How Diamond Handles Leap Year

Note: The system setting, "Use Leap Year Prorate Factor," (Rating folder) needs to be set to either "True" or "False." It is recommended that once you have set this setting, it should not be changed.

• False = Diamond will count February 29th as a day; there will be 366 days in the year.

• True = Diamond does not count February 29th as a day; there will be 365 days in the year.

Here is an example of how this works. "Use Leap Year Prorate Factor" is set to "False."

• Policy's Eff. Date = 12/01/2015
• Policy's Exp Date = 12/01/2016.
• Since 2016 is actually a Leap Year, the system knows to count 366 days in the policy's term.

Now, if the "Use Leap Year Prorate Factor" is set to "True," the system will only count 365 days in the policy's term and will not include February 29th as a day.

How It Works on Policies

12 Month Policy

• Policy's Eff. Date = 02/29/2016 (First day of the term)
• Policy's Exp. Date = 02/28/2017 (Last day of term)

From here on, the Eff. and Exp. Dates will be 02/28.

6 Month Policy

• Policy's Eff. Date = 08/29/2015 (First day of term)

• Policy's Exp. Date = 02/29/2016 (Last day of term)

• At first Renewal: Policy's Eff. Date = 02/29/2016 & Policy's Exp. Date = 08/29/2016.

• At second Renewal:Policy's Eff. Date = 08/29/2016 & Policy's Exp. Date = 02/28/2017.

This will continue on until Policy's Eff. Date = 08/29/2019, and Policy's Exp. Date = 02/29/2020.