On Monday we said that the level 2 REs would focus on the legislation pertaining to products, and not on products per se. This elicited a number of enquiries. We discuss the content of one licence category, using the qualifying criteria in Board Notice 105, and the Inseta study material to provide greater clarity for readers.
The comment on Monday, regarding the legal basis for the Level 2 REs, stems from the fact that these exams are aimed at ensuring that advisors provide the client with information required by law, rather than what is contained in the sales pitch.
To illustrate what exactly one is required to know for the exams, we make use of the level 2 RE for those licenced to advise on Short-Term Personal lines.
The only preparation material which I could access at this stage is the Inseta study material. It is actually perfect for illustrating what you will require to know. I am convinced that there will be far greater acceptance for this level in view of the value it will add, and the fact that learners will find themselves on far more familiar terrain.
Directly after the contents section, the study material provides the following synopsis of the qualifying criteria on which the material is based:
The material provided in this guide is based on the following tasks, as published in Board Notice 105 of 2008 and amended in Board Notice 60 of 2010:
1. Determine the client’s need for insurance.
2. Match the client’s need to the relevant product/s.
3. Apply underwriting criteria.
4. Draft/request a quotation for insurance.
5. Agree to terms and conditions of cover.
6. Issue policy/fulfilment document.
7. Provide a service to the client/maintain the policy/client retention.
8. Process a claim.
9. Recovery/mitigation of losses.
It then proceeds to provide the information, with self tests, in the format familiar to many who also used their material in the Level 1 REs.
If we look at the full description of task 1 as it is outlined in the actual Board Notice, we see that it contains substantially more information than just the summary above:
Qualifying Criteria 1: Determine the client’s need for insurance
What is evident from the above, is that candidates will find themselves on far more familiar terrain than with the Level 1 REs. The latter contained many terms and concepts which were foreign to anyone who did not bother to look at the FAIS Act.
In fact, this time round, we will actually sharpen our saws, in Covey-speak, rather than grapple with strange new terminology.
We have downloaded all the available Inseta study material on our website under the “Study Resources” heading. Included in the list are Short-term commercial lines, Healthcare and Collective Investments. There is also a list of other material not yet published.
While we await clarity from the regulator on the “when” and “how” of the level 2 exams, you may want to spend some time reading through this material to familiarise yourself with the content.
Who knows, you may even learn a thing or two.