Cancellations in the billing system integration

Cancellations that start in PolicyCenter

Cancellations can start directly in PolicyCenter. When the transaction completes, PolicyCenter tells the billing system that it canceled the policy. The billing system then processes any return premiums that PolicyCenter sent.

Some examples of cancellations initiated by PolicyCenter are:

• For the purpose of doing a rewrite.
• At the request of the insured.
• When the insurer has grounds for cancellation. For example, the insured is found to have lied in their application or violated the contract.
• After binding a renewal, the insured informs the insurer that they are not going to take the renewal.

Cancellations that start in the billing system

Some cancellations start in the billing system.

• Cancel as soon as possible – The primary example of this is cancellation for non-payment. If there are overdue invoices, the billing system starts a delinquency process. As part of this process, the billing system tells PolicyCenter to cancel as soon as possible. PolicyCenter calculates the actual cancellation date by using the minimum lead time required by law. When PolicyCenter actually cancels the policy, PolicyCenter sends a message to the billing system (just like any other cancellation). The BillingCenter integration uses this method.
• Cancel on a specified date – When integrating with a third-party billing system, the billing system controls the date of cancellation. The billing system must also keep track of notification lead times.

If the billing system receives payment before PolicyCenter cancels the policy, then the billing system sends a message to PolicyCenter to rescind the cancellation.

Cancellation of not taken renewals

Cancellations for non-payment often occur if the insured decides not to renew their policy. Instead of telling the insurer that they wish to cancel, the insured simply does not pay. In this case, the cancellation reason is not taken rather than non-payment.

At renewal time, PolicyCenter binds the renewal, and sends the bound policy period to the billing system. The billing system initiates a cancellation if it does not receive payment in a specified amount of time.

BillingCenter has a workflow for this delinquency process. If the customer does not pay within a specified time, BillingCenter begins a delinquency process for non-payment of a renewal. If BillingCenter does not receive payment, then BillingCenter sends PolicyCenter a message to cancel the policy with a not taken cancellation reason. PolicyCenter flat cancels the policy period as of the effective date of the policy period.

See also

• Renewals or rewrites in the billing system integration