Course Title: Determine risk rating for investment and insurance products
Part B: Course Detail
Teaching Period: Term1 2012
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
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: |
1. Monitor and collect information on risk factors |
Performance Criteria: |
1.1. Product type is identified so that the nature of the risk can be identified and handled accordingly. |
Element: |
2. Analyse data collected |
Performance Criteria: |
2.1. The reliability and validity of the data is established |
Element: |
3. Determine risk rating for product |
Performance Criteria: |
3.1. Acceptability of risk is determined using all available information in accordance with company policy and procedures and underwriting guidelines |
Element: |
4. Communicate results to appropriate personnel |
Performance Criteria: |
4.1. Results of research and analysis are presented to appropriate personnel in a clear, concise format |
Learning Outcomes
Details of Learning Activities
To achieve the learning outcomes of the course students are required to participate in the learning activities listed below:
• Attendance at and note taking during teacher directed learning (scheduled classes);
• Reading of and note taking from the prescribed textbook and other references;
• Completion of tutorial exercises prior to each workshop. Tutorial exercises consist of practical problems, short answer questions, multiple choice, case studies and exercises;
• Attendance, participation and discussion in class (tutorials);
• Optional consultation with academic staff;
• Completion of three (3) assessment tasks as indicated below.
Teaching Schedule
Week | Week Commencing | Topics | Assessment |
1 | 6th Feb |
Pre-training review: • RPL /LLN Chapter 1 |
|
2 | 13th Feb | Chapter 2 Introduction to Risk Management. Definition of risk management, Risk management process, Risk management tools, Rules of risk management, Personal risk management. |
|
3 | 20th Feb | Chapter 3 Insurance and Risk. Characteristics of insurance, Ideal requirements of an insurable risk, Principles of risk classification, Types of insurance |
Assessment on Topics from weeks 1 and 2 Multiple choice and Short Answer Questions Grading (CA/NYC) |
4 | 27th Feb | Chapter 4 Regulation and Compliance. Historical development of regulation of insurance industries in Australia, Regulation of insurance agents and brokers in Australia Impact of the Trades Practices Act 1974 (Cth), Roles played by APRA and ASIC Impact of FSRA on licensing, disclosure and conduct obligations |
|
5 | 5th March | Chapter 5 Policy, Law and Documentation Key concepts, Making the insurance contract, Construction of the insurance policy, Claims Measurement of the loss |
|
6 |
12th March (Monday labour day) |
Chapter 6 Introduction to Life Insurance What is life insurance? Insurance company operations |
|
7 | 19th march | Introduction to Life Insurance Key legislation Industry structure |
Assignment Handed out including discussion on assessment requirements. |
8 | 26th March | Introduction to General Insurance Legislation and regulation in Australia Dynamics of the Australian general insurance industry Prudential standards and solvency requirements in Australia |
|
9 | 2nd April | Taxation and Insurance Taxation implications for life & general insurance companies, Taxation of life insurance premiums & proceeds, Taxation of life insurance death benefits, Taxation of disability insurance premiums and proceeds Taxation of insurance products used for business purposes |
Classes are 2nd, 3rd and 4th and the 12th and 13th |
Mid semester break (5 April to 11 April) | |||
9 | 9th April | No Tuesday Class 10th / Mid semester break | |
10 | 16th April | Chapter 9 Personal Risk Management Steps in personal risk management Property and liability risk management Key essential of buying insurance |
Electronic Draft of assignment to be submitted to teacher in class. |
11 | 23rd April | Chapter 10 Life Insurance Products Traditional life policies, Term life insurance Trauma insurance, Income protection policies, Business overheads |
25 April (Wed) Anzac Day Final Assignment discussion With teacher |
12 | 30th April | Chapter 11 General Insurance Products Domestic insurance policies, Common types of liability policies, Small business insurance policies, General Insurance Code of Practice |
Final Assignment discussion With teacher |
13 | 7th May |
Chapter 11 General Insurance Products |
Continued as per above Assignment due (CA/NYC) |
14 | 14th May | Chapter 12 Mandated Insurance and Health Insurance |
Chapter 12 Mandated Insurance and Health Insurance Social security in Australia Compulsory third party insurance, Workers compensation, Medicare and other benefit schemes Private health insurance systems |
15 | 21st may | Assessment 3 – (CA/NYC) (From Topics covered in Weeks 3 to Weeks 14) |
|
16 | 28th May | Re-submissions if required | |
17 | 4th June | Feedback |
Learning Resources
Prescribed Texts
Teal, J; Insurance and Risk Management, John Wiley and Sons Australia Ltd |
References
Other Resources
All students will need access to a copy of the prescribed text.
Lecture and tutorial notes are on blackboard and various readings if applicable.
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
Overview of Assessment
Students must demonstrate an understanding of all elements of competency to be deemed competent.
A range of assessment methods are used to assess practical skills and knowledge, for example:
• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• review of authenticated documents from the workplace or training environment
• demonstration of techniques
Critical aspects of assessment
Evidence of the following is essential
• Interpret and apply organisation policy and procedures and compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings.
• Apply knowledge and skills in the area of risk identification and assessment.
Assessment Tasks
You are required to complete 3 tasks. You must successfully complete all 3 tasks to be deemed competent in this unit.
TASK 1 (Due Date: 7th May, Week 3)
This will consist of a multiple choice question and short answer assessment. CA/NYC
TASK 2 (Due Date: 30th April, Week 13) CA/NYC
An individual assignment requiring students to conduct research into risk management.
The above task will be presented in report format (approx. 300- 500 words per recommendation).
TASK 3 (Due Date: 21st May, Week 15) CA/NYC
A two hour closed book assessment covering Topics covered in Weeks 3 to Weeks 14
Submission Requirements
You should:
• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.
Marking Guide (competency):
Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.
You need to demonstrate you are competent in each element of the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.
Please refer to the Final Grades table below.
Marking Guide (Grading)
After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.
The grading is according to the following criteria:
1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK
We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to job roles such as a actuaries, intermediaries, managers or supervisors, marketing and sales personnel, underwriters and other relevant organisational personnel. Have the ability to confirm to work requirements, using questioning and active listening as required, liaise with others, share information, listen and understand and use language and concepts appropriate to cultural differences.
2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING
We are looking for depth of understanding of the key concepts and knowledge required in accessing and managing financial services information, accessing financial product and services information and interpreting documentation. We are also looking at literacy skills to read, write, edit and proofread documents to ensure clarity of meaning, accuracy and consistency of information. Students should have knowledge of the basis of actuarial analysis and decisions, risk assessment policies and procedural guidelines, underwriting policies and procedures, geographic and demographic data, insurance products, premiums, extent of insurance coverage and other conditions of the insurance contract, investment product information, data and trends. Students should also have an understanding about insurance for accidental damage, burglary/theft, business interruption, defined events, employee fraud, environment and pollution, fire and perils, general and products liability, personal accident and illness, professional indemnity, public liability, directors and officers. Students should understand about, reinsurance, the relationship between underwriting and rate making, relevant legislation, regulatory guidelines and industry sector compliance requirements, such as the Insurance Contracts Act, Privacy Act, Trade Practices and Corporations Act. Knowledge of the risk analysis/prevention methods and application and type of risk and probability of likely occurrence.
3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING
We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in managing client services or reporting and to develop options to resolve these issues when they arise. We also want you to interpret and apply organisation policy and procedures. Apply knowledge and skills in the area of risk identification and assessment. How compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings is determined.
Assessment Tasks
You are required to complete 3 tasks. You must successfully complete all 3 tasks to be deemed competent in this unit.
TASK 1 (Due Date: 7th May, Week 3)
This will consist of a multiple choice question and short answer assessment. CA/NYC
TASK 2 (Due Date: 30th April, Week 13) CA/NYC
An individual assignment requiring students to conduct research into risk management.
The above task will be presented in report format (approx. 300- 500 words per recommendation).
TASK 3 (Due Date: 21st May, Week 15) CA/NYC
A two hour closed book assessment covering Topics covered in Weeks 3 to Weeks 14
Submission Requirements
You should:
• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.
Marking Guide (competency):
Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.
You need to demonstrate you are competent in each element of the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.
Please refer to the Final Grades table below.
Marking Guide (Grading)
After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.
The grading is according to the following criteria:
1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK
We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to job roles such as a actuaries, intermediaries, managers or supervisors, marketing and sales personnel, underwriters and other relevant organisational personnel. Have the ability to confirm to work requirements, using questioning and active listening as required, liaise with others, share information, listen and understand and use language and concepts appropriate to cultural differences.
2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING
We are looking for depth of understanding of the key concepts and knowledge required in accessing and managing financial services information, accessing financial product and services information and interpreting documentation. We are also looking at literacy skills to read, write, edit and proofread documents to ensure clarity of meaning, accuracy and consistency of information. Students should have knowledge of the basis of actuarial analysis and decisions, risk assessment policies and procedural guidelines, underwriting policies and procedures, geographic and demographic data, insurance products, premiums, extent of insurance coverage and other conditions of the insurance contract, investment product information, data and trends. Students should also have an understanding about insurance for accidental damage, burglary/theft, business interruption, defined events, employee fraud, environment and pollution, fire and perils, general and products liability, personal accident and illness, professional indemnity, public liability, directors and officers. Students should understand about, reinsurance, the relationship between underwriting and rate making, relevant legislation, regulatory guidelines and industry sector compliance requirements, such as the Insurance Contracts Act, Privacy Act, Trade Practices and Corporations Act. Knowledge of the risk analysis/prevention methods and application and type of risk and probability of likely occurrence.
3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING
We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in managing client services or reporting and to develop options to resolve these issues when they arise. We also want you to interpret and apply organisation policy and procedures. Apply knowledge and skills in the area of risk identification and assessment. How compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings is determined.
4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT
We expect to see ongoing uploading of information that is relevant to the unit, full utilisation of Blackboard as per course requirements and timely submission of all required assessment tasks. Teamwork skills
problem solving skills to identify any issues that have the potential to impact on organisational skills, including the ability to plan and sequence work. Self-management skills for complying with ethical, legal and procedural requirements.
5. COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK
We expect to see contributions to relevant discussions and scheduled classroom sessions. In addition your tasks should demonstrate a very good understanding of strategies for well-developed literacy skills for analysing information on client needs and preparing clear written advice, plans and reports. This includes research skills such as: accessing and managing information, interpreting documentation and coordinating tasks.
Final Grades table:
CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment
Assessment Matrix
Course Overview: Access Course Overview