Course Title: Determine risk rating for investment and insurance products

Part B: Course Detail

Teaching Period: Term1 2009

Course Code: BAFI5143C

Course Title: Determine risk rating for investment and insurance products

School: 650T TAFE Business

Campus: City Campus

Program: C5205 - Diploma of Financial Services

Course Contact : Michael Elliot

Course Contact Phone: 61 3 9925 5519

Course Contact Email:michael.elliot@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Steve Goutzioulis
Tel: 61 3 9925 5464
Email: steve.goutzioulis@rmit.edu.au

Nominal Hours: 50

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

NONE

Course Description

This unit covers the functions involved in monitoring and analysing risks and determining the risk rating associated with an existing or new investment or insurance product.
It covers in-depth knowledge of the Life Insurance industry, including industry regulations and codes of practice, insurance and other financial products, financial markets and investment characteristics.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSINSV505B Determine risk rating for investment and insurance products

Element:

FNSINSV505B/01 Monitor and collect information on risk factors

Performance Criteria:

· Product type is identified so that the nature of the risk can be identified and handled accordingly
· Relevant information is identified, monitored and collected

Element:

FNSINSV505B/02 Analyse data collected

Performance Criteria:

· The reliability and validity of the data is established
· Risk factors associated with a product are assessed against known exposure factors
· All information collected on risk factors for a product is analysed using appropriate methods and documented
· Need for additional information in order to further evaluate the risk is identified, collected and analysed

Element:

FNSINSV505B/03 Determine risk rating for product

Performance Criteria:

· Acceptability of risk is determined using all available information in accordance with company policy and procedures and underwriting guidelines
· Risk rating that minimises risk liability is established within delegated authority
· The basis for the risk rating decision is documented
· Compliance with relevant legislation and company policy is considered
· Risk rating information is documented in a format that may be used to guide underwriting and product/policy amendment decisions

Element:

FNSINSV505B/04 Communicate results to appropriate personnel

Performance Criteria:

· Results of research and analysis are presented to appropriate personnel in a clear, concise format
· Risk rating recommendations are reviewed against existing products and organisational policies
· Risk rating recommendations are finalised and relevant personnel notified


Learning Outcomes



Details of Learning Activities

In this course students will undertake a range of learning activities, which will include:
An initial introduction to topics and techniques via teacher directed learning, tutorial-based discussion groups, role-plays to explore individual reactions to particular situations, a group project (case-study, tutorial exercises in order to develop competency including underpinning skills and knowledge.


Teaching Schedule

This program is intended as a guide only. It is subject to variation. Any changes will be communicated to students.

 Weekly Schedule 
Week beginningTopicsTutorial/class work
Week 1 – 9 Feb1. The life insurance industryThe life insurance industry
Week 2 – 16 Feb2. The role of the life insurance adviser, life company, life brokerThe role of the life insurance adviser, life company, life broker
Week 3 – 23 Feb3. Impact actors on the on the client’s insurance and financial needs.The general impact of relevant economic, taxation and social security policy
Week 4 – 2 Mar3. Impact actors on the on the client’s insurance and financial needs. 
Week 5 – 9 Mar3. Impact actors on the on the client’s insurance and financial needs. 
Week 6 – 16 Mar4. Investment and savings vehicles Investment financial markets, asset classes and investment characteristics
                                                
Week 7 – 23 Mar4. Investment and savings vehicles 
Week 8 – 30 Marl 5. Life insurance productsGeneric products available in the Life Insurance Industry  
Week 9 – 6 April5. Life insurance products 
                                                Easter Break (9th to 15th April inclusive)
Week 9 - 13 April5. Life insurance products 
Week 10 – 20 April6. Investment risk factors and relationship to return expectationsInvestment risk factors
Week 11 – 27 April6. Investment risk factors and relationship to return expectations 
Week 12 – 4 May7. Insurance and investment/savings options Investment strategies and solutions suitable for typical customers situations/profiles
Week 13 – 11 May7. Insurance and investment/savings options 
Week 14 – 18 MayPresentations 
Week 15 – 25 MayRevision 
Week 16 – 1 JuneFinal Test 
Week 17 – 8 JuneFeedback on assignment & assessment 


Learning Resources

Prescribed Texts

There is no prescribed text for this course. Students will be provided with a copy of “Selected Notes in Risk Management and Insurance” prepared by RMIT.


References

Beal D and McKeown W, Personal Finance, John Wiley and Sons Australia Ltd, 3rd Edition

Gitman LJ, Morrison DS and Joehnk MD, Personal Financial Planning – an Australian Perspective, Thomson, 1st Edition.


Other Resources

• Print based resources
Extensive course notes and materials in addition to lecture overheads and tutorial questions will be available of the learning hub online@rmiit.edu.au from the commencement of the course. Also included are short answer questions and problem sets, self-directed exercises, some solutions and core notes for each topic.


Overview of Assessment

Assessment will incorporate a variety of methods including a collaborative research projects, presentations, closed book tests and/or examination.
Tests will comprise multiple-choice, case studies and short answer questions. It will assess underpinning knowledge and skills and the performance criteria of the unit.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress.


Assessment Tasks

The assessment will consist of:
1. Group Assignment & Presentation
Collaborative research projects where you will work together with other students to research an insurance product and relate the benefits of insurance to clients’ needs. It will also involve a group presentation communicating the group’s work to the class.

2. Closed Book Examination
Comprising multiple-choice, case studies and short answer questions. It will assess underpinning knowledge and skills, covered in the course, and the performance criteria of the unit.

The assessment weighting for this course takes the following form:

  • Assignment & group presentation 40% of assessment
  • Final Test 60% of assessment

Students are assessed against all the performance elements of the course and must demonstrate an understanding of all elements to be deemed competent. To receive a pass for this course a student must also achieve 50% overall.


Assessment Matrix

 Group assignmentGroup presentationClosed book test
Monitor and collect information on risk factors YYY
Analyse data collected YYY
Determine risk rating for product YYY
Communicate results to appropriate personnelYYY

Course Overview: Access Course Overview