Policy change transaction

A policy change transaction is a modification made to a policy while it is in-force. The types of changes that might happen to a policy mid-term include:

Common personal auto examples include:

Adding another person to your policy as a driver
Increasing your deductible so that you have a less expensive premium
Adding or removing a vehicle and changing some of the vehicle coverages

Common workers’ compensation examples include:

Adding or changing a location
Updating the number of employees
Updating the basis

Common businessowners examples include:

Changing your business location
Changing the type or amount of coverage

Note: In PolicyCenter, the user interface uses the term policy transaction to refer to submissions, policy changes, and other policy transactions. Policy transactions are implemented as jobs in the data model, and referred to as jobs in PCF files, Gosu classes, and other configuration files. Therefore, the configuration documentation refers to policy transactions as jobs.

The main purpose of a policy change is to modify one or more elements of a policy. For example, you can use a policy change to change a coverage, exposure, or location. You can add a driver or change the terms of payment. Policy changes occur fairly regularly.

For example, three months into the policy period, the insured contacts the producer to add a second vehicle to the insured’s personal auto policy. The producer finds the policy, makes the requested changes to it, requotes the policy, and then binds it. Two months later, the producer receives another call from the insured to have another family member added to the policy as a second driver on the first vehicle. Again, the producer makes changes. This type of example represents the majority of change policy transactions in PolicyCenter: adding, removing, or changing coverages and coverables, or changing coverage terms. These changes usually have an impact on the premium.

There are other types of less commonly used policy changes, such as out-of-sequence policy changes and preemption. See Handling out-of-sequence policy transactions in a policy change and Using preemption in a policy change for more information.