Categories of Autorisation Mini Assignment

Answer the questions based on you being a newly hired representative at a Financial Services Provider (FSP) specializing in insurance policies. Your role mainly involves selling life policies with no underwriting and short-term policies with no underwriting.

Explain the categorization under the FAIS Act that allows you to provide these specific services. 

Detail the characteristics of long-term insurance B1A policies and short-term personal lines A1 insurance policies. What makes these policies different from other categories under the FAIS Act? 

Describe the concept of underwriting in the context of your job, differentiating between ‘no underwriting’ and ‘limited underwriting.’ How does this apply to the long-term insurance B1A policies you sell? 

The FAIS Act divides product categories into two tiers. Into which tier do long-term insurance B1A policies and short-term personal lines A1 insurance policies fall? Explain what this means for the standards that must be met as an FSP representative.