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

Underwrite a standard risk in short term commercial and industrial insurance 
SAQA US ID UNIT STANDARD TITLE
10367  Underwrite a standard risk in short term commercial and industrial 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 4  NQF Level 04  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2002-06-12  2005-06-12  SAQA 0742/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2006-06-12   2009-06-12  

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
120110  Underwrite a standard risk in short term commercial insurance  Level 4  NQF Level 04  10  Complete 

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 standard risk. Qualifying learners are able to select risks for insurance and determine in what amounts and on what terms the insurance company will accept the standard risk.

The qualifying learner is capable of:
  • Investigating the background and circumstances of the Multimark? commercial and industrial proposer.
  • Analysing the risk factors and liabilities in commercial and industrial entities.
  • Investigating the loss history of a commercial and industrial proposer.
  • Making an underwriting decision for a short-term commercial and industrial standard risk.
  • Generating a contract for a standard commercial and industrial risk using Multimark? pre-wordings. 

  • 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, Mathematical Literacy and Financial Literacy at NQF Level 3 and know the products marketed by a short term insurance organisation.


    Before being credited with this unit standard learners are required to have 100 hours of monitored on the job experience. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
    1. Main classes of business include fire, combined, office contents, business interruption, accounts receivable, theft, money, glass, fidelity, goods in transit, all risks, accidental damage, liability, stated benefits/group personal accident, commercial motor, electronic equipment.
    2. Knowledge of Accidental damage and specialised classes is not required at this level. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Investigate the background and circumstances of the Multimark commercial and industrial proposer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of a commercial and industrial proposer is explained as it is used in short term insurance. 

    ASSESSMENT CRITERION 2 
    2. The concept of a standard risk is explained with reference to a Multimark policy. 

    ASSESSMENT CRITERION 3 
    3. The circumstances under which a corporate identity/company or organisation can be a proposer are explained as applied in a Multimark? policy. 

    ASSESSMENT CRITERION 4 
    4. The concept of the insured is explained and an indication is given of the possible difference between the proposer and the insured. 

    ASSESSMENT CRITERION 5 
    5. Factors that are considered to pose a high risk in commercial and industrial insurance are listed in a table and an indication is given of why each factor is considered a high risk. 

    ASSESSMENT CRITERION 6 
    6. Location, environmental and health and safety factors that could indicate a high risk are named and an indication is given as to how these could be addressed in underwriting a contract. 

    ASSESSMENT CRITERION 7 
    7. The basic purpose of underwriting risk is known and explained with particular reference to the proposed types of short-term commercial and industrial insurance. 

    ASSESSMENT CRITERION 8 
    8. Multimark underwriting notes are analysed and elements that could indicate a higher than usual risk are identified and investigated further. 

    ASSESSMENT CRITERION 9 
    9. All relevant information is considered and used to create a synopsis in accordance with company underwriting criteria. 

    SPECIFIC OUTCOME 2 
    Analyse the risk factors in commercial and industrial entities. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of subject matter of insurance in commercial and industrial entities is explained with reference to a Multimark underwriting notes. 

    ASSESSMENT CRITERION 2 
    2. The concept of insurable interest and indemnity is explained with reference to the relationship between the proposer and the subject matter. 

    ASSESSMENT CRITERION 3 
    3. At least six different risk factors are named and an indication of location, value, use/occupation and type that could affect the risk in each case is indicated in a table. 

    ASSESSMENT CRITERION 4 
    4. Three kinds of legal liability risk are identified and reasons are given as to why each would be classified as a high, medium or low risk. 

    ASSESSMENT CRITERION 5 
    5. The kind of risk attached to materials stored or used in the manufacture or construction of an asset is explained for five different examples. 

    ASSESSMENT CRITERION 6 
    6. An on site survey is conducted and a report written indicating hazards and protections and verifying risk factors and values. 

    SPECIFIC OUTCOME 3 
    Investigate the loss history of a commercial and industrial proposer. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The information in the underwriting notes is verified and an indication is given of possible sources for verifying this information. 

    ASSESSMENT CRITERION 2 
    2. Additional information relating to previous losses is requested and corrective measures taken to reduce risk are ascertained from the proposer. 

    ASSESSMENT CRITERION 3 
    3. The financial implications of the size and frequency of previous losses are ascertained and an indication is given of the claims' trend and the preferred risk when faced with a low frequency high risk or high frequency low risk. 

    SPECIFIC OUTCOME 4 
    Make an underwriting decision for a short-term commercial and industrial standard risk 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. All the relevant information gathered is analysed and used to determine whether to accept or decline the proposal. 

    ASSESSMENT CRITERION 2 
    2. Factors that warrant a loading or reduction are identified in terms of reducing perils, applying deductions, excesses and physical protection of assets. 

    ASSESSMENT CRITERION 3 
    3. The concepts of excess, deductibles and self-insurance are explained with reference to a particular Multimark? policy document. 

    ASSESSMENT CRITERION 4 
    4. The premium rate is determined for the risk or exposure. 

    ASSESSMENT CRITERION 5 
    5. The premiums, terms and conditions are determined and presented in a quotation. 

    ASSESSMENT CRITERION 6 
    6. Underwriting criteria are used to determine the need for reinsurance. 

    ASSESSMENT CRITERION 7 
    7. The concept of underwriting retentions and insurance reinsurance are explained and an indication is given as to the relationship between the two. 

    SPECIFIC OUTCOME 5 
    Generate a contract for a standard commercial and industrial risk using Multimark? pre-wordings. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Different sections of a Multimark? policy-wording contract are identified and explained in terms of the insurance cover. 

    ASSESSMENT CRITERION 2 
    2. Relevant policy sections are selected for a particular Multimark contract. 

    ASSESSMENT CRITERION 3 
    3. The selected sections are sequenced correctly in a policy document. 


    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. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    To enable competent performance and achievement the learner can
  • Understand and explain company policy.
  • Apply basic computer skills and use an electronic database to access and record information.
  • Know and can explain what constitutes a short-term commercial and industrial insurance risk. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners can recognise potential problems and make a decision to underwrite as a standard risk or to refer a case to a senior underwriter. 

    UNIT STANDARD CCFO WORKING 
    Learners can recognise the need to work effectively as a member of a team in order to assess a risk to the benefit of the client and acceptable risk to the company. 

    UNIT STANDARD CCFO ORGANISING 
    Learners can organise and manage own activities responsibly and effectively to maximise productivity and provide an efficient service to clients. 

    UNIT STANDARD CCFO COLLECTING 
    Learners can collect, organise and evaluate information in order to underwrite a standard short term Multimark risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively in order to explain the rationale for underwriting decisions and create a written synopsis of information relevant to a case. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can use a computer to assist in processing information required to maintain policy records and statistical information. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners can recognise that decisions are not made in isolation and that a variety of systems are involved in assessing short-term risk. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 120110, which is " Underwrite a standard risk in short term commercial insurance", Level 4, 10 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2006-10-08  Was INSETA until Last Date for Achievement 
    Elective  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 


    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. Invuya Institute of Learning (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.