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: 

Underwrite a high risk in short term commercial and industrial insurance 
SAQA US ID UNIT STANDARD TITLE
243175  Underwrite a high risk in short term commercial and industrial insurance 
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 5  Level TBA: Pre-2009 was L5  10 
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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
The key purpose of this Unit Standard is to enable learners to make a short term commercial and industrial underwriting decision without referral for a high risk in a single commercial or industrial undertaking without subsidiaries. Qualifying learners are able to select risks for insurance and determine in what amounts and on what terms the insurance company will accept the risk. It will be useful for Underwriters and Claims Assessors.

The qualifying learner is capable of:
  • Assessing the risk in a commercial and industrial proposal.
  • Valuing the risk in terms of an underwriting mandate.
  • Adapting a policy wording for a standard risk to meet specific needs.
  • Presenting terms and conditions to a client or intermediary. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Limits of the risk include above excess and excess within limit.
  • Alternate excess structures include aggregate of losses, aggregate of deductibles, stop loss levels, inners and outers. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Assess the risk in a commercial and industrial proposal. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The information in underwriting notes is analysed to identify possible high risk. 

    ASSESSMENT CRITERION 2 
    The loss history of the proposer is analysed statistically. 

    ASSESSMENT CRITERION 3 
    The concepts of estimated maximum loss (EML), maximum probable loss (MPL) and possible maximum loss (PML) are explained using an employer's standards manual or technical manual. 

    ASSESSMENT CRITERION 4 
    A survey is conducted and the information is interpreted to estimate the EML, MPL and PML. 

    ASSESSMENT CRITERION 5 
    The risk elements in the survey are synthesised in order to assess the risk. 

    SPECIFIC OUTCOME 2 
    Value the risk in terms of an underwriting mandate. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of maximum acceptance value is explained with examples. 

    ASSESSMENT CRITERION 2 
    An underwriting authority is used to establish the maximum acceptance value of a proposal. 

    ASSESSMENT CRITERION 3 
    Limits on values of the risk posed are compared to the retention limits of the insurer and a decision is made as to the extent of the acceptance. 

    ASSESSMENT CRITERION 4 
    The principles of reinsurance or co-insurance for the balance of the risk are explained with examples. 

    SPECIFIC OUTCOME 3 
    Adapt a policy wording for a standard risk to meet specific needs. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The sections of a standard policy wording that may need to be adapted to meet specific needs are identified and the necessary endorsement is formulated and adapted to cater for a wider and higher risk. 

    ASSESSMENT CRITERION 2 
    Warranties and/or exceptions or exclusions to meet a specific underwriting requirement are formulated based on a survey and with due regard for current legal rulings. 

    SPECIFIC OUTCOME 4 
    Present terms and conditions to a client or intermediary. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Rates are determined and presented in a quotation for each class of insurance in terms of sub-limit rate and policy rate. 

    ASSESSMENT CRITERION 2 
    The terms and conditions applicable to the quotation are explained with reference to a standard policy and alternate excess structures. 

    ASSESSMENT CRITERION 3 
    The concept of net rating is explained and an indication is given of the effect of net rating on the proposer in relation to the Financial Advisory and Intermediary Services Act (FAIS) and competitive business practice. 

    ASSESSMENT CRITERION 4 
    An underwriting decision is presented and defended using supporting evidence and a policy document is produced for a client. 


    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 
    The learner can identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in making an underwriting decision and adapting a standard policy to meet specific needs. 

    UNIT STANDARD CCFO WORKING 
    The learner can work effectively with others as a member of a team in liaising with the client and intermediary. 

    UNIT STANDARD CCFO ORGANISING 
    The learner can organise and manage himself/herself and his/her activities responsibly and effectively in presenting and defending an underwriting decision. 

    UNIT STANDARD CCFO COLLECTING 
    The learner can collect, organise and critically evaluate information in assessing and valuing the risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner can communicate effectively using mathematics and language skills in conducting a survey, producing a policy document, presenting a quotation and presenting and defending an underwriting decision. 

    UNIT STANDARD CCFO SCIENCE 
    The learner can use science and technology effectively and critically as underwriters use computers in the course of their work. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner can demonstrate an understanding of the world as a set of related systems by relating the loss history of the proposer to the risk in a proposal. 

    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 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 


    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. Invuya Institute of Learning (Pty) Ltd 
    3. Masifunde Training Centre (Pty) Ltd 
    4. Ripple Effect 4 (Pty) Ltd 



    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.