Note: Pre-installation and planning is required prior to using the Renewal Offer transaction. Additionally, users must have the authorities, "Issue Renewal," (Policy Processing group) and "Accept Renewal Offer" (Billing group) to enter a policy Renewal Offer.
Some insurance companies prefer to send their clients an "Offer to Renew" instead of a Renewal declaration page and invoice. In general, the Renewal Offer transaction type is generated using a company-defined number of days before the expiration date of the policy's current term. A Renewal Offer policy image has a transaction type "F" (Renewal Offer) and a policy status code "O" (Offer). The Renewal Offer requires acceptance in the form of either a "Renewal" or "Future Renewal."
The workflow for a Renewal Offer includes receiving and applying cash to the policy, then issuing the policy. This action then creates the Renewal with transaction type "R" (Renewal) and policy status of "F" (Future), "P" (Pending) or "A" (Active). When cash is applied to a policy having a Renewal Offer, the system checks to ensure if the cash applied matches the amount in the Renewal Offer table. If the cash applied is an exact match, the Renewal Offer is automatically upgraded to a Renewal. If it is not, a Diary item is sent to the user indicating the Renewal Offer failed to upgrade. The Renewal Offer must then be converted manually to a Renewal.
Two (2) types of Renewal Offers can be processed in Diamond:
Direct Bill
Agency Bill
A "Direct Bill" Renewal Offer is upgraded to a Renewal when an agent or employee user pays the Renewal Offer invoice amount within the time period allowed by the company's Renewal Rules. An offer can be accepted when the insured agrees to pay the agreed upon amount for the renewal policy term. (Note: Some companies may only require the insured to pay a portion of the equity while others may require them to pay in full for the Renewal policy term.)
An "Agency Bill" Renewal Offer is upgraded by using the Billing Transaction: "Accept Renewal Offer." This transaction verifies that the policy is still in an "Offer" status. If the policy is eligible, the Renewal is automatically accepted when the transaction is issued.
If a company's Renewal Rules allow for a "Renewal with a Lapse," there may be a lapse in coverage if the payment is made past the date for "Renewal without a Lapse," but within the date range for a "Renewal with a Lapse." Depending on a company's validations beyond that date, there may be a message for the agent to contact an underwriter should the "Renewal with a Lapse" date have passed. (Note: Each company can establish their own validation messages around these rules.)
Renewal Offers can be processed in Diamond two (2) ways:
"Manually:" As a Policy Transaction, "Renewal Offer," or
"Automatically:" In Automatic Renewal Processing, by selecting "Renewal Offers" (or selecting "Both," which processes Renewal Offers and Renewals during the same time period). To allow this process to happen, the Automatic Renewal option for the version_id needs to be set up for "Renewal Offers." Your Insuresoft Business Analyst can assist you with this.
On the Policy Transaction screen, enter / select the following:
Transaction Effective Date: Defaults to the system date; change if necessary. (Note: The Effective Date for the Renewal Offer must fall within your company defined Renewal Offer Lead Days).
Transaction Type: Renewal Offer.
Transaction Source: Select the individual who initiated the transaction.
Transaction Reason: Defaults to "Renewal Offer."
Remarks: Optional; enter any comments that may apply.
Reference: Transaction-related reference number; company specific.
Transfer To: Select either User or Queue; choose the appropriate user name or user queue to which the transaction task is assigned.
Click Submit.
Make any changes necessary on the "Pending" image, and click Rate to rate the policy's Renewal Offer.
Click Issue.
Once issued, the Renewal Offer's status changes to "O."
Note: The system
will allow a user to manually change the Effective Date on a "Pending"
Renewal Offer transaction provided the following conditions are met:
Users must have the authority: "Allow Manual Effective Date Change on Renewal Offers" (Policy Processing group).
The XML configuration for the associated Web Version / Web Workflow must set the AllowManualEffectiveDateChangeOnRenewalOffers property in Policy Control to "True."
From the Renewal Processing screen:
Type: Choose either Renewal Offers or Both.
From / To: The From / To date range uses a pre-determined number of days set up as Renewal Lead Days. This company-defined number determines the date range in which Renewal Offers and Renewals will be processed. This also is used to determine the maximum number of days prior to the expiration date a policy can be renewed.
Bill Method: Choose "Both," to pick up Agency and Direct Bill policies.
Users can view the Renewal Offer from the Policy History link. From there, they can select to see the details of the Renewal Offer.
Since an Agency Bill policy is paid off automatically when installment bills generate in Diamond, the system handles Renewal Offers invoices differently.
Once a policy with a Renewal Offer has been accessed, from the Billing tab:
Click Accept Renewal Offer.
Click Accept.
Answer Yes to the question: "Accept Renewal Offer?"
If successful, a validation is displayed: "Policy has been upgraded to a Renewal."
The Renewal Offer acceptance is shown in Policy History as a Renewal with a Transaction Type "R" (Renewal) and Policy Status "F" (Future), "P" (Pending) or "A" (Active).
Once a policy with a Renewal Offer has been accessed, from the Billing link / Statement Display screen:
Transactions Button: Select Accept Renewal Offer, and click Accept.
Effective Date: The date automatically defaults to the Effective Date of the Renewal Offer. (Note: To have a lapse on the policy, enter an Effective Date after the offer date.)
Click Save.
A Direct Bill Renewal Offer is upgraded to a Renewal when the agent or employee user pays the Renewal Offer invoice amount within the time period allowed by the company’s Renewal Rules. The company’s rules determine what percentage of the down payment must be received in order for the Renewal to be processed. The amount that must be paid for the upgrade to occur is dependent on the company’s rules; most companies choose to have the amount paid in full.
If the company’s Renewal Rules allow for Renewal with a Lapse, then there may be a lapse in coverage if the payment’s check date is past the date of the Renewal Effective Date but within the date range for Renewal with a Lapse. Dependent on the company’s validations beyond that date, there may be a message for the agent to contact an underwriter should the Renewal with a Lapse date have passed.
Each company can establish their own validation messages around these rules. Additionally, any amount due on the current term must be included in the payment for the Renewal Offer to be upgraded to a Renewal.
Access the policy with the Renewal Offer:
From the Navigation Tree View, select Billing.
Click Make a Payment.
Enter the dollar amount due for the Renewal Offer. In most instances, the Renewal Offer required down payment must be paid in full for the policy to be upgraded to a Renewal (Note: This rule can be configured for your implementation). If it is not paid in full, the money will be applied to the policy.
Click Submit Payment.
Once the payment is processed, the policy is then upgraded to a Renewal. Diamond updates the policy image to show the appropriate Transaction Type and Status. Once the Transaction is issued, the status of the Renewal Offer is changed to either "F" (Future) or "A" (Active).
Employee User: Once they pay the amount due in full, the Renewal Offer processes to a Renewal.
If the payment amount that has been posted does not match the required percentage amount of the Renewal Offer invoice (based on the company’s rules), a message is displayed: “Payment is not enough to cover Renewal Offer for XXXX. Amount due is $###. ##. Please renew manually.” This message is configurable for an implementation. If it is not, a Diary item can be sent to the user indicating the Renewal Offer failed to upgrade – again, this is configurable. The Renewal Offer must then be converted manually to a Renewal.
A Renewal Offer that is revised prior to upgrading is archived until it is upgraded to a Renewal.
Expiration: If a Renewal Offer is not accepted, the policy expires. A Manual Cancellation is not needed.
End of Day Processing: Process Expired Renewal Offers - When this process is selected, the system retrieves all of the Renewal Offers that have an Effective Date less than or equal to the system date minus the Renewal Offer grace period days. Diamond then deletes the Renewal Offer image and creates an automatic cancellation for the policy.
Renewal Offers are configured by company-defined criteria. As such, a script will have to be run to update the following information:
Renewal Offer Lead Days: The number of days before the expiration date of a policy that a Renewal Offer may be submitted on a policy. When Renewal Offers are run through Automatic Renewal Processing, a Renewal Offer transaction will be issued for the specified number of days before the policy is set to renew. When a "Manual" Renewal Offer is processed and the transaction date is outside the prescribed number of Renewal Offer Lead Days, the user will receive a message “Renewal Offers may only be processed within 60 days of the expiration date."
Renewal Offer Upgrade Days: This is the maximum number of days before the expiration date of the policy in which the upgrade to renewal may be performed.
Renewal Offer Grace Period Days: This is the number of days after the expiration date of the policy that the system will allow the Renewal Offer to be paid or accepted and a renewal to be issued. If the Renewal Offer is not upgraded within the prescribed number of days after the expiration, Diamond will delete the Renewal Offer and cancel the policy.
Renewal Offer Lapse Days for Employee User: The number of days after the expiration date before a coverage lapse would occur for an Employee User. Here's an example. Let’s say the Renewal Offer Grace Period Days are 30 and the Renewal Offer Lapse Days are 25. The payment is made on the 29th day. The system would give a validation that Renewal Offers may only be accepted within 25 days of the original offer date.
Renewal Offer Lapse Days for Agency User: This is the number of days after the expiration date before a coverage lapse would occur for an Agency User. The functionality is the same as the Renewal Offer Lapse Day for Employee User. Companies may wish to have a shorter lapse period for Agency Users, or no lapse period at all (0 days).
Create Renewal Offer on Manual Renewal Underwriting: When this is enabled, this allows an agency user to update an existing Renewal Offer image. In addition to setting this property, the company also needs to enable the "Show Renewal Underwriting Ins Image Button" property under the Policy Inquiry Info Control in their Web Version XML. When both properties are enabled and there is not already a “Pending” or quote image, the button will display allowing the agency user to enter the workflow to update the Renewal Offer.
Create Renewal Underwriting on All Renewal Offers: When this is enabled, a Renewal Underwriting image will be created for each Renewal Offer image. This allows changes to the Renewal Offer to be retained.
Create Renewal Offer on Manual Endorsement: This setting applies to policies with a Renewal Offer image where an Endorsement is performed requiring a revised Renewal Offer. When this is disabled, the revised Renewal Offer image is generated the next time Automatic Renewal Offers are processed. When this is enabled, the revised Renewal Offer will be generated immediately.