Unit of competency Outline
Date retreived
23/07/2026 1:23 AM AWST
23/07/2026 1:23 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Provide Tier 2 personal advice in general insurance
Provide Tier 2 personal advice in general insurance
Unit of competency
National Code
FNSASIC305A
FNSASIC305A
State Code
D4213
D4213
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
29/07/2014
Nominal Hours
45
Description
This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including that administered by the Australian Securities and Investments Commission (ASIC).This unit covers the functions undertaken by non-broker insurance advisers providing general advice in Tier 2 (standard retail general insurance) products to a consumer or current client.Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC. Tier 2 products are defined by ASIC as:General insurance products other than personal sickness and accident. These products:do not have any investment componentare subject to standard terms and conditions except for previously disclosed variationsare of a limited life (e.g. 12 months);Travel insurance products including where the product covers losses rising due to sickness or accident while travelling; andConsumer credit insurance including where the product covers consumer credit liabilities that cannot be paid due to sickness or accident.Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of advice.Apart from the advisory skills, there is a substantial generic, insurance core and specialist general insurance product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 2 personal advice.
Notes
Elements and Performance Criteria
1. Establish relationship with client
- 1.1. A range of communication and interpersonal skills are used to the knowledge level of client
- 1.2. Enquiries are responded to by explaining the range of general insurance products and services available and their relevant fees and charging methodology
- 1.3. Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct
- 1.4. Client is informed of the procedures for complaints handling
2. Identify client objectives and risk situation
- 2.1. A range of communication and interpersonal skills are used to establish client objectives and goals
- 2.2. Appropriate risk assessment processes and tools are used to collect relevant personal, financial and business details
3. Analyse client risk information
- 3.1. All information from the risk assessment process is analysed
- 3.2. The need for specialist advice is sought if required to address issues that professional judgement indicates may require further consideration.
- 3.3. Clients are consulted throughout the analysis for further clarification where necessary
4. Identify appropriate risk solution
- 4.1. Available options are identified and assessed using information from risk analysis
- 4.2. Relevant product research is conducted
- 4.3. A statement of advice for presentation to the client is prepared
- 4.4. The client is referred to an appropriate adviser for higher level or specialist advice if required
5. Present appropriate solutions to client
- 5.1. Features of the statement of advice are explained to the client in a clear and unambiguous way
- 5.2. Impact of key aspects of the recommendations, including possible risks, are disclosed in a clear and concise manner to the client
6. Negotiate effectively
- 6.1. Concerns and/or issues the client has regarding the proposed insurance plan/policy/transaction are discussed and clarified
- 6.2. Confirmation is sought from client regarding their preferred insurance plan/policy/transaction
7. Coordinate implementation of the agreed solution
- 7.1. Agreement regarding the proposed insurance plan/policy/transaction is sought from the client including fees and costs
- 7.2. Timeframes for execution and processing are clearly explained to the client
8. Complete and maintain necessary documentation
- 8.1. Proposal and other documents are completed and, where appropriate, signed off by the client
- 8.2. Copies of appropriate documentation and the signed agreement are exchanged
- 8.3. Client records are created or updated
9. Provide ongoing service where requested by client
- 9.1. Type and form of ongoing service including review of insurance plan/policy/transaction is agreed with the client
- 9.2. Fees and costs for defined ongoing services are clearly explained and confirmation of understanding gained from the client
- 9.3. Ongoing service is provided as required
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Adviser may include:
all natural persons who provide financial product advice to retail clients
any representative of a licensee
employee or owner.
Clients objectives and goals may include:
business needs
expectations of product coverage.
Risk assessment process might include:
checklists
surveys.
Information may include:
details of the customer's needs and objectives for coverage, insurer security
disclosures.
Concerns and/or issues might include:
beliefs about security and coverage.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Adviser may include:
all natural persons who provide financial product advice to retail clients
any representative of a licensee
employee or owner.
Clients objectives and goals may include:
business needs
expectations of product coverage.
Risk assessment process might include:
checklists
surveys.
Information may include:
details of the customer's needs and objectives for coverage, insurer security
disclosures.
Concerns and/or issues might include:
beliefs about security and coverage.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply core and specialist knowledge about the general insurance market in practical situations
demonstrate application of knowledge to a variety of known customer service and technical situations
interpret available information about the client's risk needs and products and apply discretion and judgement in developing an appropriate solution.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisational policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply core and specialist knowledge about the general insurance market in practical situations
demonstrate application of knowledge to a variety of known customer service and technical situations
interpret available information about the client's risk needs and products and apply discretion and judgement in developing an appropriate solution.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisational policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ36 | FNSASIC305 | Provide Tier 2 personal advice in general insurance | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D702 | FNS30111 | Certificate III in Financial Services | Qualification |
| S697 | FNS30510 | Certificate III in General Insurance | Qualification |
| D713 | FNS41411 | Certificate IV in General Insurance | Qualification |
| D704 | FNS30511 | Certificate III in General Insurance | Qualification |
| S728 | FNS51210 | Diploma of Insurance Broking | Qualification |
| S698 | FNS30610 | Certificate III in Insurance Broking | Qualification |
| S716 | FNS41710 | Certificate IV in Insurance Broking | Qualification |