Life Office Administration (FA1) develops your understanding of life and pensions issues, together with detailed guidance on the administration of these classes of business.
The unit begins by looking at the types of products offered including the basic protection products such as life insurance, critical illness and income protection before moving onto the investment products such as endowments and single premium whole of life policies. We consider the way policies are taxed, the various chargeable events and how a gain will be calculated.
We cover medical and financial underwriting, including information disclosed by a consumer to the life office and the consequences if it isn’t. We deal with contracts made by minors, people known as attorneys who act on the behalf of others and look at the consequences of acting outside the limits of authority.
We look at procedures followed when accepting new business and the administration of policies, the types of trusts that are available, the duties of the trustees and what the consequences are of placing a life insurance policy under a trust. Finally, we discuss how life offices deal with claims on policies, the process for both a maturity claim, as well as a death claim and a brief look at the laws of intestacy that exist in the UK.
Building a successful career in personal finance
Life Office Administration (FA1) provides the essential knowledge and skills needed by those working in, or starting a career in, life office administration and ideal for operational or administrative staff working in the life and pensions sector.
Learning outcomes
At the end of this unit, candidates should be able to demonstrate a knowledge and understanding of:
- basic product types, including group life;
- principles of financial and medical underwriting;
- policy issues likely to arise with life policies;
- administration of life policies, including the different payment methods and consequences of non-payment;
- handling of life policy claims.
Assessment
- 1 hour exam
- 50 multiple choice questions
- The standard pass mark is 70% (for more information on standard pass marks please see here)
- The 2024 pass rate for this unit was 54.4%
Revision aids available
The revision aids available for this unit are listed below. Find out more details.
