Course Title: Insurance and Social Security

Part A: Course Overview

Course Title: Insurance and Social Security

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance & Marketing


Sem 1 2006,
Sem 2 2006

Course Coordinator: Ms. Patricia Peters

Course Coordinator Phone: +61 3 9925 5858

Course Coordinator

Pre-requisite Courses and Assumed Knowledge and Capabilities

BAFI1014 Introduction to Financial Planning or ACCT1018 Financial Planning

Course Description

The course aims to develop an understanding of concepts, principles and applications of insurance with particular emphasis for students considering entering the field of financial planning.

This subject consists of two parts.

Part 1, which covers a comprehensive study of insurance within the context of the Australian Insurance Industry, and covers topics such as fundamental concepts of insurance, risk management, legal principles, classes of insurance, insurance planning, business insurance, the regulatory environment and distribution of insurance products.

Part 2 of this course, which covers:
- the various social insurance programs, benefits and allowance provided by Centrelink, and
- the impact of financial products on social security benefits.

Industry Recognition:
The Part 1 of the course fulfils the competency guidelines set by the Australian Securities and Investments Commission (ASIC) for the training of authorised representatives in generic and specialist knowledge in core, life and general insurance. This course is included in the Register of ASIC Compliant Training for Authorised Representatives.

Objectives/Learning Outcomes/Capability Development

At the conclusion of this subject, you should be able to:

• Explain the concept of risk and its effect on individuals and society;
• Examine the costs and benefits of insurance to individuals and society;
• Identify the characteristics and requirements for the application of insurance to pure risk;
• Outline the risk management process and the selection of appropriate techniques in treating loss exposures;
• Understand the basic legal principles governing insurance contracts;
• Define the types of general insurance products in personal risk insurance;
• Explain the goals in underwriting and objectives in pricing of insurance products;
• Understand the basic legal principles and the distinct characteristics governing insurance contracts;
• Explain the wordings and the various elements in an insurance contract;
• Define the classes of life insurance products
• Explain the need for insurance in personal financial planning and the application of three approaches used in insurance planning
• Analyse client’s need for insurance and provide written recommendation;
• Explain the regulation governing the insurance industry and the conduct of insurance intermediaries;
• Determine the tax issues pertaining to insurance products;
• Understand the compliance issues for the advisory, selling, claims and compliant handling of retail insurance products.
• Outline the various types of financial assistance benefits available from Centrelink.
• Describe the factors affecting social security entitlements such as income and asset tests and deeming rules;
• Explain the impact of financial products on social security benefits.

Overview of Learning Activities

To achieve the objectives listed above this subject requires you to participate in various learning activities. These activities comprise the following:

- attendance at, and notetaking during, scheduled lectures;
- reading of, and notetaking from, prescribed notes, text and distributed references;
- completion of distribution tutorial questions prior to each tutorial;
- completion of assigned assessment tasks.

Overview of Learning Resources

Prescribed text

CCH, Guide to life risk protection and planning (Latest Edition).

Course notes - ONLINE RMIT will be used for the dissemination of course notes, readings and other relevant notices.

Overview of Assessment

To pass this subject you must achieve 50% of the marks allocated for the assignment(s) and score 50% of the marks allocated for the final examination paper.