Policy center notes
Submission - Submission is the only policy transaction that creates a policy. A potential
policyholder contacts the insurer or agent and requests a quote.
Issuance - Issuance is part of the submission process. It allows you to edit and requote a bound
submission before officially issuing the policy (sending out the accompanying policy forms). For
example, a potential customer has a new limousine business and must insure all 30 vehicles
today. The customer contacts you, the insurance agent, requesting a business auto policy. You
require the VIN number and license of all vehicles, but the customer does not have these
readily available. You still proceed with generating a quote and agreeing on the terms. The
policy is bound (legal) today, so the customer’s limousines have coverage. The next day, the
customer contacts you, provides the required information, and adds another limousine,
bringing the total number of vehicles to 31. You edit, requote, and now issue the policy by using
an issuance policy transaction
Renewal -- The renewal process extends the policy for another term beyond the current
expiration date. It creates a new policy period for an existing policy. The renewal policy
transaction is often automatic. For example, if there are no changes to the policy and no claims
were made against it, the system creates a new policy period and sends a renewal notice.
Renewal can also require that an underwriter review the policy. Processing occurs prior to
expiration, but actual renewal is at expiration. Like submissions, you can create one or more
quotes on a renewal
Cancellation -- The cancellation process is a type of policy change which marks a policy as
canceled. A cancellation can be initi ated by the insurer. A cancellation initiated by the insurer
typically requires advance notice to the policyholder. Therefore, the insurer starts the
cancellation on one date, and the cancellation completes some period of time later. For
example, a policyholder forgets to pay his auto policy by the due date of June 10th. On June
11th, the system starts a cancellation policy transaction for non-payment with termination of
coverage effective as of a future date. The future date is usually based on regulatory
requirements.
A policyholder can also initiate a cancellation. For any number of reasons, a policyholder may no
longer want coverage by the insurer. According to the policyholder’s wishes, the insurer cancels
the policy effective immedi ately or at some future date.
Policy Change To create a policy change, you modify a policy in between the effective and
expiration dates. A change can be as simple as adding an additional vehicle to an auto policy. Or
it can be an out-of-sequence event, such as adding another driver to a policy on a date prior to
the addition of another vehicle to the policy.
Reinstatement -- Reinstatements go hand in hand with cancellations and are a type of policy
change that uncancels the policy. Reinstatement restores a canceled policy. The reinstatement
date must be the same as the cancellation effective date.
Rewrite -- Policies are rewritten to make the types of changes that cannot be done in a policy
change policy transaction, to correct significant errors, or to make changes to the policy. A
rewrite, which can only occur on a canceled policy, effectively ends the first policy and creates a
new one in its place. For example, a customer requests a workers’ compensation policy.
However, when the customer receives the policy, he notices many errors: the dates and payroll
amounts are incorrect, and the building and location are in the wrong jurisdiction. The customer
notifies you, the agent. If you choose to fix the errors in a policy change, the system would send
out an addendum, calling out the mistakes in the policy. But because there are so many
mistakes in the policy, you decide to rewrite the policy which sends out completely new policy
documentation.
Rewrite New Account -- When you rewrite a policy to a new account, Policy Center creates a
rewrite new account policy transaction. This policy transaction takes data from an existing policy
and creates a new policy with a new policy number in the new account. Unlike a rewrite policy
transaction, a rewrite new policy transaction can have pre-qualification questions. You can only
rewrite canceled or expired policies to a new account.
Audit - The audit policy transaction lets the insurer verify information about the policyholder
and determine the accu racy of premiums paid. The audit policy transaction provides final audit
and premium reports.
