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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Underwrite a standard risk in short term commercial insurance 
SAQA US ID UNIT STANDARD TITLE
120110  Underwrite a standard risk in short term commercial 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 4  NQF Level 04  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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10367  Underwrite a standard risk in short term commercial and industrial 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 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. It will be useful for Short Term Underwriters, Intermediaries and Call Centre Agents.

The qualifying learner is capable of:
  • Investigating the background and circumstances of a commercial proposer.
  • Analysing the risk factors in commercial entities.
  • Investigating the loss and claims history of a commercial proposer.
  • Making an underwriting decision for a standard short term commercial risk. 

  • 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 and that they know the products marketed by a short term insurance organisation. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Main classes of business include, but are not limited to, fire, combined perils, 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.
  • Knowledge of accidental damage and specialised classes is not required at this level.
  • Factors that increase the risk include, but are not limited to, location, environmental and health and safety factors, construction, description of business, risk in processes and stock, security, storage and fire.
  • Multimark(TM) and/or other policy wordings including agricultural policies.
  • Verification of risk includes financial and loss history. 

  • Specific Outcomes and Assessment Criteria: 

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

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of a commercial proposer is explained with reference to the circumstances under which a business entity can be a proposer. 

    ASSESSMENT CRITERION 2 
    The concept of a standard commercial risk is explained with reference to a specific insurer. 

    ASSESSMENT CRITERION 3 
    Underwriting information is analysed to determine elements that could indicate a higher than usual risk and an indication is given of why each factor increases the risk. 

    ASSESSMENT CRITERION 4 
    The difference between the proposer and the insured is explained with examples. 

    SPECIFIC OUTCOME 2 
    Analyse the risk factors in commercial entities. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The perils in a specific proposal are analysed to determine the required insurance. 

    ASSESSMENT CRITERION 2 
    Risk factors associated with each peril are analysed and a decision is made to accept a proposal as a standard risk or to refer it to a higher authority. 

    ASSESSMENT CRITERION 3 
    Different kinds of legal liability risks are identified and reasons are given as to why each would be classified as a high, medium or low risk. 

    ASSESSMENT CRITERION 4 
    The kind of risk associated with materials stored or used in the manufacture or construction of an asset is explained for different examples. 

    ASSESSMENT CRITERION 5 
    Situations under which a survey is required are indicated for a specific insurer. 

    ASSESSMENT CRITERION 6 
    An on site survey is conducted and a report is completed indicating the perils, hazards and protections as well as verifying risk factors, values and additional needs. 

    ASSESSMENT CRITERION 7 
    A survey report is interpreted to determine the risk. 

    ASSESSMENT CRITERION 8 
    Different sections of a commercial policy wording and schedule are analysed and explained in terms of the insurance cover. 

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

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Possible sources for verifying information are identified and an indication is given of when each is appropriate. 

    ASSESSMENT CRITERION 2 
    Additional information relating to previous losses is investigated and suggestions are made to reduce risk. 

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

    SPECIFIC OUTCOME 4 
    Make an underwriting decision for a standard short term commercial risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    All the relevant information is analysed and used to determine whether to accept or decline the proposal and factors that warrant a loading or reduction are identified in terms of reducing perils, applying deductions, excesses and physical protection of assets. 

    ASSESSMENT CRITERION 2 
    The concepts of excess, deductibles and self-insurance are explained with reference to a particular commercial or industrial policy document. 

    ASSESSMENT CRITERION 3 
    The premium rates and terms and conditions are determined for the risk or exposure. 

    ASSESSMENT CRITERION 4 
    The concept of underwriting retentions and insurance reinsurance are explained and an indication is given as to the relationship between the two. 


    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 is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in recognising potential problems and making a decision to underwrite as a standard risk or to refer a case to a senior underwriter. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself and his/her activities responsibly and effectively in providing an efficient service to clients. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in underwriting a standard short term risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the rationale for underwriting decisions completing a written report. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use technology effectively in using a computer to underwrite a risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that decisions are not made in isolation and that a variety of systems are involved in assessing short term risk. 

    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 replaces unit standard 10367, " Underwrite a standard risk in short term commercial and industrial 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  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  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. Alcari Learning Centre (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd. 
    3. De Vries Management & Training Services cc 
    4. EJW Financial Services (Pty) Ltd 
    5. Faisit (Pty) Ltd 
    6. Intelligo Solutions Pty (Ltd) 
    7. Invuya Institute of Learning (Pty) Ltd 
    8. License to Skill cc 
    9. Masifunde Training Centre (Pty) Ltd 
    10. Octomate (Pty) Ltd 
    11. Outsurance Insurance Company Ltd 
    12. Ripple Effect 4 (Pty) Ltd 
    13. RJM Educational Consulting (Pty) Ltd 
    14. Santam Limited 



    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.