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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of trade credit insurance 
SAQA US ID UNIT STANDARD TITLE
242677  Demonstrate knowledge and understanding of trade credit 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
14982  Demonstrate knowledge and understanding of credit risk insurance  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who work in trade credit insurance and business to business credit insurance. It will be useful for credit insurance intermediaries, reinsurers, underwriters, claims assessors and consultants. Trade credit insurance should not be confused with consumer credit insurance as embodied in the National Credit Bill.

The qualifying learner is capable of:
  • Explaining trade credit insurance.
  • Describing the trade cycle.
  • Explaining the types of cover available under trade credit insurance.
  • Explaining the payment instruments related to local and international trade. 

  • 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:
  • A solution should include a quotation.
  • A quotation includes, but is not limited to, spread of risk, bad debit history, deductibles, losses, risk participation by prospect.
  • Trade insurance refers to business to business insurance. Both locally and internationally.
  • Current INCO terms are EXW, FOB/FCA, CFR/CPT AND CIF/CIP.
  • Methods of payment include, but are not limited to, letter of credit, promissory note, bill of exchange and negotiable instruments. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain trade credit insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of trade credit is explained and an indication is given of the purpose of trade credit insurance. 

    ASSESSMENT CRITERION 2 
    Situations where trade credit insurance is recommended are identified with reference to the target market. 

    ASSESSMENT CRITERION 3 
    The key players in the trade credit insurance market are named with reference to the insured, the insurer and the debtor. 

    SPECIFIC OUTCOME 2 
    Describe the trade cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The steps in the trade cycle are explained for manufacturers and wholesalers. 

    ASSESSMENT CRITERION 2 
    The trade risks at each step in the trade cycle are analysed with specific reference to trade credit. 

    ASSESSMENT CRITERION 3 
    The role of intermediaries in sales and servicing a trade credit policy is explained with reference to limits, claims, product development and documentation. 

    SPECIFIC OUTCOME 3 
    Explain the types of cover available under trade credit insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A basic trade credit insurance policy wording and schedule are interpreted and an indication is given of the cover provided and the exclusions to the policy. 

    ASSESSMENT CRITERION 2 
    Products marketed as trade credit insurance are named and an indication is given of the purpose of each product and the intended target market. 

    ASSESSMENT CRITERION 3 
    The needs of a selected entity are analysed and a solution proposed to meet the needs of the entity. 

    ASSESSMENT CRITERION 4 
    A quotation is prepared for a selected client based on a needs analysis. 

    SPECIFIC OUTCOME 4 
    Explain payment instruments related to local and international trade. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Methods of payment that apply to local business transactions are explained with reference to how each affects the underwriting risk. 

    ASSESSMENT CRITERION 2 
    Methods of payment that apply to international business transactions are explained with reference to how each affects the underwriting risk. 

    ASSESSMENT CRITERION 3 
    INCO terms relevant to trade are named and explained with reference to the transfer of risk. 


    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 
    Learners are able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in analysing case studies to determine if the risk is acceptable and proposing potential solutions to meet the credit insurance needs of different companies. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information in indicating the information required to assess a risk and explaining credit insurance products. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively in explaining the business cycle of a credit risk and in interpreting a policy wording and schedule. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to see the world as a set of related systems in recognising the internal and external factors that affect the status of a 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 14982,"Demonstrate knowledge and understanding of credit risk insurance", level 4, 2 credits.

    Search words: trade credit, insurance. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    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.
     
    NONE 



    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.