Unit Standard: 31866 31867 & 31869 Life, Disability & Health Insurance Portfolio Assessment

31866, 32867, 31869 Life, Disability & Health Insurance Assessment 

Introduction

This assessment contains the information you need to determine competency for Life, Disability & Health Insurance for:

Unit Standard 31866 – Gather and analyse information to determine client life, disability, and health insurance needs.

Unit Standard 32867 – Apply knowledge of life, disability, and health insurance products and services to meet client needs.

Unit Standard 31869 – Provide advice in a life, disability and health insurance context using the Six Step Process.

This document contains:

• Assessment Guidance
• Assessment Tasks 1-7
• Student Declaration Form
• Assessment Decision and Schedule Form

Assessment Guidance

The Assessment Process

To achieve the unit standard, you must complete and return to Professional IQ the following documents:

• Assessment answers for all questions or tasks
• Student declaration form completed and signed

The assessment is competency based and focuses on the application of learning in the student’s role in their normal working environment. The study guide provided for this unit standard contains the information necessary to develop their knowledge and understanding of the life, disability and health insurance.

The qualified assessor will use their professional judgement and subject-matter expertise to evaluate your assessment ensuring that it is:

• Valid: meets the outcomes and evidence requirements of the unit standard being assessed
• Fair: a fair representation of what you can do and or know against the outcomes of the unit standard
• Authentic: it must be your own work and must not be copied from any course materials or other sources
• Sufficient: answers must be full and complete enough for the assessor to judge competency
• Consistent: answers are consistent with the assessor guidelines and national consistency requirements.

The evidence you submit must comply with any policies & procedures of your organisation, codes of practice of relevant professional bodies or any relevant legislative and regulatory requirements.

Students With Specific Needs

If you have specific learning needs, you should have informed Professional IQ of these at the time of enrolment. This enables the Academic Manager to discuss with you what appropriate support is required to complete your study and assessments.

The Assessor Role

The assessor will consider all written evidence provided by you and decide if it is competent or not yet competent.

The assessor may require you to provide more evidence on one or more questions or tasks, if in their judgement they feel the answer is insufficient or incorrect.

Where there is not enough evidence to make a decision on competency, your assessor will send you a Further Evidence Required request (FER) which means you will need to supply further information. They may contact you to have a professional conversation or to clarify a point in your answer.

The assessor will complete the Assessment Decision Form, including any feedback and return the result to you within 10 working days of receipt.

Please retain a copy of your assessment work and assessment results.

The Appeals Process

An explanation of the appeals process can be found in the Student Handbook located on Professional IQ under Student Resources.

If you disagree with an assessment decision, please follow the guide and complete an Assessment Appeal Form and send it to Student Support at Professional IQ. An independent assessor will be asked to investigate the appeal.

Resources

A copy of the unit standard can be downloaded from NZQA.

It is important you fully understand the outcomes and evidence requirements of the unit standard including any special notes, references and definitions applicable. The study guide is your main resource for this assessment.

You should read the study guide for this unit standard (as part of your course work) to enable you to answer the tasks listed in this assessment document.

References

This list is provided as a guide for students who are seeking further sources of information on this module:

• Code of Professional Conduct for Financial Advice Services;
• Consumer Guarantees Act 1993;
• Fair Insurance Code 2016;
• Fair Trading Act 1986;
• Financial Markets Conduct Act 2013;
• Financial Service Providers (Registration and Dispute Resolution) Act 2008;
• Financial Services Legislation Amendment Act 2019;
• Insurance Intermediaries Act 1994;
• Insurance Law Reform Act 1977;
• Insurance Law Reform Act 1985;
• ISO 22222:2005 Personal Financial Planning – Requirements for personal financial planners, available from https://www.iso.org;
• Life Insurance Act 1908
• Privacy Act 2020;
• relevant industry codes of conduct;
  and all subsequent amendments and replacements.

Definitions

• Six Step Process – the financial services industry standard for the provision of personal financial advice internationally, derived from ISO 22222 Personal Financial Planning.

Student Declaration Form

Complete and attach to your assessment answers before submitting for assessment.

The Tasks you submit for assessment must be your own work and cannot be completed by another person.  Initial each item on the list below to show you have read and understood the requirements of the assessment and that the submitted work is your own then sign the declaration.

Your own work means it cannot be copied from course materials or other text. Your answers must be in your own words.

I agree for my information to be shared with Ringa Hora Services Workforce Development Council (RHSWDC), the New Zealand Qualifications Authority (NZQA) and the Ministry of Education (MoE) for the purposes of moderation to ensure consistency and for verifying, recording and management of results. 

Signed:  ………………………………………………………….. Date:  ……………………

Assessment Task

The student is expected to answer all the following questions in the blue shaded cells and save their assessment document with a new name – e.g. 31866 67 69 John Smith 17 August

Task 1 (US 31866, 31867 & 31869)

For this task you must demonstrate how you have applied the Six-Step Advice Process to a range of client life, disability and health insurance needs and scenarios.

You are required to:

• Use the Client Case Studies and Templates provided by Professional IQ
• Provide THREE sets of evidence for THREE different clients (saved as THREE SEPARATE PDFs).

This assessment is NOT assessing what you do in your daily practice; it is assessing your ability to meet the requirements of the unit standard outcomes. The unit standards align to the Code of Professional Conduct for Financial Advice Services and therefore demonstrate your use of best practice.

You can use the Checklist to check off the documents you have submitted for each client; this will help ensure you are compiling and providing the correct documentation for each client.

Client range you will need to select from include (three different ones to be used):

• Individual
• Couple without children
• Couple with children
• Business situation – Sole Trader
• Business situation – Partnership
• Business situation – Company
• Trust

Product types include (but are not limited to)

• Life insurance
• Trauma
• TPD
• Income disability income cover
• Mortgage protection
• Household expenses
• Major medical
• Medical specialists and test
• Medical comprehensive

Guidance Note for Task 1

Task 1 requires THREE sets of PDF documents. To assist in the successful assessment of your portfolio we suggest you take the following approach:

Submission of documents

You are required to provide THREE separate sets of evidence demonstrating how you have applied the Six-Step Advice Process to a range of client life, disability and health insurance needs and scenarios.

The assessment question provides a checklist of requirements and possible documents that relate to each step. You should use this checklist to ensure you include the necessary documentation and have met all requirements on the list.

Document presentation

Prepare THREE separate PDFs, each containing one set of client documents clearly labelled as Clients 1, 2, 3.

Include a heading for each step followed by the documents for the step i.e. Step 1, Step 2, Step 3, Step 4, Step 5, Step 6.

Each set of client documents must contain the following items in this order:

1. Summary of the type of client (e.g. limited liability company, individual, trust), what you are doing for them (new business / renewal / review) and any other relevant background information.
2. A list of Steps 1 to 6 (use the checklist supplied) followed by the documents for the step i.e. Step 1, Step 2, Step 3, Step 4, Step 5, Step 6. Number the documents sequentially, so they follow the order in your PDF.
3. Documents must follow the Six-Step Advice Process chronologically. The documents must be in date order within each step, from oldest first to the most recent last.

Common documentation

You will have documents common to most or all clients such as the Financial Advice Provider disclosure information.  Include all common documents in each client set.

File size

The maximum file size for uploading to the learning platform is 10Mb. If your file exceeds this limit, please split the file in two and ensure they are clearly labelled and remain in sequence.

Contact Student Support if you have any issues. Most importantly, if you want to ensure the assessment goes smoothly for you and your assessor, please follow the above instructions.

Task 2 (US31867 1.2)

For each of the identified solutions in Task 1a (4 products), explain what specific actions could be taken to adjust the insurance structure, so that it aligns the solution with the client’s situation. Your answers should be approximately 50 words for each product. Specific actions may include:

• Adjust wait period or excess
• Include or exclude optional benefits
• Offer and acceptance of special terms

Task 3 (US 31867 1.3)

In approximately 150 words, explain the factors to be considered to incorporate existing insurance solutions into a new insurance recommendation, and when replacement business would be appropriate.

Task 4 (US 31867 2.1)

For each of the four insurance products in Task 1, explain in approximately 300 words community and/or public sources of support that could be available to the client, and the impact that this availability would have on the recommended insurance solution.

This could be internal or external sources of support available to the client such as a WINZ, Public Health or ACC benefits.  Explain your analysis process in suggesting this alternative source of support.

 Task 5 (US 31867 2.2)

There are two parts to this task. Both tasks are based on the case study provided below.

Chester and Chris have been living together for the last four years. They have no plans to get married but have two children together. Chris also has a 12-year-old daughter, Ruby, from a previous relationship. They have the following insurance policies:

Life insurance policy for $500,000 – a jointly owned policy covering the lives of Chester and Chris

Chris’s income protection policy

Chester’s trauma insurance policy

Chris’s life insurance policy for $200,000 which she took out for the benefit of her daughter

Family health insurance policy owned by Chester and Chris

Business keyperson insurance policy for Linkin Enterprises Ltd, to enable Chester’s business partner, Cornell, to buy Chris’s share of the business, if anything were to happen to Chester.

1. In 100-150 words, explain to Chester and Chris the implications of policy ownership structures and roles on the insurance contract. Your answer should include at least THREE key considerations for policy ownership, such as who is intended to benefit from the policy, who has rights of access to, and ability to change, information held and how claim payments are distributed if they go into the insured’s estate.

Complete the following table (you can assume that the policies have been structured to achieve the intended outcome):

Task 6 (US 31867 2.3)

Why are the following Acts or estate planning tools considered important when you are planning for a client, and what are the implications of these for claim payments to an estate? Your answer should be approximately 50 words for each Act/estate planning tool.

• Administration Act 1969
• Property (Relationships) Act 1976
• Income Tax Act 2007
• Enduring Power of Attorney
• Wills
• Trusts

Task 7 (US 31867 2.4)

In approximately 150 words explain any limits to your authority or personal expertise that you may encounter when creating life, disability and health insurance solutions, and how you would manage these to ensure the clients’ needs are met appropriately.

Assessment Decision Form And Assessment Schedule

31866 Unit Standard Title: Gather And Analyse Information To Determine Client Life, Disability, And Health Insurance Needs

Outcome 1: Gather Client Information To Determine Personal Life, Disability, And Health Insurance Needs.

Range evidence of three examples with a range of needs and complexities is required.

1.1 Identify client attitude to and capacity for managing risk in a life, disability, and health insurance context.

1.2 Identify client objectives that could impact on establish life, disability, and health insurance needs.

1.3 Collect information about personal client circumstances that could impact on insurance needs or limitations of cover.

1.4 Collect information about client financial situation that could impact on insurance needs or limitations of cover.

1.5 Determine recommended levels of life, disability, and health insurance cover based on collected client information.

Outcome 2: Analyse Client Information To Determine Any Potential Impacts On Client Life, Disability, And Health Insurance Needs.

2.1 Analyse existing client assets and insurances in terms of their suitability for meeting identified client needs.

2.2 Analyse client circumstances to determine their potential impact on client life, disability, and health insurance needs.

Range must include the potential impact of reasonably foreseeable changes to client circumstances; impact may have affect product type or product structure; client circumstances may include but are not limited to – job, relationship.

2.3 Analyse client information to determine the need for consultation with other specialists.

Range may include but is not limited to – legal, accounting.

31867 Unit Standard Title: Apply Knowledge Of Life, Disability, And Health Insurance Products And Services To Meet Client Needs

Outcome 1: Apply Knowledge Of Life, Disability, And Health Insurance Products And Services To Meet Client Needs.

1.1 Analyse the features, benefits, structures, risks, and limitations of products and services to identify those that meet the needs and circumstances of the client.

Range evidence of four examples with a range of needs and complexities.

1.2 Adjust specific terms of products and services to meet client’s needs.

Range evidence of four examples with a range of needs and complexities; specific adjusting actions may include but are not limited to – adjusting wait period or excess, including optional benefits, offering or accepting special terms.

1.3 Incorporate existing insurance arrangements into solutions when meeting client needs.

Outcome 2: Apply Knowledge Of Client And Adviser Circumstances That Are Relevant To Creating Life, Disability, And Health Insurance Solutions That Meet Client Needs.

2.1 Analyse the impact of alternative sources of support would have on the identified insurance solution.

Range may include but is not limited to – Accident Compensation Corporation, Ministry of Health, Primary Health Organisations, Work and Income New Zealand, non-insurance solutions.

2.2 Analyse the implications for insurance contracts of common policy ownership structures and roles.

Range ownership structures may include but are not limited to– personal ownership, joint tenants, tenants in common, companies, trusts, partnerships;

roles may include but are not limited to – policy owner, premium payer, insured, beneficiary.

2.3 Explain implications of relevant legislation and estate planning tools in terms of ownership and insurance claim payments.

Range may include but is not limited to – Administration Act 1969, Property (Relationships) Act 1976, Income Tax Act 2007, Enduring Power of Attorney, Wills, Trusts.

2.4 Explain strategies to address any limits of authority or expertise when creating life, disability, and health insurance solutions to meet client needs.

31869 Unit Standard Title: Provide Advice In A Life, Disability, And Health Insurance Context Using The Six Step Process

Outcome 1: Provide Advice In A Life, Disability, And Health Insurance Context Using The Six Step Process.

1.1 Establish and define the relationship with the life, disability, and health insurance client.

Range may include but is not limited to – meeting disclosure requirements, privacy acknowledgements, nature and scope of the advice, any known limitations to the service, agreement on the nature of remuneration for the service, obligations of parties.

1.2 Collect relevant qualitative and quantitative information for the agreed nature and scope of advice.

Range may include but is not limited to – client’s objectives, risk tolerance, personal and financial circumstances, needs, priorities.

1.3 Research, analyse, and evaluate client information to determine client’s financial situation and possible solutions.

Range may include but is not limited to – client circumstances that impact on advice, existing cover, new cover options, availability of other support, areas requiring other specialist advice, calculation and modelling of alternative structures or strategies, ownership considerations.

1.4 Develop life, disability, and health insurance recommendations based on selected strategies and present to the client.

Range may include but is not limited to –communicating how the advice meets the client’s needs and objectives, the cost of the recommendations, outlining risks and/or disadvantages of recommendations, responsibilities of the parties.

1.5 Implement agreed life, disability, and health insurance recommendations.

Range may include but is not limited to – variations required for implementation, client acceptance and sign off, communication with client through the application process.

1.6 Monitor and review life, disability, and health insurance recommendations.

Range may include but is not limited to – triggers for a review, timetable for review, responsibilities of the parties, identifying any changes to client circumstances, identifying any changes to insurance needs and structures, implementing any agreed changes.