SAQA All qualifications and unit standards 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 the law of contract to insurance 
SAQA US ID UNIT STANDARD TITLE
120128  Apply the law of contract to insurance 
ORIGINATOR ORIGINATING PROVIDER
SGB Insurance and Investment   
QUALITY ASSURING BODY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE OLD NQF LEVEL NEW NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2009-01-27  2012-01-27  SAQA 0160/05 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2013-01-27   2016-01-27  

In all of the tables in this document, both the old and the new NQF Levels are shown. In the text (purpose statements, qualification rules, etc), any reference to NQF Levels are to the old levels unless specifically stated otherwise. 

This unit standard replaces: 
US ID Unit Standard Title Old NQF Level New NQF Level Credits Replacement Status
14991  Apply the law of contract to insurance  Level 4  NQF Level 04  2  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in insurance and those who manage asset risk in insurance and other organisations.

The qualifying learner is capable of:
  • Explaining the law of contract as applied in insurance.
  • Explaining the application of legal capacity in an insurance contract.
  • Interpreting the basic principles required for an insurance contract to be legally binding.
  • Evaluating a proposed insurance contract. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is legislation relevant to a sector:
  • Essential elements of the law of contract are offer, acceptance, consensus, legal capacity and bona fides.
  • The basic principles of an insurance contract are insurable interest, bona fides and disclosures of material facts.
  • Legal capacity includes, reference to the application of insurance legislation, entering into a policy and borrowing against a policy.
  • The insurance Act refers to the Long-Term or short term Act. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the law of contract as applied in insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of the law of contract is explained with reference to its essential elements and how an insurance contract is bound by the law of contract. 

    ASSESSMENT CRITERION 2 
    Evidence that is required for an insurance contract to be legally binding is named for short term and/or Long-Term insurance. 

    ASSESSMENT CRITERION 3 
    The parties to a contract are named for a selected sub sector. 

    SPECIFIC OUTCOME 2 
    Explain the application of legal capacity in an insurance contract. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of legal capacity is explained with examples of how it is applied in insurance. 

    ASSESSMENT CRITERION 2 
    The difference between legal capacity in a contract and legal capacity in an insurance contract is explained with examples. 

    ASSESSMENT CRITERION 3 
    Three examples of case law are analysed and discussed in terms of the precedents set. 

    SPECIFIC OUTCOME 3 
    Interpret the basic principles required for an insurance contract to be legally binding. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The basic principles of an insurance contract are explained with examples. 

    ASSESSMENT CRITERION 2 
    Conditions under which a contract is not legally binding are explained with examples. 

    SPECIFIC OUTCOME 4 
    Evaluate a proposed insurance contract. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A proposal is analysed in terms of risk and the law of contract as applied to insurance. 

    ASSESSMENT CRITERION 2 
    Business rules that are applied in addition to legal requirements are identified for a specific insurer and an indication is given of why the organisation applies the requirement(s). 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    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 IDENTIFYING 
    Learners are capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in identifying conditions under which a contract is not legally binding from case studies. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in analysing case law in terms of precedents. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in discussing case law and explaining the issues in the Unit Standard. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE OLD LEVEL NEW LEVEL STATUS END DATE QUALITY ASSURING BODY
    Core  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2012-01-27  As per Learning Programmes recorded against this Qual 
    Elective  59298   Further Education and Training Certificate: Freight Forwarding and Customs Compliance  Level 4  NQF Level 04  Registered  2010-11-28  TETA 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Reregistered  2012-11-03  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2013-02-09  As per Learning Programmes recorded against this Qual 
    Elective  60072   National Diploma: Inspection and Assessment (Non-Metallics)  Level 5  New Level Assignment Pend.  Registered  2011-03-12  MERSETA 


    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 Quality Assuring Bodies 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 Quality Assuring Body should be notified if a record appears to be missing from here.
     
    1. Cherry Tree Trading cc 
    2. CKP Development Agency cc 
    3. Direct Axis 
    4. DIRECTFIN TRAINING SOLUTIONS PTY LTD 
    5. FirstRand STI Administration (Pty) Ltd 
    6. FNB Insurance Brokers (Pty) Ltd 
    7. InvestmentWise 
    8. JJK Marketing Consultants Pty Ltd 
    9. Masifunde Training Centre 
    10. Moonstone Intellectual Capital 
    11. Nouveau Consulting 
    12. PRODIGY BUSINESS SERVICES 
    13. PSG Konsult Limited 
    14. RJM Educational Consulting 
    15. THE INSTITUTE OF PERFORMANCE TECHNOLOGY PTY LTD 


    All qualifications and unit standards 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.