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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of financial interactions of insurers, underwriting managers and intermediaries in short term insurance 
SAQA US ID UNIT STANDARD TITLE
120129  Demonstrate knowledge and understanding of financial interactions of insurers, underwriting managers and intermediaries in short term 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 
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
10372  Describe financial interactions of insurers and intermediaries in short term insurance  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who wish to follow a career path in short term insurance. It will be useful for intermediaries, underwriting managers, advisors, broker consultants and broker liaison officers.

The qualifying learner is capable of:
  • Explaining the basic accounting practices that are used by insurers and intermediaries in financial communication in short term insurance.
  • Reconciling payments on a short term insurance policy.
  • Describing payments made by intermediaries and insurers.
  • Explaining how insurers manage the financial relationship with intermediaries. 

  • 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:
  • Ways in which payments are made include stop orders, debit orders, cash payments, credit card payments and bordereaux.
  • Reconciliation of payments includes individual and bordereaux. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the basic accounting practices that are used by insurers, underwriting managers and intermediaries in financial communication. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of commission is explained and an indication is given of legislation that applies to the payment of commission on short term insurance policies. 

    ASSESSMENT CRITERION 2 
    The concepts of premiums and collections are explained and an indication is given of legislation that applies to premiums and collections on short term insurance policies. 

    ASSESSMENT CRITERION 3 
    The concept of an administration fee is explained and an indication is given of when administration fees are paid for a specific insurer. 

    ASSESSMENT CRITERION 4 
    The different ways in which payments may be made and processed are described for an intermediary, underwriting manager and an insurer. 

    ASSESSMENT CRITERION 5 
    The implications if a premium is not paid are explained for different scenarios. 

    ASSESSMENT CRITERION 6 
    The importance of the close off date is explained in terms of amendments to a policy and collection of payment. 

    SPECIFIC OUTCOME 2 
    Reconcile payments on a short term insurance policy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Reasons for an over or under deduction or payment on a short term insurance policy are investigated and possible avenues for taking corrective action are explained with examples. 

    ASSESSMENT CRITERION 2 
    The concepts of debit and credit are explained as applied in the insurance industry. 

    ASSESSMENT CRITERION 3 
    The concept of pro rata is explained in relation to amendments, to a short term insurance policy. 

    ASSESSMENT CRITERION 4 
    An account is reconciled in response to a query. 

    ASSESSMENT CRITERION 5 
    The way in which a pro rata payment is calculated is explained and demonstrated for different examples. 

    SPECIFIC OUTCOME 3 
    Describe payments made by intermediaries, underwriting managers and insurers. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for direct payment to and from clients. 

    ASSESSMENT CRITERION 2 
    The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for payment to and from intermediaries. 

    ASSESSMENT CRITERION 3 
    The structure of a payment is analysed in terms of premium, pro rata, intermediary fees and commission for direct payment to and from insurers. 

    SPECIFIC OUTCOME 4 
    Explain how insurers and underwriting managers manage the financial relationship with intermediaries. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The terms and conditions of a contract between insurer and intermediary are explained with reference to the financial aspects of a particular contract. 

    ASSESSMENT CRITERION 2 
    Levels of authority within the accounts department are known and an indication is given of the implications of non compliance. 

    ASSESSMENT CRITERION 3 
    The concept of a claim fund is explained and an indication is given of how a contract between an intermediary and an insurer regulates the fund. 


    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 ORGANISING 
    The learner can manage him/herself and his/her own activities when ensuring that amendments to a policy and the collection of premiums are effected by close off date. 

    UNIT STANDARD CCFO COLLECTING 
    The learner can collect, organise and evaluate information when reconciling an account in response to a query. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner can communicate effectively using visual, mathematical and language skills in oral and written presentation when calculating a pro rata payment and offering the explanations required in the Unit Standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner can demonstrate an understanding of the world as a set of related systems by explaining the implications of non compliance with authority levels. 

    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 10372, " Describe financial interactions of insurers and intermediaries in short term insurance", Level 4, 2 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 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    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. Alcari Learning Centre (Pty) Ltd 
    3. CKP Development Agency (Pty) Ltd. 
    4. De Vries Management & Training Services cc 
    5. EJW Financial Services (Pty) Ltd 
    6. Faisit (Pty) Ltd 
    7. Intelligo Solutions Pty (Ltd) 
    8. Invuya Institute of Learning (Pty) Ltd 
    9. License to Skill cc 
    10. Masifunde Training Centre (Pty) Ltd 
    11. Octomate (Pty) Ltd 
    12. Outsurance Insurance Company Ltd 
    13. Ray Strodl Consulting (Pty) Ltd 
    14. Ripple Effect 4 (Pty) Ltd 
    15. RJM Educational Consulting (Pty) Ltd 
    16. Sanlam Life Insurance 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.