SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Demonstrate knowledge and insight into the Long Term Insurance Act (1998)

SAQA US ID	UNIT STANDARD TITLE
14316	Demonstrate knowledge and insight into the Long Term Insurance Act (1998)
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	2
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2001-12-05	2004-12-02	SAQA 0639/01
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2005-12-02		2008-12-02

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
117126	Apply knowledge and insight into aspects of the Long Term Insurance Act, Act 52 of 1998	Level 4	NQF Level 04	2

PURPOSE OF THE UNIT STANDARD

This unit standard is intended to empower intermediaries, learners who work in long term insurance and learners who work in call centres with sufficient general knowledge of the Long Term Insurance Act to allow them to show insight into why and how long term insurance is regulated by the Act.

The qualifying learner is capable of:
! Explaining the background to the Long Term Insurance Act.
! Describing the underlying requirements of the Act.
! Explaining terminology used in the Act
! Applying the Long Term Insurance Act to the client`s rights and obligations under a contract.

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 3.

UNIT STANDARD RANGE

The typical scope of this unit standard is:

1. The different insurance Acts are the Long Term Insurance Act (1998) and the Short Term Insurance Act (1998).
2. Criteria used to assess long term risk include age, gender, health, occupation and income.
3. Classes of policy are life, disability, health, fund policy.
4. Parties to a contract include the unborn child, 18 year olds.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain the background to the Long Term Insurance Act (1998).

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The Acts that govern Insurance are named and an explanation is given for why there is more than one Act.

ASSESSMENT CRITERION 2

2. The different insurance Acts are compared in terms of risk and the things insured under each Act.

ASSESSMENT CRITERION 3

3. The concept of assessing long term risk is explained with reference to the criteria used to assess long term risk.

SPECIFIC OUTCOME 2

Describe the underlying requirements of the Long Term Insurance Act.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The requirements regarding the marketing of Long Term insurance products stipulated in the Act are named with reference to the role of the Registrar of Long Term insurance.

ASSESSMENT CRITERION 2

2. The penalty for non registration of an insurance company is named and an indication is given of possible avenues for redress to the customer in cases of non compliance in terms of the Long Term Insurance Act, FAIS and Policyholder Protection legislation.

ASSESSMENT CRITERION 3

3. Material factors that influence long term risk are named and an indication is given of the consequences of failing to disclose information which could affect the initial assessment of risk and payout at claim stage.

SPECIFIC OUTCOME 3

Explain the terminology and underlying concepts used in the Long Term Insurance Act.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concept of long term is explained as it is used in the Act.

ASSESSMENT CRITERION 2

2. The different classes of policy identified in the Act are named and explained in own words.

ASSESSMENT CRITERION 3

3. The concept of insurable interest is explained with reference to its application in the Long Term insurance Act and when it should exist.

ASSESSMENT CRITERION 4

4. The parties to a Long Term insurance contract are named and an explanation is given of their relationship, rights and obligations.

ASSESSMENT CRITERION 5

5. Limits on cover imposed on the lives of children are indicated and categorised according to age.

ASSESSMENT CRITERION 6

6. The difference between a life contract and all other contracts is explained with reference to age and contractual capacity.

SPECIFIC OUTCOME 4

Apply the Long Term Insurance Act to the a client's rights and obligations under a contract.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Accessibility to funds in the first five years of a contract is explained in terms of frequency and values.

ASSESSMENT CRITERION 2

2. The minimum terms of a contract are explained with reference to the requirements of the Act.

ASSESSMENT CRITERION 3

3. The consequence of increasing a policy premium by more than 20% is explained with reference to the Act.

ASSESSMENT CRITERION 4

4. The impact of the four funds approach to a long term policy is explained in terms of Section 29a of the Income Tax Act.

ASSESSMENT CRITERION 5

5. The commission structure of a long term insurance policy is explained with reference to a particular policy.

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 COLLECTING

The learner is able to collect, organise and apply information relating to the Act.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively in explaining the concepts and terminology used in the Act.

UNIT STANDARD CCFO DEMONSTRATING

The learner is able to demonstrate an understanding of the world as a set of related systems by recognising the consequences of non compliance.

UNIT STANDARD NOTES

This unit standard has been replaced by 117126, which is 'Apply knowledge and insight into aspects of the Long Term Insurance Act, Act 52 of 1998', 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
Core	20773	National Certificate: Long Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	INSETA
Elective	48494	National Certificate: Financial Services Management	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2012-06-30	INSETA
Elective	48640	National Certificate: Financial Services Management	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
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
Elective	20774	National Certificate: Insurance: Long Term: Risk Assessment	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2004-12-05	Was INSETA until Last Date for Achievement
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
Elective	23973	National Certificate: Financial Services: Wealth Management	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "Registered"	2006-08-13	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.

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