Term Life Quote & Apply Formulas

This formula returns a row from the Occupation data set, according to the occupation discriminant value.

The following argument is used:

In the Term Life Quote & Apply flow, the occupation is used to calculate the regular premium for the customer, according to the occupational class code. The class codes are explained in the Personal Data Step.

In Innovation Studio, the Occupations data set is found under Automation Blocks > Business Rules > Business Data Sets. In Data Set Values > Occupations, for each occupation, there is a corresponding value representing a class code for the Life Cover and Rider coverage types.

For each occupation value, the formula returns the corresponding Life Cover and Rider values from the data set.

This formula is used to fetch the value of either the Life Cover or the Rider of a specific Occupation.

The following arguments are used:

Similarly to the FTOS_INS_OccupationDataSet formula above, FTOS_INS_OccupationsDiscriminant is used to return the value for one of the coverages for a selected occupation.

Example

For the Occupation with the value 11, the corresponding Rider value is displayed.

DataSet("Occupations", ("Occupation", 11), ("Life Cover (Term Life)", "Rider"));

This formula calculates the value of the policy term according to the maximum exit age of the insured at policy termination.

The following argument is used:

In the Term Life Quote & Apply quotation flow, in the Quotation Step, when calculating the premium, the Policy Term can have a value of either, 10, 15, 20 or 25 years. However, the system only displays the available options depending on the maximum exit age of the insured at policy termination, which is 80. Thus, the sum between the insured's age at the next birthday and the policy term must be below 80.

From the list of the Policy Term possible values, the formula only selects the values that added with the applicant's age on the next birthday result below 80.

Example

Let's say the applicant's age, cAge, is 58. This is added with each of the Policy Term possible values, and the system checks if the results are below 80:

• 58 + 10 <= 80

• 58 + 15 <= 80

• 58 + 20 <= 80

• 58 + 25 <= 80 -> false -> The value 25 is excluded from the Policy Term option list, and the applicant cannot select it.

This formula calculates the value of the regular premium.

The following arguments are used:

1. The annual coefficient is extracted from the rates data set, according to the applicant's age and the chosen policy term.

2. Using the annual coefficient, the annual regular premium is calculated as per the following formula: cAnnualyRate = (cSumInsured / 100) * cAnnualCoefficient.

3. Using the annual regular premium, the regular premium is calculated for the chosen payment frequency, that can be half-yearly, quarterly or monthly.

   The regular premium is calculated using the following formula: bpVal = cAnnuallyRate / fqVal.

   Where bpval is the basic premium value, and fqval is the frequency value.

4. The system checks if the Critical Illness option was selected. If yes, it is calculated as 10% of the regular premium.

5. If there are any premium increases, of either 15, 25 or 40, these are applied to both the regular premium and to the critical illness values.

6. The Minimum Sum Insured needs to be 100 euros, and it is calculated using the following formula: minSumInsured = (100 * fqVal * cPremiumBaseMinValue) / cAnnualCoefficient , where the cPremiumBaseMinValue = 100 euros.

7. The total is then calculated using the following formula: totalValue = bpVal + ipaVal.

8. The system checks if it is necessary to add a policy fee, and if yes, it is added using the following formula: totalValue = totalValue + cPolicyFee.

9. The output is generated and sent to the application. The output contains the following values:

   • bpVal (regular premium)

   • ipaVal (critical illness)

   • totalValue

   • minSumInsured

   • cPolicyFee

     cAnnualyRate.