To have accurate reporting on the number active Policies, an option is available that will automatically change policies with no new transactions to the status of Lapsed. If a Tenant is using Advances and debit balances, a setting can also have the system automatically create Chargebacks if any of the Agents associated with the Policy has an outstanding debit balance.
Settings
To activate the auto lapse or auto chargeback an Admin will go to the system settings from the top right-hand menu and select Settings. From there select the tab for Policy Lapse.
Policy Lapse setting.
Policy Lapse
The process for the Lapse Process is as follows:
- In the (system) Settings page, turn the indicator to the ‘On’ side and enter the desired number of days.
- Nightly batch job will identify Policies whose last transaction PTD is on or older than today’s date less the Policy Lapse Days.
- Policy will be changed to status Lapsed and the next day’s date entered as the expiration date. It is lapsed at night and because the system uses UTC time, it will show up as the next day’s date.
Policy Detail after lapse
Auto Chargeback
To enable the Auto-Chargeback feature, the Policy Lapse must also be enabled. When the batch job for Lapse runs, when this feature is enabled, the system will first look to see if any of the Agents in the hierarchy of the Policy has a debit balance (Advances – Advance Recovery > $0.00), instead of changing the Policy to lapsed, the system creates Chargebacks for the Agents. The Chargeback process then changes the status of the Policy to ‘Chargeback’ and adds the Termination Date.
Auto-Chargeback setting
To be able to see the Policies whose status were changed to Lapsed or Chargeback use the Policy Termination Report to see those Policies by the Auto-Lapse Date.
Reinstatement
If a Policy with status of Lapsed or Chargeback and has a new transaction for a positive value (Commissionable Premium or Member Count) is added, the policy status is converted to Active, and the Termination date blanked out. If the new transaction is for a negative value, the status of Lapsed or Chargeback remains unchanged.
When a Policy is reinstated back to active, either by adding a transaction in the UI or from import, there is a message displayed in the UI or the import results. This example is when the transaction is added to the UI for a Policy that was in status Chargeback:
