2010 IISA PROGRAMMES IN LIFE INSURANCE AT NQF5 SYLLABUS. (Purpose, Objective and Learning Outcomes) Offered by the. Centre for Business Management

Transcription

1 2010 IISA PROGRAMMES IN LIFE INSURANCE AT NQF5 SYLLABUS (Purpose, Objective and Learning Outcomes) Offered by the Centre for Business Management at UNISA In association with Insurance Institute of South Africa [Type text]

2 2010 IISA Programmes in Life Insurance INDEX INTRODUCTION AND BACKGROUND IISA INTRODUCTORY SHORT COURSE IN THE ELEMENTS OF LIFE INSURANCE ICEL01E Elements Life Insurance IISA INTRODUCTORY PROGRAMME IN LIFE INSURANCE IPLIO1B Legal Framework of Insurance IPLI02C Introduction to Life Underwriting IPLI03D Introduction to Life Insurance Claims IPLI04E Introduction to Health Insurance IPLI05F Introduction to Estate Planning IPLI06G Introduction to Retirement Planning IPLI07H Introduction to Business (Life) Insurance IPLI08J Introduction to Investment Management IISA PROGRAMME IN LIFE INSURANCE PRLIO14 Legal Framework of Insurance PRLI025 Life Underwriting PRLI036 Life Insurance Claims PRLI048 Health Insurance PRLI059 Estate Planning PRLI06A Retirement Planning PRLI07B Business (Life) Insurance PRLI08C Investment Management INTRODUCTION AND BACKGROUND These programmes are aimed at people employed in the life and long term insurance industry, both in the long term insurance business intermediary services, marketing, or the support thereof, as well as in administrative/servicing areas, and irrespective as to whether with life insurance companies, reinsurers, or in the back-up offices of intermediaries, brokers or broking houses. These programmes are extensively used to meet and exceed FAIS compliance requirements and are accredited by the Financial Services Board (FSB). The 2010 IISA Programmes in Life Insurance comprise: IISA Introductory Short Course in the Elements of Life Insurance IISA Introductory Programme in Life Insurance (NQF level 5) IISA Programme in Life Insurance (2009) (NQF level 5) The other programmes in insurance, offered by UNISA, Centre for Business Management are: IISA Introductory Short Course in the Elements of Short Term Insurance 7652X IISA Introductory Programme in Short Term Insurance (NQF level 5) IISA Programme in Short Term Insurance (2009) (NQF level 5) NB IISA Short Course in the Elements of Retirement Funds IISA Introductory Programme in Retirement Fund Management (NQF level 5) IISA Programme in Retirement Fund Management (2009) (NQF level 5) 7649X IISA Introductory Programme in Advanced Insurance Practice (NQF level 6) IISA Programme in Advanced Insurance Practice (2009) (NQF level 6) The former programmes: IISA Programme in Short Term Insurance (NQF level 5) 71501* IISA Programme in Life Insurance (NQF level 5) 7151X IISA Programme in Retirement Fund Management (NQF level 5) 71528* IISA Programme in Life Insurance Servicing (NQF level 5) IISA Programme in Advanced Insurance Practice (NQF level 6) *these former programmes were merged into a single programme from 2009 are being phased out during 2009 and no new registrations are permitted. For syllabus details of those programmes you need to refer to the 2008 Syllabus publication. Following the restructuring of, and revisions to, the Programmes in Insurance, the programmes are all offered on a semester basis, with modules and examinations being offered twice a year IISA Programmes in Life Insurance Syllabus Page 1

3 Successful completion of all three qualifications will allow the student admission to the IISA Programmes in Advanced Insurance Practice (Qualifications 7649X and 76481). New registrations (entrants) to the programmes need to enrol for the Elements course, first, unless they are already in possession of at least 24 SAQA accredited credits, at at least NQF4. After that, they are expected to enrol for the Introductory programme and complete the five modules therein, before enrolling for the qualifying (2009) programme. NB In each programme, the Legal Framework module (IPLI01B and PRLI014) is compulsory, as well as the Investment modules (IPLI08J and PRLI08C), while three other modules must be elected from the remaining subjects in the Programme. It is recommended that the legal module is attempted first, as it provides a foundation for all the later modules in this programme IISA INTRODUCTORY SHORT COURSE IN THE ELEMENTS OF LIFE INSURANCE ICEL01E Elements of Life Insurance The purpose this module is to build the knowledge and skill required by employees in Life Insurance who may have had schooling and training in insurance, but have not acquired the necessary knowledge and skills required and regarded as an essential prerequisite for the studying of life insurance in the IISA Programme in Life Insurance. It introduces a basic understanding of the key terms, rules, concepts and principles of the field of life insurance. A student who has successfully completed this course will be allowed admission to the IISA Introductory Course in Life Insurance. explain the source and origins of in insurance, quoting some historical events that impacted on the development of early insurance principles and practices; demonstrate knowledge of the concepts and principles of insurance and the classes of both short term and life insurance; distinguish between insurable and non-insurable risks; demonstrate basic knowledge and insight of FAIS; describe the concepts of life insurance, identifying the different products and ancillary benefits that a life insurer markets; apply knowledge and insight into aspects of the Long Term Insurance Act, the purpose and related concepts and the basic requirements of the Act; explain the basics of the Financial Intelligence Centre Act and the consequences of noncompliance: demonstrate knowledge of the Income Tax Act and the sections that apply to insurance products and investment instruments: demonstrate knowledge and understanding of the more common types of life insurance policies, including conventional and universal life products, Retirement Annuities and supplementary benefits IISA INTRODUCTORY PROGRAMME IN LIFE TERM INSURANCE (NQF LEVEL 5) IPLIO1B Legal Framework of Insurance The purpose this module is to equip students who are involved in the provision of insurance related services and products, with the necessary competencies (knowledge, values and skills) to apply the fundamental legal concepts and principles applicable to and used in the practice of insurance. This module is supported and enhanced by the knowledge to be gained in PRLI014 Legal Framework of Life Insurance in Qualification Code discuss the legal boundaries within which insurance business is conducted in terms of the basic requirements of applicable legislation, legal and tax systems and regulatory institutions; explain the basic principles governing the formation of a valid contract in basic terms of the law of contract, the law of agency and the rights of third parties to contracts; 2010 IISA Programmes in Life Insurance Syllabus Page 2

4 IPLIO2C Introduction to Life Underwriting The purpose this module is to equip students who are involved or interested in the underwriting of life insurance, whether as new business or as part of the policy servicing function, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in the underwriting of life insurance business and the recognition, rating and determination of extra risks for physiological or anatomical abnormalities and deficiencies, as well as illnesses, diseases or other issues. This module is supported and enhanced by the knowledge to be gained in PRLI025 Life Underwriting in Qualification Code discuss the principles of life insurance underwriting in terms of: objectives, selection of risks and underwriting guidelines; explain the medical organisation of a life office, including: role of the chief medical officer and the underwriting department; selection of risks, classification of risks; methods of treating under average lives and other extra risks; explain the procedures and principles that apply in acceptance of non-medical proposals and large sums insured in terms of: reasons for non-medical acceptance; limits imposed on life insurance without a medical examination; documentation which includes non-medical proposal forms, medical forms, PMA reports and medical examiner s report forms; acceptance letters; back-dating of policies; collecting of premiums; IPLIO3D Introduction to Life Insurance Claims The purpose this module is to equip students who are involved or interested in the handling of life insurance claims, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in the handling of life insurance claims. This module is supported and enhanced by the knowledge to be gained in PRLI036 Life Insurance Claims in Qualification Code verify and validate life insurance claims in terms of the basic requirements of: retrospective underwriting procedures; the reasonable man test procedure; the validating procedure in terms of life insurance claims and in handling early claims ; assess the role of industry control bodies in terms of their impact on the processing of claims and the rules laid down by all bodies controlling the life insurance industry in South Africa and include current bodies such as the Financial Services Board, the Life Insurance Ombudsman, the Life Offices Association/Assn of Savings Institutions of South Africa and the South African Society of Claims Assessors; describe the management of investments in a life office in terms of the types of and impact of investments, and its influence on the tasks of the investment division; IPLIO4E Introduction to Health Insurance The purpose this module is to equip students who are involved or interested in the health care industry, but especially those who are involved with the financing of health care, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in arranging health insurance with due consideration of the legal environment in South Africa. This module is supported and enhanced by the knowledge to be gained in PRLI048 Health Insurance in Qualification Code describe the current status of health care in terms of major role players and influences in the health care environment, including both the government and industry related role-players such as patients, employers, insurers and providers, while influences include health care delivery systems and costing principles; describe and summarise the requirements of health care legislation in South Africa in terms of its prescribed guidelines and implications for the health care industry; 2010 IISA Programmes in Life Insurance Syllabus Page 3

5 IPLIO5F Introduction to Estate Planning The purpose this module is to equip students who are involved or interested in the planning of estates in South Africa with the necessary competence (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in estate planning with due consideration of the legal environment in South Africa. This module is supported and enhanced by the knowledge to be gained in PRLI059 Estate Planning in Qualification Code describe estate planning principles in terms of real life situations such as the accumulation of assets, the protection of assets and the transfer of assets to heirs, considering basic estate planning principles in South Africa and the main factors to be taken into account during estate planning; describe estate planning legislation in terms of the prescribed guidelines and implications for the financial services industry; IPLIO6G Introduction to Retirement Planning The purpose this module is to equip students who are involved or interested in retirement planning in South Africa with the necessary competence (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in arranging of retirement planning with due consideration of the legal environment in South Africa. This module is supported and enhanced by the knowledge to be gained in PRLI06A Retirement Planning in Qualification Code When you have worked through the module you will be able to: describe the major role players such as the state, retirement fund managers and employers in South Africa in the retirement industry in terms of their roles, duties and functions; explain the functioning of dedicated retirement saving schemes in terms of prescribed guidelines for and implications of their use in the retirement planning; IPLIO7H Introduction to Business (Life) Insurance The purpose this module is to equip students who are involved or interested in the provision of insurance products and services, both life and short-term, to fit the unique needs of business entities with the necessary competencies (knowledge, values and skills) to apply the fundamental concepts and principles applicable to the field of business insurance. This module is supported and enhanced by the knowledge to be gained in PRLI07B Business (Life) Insurance in Qualification Code identify and discuss different forms of business entities; compile notes on the labour legislation governing the employer-employee relationship in a business entity; explain how life insurance can be used as part of deferred and preferred compensation packages; discuss the business insurance opportunities available to finance possible financial consequences due to the loss of key-persons in a business entity in terms of the functioning and tax implication of business life insurance policies; perform a basic assessment of medical schemes and retirement funds offered on a group basis to employees of business entities in terms of: legislative controls and regulations, benefit options, administrative requirements, tax and legislative-related implications of medical schemes; reasons for, types of, administration requirements and benefit structures of retirement funds; IPLIO8J Introduction to Investment Management The purpose this module is to equip students who need to advise clients or manage the investment policy of clients, including funds, with the necessary competencies (knowledge, values and skills) to be able to apply investment management principles and techniques to manage long-term investment portfolios in the life insurance and fund management industry. This module is supported and enhanced by the knowledge to be gained in PRLI08C Investment Management in Qualification Code formulate a basic investment strategy with due consideration to sound investment principles and philosophies, basic economic indicators and investor risk/reward profiles; explain the basic management of long-term investment funds in terms of the basic design of longterm investment funds, the composition of the management team responsible for the fund, factors affecting the degree of management freedom, portfolio design and construction and the legislative environment IISA Programmes in Life Insurance Syllabus Page 4

6 76538 IISA PROGRAMME IN LIFE TERM INSURANCE (NQF LEVEL 5) PRLIO14 Legal Framework of Life Insurance The purpose this module is to equip students who are involved in the provision of insurance related services and products, with the necessary competencies (knowledge, values and skills) to apply the fundamental legal concepts and principles applicable to and used in the practice of insurance. This module supports and enhances the knowledge gained in IPLI01B Legal Framework of Insurance in Qualification Code analyse the legislative and regulatory framework governing life insurance in terms of the Long-Term Insurance Act and the regulations, the code of conduct and the protection of policyholders; explain the impact of tax legislation on life insurance products, taxation of funds and policy benefits, estates and inheritance, tax deductions and lump sum tax free portions; analyse the legislation governing retirement funds in terms of the management of retirement funds, restrictions imposed on investment strategies and dealings that may be undertaken with the retirement benefits of members; discuss the legislation governing marriages in terms of matrimonial property regimes and the accrual system as regards marriages in community of property, by ANC excluding the accrual system, the automatic application of the accrual system and marriages in terms of customary law; explain the requirements. limitations and reporting requirements in terms of FAIS and FICA and the regulations thereunder. PRLIO25 Life Underwriting The purpose this module is to equip students who are involved or interested in the underwriting of life insurance, whether as new business or as part of the policy servicing function, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in the underwriting of life insurance business and the recognition, rating and determination of extra risks for physiological or anatomical abnormalities and deficiencies, as well as illnesses, diseases or other issues. This module supports and enhances the knowledge gained in IPLI02C Introduction to Life Underwriting in Qualification Code explain the main factors influencing the underwriting decision in terms of medical, geographical and occupational risks: explain the underwriting considerations for group risk business in terms of: types of group schemes; compulsory membership; free cover limits; employee benefits offered by employers; discuss the underwriting considerations of dread diseases, permanent health and health insurance in terms of the nature of cover provided by the relevant policies. PRLIO36 Life Insurance Claims The purpose this module is to equip students who are involved or interested in the handling of life insurance claims, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in the handling of life insurance claims. This module supports and enhances the knowledge gained in IPLI03D Introduction to Life Insurance Claims in Qualification Code process a death claim in terms of claim correspondence, documentation and information completed, payment procedures, appointment of executors of estates; set out validation investigation strategies followed; process disability claims with due consideration to claims procedures, procedures followed in benefits payment assessments, tax principles, confirming the eligibility of a claimants, assessing the liability of the insurer and reinstatement of policies after the payment of a benefit claim; arrange payment of life insurance claims with due consideration of prescribed claims handling processes, legislation affecting policy proceeds, the Income Tax Act, prescribed formalities in terms of policy surrendering and policy loans, prescribed principles and administrative processes applied in terms of annuity payments IISA Programmes in Life Insurance Syllabus Page 5

7 PRLIO48 Health Insurance The purpose this module is to equip students who are involved or interested in the health care industry, but especially those who are involved with the financing of health care, with the necessary competencies (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in arranging health insurance with due consideration of the legal environment in South Africa. This module supports and enhances the knowledge gained in IPLI04E Introduction to Health Insurance in Qualification Code explain the tasks involved in the issuing of health insurance in terms of three main tasks performed by insurers being cost estimations, routine administration procedures and maintenance of health insurance policies; describe health insurance options including medical aid scheme structures, health care products such as, health insurance policies and managed care programmes; discuss the basic impact of differences in tax treatment; which controls and what impact could controls have unless it is part of the risk management process; vesting rights of members; understand the principles of ethical marketing of health insurance in terms of channels, price, customer service and other marketing criteria. PRLIO59 Estate Planning The purpose this module is to equip students who are involved or interested in the planning of estates in South Africa with the necessary competence (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in estate planning with due consideration of the legal environment in South Africa. This module supports and enhances the knowledge gained in IPLI05F Introduction to Estate Planning in Qualification Code describe estate administration legislation in terms of its prescribed guidelines and implications for the financial services industry, including basic costing principles, routine administration and basic estate protection; discuss the different estate planning mechanisms/techniques in terms of practical implementation according to applicable legislation, considering: basic knowledge of estate planning mechanisms for South Africans; the goals of estate planning, namely the accumulation of an estate, the protection of an estate and the transfer of an estate at the lowest cost. PRLIO6A Retirement Planning The purpose this module is to equip students who are involved or interested in retirement planning in South Africa with the necessary competence (knowledge, values and skills) to be able to apply the fundamental concepts, principles and processes in arranging of retirement planning with due consideration of the legal environment in South Africa. This module supports and enhances the knowledge gained in IPLI06G Introduction to Retirement Planning in Qualification Code When you have worked through the module you will be able to: describe the different retirement planning tools in terms of its functioning, advantages and disadvantages; formulate a basic retirement plan with due consideration of legal constraints, tax treatment and other considerations. PRLIO7B Business (Life) Insurance The purpose this module is to equip students who are involved or interested in the provision of insurance products and services, both life and short-term, to fit the unique needs of business entities with the necessary competencies (knowledge, values and skills) to apply the fundamental concepts and principles applicable to the field of business insurance. This module supports and enhances the knowledge gained in IPLI07H Introduction to Business (Life) Insurance in Qualification Code IISA Programmes in Life Insurance Syllabus Page 6

8 discuss the short-term insurance options available to deal with the unique circumstances of business entities in terms of perils covered, general conditions, exceptions, provisions and exclusions: Multi-Mark III policies; Theft insurance; Commercial all risk insurance, Goods in transit insurance, Money insurance, Liability insurance; Fidelity guarantee insurance, Solvency guarantees; Business interruption insurance, Accounts receivable insurance; Glass insurance; Group personal accidental insurance; Buildings combined policies, Industrial all risk policies; Office content policies; Motor insurance. PRLIO8C Investment Management The purpose this module is to equip students who need to advise clients or manage the investment policy of clients, including funds, with the necessary competencies (knowledge, values and skills) to be able to apply investment management principles and techniques to manage long-term investment portfolios in the life insurance and fund management industry. This module supports and enhances the knowledge gained in IPLI08J Introduction to Investment Management in Qualification Code identify, value and select investment alternatives available to South African insurance companies and retirement funds from the following markets: equity market; money market; capital market; property market; derivative market; off-shore market; collective investment market; compare the performance of long-term investment funds in terms of rate of return, volatility of returns, the size of the fund and benchmarking alternatives. Please do not hesitate to request further information from: Postal Address Insurance Programmes Centre for Business Management P O Box 392 UNISA 0003 Contact Details Tel: (012) /4377 Fax: iisa@unisa.ac.za Web site: IISA Programmes in Life Insurance Syllabus Page 7