Policy holds for regulatory changes

PolicyCenter provides policy holds based on the reference date for regulatory changes. The reference date type depends upon the policy hold definition. For more information, see Policy Hold Details tab.

Coverage forms and rates are constantly changing. Changes are generally made at the jurisdiction level by line of business. Although changes generally pertain to one jurisdiction, sometimes changes occur on a countrywide level. For example, several jurisdictions adopt the same change at the same time.

Changes in policy form patterns can occur due to updates made by ISO, a jurisdiction mandated coverage change, or a business decision to broaden or restrict coverage. Within the United States, rates changes most commonly occur on workers’ compensation policies when NCCI sends out changes. Rate changes also occur when the business decides to adjust rates due to competition or poor loss results. When a rate or form change occurs on a specific date, the insurer cannot process all affected transactions until the change is approved and put into production. Generally work is put on hold prior to the date of the change so that the insurer does not start work with incorrect rates or forms.

For example, a company filed rates, but these rates are not yet approved. The filed rates affect upcoming renewals, so the company adds a policy hold that blocks the quote release until the rates are approved.