Renewal flows

PolicyCenter supports the following renewal process flows:

  • Bind and cancel
  • Renewal offer
  • Confirmed renewal

In the default configuration, PolicyCenter uses the bind and cancel renewal flow for all lines of business. When you bind a renewal, PolicyCenter sends charges to the billing system. PolicyCenter then does a flat cancel for reason Policy not taken if no payment is received for that period. If partially paid, then PolicyCenter cancels for reason Non payment.

The default configuration contains the renewal offer renewal flow which binds only after payment. You can configure this renewal flow for a particular line of business. Under this approach, you make the decision to renew or not renew, but instead of actually binding the renewal, you consider it a renewal offer. When you make the renewal offer, PolicyCenter sends a renewal notice (including pricing and payment plans). PolicyCenter does not send charges to the billing system (since no policy transaction has been completed). When the billing system receives payment, it sends a message to PolicyCenter to bind the renewal. If payment is not received, the PolicyCenter renewal flow times out. The renewal is considered not taken.

The default configuration contains the confirmed renewal flow which provides confirmation from the billing system that the insured has completed payment. PolicyCenter knows if the policy was confirmed and is legally binding. The bind and cancel flow does not provide either of these.

See also

Renewals create new policy periods

The renewal policy transaction creates a new policy period with new effective and expiration dates.

The only restriction is that the effective date of the renewal policy must not overlap with the policy period of the current in-force policy.

Renewal restrictions

Any policy that has been issued and is in-force can be renewed, however there are limitations to starting a renewal.

  • There can be no open rewrite policy transactions on the policy.
  • There can be no open renewals on the policy.
  • The policy cannot be canceled.

Renewal outcomes

Renewals can have one of the following outcomes:

  • Renewed – A policy is renewed for another period of time.
  • Not Taken – The insured declines the offered policy, and PolicyCenter marks the renewal as not taken.
  • Not Renewed – The insurer decides not to renew the policy, and the policy expires on the expiration date.