You are a financial adviser specialising in insurance. You hold the New Zealand Certificate in Financial Advice (Level 5) with the life, disability and health Insurance strand. For this assessment, you can be either an independent advisor or an advisor

FSC524 Life Disability and Health Insurance

FSC524 Assessment 2 

Weighting  – 30%

Learning outcomes 

4. Apply the six-step advice process in a life, disability, and health insurance context.

Instructions

Complete and submit your assessment according to the Open Polytechnic’s Assessments webpage. This includes information on academic integrity, formatting, word limits and referencing.

• Include your name, student number and the assessment number.
• Number your pages.

Submission

• Submit your assessment in one file.
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice advising you of your successful submission.

By submitting your assessment, you confirm that it is your own, original work.

Assessment Instructions

You are a financial adviser specialising in insurance. You hold the New Zealand Certificate in Financial Advice (Level 5) with the life, disability and health Insurance strand. For this assessment, you can be either an independent advisor or an advisor on behalf of a business.

You are required to apply the six-step advice process based on a case study provided (Appendix 1). Refer to specific details from the case study in the tasks. If you need further information, you may make reasonable assumptions, but ensure that these are clearly stated in your responses.

As you complete each task, ensure that you are adhering to the six-step advice process and applying it within a life, disability and health insurance context. Use the case study information to guide your responses and decisions, and be sure to document any relevant assumptions and information sources. Ensure that all documentation aligns with the required professional standards and best practice.

Note: as this is a case study, you can sign for the client where applicable.

A set of templates (Appendix 2) has been provided for you to use alongside the case study.

Submission

1. Clearly mark each step in your assessment. Use headings, bullet points, or numbering to make them easily identifiable. For each step, order your answer as follows:
   • Email to client (if applicable).
   • Completed templates or documents from your workplace (if applicable).
   • Supporting information.
2. Ensure that any supporting evidence for each step is clearly marked and included with the step it relates to.
3. Submit your assessment as one file (either a Word document or PDF).

There are free, online tools which can convert Word to PDF and combine multiple PDFs to give one file for submission.

Step one: Establish and define the client relationship

Use the templates provided in Appendix 2 or documents from your workplace to complete the following documents relevant to the case study (Appendix 1):

1. Disclosure Statement.
2. Scope of Engagement.

Use your own details and information from the case study.

Once you have completed the documents, compose an introductory email to the client to accompany the documents. Briefly explain the documents and their significance and relevance in the email.

(Email word count guideline: 300 words)

(7.5 marks)

Step two: Gather information

Use the templates provided in Appendix 2 or documents from your workplace to complete the following documents for the clients based on the case study:

1. Fact Find.
2. Risk Profile Questionnaire.
3. Third Party Authority.

(7.5 marks)

Step three: Analyse and assess information and needs

Draft notes that show you have:

1. assessed the client’s requirements and collated calculations
2. identified and evaluated foreseeable changes to the client’s personal circumstances
3. identified and evaluated the potential impact of external events on the client’s insurance needs
4. undertaken relevant financial product modelling
5. evaluated the client’s need for specialist advice.

Ensure your notes demonstrate that considered analysis and reasoning has occurred during the financial solution short-listing and final recommendation process.

(12.5 marks)

Step four: Develop and present recommendations

Complete the Statement of Advice and recommend and identify products that meet the clients’ needs, using supporting rationale and the disclosure requirements for this step in the advice process.

Write an email to your clients presenting your recommendations based on the case study provided.

Include in the email: 

1. client calculations/valuations and commentary to explain your recommended cover amounts
2. any assumptions that you have made
3. any risks that your clients might face in following your advice
4. any future changes to the clients’ personal situation that you have considered
5. any specialist referral recommendations.

(Email word count guideline: 500 words)

(12.5 marks)

Step five: Implement recommendations

Draft an email that outlines the implementation of the insurance solutions that have been agreed upon.

(Email word count guideline: 500 words)

(5 marks)

Step six: Follow up and review

Complete the Review Checklist using the template provided in Appendix 2 or documents from your workplace.

(5 marks)

Complete all steps in the six-step process

Ensure you have completed all six steps with the required documentation and evidence and, where relevant, that documents are signed. Failure to complete all six steps may result in you failing this assessment.

Note: you should sign for the clients where applicable.

(50 marks)

FSC524 Marking Schedule

Step 1	6 – 7.5 marks	5 – 5.5 marks	4 – 4.5 marks	3 – 3.5 marks	1 – 2.5 marks
Use the templates provided in Appendix 2 or documents from your workplace to complete the following documents: Disclosure Statement. Scope of Engagement.  Use your own details and information from the case study. Once you have completed the documents, compose an introductory email to the client to accompany the documents. Briefly explain the documents and their significance and relevance in the email.	Completely and accurately fills in required documents with all relevant information tailored specifically for the client/case study Clear, concise and wellexplained email to the client, introducing and explaining the documents and highlighting their significance and relevance in the context of the client’s situation Demonstrates a comprehensive understanding of Step 1 of the advice process	Fills in the required documents with the required information Clear email, covering the main points of significance and relevance. Some areas could be further developed for better clarity and understanding Demonstrates a clear understanding of Step 1 of the advice process	Fills in the required documents with the required information, but may have minor omissions or inaccuracies Email introduces and briefly explains the documents but may require further clarification or detail to fully convey their significance and relevance to the client’s situation. May include a small amount of inaccurate/irrelevant detail impacting the effectiveness of the email Demonstrates a basic understanding of Step 1 of the advice process	Fails to fill required documents completely or accurately, with significant omissions or inaccuracies Introduction and explanation of the documents in the email contains inaccurate information or omits essential details, leading to potential confusion for the client Demonstrates an incomplete understanding of Step 1 of the advice process	Provides inadequate or incorrect information in the required documents, rendering them unusable Does not clearly introduce and explain the documents in the email, or email may be very brief. May include incorrect or irrelevant information, causing confusion for the client Demonstrates extremely limited understanding of Step 1 of the advice process
Step 2	6 – 7.5 marks	5 – 5.5 marks	4 – 4.5 marks	3 – 3.5 marks	1 – 2.5 marks
Use the templates provided in Appendix 2 or documents from your workplace to complete the following documents for the client(s) based on the case study: Fact Find Risk Profile Questionnaire Third Party Authority	Completely and accurately fills in required documents with all relevant information tailored specifically for the client/case study Demonstrates a comprehensive understanding of Step 2 of the advice process	Fills in the required documents with the required information Demonstrates a clear understanding of Step 2 of the advice process	Fills in the required documents with the required information, but may have minor omissions or inaccuracies Demonstrates a basic understanding of Step 2 of the advice process.	Fails to fill required documents completely or accurately, with significant omissions or inaccuracies Demonstrates an incomplete understanding of Step 2 of the advice process	Provides inadequate or incorrect information in the required documents, rendering them unusable Demonstrates an extremely limited understanding of Step 2 of the advice process

Step 3	10 –12.5 marks	8.5 – 9.5 marks	6.5 – 8 marks	5 – 6 marks	1 – 4.5 marks
Draft notes that show you have: a. assessed the client’s requirements and collated calculations b. identified and evaluated foreseeable changes to the client’s personal circumstances c. identified and evaluated the potential impact of external events on the client’s exposure to risk and general insurance needs d. undertaken relevant financial product modelling e. evaluated the client’s need for specialist advice. Ensure your notes demonstrate that considered analysis and reasoning has occurred during the financial solution short-listing and final recommendation process.	Comprehensive and detailed notes, demonstrating a comprehensive and detailed analysis of the client’s situation, covering all of the required points Demonstrates a comprehensive understanding of Step 3 of the advice process	Detailed notes, providing a clear analysis of the client’s situation covering all of the required points although some could be further developed Demonstrates a clear understanding of Step 3 of the advice process	Notes analyses the client’s situation at a basic level, covering all of the required points but with limited evaluation of one point Demonstrates a basic understanding of Step 3 of the advice process	Incomplete notes with limited analysis of the client’s situation, not addressing essential information, impacting the effectiveness of the advice process Demonstrates an incomplete understanding of Step 3 of