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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Underwrite a standard risk in Long-term insurance 
SAQA US ID UNIT STANDARD TITLE
119266  Underwrite a standard risk in Long-term insurance 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14433  Underwrite a standard risk in long term insurance  Level 4  NQF Level 04  40   

PURPOSE OF THE UNIT STANDARD 
The key purpose of underwriting risk in Long-term insurance is to protect the company from unfavourable claims experienced due to mortality and morbidity and to ensure that standard lives are given ordinary rates. This unit standard is intended for life underwriters in general and individual underwriters within group benefits who underwrite a group over the free cover limit. It is useful for claims assessors, broker supervisors, senior underwriting clerks, new business clerks, and policy servicing personnel.

The qualifying learner is capable of:
  • Gathering and recording information to assess Long-term risk.
  • Identifying and explaining the risks involved in underwriting lives.
  • Accessing and using a variety of media to assess Long-term risk.
  • Interpreting and evaluating data for underwriting purposes.
  • Making an underwriting decision. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Communication at NQF Level 3.
  • Mathematical Literacy at NQF Level 3.
  • Computer Literacy at NQF Level 3.
  • Recognition of Prior Learning for 100 hours/ten credits workplace experience in Long-term claims assessing. 
    		•

    UNIT STANDARD RANGE 
  • Sources of information and media include, but are not limited to: Company products; underwriter's guidelines; reinsurance guidelines, books, dictionaries. medical dictionaries; medical and pharmacological guides, books, journals, a register of doctors and dentists; underwriting reference library; LOA life registry system; Internet; Intranet; Extranet; relevant Insurance Acts; the Chief Medical Officer.
  • Indicators of a non-standard risk include, but are not limited to, financial, legal, medical and insurance risks.
  • Terminology related to pathology includes all systems of the body, anatomy, physiology and health impairments.
  • Protocols include, but are not limited to: Replacement agreement; disability agreement; dread disease, impairment, HIV/AIDS and other medical agreements.
  • Authority limits determined by the sum insured, product and experience. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Gather and record information to assess Long-term risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The basic purpose of underwriting risk is explained with particular reference to Long-term insurance. 

    ASSESSMENT CRITERION 2 
    Criteria to be considered in underwriting Long-term insurance are explained with reference to company policy and/or treaties with reinsurers. 

    ASSESSMENT CRITERION 3 
    A proposal form is analysed for generic factors of more than average risk based on the specific product and market. 

    ASSESSMENT CRITERION 4 
    Additional information that may be required is identified and collected in accordance with the relevant protocols. 

    ASSESSMENT CRITERION 5 
    All relevant information is considered and used to create a synopsis. 

    SPECIFIC OUTCOME 2 
    Identify and explain the risks involved in underwriting lives. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The rationale for classifying occupations, avocations and hazardous pursuits into categories is explained with examples. 

    ASSESSMENT CRITERION 2 
    Occupation categories are identified and the concept of a nominated occupation and duties are explained in terms of their effect on the risk profile. 

    ASSESSMENT CRITERION 3 
    Avocation categories are identified and explained in terms of their effect on a risk profile. 

    ASSESSMENT CRITERION 4 
    Risks that affect mortality are explained with examples. 

    ASSESSMENT CRITERION 5 
    Risks that affect morbidity and impairment are explained with examples. 

    ASSESSMENT CRITERION 6 
    The concept of disability is explained with reference to lifestyle limitations related to different impairments. 

    ASSESSMENT CRITERION 7 
    The rationale for automatic exclusions and the implications for the applicant are explained with examples and with reference to industry practice. 

    ASSESSMENT CRITERION 8 
    Financial risks associated with age, income, Life Style Measurements and total cover are explained with examples. 

    ASSESSMENT CRITERION 9 
    The implications of insurable interest and over-insurance are explained with examples. 

    SPECIFIC OUTCOME 3 
    Access and use a variety of media to assess Long-term risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A variety of media are accessed and evaluated in terms of reliability and validity. 

    ASSESSMENT CRITERION 2 
    The consequences of not referring to appropriate media are explained with reference to risk to the insurer, the underwriter and the client. 

    ASSESSMENT CRITERION 3 
    Relevant LOA protocols are identified and applied to the assessment of Long-term risk. 

    SPECIFIC OUTCOME 4 
    Interpret and evaluate data for underwriting purposes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Terminology associated with pathology and the normal functioning of the body is interpreted in a medical questionnaire to determine what additional information is required to assess a risk. 

    ASSESSMENT CRITERION 2 
    Legal, financial and insurance risks in a proposal are interpreted to determine what additional information is required to assess a risk. 

    SPECIFIC OUTCOME 5 
    Make an underwriting decision. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Knowledge of financial, legal, occupational, avocational, medical and other insurance risk is applied to make an underwriting decision within own mandate. 

    ASSESSMENT CRITERION 2 
    The consequences of exceeding own limit of authority are explained with reference to the risk to the underwriter, insurer and client. 

    ASSESSMENT CRITERION 3 
    The implications of a signed declaration are explained in terms of the law of contract. 

    ASSESSMENT CRITERION 4 
    Reasons for limits of authority imposed on an underwriter are explained and an indication is given of additional knowledge required to progress to the next level. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA, or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA according to the policies and guidelines for assessment and moderation of that ETQA, at its discretion, in terms of agreements reached about assessment and moderation between various ETQA's (including professional bodies). 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The products marketed by a Long-term insurance organisation. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to recognise potential problems and make a decision to underwrite as a standard risk or to refer a case to a senior underwriter. 

    UNIT STANDARD CCFO WORKING 
    The learner is able to recognise the need to work effectively as a member of a team in order to assess a risk to the benefit of the client and acceptable risk to the company. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage his/her own activities responsibly and effectively to maximise productivity and provide an efficient service to clients. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and evaluate information in order to underwrite a standard Long-term risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in order to explain the rationale for underwriting decisions and create a written synopsis of information relevant to a case. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is able to use a computer to assist in processing information required to assess Long-term risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to recognise that decisions are not made in isolation and that a variety of systems are involved in assessing Long-term risk. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 14433, "Underwrite a standard risk in long term insurance", Level 4, 40 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.