NZQA registered unit standard
28371 version 1
Page 1 of 3
Title
Demonstrate understanding of insurance concepts and principles
and apply to life and health insurance situations
Level
5
Purpose
Credits
5
This unit standard in intended for people working, or intending
to work, in roles in the life and health insurance industry.
People credited with this unit standard are able to demonstrate,
in a life and health insurance situation, understanding of:
–
types of risk and concepts of insurance, and
–
the evaluation and management of risk.
Classification
Financial Services > Financial Services - Professional Practice
Available grade
Achieved
Explanatory notes
1
References
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Financial Advisers Act 2008;
Financial Service Providers (Registration and Dispute Resolution) Act 2008;
Health and Safety in Employment Act 1992;
Insurance Law Reform Act 1977;
Insurance Law Reform Act 1985;
Privacy Act 1993;
relevant industry codes of practice;
and all subsequent amendments and replacements.
2
Range
Assessments requiring application or demonstration of skills and knowledge may be
performed using workplace evidence or evidence derived from simulation or scenario
based activities.
All activities must comply with legislation, regulations, and best practice, including
any guidance notes published by the agency responsible for the relevant enactment
or code.
Outcomes and evidence requirements
Outcome 1
Explain risk types and life and health insurance concepts.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
28371 version 1
Page 2 of 3
Evidence requirements
1.1
Describe types of risk in terms of their relevance to insurance products.
Range
risk includes but is not limited to – pure risks such as personal,
property liability and non-performance; and speculative risks such
as investment risks associated with some insurance products and
companies.
1.2
Explain client aversion to or tolerance for risk in terms of attitude to risk and
capacity to cope with risk.
1.3
Explain key insurance concepts in terms of the attributes and applicability.
Range
insurance as a vehicle to transfer risk, what risks are insurable,
utmost good faith, compensation not enrichment, reinsurance,
significance of correct policy ownership from a claims and a
taxation point of view;
tax includes – income tax, FBT, GST, company tax.
Outcome 2
Explain risk exposure and risk management processes applying to life and health
insurance situations.
Evidence requirements
2.1
Evaluate exposures to risk in terms of probability of risk, potential severity
and/or impact of risk consequences.
Range
2.2
costs, financial benefits, non-financial benefits, direct losses,
consequential losses, hidden losses.
Explain methods of handling risk in reference to the result achieved and the
relationship with insurance.
Range
methods of managing risk include – identification, avoidance,
mitigation, financing, acceptance, transfer.
2.3
Using workplace, scenario or case study based evidence identify and evaluate
exposures to risk, explain which types of risk are insurable and which are not,
demonstrate methods of dealing with each, and determine an appropriate
response based on risk management process.
2.4
Demonstrate an understanding of what differentiates a standard client situation
from a non-standard client situation.
Range
The Skills Organisation
SSB Code 100401
standard client situation – single need, ordinary premium rates;
within the guide;
non-standard client situation – multiple needs, outside the guide.
For example, extreme Body Mass Index, hazardous pursuits or
occupations.
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Planned review date
28371 version 1
Page 3 of 3
31 December 2017
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
19 February 2015
N/A
Consent and Moderation Requirements (CMR) reference
0003
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact The Skills Organisation reviewcomments@skills.org.nz if you wish to
suggest changes to the content of this unit standard.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016