house insurance; using a contents checklist with values)

You could provide evidence of industry or standard figures or calculations

Consider alternative strategies for the appropriate solution for the client (this may include research tools, emails (quotes and offers) or your notes and reasons on what Insurers are appropriate and which are not) this includes existing (if any) and potential new covers

The impact of ownership considerations

Any other specialist advice appropriate for the clients situation e. g. tax or solicitor

Client 1 Client 2 Client 3

Step Four

US31874 1.4

US38172 1.1

US31872 1.2

US31872 2.1

US31872 2.2

US31871 2.1

US31871 2.2

Develop and present general insurance recommendations

Evidence advice in writing (this may be in a statement of advice, a record of advice, an Insurance plan or an email to the client). MUST include:

Your specific recommendation explaining how the recommendation is structured and adjusted to meet the clients circumstances and needs. You need to include at least two features of how the product works (what it covers), state the level of and type of cover and document any wait periods or excesses)

WHY this is appropriate for the client and how it relates to their needs and goals (client suitability)

The benefits of the advice (what specifically about the product is relevant to the client)- at least two

The risks and limitations of the advice (what is excluded or what might cause cover to not be valid) at least three

Explain the use of any existing assets or insurances in determining the final recommended levels of cover (for example, assets used to fund a wait period or excess, changing existing insurance terms or changing insurance types)

Client 1 Client 2 Client 3

Step Five

US38174 1.5 Implement Recommendations (include at least three of the below)

Offer of terms from Insurer

Confirmation of cover being bound

Documentary evidence of any changes to the recommendation (emails will be OK)

Signed agreement to proceed or other acknowledgement of YOUR structure recommendations

Emails evidencing communication with the client throughout the process (where appropriate may relate to needing more information, changes to the structure or communication/accepting/declining offer of terms)

Client 1 Client 2 Client 3

Step Six

US31874 1.6 Monitor and review

Provide evidence (for three separate clients) that:

Demonstrate agreement of a review period with the client

Responsibilities of the parties going forward have been agreed

You have identified any changes to the clients circumstances

You have identified any changes to current insurance needs and structures

You have implemented changes required as a result of the review

If you already have clients, you can provide evidence of reviews (emails, file notes or other form of evidence) for alternative clients for this section, if the evidence you provided in sections 1-5 are for clients who have not yet had a review.

Client 1 Client 2 Client 3

Task 2 (US 31872 PC 2.2)

Explain in approximately 50 words for each of the clients you have provided a portfolio of evidence for, how policy ownership considerations were influenced by legal or tax implications. You also need to refer to any specialists you may consult with to determine the right ownership structure.

You may reference tax deductibility or tax exemptions.

Answer Box: Task 2 (US 31872 PC 2.2)

Task 3 (US 31872 PC 2.3)

There are two parts to this task. Both tasks are based on the case study provided below.

Candice and Cameron are separated; they still have a number of assets together, but Candice has recently bought a house with her new partner Colin. Cameron still lives in the family home at 21 Short Street, Christchurch. Candice has come to you to review the insurance covers that are in place for all the assets. She wants to ensure that the assets remain covered but is unsure of who will receive a pay-out if an insurance claim was made.

Assets:

2018 Ford Mustang owned by Candice

2019 Subaru Impreza owned by Candice and Cameron

House at 21 Short Street, Christchurch owned by the CC Family Trust (with a mortgage to Awesome Bank for $385,000). Candice and Cameron Carr, along with Charlene Collins (independent) are the Trustees.

Contents in the house at 21 Short Street, Christchurch owned by Candice and Cameron.

House at 30 Long Street, Dunedin owned by Candice and Colin, with a mortgage to Friendly Bank. Note they have an unequal ownership as Candice put in the majority of the deposit.

Contents at 30 Long Street, Dunedin owned by Candice and Colin.

CC Designs a limited liability company. Cameron and Candice are the directors.

In 100-150 words, explain to Candice the implications of policy ownership structures and roles on the insurance contract, referencing the principle of indemnity (insurable interest)

Answer Box: Task 3a (US 31872 PC 2.3)

Complete the following table:

Answer Box: Task 3b (US 31872 PC 2.3)

Policy owner and ownership type Premium payer Insured Beneficiary

Car insurance for Mustang Car insurance for Subaru House Insurance for Short Street House Insurance for Long Street Contents at Short Street Contents at Long Street Material Damages and Liability Covers for CC Designs Ltd Task 4 (US 31872 PC 2.4)

In approximately 150 words explain any limits to authority or personal expertise that you may encounter when creating general insurance solutions, and how you would manage these to ensure the clients needs are met appropriately.

Answer Box: Task 4 (US 31872 PC 2.4)

Task 5 (US 31871 PC 2.2)

For each of the clients you have provided a portfolio of evidence for, document at least one reasonably foreseeable change and explain how this would impact on their needs and solutions. Your answer should be approximately 100 words for each client.

Answer Box: Task 5 (US 31871 PC 2.2)

PIQ College - Module 4 GENERAL INSURANCE ASSESSMENT SCHEDULE

Portfolio of Evidence

Unit Standard Version Level Credits

31871 Gather and analyse information to determine client general insurance needs 1 5 7

31872 Apply knowledge of general insurance products and services to meet client needs 1 5 8

31874 Provide advice in a general insurance context using the Six Step 1 5 5

Equipment/resources required: Unit standard, assessment materials, access to 3 Clients or Case Study.

Conditions: The assessment is an open book assignment

Simulated assessment activities must not be used unless the assessments being carried out are commonly conducted in a simulated environment and that this method is approved by the College and the Skills Organisation.

Outcomes & Evidence Requirements

Task/Question Unit/s Outcomes Performance Criteria

1 31871 1-2 1.1-1.5, 2.1, & 2.2

31872 1-2 1.1, 1.2, 2.1 & 2.2

38171 2 2.3

31874 1 1.1-1.6

2 31872 2 2.2

3 31872 2 2.3

4 31872 2 2.2

5 31872 3 2.3

Student Name: Assessor Name: Student Declaration Date Submitted Verification Declaration Date Submitted Dates work submitted Results

A = Achieved

NYA = Not Yet Achieved First Attempt

Date:

Second Attempt

Date: Third Attempt

Date:

Achieved date: Assessor signature: Task

Unit/PC Evidence (example below) Judgement (PC) Further Evidence Required NYC Achieved & Comment (Assessor to Complete)

Task 1

31874 1.1 Step One Establish the relationship 31871 1.1

31871 1.2

31871 1.3

31871 1.4

31871 1.5

31874 1.1

31874 1.2 Step Two Gather Information 31874 1.3

31872 1.1

31871 2.3

31871 1.5 Step Three Analyse and evaluate client information 31874 1.4

31872 1.1

31872 1.2

31872 2.1

31872 2.2

31871 2.1

31871 2.2

31870 4.2 Step Four Develop and present general insurance recommendations

38174 1.5 Step Five Implement Recommendations (include at least three of the below options, or alternative, for each client) 38174 1.6 Step Six Monitor and review Task

Unit/PC Evidence Judgement Achieved & Comment

Task 2

31872 2.2 Task 3

31872 2.3 Task

Unit/PC Evidence Judgement Achieved & Comment

Task 4

31872 2.4 Task 5

31871 2.3 Additional comments:

-4445-1841500

-37919-7620 Assessment

General Insurance

Specialist Services

31873 v1

New Zealand Certificate in Financial Services v2

Module 4

NZQA Credits 5

-79819560960Contents

020000Contents

TOC o "1-3" h z u Introduction PAGEREF _Toc126334263 h 2Assessment Guidance PAGEREF _Toc126334264 h 2The Assessment Process PAGEREF _Toc126334265 h 2Students with Specific Needs PAGEREF _Toc126334266 h 3The Assessor Role PAGEREF _Toc126334267 h 3The Appeals Process PAGEREF _Toc126334268 h 3Resources PAGEREF _Toc126334269 h 4References PAGEREF _Toc126334270 h 4Student Declaration Form PAGEREF _Toc126334271 h 5Verification Declaration Form PAGEREF _Toc126334272 h 6Assessment Tasks PAGEREF _Toc126334273 h 7Task 1 (US 31873 PC 1.1 and 1.2) PAGEREF _Toc126334274 h 7Task 2 (US 31873 PC 1.3 and 1.4) PAGEREF _Toc126334276 h 7Task 3 (US 31873 PC 1.5 and 1.6) PAGEREF _Toc126334278 h 7Task 4 (US 31873 PC 2.1 & 2.2) PAGEREF _Toc126334280 h 8Assessment Decision Form PAGEREF _Toc126334282 h 10Assessment Schedule PAGEREF _Toc126334283 h 10

Assessment

General Insurance

IntroductionThis assessment contains the information you need to determine competency for General Insurance for:

Unit Standard 31873 v1 Demonstrate and apply knowledge of administrative processes to provide general insurance services.

This document contains:

Assessment Guidance

Assessment Tasks 1-4

Student Declaration Form

Verification Declaration Form

Assessment Decision and Schedule Form

Assessment GuidanceThe Assessment ProcessTo achieve the unit standard you must complete and return to Professional IQ College the following documents:

Assessment answers for all questions or tasks

Student declaration form completed and signed

Verification declaration form signed

*PLEASE NOTE: Only one verification declaration needs to be filled in and submitted for all five General Insurance Module Unit Standards (31870, 31871, 31872, 31873 and 31874).