SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Indicate the scope of short term insurance in South Africa

SAQA US ID	UNIT STANDARD TITLE
8997	Indicate the scope of short term insurance in South Africa
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 3	NQF Level 03	3
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2001-10-10	2004-10-10	SAQA 0538/01
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2005-10-10		2008-10-10

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
117134	Indicate the scope of short term insurance in South Africa	Level 3	NQF Level 03	3

PURPOSE OF THE UNIT STANDARD

This unit standard builds on the concepts introduced in the unit standard, Describe short-term insurance. It introduces some theoretical concepts and requires a wide range of knowledge and skills that will enable learners to be informed workers in the short-term insurance industry.

The qualifying learner is capable of:

Explaining short-term insurance and comparing the products classified as short-term.

Explaining what short-term insurers do with policyholders` money.

Describing the role of the short-term ombudsman.

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 NQF Level 2. Learners should:

Understand the concept of short-term insurance.

Know the types of short-term insurance and some of the products that a short-term insurance organisation markets.

Recognise events that impact on short-term insurance premiums.

UNIT STANDARD RANGE

The typical scope of this unit standard is:

Classes of business:

Fire or Interruption,

Engineering, Liability,

Motor,

Transit,

Marine,

Breakdown,

Personal Accident,

Professional Indemnity,

Aviation,

Crime Classes.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain short-term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Buyers, sellers and intermediaries are identified as the players in the short-term insurance market.

ASSESSMENT CRITERION 2

2. An explanation is given of what constitutes short-term insurance in financial services.

ASSESSMENT CRITERION 3

3. The different classes of short-term insurance are named and compared in terms of the different products marketed.

ASSESSMENT CRITERION 4

4. Reasons are given for taking out a short-term insurance policy for two different types of short-term insurance.

ASSESSMENT CRITERION 5

5. Reasons why certain public bodies and industrial concerns choose to self-insure are listed and case studies of situations where the bodies were insured or self insured are compared.

SPECIFIC OUTCOME 2

Indicate the kind of products marketed as short-term insurance

OUTCOME NOTES

Indicate the kind of products marketed as short-term insurance and the role of intermediaries in short-term insurance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Products marketed as short-term insurance are researched and two similar products
are compared in terms of cover and price.

ASSESSMENT CRITERION 2

2. Sources of new short-term insurance business are indicated with reasons why the sources could be interested in a short-term insurance policy

ASSESSMENT CRITERION 3

3. The functions of an intermediary are listed and compared to that of an intermediary in long term insurance.

ASSESSMENT CRITERION 4

4. The advantages and disadvantages to the customer of using or not using an intermediary are listed and an indication is given of how the intermediary adds value to the customer and how the Internet could change the relationship.

ASSESSMENT CRITERION 5

5. The relationship between the intermediary and an insurance organisation is described from the perspective of the short-term insurance industry.

ASSESSMENT CRITERION 6

6. The effects of inflation on a short-term policy are explained with reference to similar policies over a decade.

SPECIFIC OUTCOME 3

Explain what short-term insurers do with their policy holders' money.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. A premium pie is used to illustrate graphically the apportionment of the premium Rand.

ASSESSMENT CRITERION 2

2. Different avenues of investment prescribed by law are named and compared from a companies' perspective.

ASSESSMENT CRITERION 3

3. The concept of a solvency margin in short-term insurance is explained in terms of legislation.

ASSESSMENT CRITERION 4

4. The implications of an insufficient solvency margin for a company are explained and an indication is given of the options that a short-term insurance company has if it has a surplus of funds

ASSESSMENT CRITERION 5

5. Treaty reinsurance and facultative reinsurance in short-term insurance are explained and compared with examples of each.

SPECIFIC OUTCOME 4

Describe the role of the short-term ombudsman.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The functions of the short-term ombudsman are outlined and reasons are given to explain why the role exists.

ASSESSMENT CRITERION 2

2. Ways in which the ombudsman can interact with insurance companies on behalf of the customer are indicated and compared with the customers' options if there were no ombudsman.

ASSESSMENT CRITERION 3

3. The advantages to the industry of supporting an ombudsman are listed and compared to a situation where there is no ombudsman.

ASSESSMENT CRITERION 4

4. The contracts between the industry and the ombudsman are explained with reference to a particular complaint.

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 IDENTIFYING

Learners are able to develop entrepreneurial opportunities by identifying potential sources of short-term new business.

Learners can identify and solve problems by listing reasons for self-insurance and comparing case studies where public and industrial bodies were insured or self-insured.

UNIT STANDARD CCFO COMMUNICATING

Learners are able to communicate effectively using visual, mathematics and language skills when providing reasons for effecting short-term insurance, when comparing different avenues of investment and when using a premium pie to graphically illustrate the appointment of the premium Rand.

UNIT STANDARD CCFO SCIENCE

Learners can understand the impact of technology by explaining how the Internet can change the intermediary-policyholder relationship.

UNIT STANDARD CCFO DEMONSTRATING

Learners can demonstrate an understanding of the world as a set of related systems by recognising the effect of inflation on short-term policies.

UNIT STANDARD NOTES

This unit standard has been replaced by 117134, which is 'Indicate the scope of short term insurance in South Africa', Level 3, 3 Credits.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	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	48494	National Certificate: Financial Services Management	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2012-06-30	INSETA
Elective	20177	National Certificate: Insurance	Level 3	NQF Level 03	Passed the End Date - Status was "Registered"	2004-10-10	Was INSETA until Last Date for Achievement
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

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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