Note: You must have the authority, "Reinstate with Lapse," (Policy Processing group) to process this transaction.
The Policy Reinstatement with a Lapse transaction allows a policy that has been cancelled to be reinstated with a period of time between date of cancellation and date of reinstatement. When doing this transaction, no new policy_id is created. The transaction is applied to the same policy. Prior Billing, Claims, Print, Notes, Attachments and Policy History are accessible from the policy as it is currently for DIFFERENT policy images. This eliminates users from navigating through a separate screen to choose a policy through Policy Lookup.
Out of sequence transactions (Endorsements) can be processed across Cancellation / Reinstatement With Lapse transactions.
The Reinstatement effective date of a Reinstatement with Lapse transaction cannot be outside of the policy renewal version the corresponding Cancellation was processed in. If a Reinstatement With Lapse is submitted after the Expiration Date of the policy term, the system will return a validation indicating the policy is not effective on that date.
Policy transactions cannot be processed within the lapse period; validation is returned stating the policy is not effective on that date.
If a Cancellation is processed out of sequence, a Reinstatement With Lapse cannot be processed on the policy. If this happens, the system returns a validation indicating the transaction cannot be processed.
Service Charges will be billed as they currently are for Reinstatements (Without a Lapse).
Reinstatement premium will not be the same as Cancellation premium; it will correspond to the premium returned at cancellation. Any additional installments that should have rolled during the “Lapse Period” will be billed independently of the Reinstatement premium as they currently do on Reinstatements (Without a Lapse).
During the lapse period, no claims can be entered against the policy. If a claim is submitted within the lapse period, the system returns a validation indicating the policy is not effective on that date.
To reinstate a policy that has been cancelled with a lapse of coverages:
Access the client's policy to be reinstated.
From the Navigation / Transaction Links Pane on the left, click Reinstatement.
On the Transaction Information screen, enter / select the following:
Effective Date: Defaults to the system date; change if necessary.
Transaction Type: Defaults to Reinstatement.
Transaction Source: Indicate the individual who initiated the transaction from the combo box.
Transaction Reason: Choose Reinstatement with Lapse from the combo box.
Remarks: Enter any comments that apply to the policy reinstatement.
Reference: Transaction related reference code; entry is company specific.
Transfer To: Select either the User or Queue option button and choose the appropriate user name or user queue to which the transaction task is assigned.
Submit. At this point, the system performs several internal checks to determine the completion of the transaction.
Click Yes when the message, "Reinstatement with a lapse in coverage has been selected. Do you wish to continue," is displayed.