NZ CFS L5 General Insurance study guide
NZ CFS L5 General Insurance · Work through your exam, one topic at a time.
The New Zealand Certificate in Financial Services (Level 5) – General Insurance strand is an NZQF qualification delivered by accredited training providers. It is built for people working in, or moving into, general insurance roles: personal and commercial lines advisers, brokers, underwriters, claims and client-service staff, and anyone assembling the competence evidence expected in a licensed financial advice setting. The NZ CFS L5 General Insurance study guide has 7 sections and about 2,260 words.
01Regulatory, legal and ethical framework for financial services
New Zealand's insurance advice regime is conduct-focused: the exam checks whether you can place a client interaction inside the FMCA, the FAP licensing model and the Financial Advice Code, and whether you can identify ethical failures before they become breaches. Licensing and registration.
380 words, about 2 min02Insurance principles, risk and the role of insurance in the New Zealand market
The principles that make insurance work, and how the New Zealand market's small size, catastrophe exposure and EQCover scheme affect insurers, advisers and clients. Risk pooling and transfer.
353 words, about 2 min03General insurance products and cover (personal and commercial lines)
Product knowledge across personal and commercial lines: what is covered, what is excluded, how policy documents fit together, and how New Zealand's natural hazard cover interacts with private policies. House: the dwelling and permanent outbuildings; sum insured should reflect rebuild cost, not market value.
335 words, about 2 min04Client information gathering, needs analysis and the advice process
The advice process under the Financial Advice Code: how to gather client information, identify needs, test suitability and document advice so the client understands it. Scope and engagement.
324 words, about 2 min05Underwriting, risk assessment, pricing and policy documentation
How insurers assess and price risk, what the applicant must disclose, and how policy documents record the deal. Underwriters assess physical hazard (construction, age, location, flood or fire zone), moral hazard (claims history, intent) and morale hazard (carelessness).
304 words, about 2 min06Claims handling, assessment and settlement
The claims lifecycle: notification, cover assessment, investigation, quantum, settlement and recovery, with attention to New Zealand consumer-protection expectations. Notify and acknowledge.
269 words, about 1 min07Insurer operations, distribution channels and intermediary relationships
How insurers are organised, how products reach clients, and the legal and ethical duties that arise between insurers, intermediaries and policyholders. Product development, underwriting, claims, actuarial pricing, reinsurance, capital management, compliance and conduct.
295 words, about 1 min