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

Describe short term insurance 
SAQA US ID UNIT STANDARD TITLE
8989  Describe short 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 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2002-02-13  2004-08-11  SAQA 0540/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-08-11   2008-08-11  

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
114964  Describe short term insurance  Level 3  NQF Level 03  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard introduces the basic concepts of short term insurance and provides a broad introduction to short term insurance.

The qualifying learner is capable of:
  • Knowing and understanding the concept of short term insurance.
  • Identifying different products that a short-term insurance organisation/provider markets.
  • Categorising the different types of short-term insurance.
  • Recognising events that impact on short-term insurance.
  • Applying knowledge of customer profiles and risk to short-term insurance.
  • Asking questions to obtain information. 

  • 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 2. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is
    1. Target market: personal lines, corporate and commercial.

    2. Insurance classes:
  • Fire or Interruption,
  • Engineering, Liability,
  • Motor,
  • Transit,
  • Marine,
  • Breakdown,
  • Personal Accident,
  • Professional Indemnity,
  • Aviation, and
  • Crime Classes, etc.

    3. Specialist categories: marine, aviation and engineering. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Know and explain the concept of short-term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of insuring for a fortuitous event is understood and examples are used to illustrate the concept. 

    ASSESSMENT CRITERION 2 
    2. The concept of different insurance needs at different times in a person's life is illustrated on a time line. 

    ASSESSMENT CRITERION 3 
    3. The possibility of needing insurance is compared for three different events. 

    ASSESSMENT CRITERION 4 
    4. Basic terms associated with short term insurance such as insurable interest and indemnity are understood and explained with reference to a specific policy. 

    ASSESSMENT CRITERION 5 
    5. The advantages and disadvantages of short-term insurance are listed from the point of view of a policy holder. 

    ASSESSMENT CRITERION 6 
    6. The effects of a particular event on a short-term insurance organisation are compared for a scenario with or without reinsurance. 

    ASSESSMENT CRITERION 7 
    7. The implication of non-disclosure for the individual and the organisation are explained for short-term insurance. 

    SPECIFIC OUTCOME 2 
    Identify the different products that a short-term insurance organisation/provider markets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Five different short-term insurance products are named with examples of each. 

    ASSESSMENT CRITERION 2 
    2. The excess on different products is compared based on the risk and characteristics of the product. 

    ASSESSMENT CRITERION 3 
    3. The benefits of products are compared with reference to policies. 

    ASSESSMENT CRITERION 4 
    4. The concept of outsurance is compared to that of traditional short-term insurance and a decision is made as to which type of insurance best suits own circumstances. 

    SPECIFIC OUTCOME 3 
    Categorise the different types of short-term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The basis for the classification of a short-term policy is indicated according to its target market. 

    ASSESSMENT CRITERION 2 
    2. The type of risk in two short-term policies is compared and reasons are given for the difference in risk. 

    ASSESSMENT CRITERION 3 
    3. The classes applied to short-term insurance are named with an example of each type of insurance. 

    ASSESSMENT CRITERION 4 
    4. Two examples of specialist categories of short-term insurance are listed with examples of each type of insurance. 

    SPECIFIC OUTCOME 4 
    Recognise events that impact on short-term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The impact of location, circumstances and claims history on policy premiums is explained with reference to actual examples. 

    ASSESSMENT CRITERION 2 
    2. The frequency of claims is explained in terms of nature of risk with reference to a claims statistics report. 

    ASSESSMENT CRITERION 3 
    3. The concept of size of risk is explained using a graph to illustrate the underlying principles. 

    ASSESSMENT CRITERION 4 
    4. A peril is explained with reference to difference classes of insurance. 

    SPECIFIC OUTCOME 5 
    Apply knowledge of customer profiles and risk to short term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Various consumer profiles are established and compared using a case study. 

    ASSESSMENT CRITERION 2 
    2. The risk categories most likely to apply to the customers in the case study are identified and linked to the customer profile. 

    ASSESSMENT CRITERION 3 
    3. The advantages and disadvantages of taking out short-term insurance are compared with examples from case studies involving self insurance and insurance. 

    ASSESSMENT CRITERION 4 
    4. A table is compiled that indicates the most typical customer profiles and the types of insurance cover best suited to their needs. 


    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. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners can identify and solve problems by comparing the need for insurance, by explaining the implications of non-disclosure and by matching the customer`s profile to short-term insurance classes of business. 

    UNIT STANDARD CCFO ORGANISING 
    Learners can collect, organise and evaluate information when comparing the risk element of 2 short-term policies and by giving reasons for the differences in risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual, mathematics and language skills when using case studies of customer profiles and when graphically presenting their findings. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when comparing the effects of a particular event on a short-term insurance organisation for a scenario with or without reinsurance. 

    UNIT STANDARD CCFO CONTRIBUTING 
    A learner is able to participate as a responsible citizen in his/her work community when explaining the implications of non-disclosure for the individual and the organisation. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 114964, which is "Describe short term insurace", Level 3, 3 credits as from 11 Aug 2004 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20177   National Certificate: Insurance  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered" 
    2004-10-10  Was INSETA until Last Date for Achievement 
    Core  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  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.
     
    1. Discovery Life Ltd 
    2. Faisit (Pty) Ltd 
    3. Intec College 
    4. Invuya Institute of Learning (Pty) Ltd 
    5. 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.