LEARNERS ASSESSMENT PACK

Demonstrate Knowledge and Insight into

The Short Term Insurance Act

(No 53 Of 1998)

and the Accompanying Regulations

(10194)

NAME:

ORGANISATION:

COURSE NO:

OR

RPL:

INDEX

Page No

Instructions to Learner1

Assignment: Assessment Questionnaire4

Declaration of Authenticity9

Version 1 – March 2004

Unit Standard SAQA 10194 – Demonstrate Knowledge & Insight into the Short Term Insurance Act (No 53 of 1998) & The Accompanying Regulations

INSTRUCTIONS TO LEARNER

Purpose of the Assessment:

/ The purpose of assessment against this unit standard is to:
  1. Award credits on the NQF to learners who are able to:
-Explain the purpose of the Short Term Insurance Act
-Explain the basic requirements of the Short Term Insurance Act as they apply to insurance
-Explain how the Short Term Insurance Act controls intermediaries
-Explain how the Short Term Insurance Act regulates short term insurance policies
  1. FAIS Compliance
This unit standard will provide you with 2 credits towards the skills programme created at level 4, and aimed at satisfying the requirements for Short Term Insurance – Personal Lines & Commercial Lines.

Context of the Unit Standard

/

This unit standard is registered on the National Qualifications Framework as follows:

Field: / Finance, Commerce and Management Studies
Sub-Field: / Finance, Economics and Accounting
Number: / 10194
Level: / 4
Credits: / 2

Learning Assumptions:

/ The entry requirements for this unit standard is set as open.
However learner should be competent in communication, mathematical literacy and financial literacy at Level 3.

Assessment Methods:

/ No other assessment is required prior to the assessment against this unit standard.
The following assessment method will be used for this assessment:
-Written/or oral questioning

Assessment Process:

/ Step 1 – Planning for the Assessment
-You will need to complete an assessment plan together with your assessor/line supervisor
-Your assessor will prepare you for your assessment and complete the assessment preparation plan with you
-Ensure you are familiar with what is expected of you for this assessment and the unit standard
Step 2 – Completing the Assessment
-This assessment will be by means of an assessment questionnaire detailed on page 4
-Hand in the assessment by the date agreed on the assessment plan
-Your assessor may ask you additional questions
-Your assessor will record the evidence that you have submitted onto the assessment guide
-Based on this evidence, the assessor will make a judgement of 'Competent' or 'Not Yet Competent' or 'Not Assessed' for each assessment criteria and overall for the total unit standard
Step 3 – After the Assessment
-If 'Not Assessed' you and the assessor will agree the criteria not assessed and arrange an additional assessment date
-If 'Not Yet Competent' you and the assessor will identify why this judgement has been made and the action/s necessary. A re-assessment date should also be agreed upon.
-All decisions will be recorded on the assessment guide, which all parties should sign
-You will only be declared 'Competent' if you have provided sufficient and valid evidence against all the assessment criteria and specific outcomes of this unit standard
-After declaration of competence, your assessment is subject to the internal moderation process
-Once this is complete, your results will be entered onto SAQA's NLRD – National Learner Record Database

Special Conditions:

/ -The declaration of authenticity on page 9 must be signed by your manager and yourself to certify that the evidence is authentic and that this has been applied in your workplace
-Feedback on your assessment will be given to you by your Line Manager/Assessor

Resources:

/ The following additional/supporting resources will help you when preparing for your assessment:
Resource
/ Reference / Available From

Version 1 – March 20041

Unit Standard SAQA 10194 – Demonstrate Knowledge & Insight into the Short Term Insurance Act (No 53 of 1998) & The Accompanying Regulations

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE

NAME: ______DATE: ______

DEPARTMENT: ______

For office use
QUESTION 1
Explain why legislation is necessary for the Short Term industry.
______
______
______
QUESTION 2
List the 4 parties to the Act:
______
QUESTION 3
Explain the role of the Registrar in administering the Act
______
QUESTION 4
What are the consequences of non-compliance with the Insurance Act Short Term?
______

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.)

For office use
QUESTION 5
List 2 recourses a client has in terms of the Act.
QUESTION 6
List 3 classes of short term insurance:
______
QUESTION 7
Which two types of companies must register in terms of the Act?
______
QUESTION 8
List 3 returns that the insurer is required to submit:
______

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.)

For office use
QUESTION 9
Choose the correct minimum amount with which the insurers assets must exceed their liabilities:
  1. R 2 million
  2. R 6 million
  3. R 3 million

QUESTION 10
In which way does Lloyd’s have a different requirement for registration than SA insurers?
______
QUESTION 11
Describe the regulated commissions payable to intermediaries under the Act:
______
______
QUESTION 12
List 3 limitations that are placed on brokers’ business dealings in terms of the Act?
______
______

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.)

For office use
QUESTION 13
List 3 duties of a broker under a Lloyd’s binder:
______
______
QUESTION 14
Which types of intermediaries are allowed to collect premiums?
______
______
QUESTION 15
How does the Act define short-term policies?
______
______
QUESTION 16
What are the rules applicable to minors?
______
______
______
______

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.)

For office use
QUESTION 17
Give 3 examples of information that the insured is entitled to receive in respect of the intermediary?
______
______
______
ASSESSORS COMMENTS:
ASSESSORS SIGNATURE: DATE:

DECLARATION OF AUTHENTICITY

We the undersigned hereby declare that ______has completed all of the specified requirements for assessment against this unit standard.

SIGNED:______

LEARNER:______

DESIGNATION:______

DATE:______

SIGNED:______

LINE SUPERVISOR:______

DESIGNATION:______

DATE:______

SIGNED:______

ASSESSOR:______

DESIGNATION:______

DATE:______

Version 1 – May 20041