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Submission Instructions:
Key steps that must be followed:
Once you have completed all parts of the assessment and saved it (eg. to your
desktop computer), login to the Monarch Learning Management System (LMS)
to submit your assessment.
In the LMS, click on the file ”Submit DFP Module 4 workplace simulation” in
the Module 4 section of your course and upload your assessment file/s by
following the prompts.
Please be sure to click “Continue” after clicking “submit”. This ensures your
assessor receives notification – very important!
I have read and understood the assessment instructions provided to me in the Learning Management System.
I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the
purpose of detecting plagiarism.
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by
the above student declaration.
This assessment covers the fundamentals of insurance. The focus of this assessment is
to analyse a Product Disclosure Statement (PDS) from an insurance provider –
Comminsure owned by Commonwealth Bank. The different policy ownership options
are explored, as are the options around holding insurance cover inside versus outside of
superannuation (including within an SMSF). Important insurance features such as
guaranteed renewability, guaranteed insurability and guaranteed agreed value are
explored in the context of the Comminsure policy. Income protection is covered with a
focus on options regarding waiting periods and benefit periods. Occupation classes and
how they impact underwriting and premium are addressed. The Partial disability benefit
within an income protection policy is explored. The important rights and responsibility
of both consumer and insurance is covered in the context of “Non-disclosure”. The
Comminsure policy is researched to understand the legal implications of “knowing”
non-disclosure versus “unknowing” non-disclosure. Critical Illness (trauma) policy
features are explored in the Comminsure policy. Aspects such as qualifying periods for
certain conditions and specific definitions for cancer are addressed with a spotlight
placed on skin cancer in terms of meeting definition requirements to receive a critical
illness payout.
This particular assessment forms part of your overall assessment for the following units
of competency:
FNSASICX503
FNSASICZ503
FNSASICM503
FNSFPL504
These answers contain relevant and accurate information in response to the question/s
with limited serious errors in fact or application. If incorrect information is contained in
an answer, it must be fundamentally outweighed by the accurate information provided.
This will be assessed against a marking guide provided to assessors for their
determination.
This occurs when an assessment does not meet the marking guide standards provided
to assessors. These answers either do not address the question specifically, or are
wrong from a legislative perspective, or are incorrectly applied. Answers that omit to
provide a response to any significant issue (where multiple issues must be addressed in
a question) may also be deemed not-yet-competent. Answers that have faulty
reasoning, a poor standard of expression or include plagiarism may also be deemed not-
yet-competent. Please note, additional information regarding Monarch’s plagiarism
policy is contained in the Student Information Guide which can be found here:
http://www.monarch.edu.au/student-info/
In the event you do not achieve competency by your assessor on this assessment, you
will be given one more opportunity to re-submit the assessment after consultation with
your Trainer/ Assessor. You will know your assessment is deemed ‘not-yet-competent’ if
your grade book in the Monarch LMS says “NYC” after you have received an email from
your assessor advising your assessment has been graded.
In the event that you have concerns about the assessment decision then you can refer
to our Complaints & Appeals process also contained within the Student Information
Guide.
Where you are asked to write as though you are speaking to a client, your answers must
show your ability to:
show empathy
explain ideas clearly and simply so your client can understand the issues
After each question, there is a blank text box for you to start typing your answer in, as
indicated below.
1. Here is a sample task instruction, asking you to enter text in the box below.
Type your answer here…
The text box will expand when you are typing your answer.
Unless specified, most questions require a short answer response of 1 or 2 short
paragraphs.
Good luck
Finally, good luck with your learning and assessments and remember your trainers are
here to assist you
IMPORTANT: Please ensure that you download the latest appendix which contains the 2018 PDS
Background
As a financial adviser, you will often be authorised to recommend different insurance product
providers as part of your AFSL’s approved product list (APL).
Researching and analysing the different features and benefits among insurance products is an
important part of the financial adviser’s role, in addition to comparing pure price differences alone.
Referring to Appendix 1 in your module 4 course materials, you are required to research and analyse
the Comminsure insurance product range contained within the Comminsure Protection PDS.
Questions:
Referring to page 18 of the Comminsure PDS, answer the following questions:
Generally, the only person who can make changes or be paid a benefit under the policy is
the policy owner. The policy owner is the only person we’ll deal with in relation to the policy.
The person who is covered under an income protection policy is usually also the owner of
the policy. policy owner to be a company, trust or SMSF.
2. Under ‘Total Care Plan Super’, if a life insured dies, to whom will the benefit be paid?
Referring to page 13 of the Comminsure PDS, who will be the policy owner of insurance:
Colonial First State Investments Limited, the trustee of the FirstChoice Trust
Referring to page 13 of the Comminsure PDS, who will the life insured be:
Refer to the definition of “guaranteed renewable” on page 26 of the Comminsure PDS. Now refer to
the definition of “guaranteed insurability option” on page 39 of the Comminsure PDS.
9. Is the concept of “guaranteed renewable” and the “guaranteed insurability option” the same
concept? If not, why not?
For guaranteed renewable. Once the policy is issued the insurance provider will not
because of the number of claims you make or changes in your health, occupation or
pastimes.
Guaranteed Insurability option – Will let you increase cover without providing more health
information if certain business events occur.
10. List four events that would allow a life insured to increase their life insurance benefit
without underwriting under the “guaranteed insurability option” on page 39 of the
Comminsure PDS.
11. Assume your client, Albert Einstein has two children called Alex and Mildred. Albert has a
Life Care insurance policy with Comminsure for the following amount - Term Life insurance
of $1,000,000. Mildred, Albert’s daughter is about to start secondary school. Under the
Guaranteed Insurability option on page 39 of the Comminsure PDS, explain why the
maximum Albert is allowed to increase his Term Life cover by (without additional
underwriting) is NOT $250,000.
Background
As a financial adviser, you will often be authorised to recommend different insurance product
providers as part of your AFSL’s approved product list (APL).
Researching and analysing the different features and benefits among insurance products is an
important part of the financial adviser’s role, in addition to comparing pure price differences alone.
Referring to Appendix 1 in your module 4 course materials, you are required to research and analyse
the Comminsure insurance product range contained within the Comminsure Protection PDS.
Questions
Refer to page 11 of the Comminsure PDS.
1. What is the minimum and maximum waiting period available under the Income Protection
policy options?
2. One of the ‘benefit periods’ available, is up to the policy anniversary date before you turn
70. Is this benefit period provided on any conditional basis, and if so what is that?
You must be working full time or permanent part time for at least 20 hours per week.
Income Care Plus and Income Care Platinum aren’t available for occupations we classify as
heavy risk or specialist risk – high. Benefit period to age policy anniversary date before you
turn 70 isn’t available for occupations we classify as light manual, manual, heavy risk,
aviation, specialist risk – medium and specialist risk – high.
3. Under the Income Protection “Guaranteed agreed value policy” definition, do you need to
justify your income when you make a claim? (Yes or no)
4. Based upon this PDS, if you are 61 years old and you apply for income protection cover,
what benefit periods may you apply for, IF your occupation is classified as ‘L-Light Manual’?
5. Under the “Partial Disability” benefit option, do you get paid an Income Protection benefit if
you can only work partially due to illness or accident?
Yes
◆ the life insured first ceases work or, in the case of partial disability, works in a reduced
capacity due to the relevant condition no more than seven days before they first consulted a
medical practitioner about the condition and ◆ you provide us with reasonable medical
evidence about when the total or partial disability started we treat the waiting period as
having started on the date the life insured first ceased work or worked in a reduced capacity,
as applicable.
We calculate the benefit using this formula: ( A − B ) A × C where: ◆ A is the life insured’s
pre-disability income ◆ B is the life insured’s monthly income for the month for which
you’re claiming partial disability ◆ C is your monthly benefit plus any super continuance
monthly benefit.
Under the Non-disclosure section of all Insurance contracts, it states words to the effect that;
“under the Insurance Contracts Act 1984, you have an obligation to disclose to the insurer every
matter that you know, or could reasonably be expected to know, or is relevant to the insurer’s
decision whether to accept the risk of the insurance and, if so, on what terms. This duty to disclosure
also applies to a request to extend, vary or reinstate your insurance”.
7. Refer to page 27 of the Comminsure PDS. List 4 instances in bullet point form where
disclosure is not required?
The person entering into the contract does not need to tell the insurer anything that: ◆
reduces the risk of the insurance; or ◆ is common knowledge; or ◆ the insurer knows or
should know as an insurer; or ◆ the insurer waives the duty to tell the insurer about.
Refer to page 27 of the Comminsure PDS. For insurance cover issued on or after 29th June 2014,
explain the different consequences of the potential to be paid a benefit by an insurance company
under the following two scenarios:
If the person entering into the contract or the life to be insured does not tell the insurer
anything they are required to, and the insurer would not have provided the insurance if they
had been told, the insurer may avoid the contract within three years of entering into it.
If the failure to comply with the duty of disclosure is fraudulent, the insurer may refuse to
pay a claim and treat the contract as if it never existed.
Susan was diagnosed with malignant breast cancer 18 months ago, for which she received
chemotherapy. She is now in remission. Susan decides she should take out Term Life insurance today
as she has a young family and understands the gravity of her mortality after her cancer scare. Susan
does not include this vital information about her cancer diagnosis on her insurance application for
$600,000 of Term Life Insurance.
The insurance questionnaire specifically asks if Susan has ever been diagnosed with cancer, to which
Susan answers “NO”. She is approved for the insurance at standard rates, based on her application
information. In a devastating chain of events 6 months from today,
Susan receives the news her breast cancer has aggressively returned and metastasised into her liver
and brain. She dies 5 months later (11 months from today).
10. If Susan had hypothetically chosen Comminsure’s Term Life insurance policy, would the
insurer payout a benefit on Susan’s life insurance policy? If so why and if not, why not?
No, Susan should have inform the provide full information about her pre-existing condition.
If the person entering into the contract or the life to be insured does not tell the insurer
anything they are required to, and the insurer would not have provided the insurance if they
had been told, the insurer may avoid the contract within three years of entering into it.
Background
As a financial adviser, you will often be authorised to recommend different insurance product
providers as part of your AFSL’s approved product list (APL).
Researching and analysing the different features and benefits among insurance products is an
important part of the financial adviser’s role, in addition to comparing pure price differences alone.
Referring to Appendix 1 in your module 4 course materials, you are required to research and analyse
the Comminsure insurance product range contained within the Comminsure Protection PDS.
1. Refer to page 53 of the Comminsure PDS under “Trauma Cover”. Does trauma cover pay out
for cancer? Explain your answer.
for cancer, we only cover certain types of cancer and, for some types, we only cover them if
they’re sufficiently serious.
2. Refer to page 58 of the Comminsure PDS under “Trauma Cover”. Is there a “qualifying
period” if an applicant is diagnosed with cancer, and if so, when does the qualifying period
apply and in what circumstances?
The qualifying period applies if the procedure or the symptoms or diagnosis of the condition
occurred, or the circumstances leading to the procedure or the condition became apparent,
either before or within the first 90 days from: ◆ the date insured from ◆ the date of any
increase to the Trauma Cover other than by automatic indexation (in which case the
qualifying period applies only to the amount of the increase) ◆ the date the Trauma Cover
was first added or reinstated to this policy (except where the Trauma Cover was reinstated
under the Trauma Reinstatement benefit) or ◆ in the case of the Trauma Plus Cover
conditions, the date
3. Refer to page 55 of the Comminsure PDS under “Trauma Cover” where it refers to ‘cancer’.
Now also refer to page 148 of the “medical definitions” section of the Comminsure PDS
where cancer is defined. If Michael had held a Comminsure Trauma Insurance policy for 2
years and he survived more than 14 days from diagnosis, would he be paid a trauma
insurance benefit under this scenario, yes or no?
yes
4. Assume the same fact pattern (above) except now assume Michael was diagnosed with non-
melanoma skin cancer instead but the skin cancer had spread to his lungs. Assuming Michael
had held a Comminsure Trauma Insurance policy for 2 years and he survived more than 14
days from diagnosis, would he be paid a trauma insurance benefit under this scenario? If
yes then why; or if no then why not?
Yes, because Trauma Cover is designed to help you if a specified trauma condition causes a
significant setback to your health. Trauma Cover pays a lump sum for specified trauma
conditions such as cancer, heart attack and stroke. These conditions are medically defined in
this PDS and we only pay a benefit for them if you meet the precise meaning of the
condition. To illustrate this using some key trauma conditions: ◆ for cancer, we only cover
certain types of cancer and, for some types, we only cover them if they’re sufficiently
serious. For example, if you're diagnosed with a non-melanoma skin cancer that hasn't
spread to another part of the body, you won’t be paid a benefit.
5. Refer to page 11 of the Comminsure PDS. For income protection insurance, describe, in your
own words, the work eligibility requirements.
You must be working full time or permanent part time for at least 20 hours per week.