Reinstate a Policy

The policy reinstatement is the process of restoring an insurance policy back in effect after it has been previously terminated due to various reasons, most often scenario being that the insured has missed the premium payments. The reinstatement is usually done at the request of the Insured and can be accepted in most cases conditionally by the Insurer. The most encountered conditions could be:

• The cover is not provided from the moment the premium passes it’s due date until it’s paid by the Insured;

• The back premium is collected for the suspended period, unless the due premium is waived or deferred;

• The risk quality has not changed (it has not degraded);

• The period during which the policy cover is not active does not exceed a certain amount of time.

In FintechOS, for policies to be reinstated, they need to be in the Suspended status, a policy state between InForce and Lapsed. This only applies for policies with unpaid installments, where at the product configuration level, the Suspension field is set as Yes. During suspension, the installments are not modified. There are three scenarios for the due payment and the changes it triggers to payment schedules:

• due premiums are paid and allocated on the policy, the payment schedule is updated with the subsequent status (e.g. Paid) for the installment;

• due premiums are waived entirely;

• due premiums are deferred to a later date.

Policies automatically transition to the Lapsed status one day after the Suspended period expires. You can configure the duration of the policy suspension by accessing the Configure the Policy Suspension Duration page.

With Policy Administration, the policy reinstatement functionality facilitates a policy transition from Suspended back into InForce, or from Suspended to Canceled/Declined.

Reinstate a Policy

A policy can be reinstated if its in the Suspended status, but only after the customer has paid the installment that they missed. The reinstatement process goes through multiple statuses. Learn about the reinstatement statuses by accessing the Business Workflows section of the Manage Policy Admin page. Follow the steps below to restoring an insurance policy back in effect after it has been previously terminated.

1. In the main menu, navigate to Policy Admin > Policies.

2. Search for the policy you want to reinstate. Make sure it is in the Suspended status.

3. Open the policy and click the Reinstate button at the bottom of the screen. The Reinstatement Request Details form opens.

   

4. From the Request Type drop-down, pick one of the available reasons for reinstatement: Client request or Paid on time but unallocated.

   

Depending on the scenario, the process can continue in the following ways:

Pay Due Premiums

You can move forward and propose the reinstatement request after you have paid the unpaid installment.

1. To pay the installment, go to Main Menu > Billing & Collection > Bank Statements. Here, the list of all the bank statements is displayed.

2. Click Insert to add a new record.

3. Input the data and attach the bank statement in the File field.

   

4. Click Import Data. The record is now registered, and the data from the bank statement file is displayed.

   

5. Click the second tab, Payments. Here, you can view the details of the incoming and outgoing payments.

   

6. In the Outgoing Payments tab, double click the Payment Order record.

   

7. Click Allocate. The Search Invoices and Installments grid is now displayed.

8. Input the policy number and click Search. The invoices and installments lists are displayed.

9. Click Add on the invoice record. The Allocated Invoices grid is displayed with the number of the invoice, the invoice amount, and the detailed paid amount.

   

10. Click Validate.

11. Go back to the reinstatement request record, and refresh the page. The installment is now paid.

    

12. The Request Type and the Reinstatement Request Date fields are automatically filled.

Waive Due Premiums

A waiver is when the insurer voluntarily gives up a requirement, in this case payment, to allow the policy to be reinstated more easily, and move to the InForce status.

1. Scroll down to the Due Premium section and tick the box next to Waive due premium . The unpaid sum is automatically displayed in the Waived amount field, which is not editable. The Propose Request button becomes active.

   

2. Add a comment in the Comments section.

3. Continue with the steps illustrated below.

Defer Due Premiums

In the context of reinstating an insurance policy, defer means to postpone or delay certain actions. In this case, you are deferring a premium payment to a later date.

1. Scroll down to the Due Premium section and tick the box next to Defer due premium. The Propose Request button becomes active.

   

2. In the New Due Date field, pick the date when the payment will be due.

3. Add a comment in the Comments section.

4. Continue with the steps illustrated below.

5. Click Propose Request. The Request Approval tab is now available. In order to move forward, you need to approve the reinstatement request.

   IMPORTANT!  
   The Propose Request button is replaced by the Approve one if the Has Approval Step option is ticked in the Product Admin Configuration form.

   

6. In the Request Approval tab, you have the following options:

   • Click Approve, and the current status of the reinstatement request is changed to Approved. The policy is reinstated to the In Force status. In the Cover Suspension section of the policy, you can view the time in which it was suspended.

     The Suspension End Date, in this case, is the date when the Reinstatement is approved. The Duration is measured in days.

   • Click Decline, and the current status of the reinstatement request is changed to Declined. The policy remains in the Suspended status.

   • Click Send Back, and you will be redirected to the Request Details page, where you can edit any mistakes you might have in the reinstatement request, and send it back to approval.

 

After you have approved a reinstatement request, you can also remove the payment made for the installment, and the policy returns to the suspended status. Follow the steps below to remove the payment:

1. Go to Main Menu > Billing & Collection > Payments. The list of all payment records is displayed.

2. Double-click the record of the payment you have made. The Client Payment page is displayed.

3. In the Allocated Invoices grid, click Remove on the invoice record for the payment.

4. Go to the respective policy record, and you can see that the Cover Suspension grid is unavailable, the installment is now set as Unpaid, and the policy is in Suspended status.

Cancel a Reinstatement Request

You can cancel a reinstatement request by following the steps below:

1. In the main menu, navigate to Policy Admin > Reinstatements. The grid listing the reinstatement requests is displayed.

2. Double-click the record of the reinstatement request that you want to cancel. The Request Details form is displayed.

3. Write the reason in the Comments section, as per the example below.

   

4. Click Cancel. A pop-up message informs you that you are about to cancel the reinstatement request.

5. Click Proceed. The current status of the reinstatement request is changed to Cancelled, and the policy remains in the Suspended status.