Undertake the life risk underwriting process
This unit describes the skills and knowledge required to undertake risk assessments of applications for life insurance including gathering the risk information, and reviewing and assessing it against appropriate risk criteria.
It applies to individuals who use specialised knowledge and systematic approaches to analyse and evaluate information and make judgements within limits of delegated authority.
What you'll learn
By the end of this learning pathway, you should be able to:
- identify risk factors
- evaluate life insurancean application
- identify and obtain further information to evaluate the application
- determine and advise terms and conditions of risk acceptability.
FNSILF411 Undertake the life risk underwriting process
Week 1: Introduction to life insurance
- Major risks covered by life risk policies
- Different types of life insurance products
- Various types of policy ownership
- Legalities and the role of the underwriter in risk sharing
- Regulatory requirements that apply to the life insurance applicant and underwriter.
Week 2: Underwriting the application
- How individual characteristics can result in deviations from mortatality and morbidity averages
- Being mindful of different types of risks to the insurer
- How an applicant’s risk information determines the need for additional information and/or further underwriting.
Week 3: Risk evaluation
- The characteristics of individuals will mean their expected mortality and/or morbidity varies from the average of people their age and gender
- You need to be mindful of different types of risks to the insurer
- The risk information an applicant provides by way of their application form can be used to determine the need for additional information and/or further underwriting.
Week 4: Additional information to determine risk acceptability
- The need for, and the sources of, additional information to underwrite the application
- The acceptability of the application based on your analysis of all relevant information
- The applicable terms and conditions of acceptance
- The processes that need to be completed after the application has been accepted.
1 Exam and 1 Simulation