NZ Level 5 Life, Disability and Health Insurance study guide
NZ Level 5 Life, Disability and Health Insurance · Work through your exam, one topic at a time.
The New Zealand Certificate in Financial Services (Level 5) with the Life, Disability and Health Insurance strand is the qualification advisers typically hold to give regulated financial advice in this sector. It suits people moving into advice from claims, underwriting, contact centres or banking, as well as experienced advisers formalising their competence. The NZ Level 5 Life, Disability and Health Insurance study guide has 8 sections and about 2,723 words.
01Regulatory and ethical framework for life, disability and health insurance
This domain tests how life, disability and health advice is licensed, supervised and conducted in New Zealand, and what an adviser must do when a commission, an insurer target and a client's interests pull in different directions. The Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019, requires anyone giving regulated financial advice to operate under a Financial Advice Provider (FAP) licence issued by the FMA.
410 words, about 2 min02Life insurance products and policy structures
This domain examines the life-risk products available in New Zealand and the structural choices - ownership, beneficiary, premium pattern and riders - that determine whether a policy actually delivers at claim time. Term life : pays a lump sum on death within a defined term.
374 words, about 2 min03Disability and income protection insurance
This domain tests whether you can match an income protection definition to a client's occupation, cash flow and existing entitlements, because the definition - not the premium - decides whether a claim is paid. Own occupation : pays if the client cannot perform their own occupation.
355 words, about 2 min04Health and medical insurance
This domain covers private medical cover: what it reimburses, what it excludes, and how it sits alongside ACC and the public system. Hospital and surgical cover : pays for eligible private hospital treatment and surgery.
347 words, about 2 min05Needs analysis and client fact-finding
This domain tests structured fact-finding: gathering the facts and priorities that make a recommendation defensible, and quantifying the gap between what a client has and what they need. Quantitative : income, expenses, assets, liabilities, mortgages, dependants and ages, existing policies, ACC entitlements, employer benefits, KiwiSaver position.
307 words, about 2 min06Product comparison, recommendation and suitability
This domain assesses whether you can compare policies on the terms that matter and justify a recommendation that is suitable for the particular client. Definitions and exclusions : own versus any occupation, trauma event lists, pre-existing condition wording.
323 words, about 2 min07Underwriting, disclosure and policy administration
This domain covers how cover is underwritten, what the client must disclose, and what has to be managed after the policy is issued. Application, personal statement, medical and financial underwriting (GP reports, pathology, financial evidence for large sums), then a decision: standard terms, loading, exclusion, postponement or decline.
314 words, about 2 min08Claims handling and client service
This domain tests how a claim is notified, evidenced, assessed against the policy wording and resolved, including when it is declined. Notification to the insurer, claim forms, evidence (death certificate, medical reports, specialist confirmation, financial records for income claims), assessment against the definition, exclusions, waiting periods and offsets, then a decision with reasons.
293 words, about 1 min