SAQA 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.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply knowledge and insight into aspects of the Long Term Insurance Act, Act 52 of 1998 
SAQA US ID UNIT STANDARD TITLE
117126  Apply knowledge and insight into aspects of the Long Term Insurance Act, Act 52 of 1998 
ORIGINATOR
SGB Insurance and Investment 
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 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14316  Demonstrate knowledge and insight into the Long Term Insurance Act (1998)  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended to for learners who work in long term insurance. It is a building block for understanding product structure and design and is relevant to all learners in service centres, intermediaries, administrative personnel in Long Term organisations, underwriters and claims assessors.

The qualifying learner is capable of:
  • Comparing the fundamentals of long and short term legislation in South Africa.
  • Explaining the terminology and underlying concepts used in the Long Term Insurance Act.
  • Describing the underlying requirements of the Long Term Insurance Act.
  • Applying the Long Term Insurance Act to a client's rights and obligations under a contract. 

  • 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. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is the Long Term Insurance Act and Regulations under the Act.
  • Acts governing insurance business are the Long Term Insurance Act (1998), the Short Term Insurance Act (1998), the Pension Funds Act (1956) and the Income Tax Act.
  • Criteria used to assess long term risk include age, gender, health, occupation and income.
  • Classes of policy are life, disability, health, fund policy, assistance and sinking fund policies.
  • Parties to a contract include the unborn child, 18 year olds.
  • Long term insurance contracts include, but are not limited to, Assistance, Life, Disability, Dread Disease, Health, Endowments and Retirement Annuities.
  • Assessment of long term risk refers to underwriting and payout. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Compare the fundamentals of Long Term and Short Term legislation in South Africa. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The Acts that govern Insurance are named and an explanation is given for why there is more than one Act. 

    ASSESSMENT CRITERION 2 
    The Short Term and Long Term Acts are compared in terms of indemnity and non-indemnity cover. 

    ASSESSMENT CRITERION 3 
    The Short Term and Long Term Insurance Acts are compared with reference to the criteria used to assess the risk. 

    SPECIFIC OUTCOME 2 
    Explain the terminology and underlying concepts used in the Long Term Insurance Act. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of long term is explained as it is used in the Act. 

    ASSESSMENT CRITERION 2 
    The different classes of policy identified in the Act are named with examples. 

    ASSESSMENT CRITERION 3 
    The parties to a Long Term insurance contract are named and an explanation is given of their relationship, rights and obligations. 

    ASSESSMENT CRITERION 4 
    Limits on cover imposed on the lives of children are indicated and categorised according to age. 

    ASSESSMENT CRITERION 5 
    The difference between a life contract and all other contracts is explained with reference to age and contractual capacity. 

    ASSESSMENT CRITERION 6 
    The protection of a life insurance contract in case of insolvency is explained with examples. 

    SPECIFIC OUTCOME 3 
    Describe the underlying requirements of the Long Term Insurance Act. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The Registrar of Long Term insurance is explained with examples. 

    ASSESSMENT CRITERION 2 
    The concept of non disclosure of material factors that influence the assessment of Long Term risk is explained with examples. 

    ASSESSMENT CRITERION 3 
    The consequences if an unregistered organisation conducts insurance business are explained and an indication is given of possible penalties. 

    SPECIFIC OUTCOME 4 
    Apply the Long Term Insurance Act to a client's rights and obligations under a contract. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Accessibility to funds in the first five years of a contract is explained in terms of frequency and values. 

    ASSESSMENT CRITERION 2 
    The minimum terms of a contract are explained with reference to the requirements of the Act. 

    ASSESSMENT CRITERION 3 
    The consequence of increasing a policy premium by more than 20% is explained with reference to the Act. 

    ASSESSMENT CRITERION 4 
    The impact of the four funds approach to a long term policy is explained with reference to Income Tax Legislation. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and apply information relating to the Act. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the concepts and terminology used in the Act. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising the consequences of non compliance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard has replaced 14316 which was "Demonstrate knowledge and insight into the Long Term Insurance Act (1998)", Level 4 with 2 credits 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    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.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Alcari Learning Centre (Pty) Ltd 
    4. CKP Development Agency (Pty) Ltd. 
    5. De Vries Management & Training Services cc 
    6. DSBI (Pty) Ltd 
    7. Executive People Development Solutions (Pty) Ltd 
    8. Faisit (Pty) Ltd 
    9. Intec College 
    10. Intelligo Solutions Pty (Ltd) 
    11. Invuya Institute of Learning (Pty) Ltd 
    12. Masifunde Training Centre (Pty) Ltd 
    13. Old Mutual Life Assurance Company South Africa 
    14. Outsurance Insurance Company Ltd 
    15. Ray Strodl Consulting (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. The Institute of Health Risk Managers (Pty) Ltd 
    19. Umfolozi FET College - Central Office 



    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.