Account → Policy → PolicyPeriod
- An Account is the customer. It holds the account holder, other contacts and the locations that policies can reuse.
- A Policy is the long-lived contract for one product. Its number usually stays the same across renewals.
- A PolicyPeriod is one version of the policy for one term, produced by one job. It holds everything: lines, vehicles, drivers, coverages, costs, forms.
Each job works on its own copy (a branch) of the PolicyPeriod. While the job is in progress, the bound version is untouched. When the job binds, its branch becomes the new bound version for that term. That's how PolicyCenter can quote three alternative changes at once and throw two of them away.
The job types
| Job | What it does | Ends in |
|---|---|---|
| Submission | New business: quote and bind a new policy | Bound PolicyPeriod (then issued) |
| Issuance | Issues a policy that was bound but not yet issued | Issued policy |
| Policy change | Mid-term endorsement: add a driver, change a sum insured | New version effective from the change date |
| Renewal | Creates the next term, usually automatically before expiry | New PolicyPeriod for the next term |
| Cancellation | Ends cover before expiry, with a reason and refund method | Cancelled period (pro rata or short rate return premium) |
| Reinstatement | Undoes a cancellation, restoring cover | In-force period again |
| Rewrite | Replaces a policy with a new term, for example to change the product or term dates | New period; old one cancelled |
| Rewrite new account | Moves a policy to a different account | Policy under the new account |
| Audit | Final or premium audit for exposure-rated commercial policies | Adjusted premium based on actual exposure |
All jobs show up on the Account and Policy screens with their status, so you can always trace how a policy got to where it is.
A submission step by step
- DraftQualificationProduct, effective date, producer, pre-qualification questions.
- DraftPolicy infoInsured, address, term, underwriting company.
- DraftLine screensVehicles, drivers, buildings, coverages.
- QuotedQuoteRating runs; UW rules run; premium shown.
- BoundBindCustomer accepts; cover starts.
- IssuedIssueDocuments produced; billing instruction sent.
Underwriting rules can stop the job at any of those steps (see module 06). The status values you will see most are Draft, Quoted, Bound, Withdrawn, Declined and Not taken.
A submission can carry several versions side by side, for example one with a high deductible and one with a low one. The customer picks one, and only that version is bound.
Policy changes and effective dating
A policy change has an effective date inside the term. From that date the new branch differs from the old one; before it, nothing changes. PolicyCenter then calculates the premium difference for the rest of the term and sends it to billing as a new charge or credit.
Two harder cases come up on every project:
Out-of-sequence change
A change is entered with an effective date earlier than a change already bound. PolicyCenter has to apply the new change and roll it forward through the later one, sometimes asking the user how to merge conflicts.
Preemption
Two jobs are open on the same period and one binds first. The other has been preempted and must be updated to include the bound changes before it can bind.
Renewals and cancellations
Renewals are usually started by a batch process a set number of days before expiry. They copy the current period into the new term, re-rate it with the new rate book, run underwriting rules, and either renew automatically or stop for an underwriter or the customer.
Cancellations carry a source (insured or carrier), a reason (non-payment, customer request, underwriting) and a refund calculation:
- Pro rata — refund exactly the unused share of premium.
- Short rate — refund less, as a penalty for cancelling early.
- Flat — cancel from inception as if the policy never existed.
Cancellations for non-payment usually start in BillingCenter, which asks PolicyCenter to cancel when delinquency runs its course. You'll see that link in module 08.
BA checklist for a new product
- Which job types apply? (Many personal lines products never use audits or rewrites.)
- Who may start each job: agent, customer via portal, internal staff?
- Renewal lead time, automatic vs manual renewal, and how rate changes are communicated.
- Cancellation reasons and the refund method for each.
- Which changes are allowed mid-term, and which must wait for renewal.