Policy Cancellation

When a termination of an insurance policy is initiated either by insured or by the insurer, the latter checks in what way the cancellation request falls under the policy scope, and fulfills the request under the agreed terms of the policy. Once approved, the insurer issues some payment, if the case, to the insured, or to an approved third party on behalf of the insured. FintechOS clients use the Core Policy Admin module to organize and automate routines of this typical scenario, in order to increase the efficiency and accuracy of their operations.

NOTE Core Policy Admin makes sure that the same policy is not available inside two cancellation flows, simultaneously. In turn, a policy can be accessed sequentially, by different operators, inside the same cancellation flow - for example, when a user manages the cancellation processing but a super user must approve the Returned Premium payment.

Policy Search

Sometimes, the Policy Cancellation record you need to access is not listed on the first page view inside the Policy Cancellation List page. Consequently, to find a Policy Cancellation record, you must search for it. In order to do so, click Insert at the top right corner of the page. The Policy Search form is displayed. Use it to input data about the policy you need to cancel and hit the Search button to find it.

The same Search form is used for both type of customers: individuals and companies. Only the policies that are in the status of InForce are displayed in the list of policies.

Here are the search keys:

Field	Description
PIN/ UTR	Brings the PIN/ UTR of the Contractor.
Name	Either the first name or the last name of the client. You can use any of these keywords. The search looks into the Account entity and brings the following: Insured, Contractor or the Beneficiary.
Phone No.	Brings the phone number of the Contractor.
Email	Brings the email of the Contractor.
Policy No.	Number of the policy.
Client No.	Number of the client.

After filling in the search parameters, click Search. A new list of policies is displayed. Choose the policy to be closed. The Refresh button reloads the existing search results. If needed, reset the search process by clicking Reset. All the information displayed in the previous search is erased.

IMPORTANT! From the search results, only one policy can be selected for Policy Cancellation.

To do so, click Choose option near the policy record. A new form related to the cancellation process is displayed. At this stage, a new cancellation record is registered by default with Draft status. This record is later transitioned to other statuses according to the Policy Cancellation process steps. A request can’t be saved if there is no owner or no policy. Proceed forward with the change request form.

Change Request and Policy Details

This is where the registration of the request for the policy's cancellation begins. The Edit form of a new Policy Cancellation record initially opens with only 2 tabs: Change Request and Policy Details. The other tabs are displayed after completing the minimum information required. Consequently, completing the Change Request Summary fields subsequently triggers the actual calculations for the payment amounts to be returned to the client - if the case and the calculations are displayed inside the Policy section specific fields.

The following fields must be completed first:

Field	Description
Cancellation Notification Date	The date when the notification for the policy cancellation is made. This is a mandatory field for the process.
Reason Type	From the option set, choose a reason regarding the decision for policy termination. This is a mandatory field for the process. The values of the Reason Type option set are: Withdrawal, Property sold, Cancelled by Client, Decline by screening, Cancelled, Closed by Claim.
Requested End Date	The date from which the closing is expected to take effect. This is a mandatory field for the process.
Final End Date	The date when the change takes effect - when policy is closed. This is a mandatory field for the process.

Choosing a Reason Type triggers the calculation for Requested End Date and Final End Date fields as in the table below:

Reason Type	Requested End Date	Final End Date
Withdrawal	In this case, it is automatically completed with the Policy Begin Date.	In this case, it is automatically completed with the Policy Begin Date.
Property sold	In this case, the Requested End Date is set to any day before or including the day of the request for cancellation.	Final End Date is filled with the value from Requested End Date but with the possibility to edit.
Cancelled by Client	Here it can be manually completed with any date.	If Notification Date -Policy (Issued) Date <= 15 then this field will be automatically completed with the Policy Begin Date with the possibility to be adjusted. Otherwise thiswill be automatically completed with the Notification Date + 21days to go
Decline by screening	In this case, it can be manually completed with any date.	It can be filled with the value from Requested End Date but with the possibility to edit.
Cancelled	Here it can be manually completed with any date, by the following rule: If the Notification Date - Policy (Issued) Date <= 15 days, then the Requested End Date is filled with the Policy Begin Date.	Here it is automatically completed with the Notification Date + 21 days to go. If the Requested End Date meets the rule explained above, the Final End Date is filled with the Policy Begin Date.
Closed by Claim	It is pre-filled with Notification Date + 21 days from the present on.	It is filled with the value from the Requested End Date but with the possibility to edit.

Following the input of the above data, on the next section with details regarding the chosen policy, the fields are automatically filled. The pre-filled details are extracted from Policy basic information section and from the results of the calculation made by selecting the information in the Change Request Summary section.

Field	Description
Policy No.	The number of the policy when issued.
Policy Date	The date when the policy was issued.
Policy Begin Date	The day when the policy becomes enforced.
Policy End Date	The day when the policy is no longer be available, according to the contract.
Insured	First and last name of the insured person on the policy.
Contractor	First and last name of the contractor on the policy.
Premium Amount	The premium amount of the policy.
Premium Currency	The currency of the policy.
Paid Amount	The total amount of the payments made by the customer on a contract.
Paid Currency	The currency in which the amount has been paid.
Earned Premium	The earned premium on the Cancellation process: The amount is calculated after the following formula: If there are no paid or opened claims and 1. If [Cancellation Date – (Policy Begin Date+1)] <= 15, then the Earned Premium is equal to 0; 2. If [Cancellation Date – (Policy Begin Date+1)] > 15, then the amount is filled in with the following: Premium Amount/ 12 * (12 – No. of uninsured months); If there are no paid or opened claims the Earned Premium is equal with the Premium Amount. The amount calculated should be returned to the client.
Earned Premium Currency	The specific currency of the earned premium is, by default, the premium currency.
Canceled Premium	The cancelled premium.
Canceled Premium Currency	The currency of the cancelled premium.
Uninsured Period Type	The values on a monthly or daily basis according to the Prorata type configured in the system.
Uninsured Period	Calculated as the number of months or number of days from the Policy Begin Date to the Policy End Date according to the uninsured period type set.
Claims	Check the box for existing claims - it should be checked if there are any claims on the policy.

The process continues with filling in the information regarding the customer to whom the payment must be made. In order for the payment to take effect, information must be provided for all the fields in this section. However, this section is left blank when there is no amount to be returned to the customer.

Field	Description
Payment Beneficiary	The Policy Admin user can choose from the list who is the beneficiary of the payment: the Policy Beneficiary, the Insured person or someone else. For the options Policy Beneficiary and Insured, the First, Last Name and PIN are automatically pre-filled.
Payment Beneficiary First Name	The first name of the payment beneficiary.
Payment Beneficiary Last Name	The last name of the beneficiary.
Payment Beneficiary PIN	The PIN of the payment beneficiary.
Bank	The name of the bank towards which the payment for the beneficiary is made.
IBAN Account	The IBAN Account of the payment beneficiary .

After the payment information requested above is introduced, the application is registered in the system in order to go for approval. Canceling the request is also possible, provided you offer a cancellation reason. If you continue with the current cancellation request, clicking the Register Request button automatically opens a tab with a new In Progress status, while the system calculates the amount to be returned to the beneficiary. Also, the Comments field becomes available if there is any observation regarding the request.

Field	Description
Comments	Complete this field with relevant information regarding the cancellation process. This field is optional.
Resolution Reason	When choosing to cancel the registration of the policy termination request, provide relevant information about doing so. This field is mandatory. The values of the option set are: Product reasons, Other reasons, Company reason, Withdraw.

When clicking Register request, you are automatically switched to the next tab, which represents the third step of the process.

This is where you find two predefined lists that contain the valid installments and the claims that have been opened on the current policy. On this tab there is no possibility to insert or delete records. You can only edit a specific record by double-clicking the desired row, which redirects you to the specific Edit form of the installment or claim.

Premium Returned

This is a step where all details are automatically filled in as follows:

Field	Description
Policy Start Date	The day when the policy becomes enforced.
Policy End Date	The day when the policy is no longer be available according to the contract.
Last Payment Date	The date when the last installment payment was made.
Interval Until Due Date	The remaining days until the next installment payment.
Interval Type	The type of the interval between the installment payments.
Premium Amount	The premium amount of the insurance policy.
Premium Currency	The currency of the insurance policy.
Paid Amount	The total amount of the payments made by the client on a contract.
Paid Currency	The currency of the paid amount.
Returned Premium Amount	The amount to be returned to the customer. Is equal to the Unearned Premium Amount result, but with the possibility for the user to edit the amount with a desired value if necessary.
Returned Premium Currency	The currency of the returned premium amount.

When the information regarding the value to be returned to the customer is displayed, decide whether the process continues towards the approval phase or towards closing the request. Click Propose change request to continue with the cancellation process and send the request to approval or click Cancel and complete the Resolution Reason field. This field is mandatory.

Requesting approval opens a new tab, while automatically triggering the transitioning from In Progress status to In Approval status. Also, you can use the Comments field to transmit any observations regarding the current request.

Request Approval

Approving the request for policy cancellation requires the intervention of a Policy Admin Super User who holds the necessary security rights to approve or reject such cases.

Field	Description
Proposal Date	The date when the cancellation request was scheduled for approval. It is completed with the current date.
Approval Date	The date when the request was approved. It is completed with the date the cancellation application is approved.
User	It is automatically completed with the name of the Policy Admin Super User who is logged in at the approval moment.
Comments	It can be filled with relevant information regarding the approval process or the cancellation flow.
Resolution Reason	In case of declining, the Policy Admin Super User must offer information on why the cancellation application was not approved.

When the case is Approved, the flow continues on the approved branch as follows:

1. If the Returned Premium Amount is equal to 0 then the process ends and the status changes from In Approval to Approved.

2. If the Returned Premium Amount is not equal to 0 then the process continues with the Payment Return flow, explained in the Billing and Collection user guide. In addition, the status changes from In Approval to Approved. The system redirects the user to the tab where the date of the scheduled payment is displayed.

When the case is Declined, the status changes from In Approval to Declined. The process reaches the end without the possibility of starting again.

Policy Cancellation Status Transitions

The Policy Cancellation statuses are as follows:

Status name	Description
Draft	When you open the policy, the Cancellation record is by default in the draft status.
In Progress	When you input the notification date. You can move forward by pressing Register request.
In Approval	Following the registration of the request, for approval use Propose change request button.
Approved	The cancellation request is approved by the Policy Admin super user.
Declined	The cancellation request is declined by the Policy Admin super user.
Cancelled	The cancellation request is cancelled.