Insurance Product Analysis: Comminsure

This assessment requires students to analyze the Comminsure Protection PDS, specifically focusing on their trauma cover. Students must research and answer questions regarding the coverage for cancer, qualifying periods, and potential payouts based on specific case studies. The analysis should consider factors like Clark Level II melanoma and non-melanoma skin cancer spread to the lungs.

DFP Module 4 Workplace Simulation 1505
Diploma of Financial Planning
Module 4 Workplace Simulation
Submission Instructions:
Key steps that must be followed:
 Please complete the Declaration of Authenticity at the bottom of this page.
 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!
Declaration of Understanding and Authenticity *
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 hasbeen used without due
acknowledgement. I understandthat the work submitted may be reproduced and/or communicated for the
purposeof detecting plagiarism.
Student Name*: Date:
* 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.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Important assessment information
Aims of this assessment
This simulated workplace assessment activity is conducted to the standard expected in the
workplace in order to demonstrate consistent performance of typical activities experienced
in the financial services industry.
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.
Marking and feedback
This assignment contains 3 assessment activities each containing specific instructions.
This particular assessment forms part of your overall assessment for the following units of
competency:
 FNSASICX503
 FNSASICZ503
 FNSASICM503
 FNSFPL504
Grading for this assessment will be deemed “competent” or “not-yet-competent” in line with
specified educational standards under the Australian Qualifications Framework.
What does “competent” mean?
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,

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
it must be fundamentally outweighed by the accurate information provided. This will be
assessed against a marking guide provided to assessors for their determination.
What does “not-yet-competent” mean?
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/
What happens if you are deemed not-yet-competent?
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.
Important: It is your responsibility to ensure your assessment resubmission addresses all
areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in
meeting competency after resubmitting your assessment, you will be required to repeat
those units.
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.
Expectations from your assessor when answering different types of assessment questions
Knowledge based questions:
A knowledge based question requires you to clearly identify and cover the key subject matter
areas raised in the question in full as part of the response.
Skill based questions:
Where you are asked to write as though you are speaking to a client, your answers must
show your ability to:
 understand your client’s concerns/perspective/views
 show empathy
 display a professional response
 explain ideas clearly and simply so your client can understand the issues

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Good luck
Finally, good luck with your learning and assessments and remember your trainers are here
to assist you 
Assessment Activity 1
Researching & Analysing Insurance Products – part A
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer all 4 questions that follow.
 Please type your answers in the spaces provided.
 Please ensure you have read “Important assessment information” at the front of this assessment
 Estimated time for completion of this assessment activity: 2 hours

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Assessment 1
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 with the Comminsure Protection PDS.
1) Referring to page 9 of the Comminsure PDS, answer the following questions:
a. Define what “policy owner” means?
The meaning of policy owner means the person who is identified as the legal owner under the terms
of the policy or contract or who is otherwise is given the legal title to the policy or contract through a
valid assignment completed with the terms of the policy or contract and properly recorded as the
owner on the books of the insurer.
b. If a life insured dies, is the life insured or policy owner (assuming they are different) entitled to
the insurance benefit (i.e. payout)?
In case the life insured dies the policy owner or the life in insured would be eligible for the claim if
the life insured and the policy owner are the same or is a sibling. The policy owner can even claim
the amount if the policy owner has been named as the nominee of the life insured.
2) Referring to page 5 of the Comminsure PDS, who will be the policy owner of insurance;
a. If it is owned outside of superannuation?
An individual or company that is not a superannuation fund trustee
b. If it is owned inside a Self-Managed Superannuation Fund (SMSF)?
The trustee of a Self Managed Super Fund (SMSF)
c. If it is owned inside superannuation?
Colonial Mutual Superannuation Pty

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Ltd, the trustee of the Colonial Super Retirement Fund
3) Referring to page 5 of the Comminsure PDS, who will the life insured be;
a. If the insurance is owned outside of superannuation?
An individual, whether the policy owner or another person
b. If the insurance is owned inside a Self Managed Superannuation Fund (SMSF)?
A member of the SMS
c. If the insurance is owned inside superannuation?
A member of the Colonial Super Retirement Fund.
4) Refer to the definition of “guaranteed renewable” on page 17 of the Comminsure PDS. Now refer to
the definition of “guaranteed insurability option” on page 24 of the Comminsure PDS.
Required:
a. Is the concept of “guaranteed renewable” and the “guaranteed insurability option” the same
concept? If not, why not.
The guaranteed renewable is the product that is once issued, the policy is guaranteed
renewable, which means the policy will not be cancelled, increase in premium rates or place
any further restrictions on the cover because of:
• the number of claims made under the policy or
• any change in the state of health, occupation or pastimes
On the other hand, guaranteed insurability option is the policy is not guaranteed for any business sale
cover option. It is even seen that this If this policy is a flexi-linked policy under which flexi-linked
Trauma Cover applies, this option can’t apply to the flexi-linked life insured under this policy unless it
applies to the life insured under the primary policy.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
b. List three events that would allow a life insured to increase their life insurance benefit without
underwriting under the “guaranteed insurability option” on page 24 of the Comminsure PDS.
The three events that would increase their life insurance benefit are:
 marries or reaches the second anniversary of a de facto relationship
• adopts or becomes a natural parent of a child
• has a spouse die
c. Assume your client John McNamara has two children called Alice and Miles. John has a Life Care
insurance policy with Comminsure for the following amount - Term Life insurance of $1,000,000.
Alice, John’s daughter is about to start secondary school. Under the Guaranteed Insurability
option on page 24 of the Comminsure PDS, explain why the maximum John is allowed to increase
his Term Life cover by (without additional underwriting) is NOT $250,000?
With respect to the above scenario, John cannot increase his Term Life Cover from
$1,000,000 to $1,250,000 due to the fact that the company has explained that cover cannot
be increased by 20% of the term coverage or not more than $200,000 per event. With
respect to this scenario, John can only increase the amount by $200,000.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Assessment Activity 2
Researching & Analysing Insurance Products – part B
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer all 4 questions that follow.
 Please type your answers in the spaces provided.
 Please ensure you have read “Important assessment information” at the front of this assessment
 Estimated time for completion of this assessment activity: 2 hours

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Assessment 2
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 with the Comminsure Protection PDS.
1) Refer to page 13 of the Comminsure PDS.
a. What is the minimum and maximum waiting period available under the Income Protection policy
options?
The minimum and maximum waiting period available under the Income Protection policy options is
14 days to 2 years.
b. Is the minimum waiting period provided on any conditional basis, and if so what is that?
The minimum waiting period is on a conditional basis as it is seen that 14 day waiting period is not
available the client works in a heavily risk or specialised risk based profession.
2) Refer to page 14-15 of the Comminsure PDS
a. Under the Income Protection “Guaranteed agreed value policy” definition, do you need to justify
your income when you make a claim, yes or no?
Under the Income Protection “Guaranteed agreed value policy it is essential to provide evidence of
the income or have to show that the client is a qualified medical graduate. In case of a medical
graduate, it is not essential to provide evidence of the income of the client.
b. What is the maximum monthlyIncome Protection benefit payable under “Most Occupations”?
The maximum monthly income protection benefit payable under “Most Occupations” is $30,000.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
3) Refer to page 48 of the Comminsure PDS
a. 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?
Partial Disability” benefit option, provides a payment of the Income Protection benefit if the can only
work partially due to illness or accident
b. Outline the formula used to determine the partial disability benefit
The formula used to determine the partial disability benefit is:
( A - B )/A x C
In this case,
 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.
4) 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 disclose also applies to a request to
extend, vary or reinstate your insurance”.
a. Refer to page 16 of the Comminsure PDS. List 4 instances in bullet point form where disclosure is
notrequired?
The four instances where there is no requirement disclosure of matter are:
 that diminishes the risk to be undertaken by the insurer
 that is of common knowledge
 that your insurer knows or, in the ordinary course of its business, ought to know or
 as to which compliance with your duty is waived by the insurer.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
b. Refer to page 16 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:
i. Non-disclosure by an insurance applicant that involved unknowing innocent
misrepresentation or omission, whereby, had the insurer known at the time of
underwriting of the correct information, the insurer wouldn’t have issued the
cover
If one fails to comply with the duty of disclosure and the insurer wouldn’t have issued the
cover if the failure had not occurred, the insurer may avoid the cover within three years of
issuing it
ii. Non-disclosure by an insurance applicant involving knowingly providing
fraudulent information or fraudulent non-disclosure
In case of non-disclosure is fraudulent, the insurer may avoid the cover at any time.
c. Molly was diagnosed with malignant breast cancer 18 months ago, to which she received
chemotherapy. She is now in remission. Molly decides she should take out Term Life insurance
todayas she has a young family and understands the gravity of her mortality after her cancer
scare. Molly 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
Molly has ever been diagnosed with cancer, to which Molly 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, Molly 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).
Required:
If Molly had hypothetically chosen Comminsure’s Term Life insurance policy, would the
insurer payout a benefit on Molly’s life insurance policy? If so why and if not, why not?
In this scenario, Molly would not receive any amount as according to the terms, if any critical illness is

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
hidden while taking the insurance and in this case as Molly has died due to cancer that was prevalent
before taking the insurance she won’t receive any benefit.

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Assessment Activity 3
Researching & Analysing Insurance Products – part C
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer all 3 questions that follow.
 Please type your answers in the spaces provided.
 Please ensure you have read “Important assessment information” at the front of this assessment
 Estimated time for completion of this assessment activity: 1-2 hours

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
Assessment 3
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 with the Comminsure Protection PDS.
1) Refer to page 36 of the Comminsure PDS under “Trauma Cover”. Does trauma cover pay out for
cancer, yes or no?
Yes, Trauma covers cancer.
2) Refer to page 36 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 three-month qualifying period applies to trauma condition that includes cancer. The qualifying
period applies if the symptom becomes apparent or the circumstances leading to the procedure
becomes apparent. This should take place within or before the three-month period the insurance
from the date of insurance.
3) Mathew is a 47 year father of 2 children who continues to surf to this day. Unfortunately, in his
youth Mathew did not exercise appropriate sun protection and is diagnosed by his doctor with a
malignant melanoma. It is promptly surgically removed and no treatment was required.It was
determined to be “Clark Level II” in size.
a. Required: Refer to page 36 of the Comminsure PDS under “Trauma Cover” where it refers
to ‘cancer’. Now also refer to page 118 of the “medical definitions” section of the
Comminsure PDS where cancer is defined. If Mathew 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?
In the definition of cancer, it is provided that the “Clark Level II” is excluded from the definition of
cancer. Hence the answer is “No he will not receive any benefit”.
b. Assume the same fact pattern (above) except now assume Mathew was diagnosed with
non-melanoma skin cancer instead but the skin cancer had spread to his lungs. Assuming
Mathew had held a Comminsure Trauma Insurance policy for 2 years and he survived

DFP Module 4 Workplace Simulation 1505
Units: FNSASICX503, FNSASICZ503, FNSASICM503, FNSFPL504
more than 14 days from diagnosis, would he be paid a trauma insurance benefit under
this scenario, yes or no?
Yes the benefit will be received as the lungs cancer is included within the medical definition of cancer,
hence trauma insurance will be received.