Contingencies

PolicyCenter manages work associated with a creating or changing a policy through policy transactions. A policy transaction is completed when the policy is bound and issued, or when the policy transaction is withdrawn. However, the policy may still require additional work. You can use contingencies to manage this additional work and take actions, including policy change or cancellation transactions, if conditions are not met in a timely manner.

For example, a personal auto policy provides a good-student discount which is contingent on receiving the driver’s grade transcript. If the transcript is not received promptly, the policy is changed to remove the discount. After issuing a policy, commercial lines may have an underwriting period. During this period, the insurer inspects the property, evaluates the risk, requests remediation of conditions, and potentially cancels or changes the policy as a result. You can use contingencies to manage this work.

A contingency is associated with a policy, not a policy transaction, and can exist past any specific policy transaction. If sufficient time elapses and the contingency is not resolved, the contingency triggers an action related to the policy. This action might be a change in policy terms or pricing, or a cancellation of the policy.

Each contingency has a number of fields including a title, description, and status. You can attach documents, notes, and activities to contingencies. Each contingency has an action, typically a policy change or cancellation, and an action start date. If the contingency is not resolved by the start date, PolicyCenter batch processing starts the specified action, for example starting a policy transaction.