Creating contingencies

PolicyCenter initiates action for a contingency that is not resolved or waived within a configurable amount of time before the due date of the contingency. The configurable amount of time is the action start date. In the base configuration, the action start date triggers either a policy change or cancellation policy transaction. The policy transaction can either take effect retroactively or apply to the remainder of the of the policy period.

Although PolicyCenter initiates the policy change, users must manage the policy change as they would any other. Cancellations are processed as any other cancellation. Cancellations generally bind on their effective date unless the cancellation is withdrawn.

Examples

Change policy retroactively starts a policy change five days before the due date. The effective date of the policy change is the policy period start date.

Cancel remainder of term starts a cancellation 30 days before the due date. The effective date of the cancellation is one day after the due date.

Create a contingency

About this task

You can create a new contingency for a policy from within an open policy transaction and also from the policy file.

Procedure

Navigate to the Risk Analysis > Contingencies tab, and click Add Contingency.
Enter text in the Title and Description fields.
- For title, enter a brief description enabling a user to quickly understand the type of contingency.
- For description, enter a longer description which can include specific details of this instance. This ca include the conditions under which the contingency can be resolved.

From the drop-down list, select an Action that will result if the contingency is not resolved by the Due Date.

For each action the following table lists the action start date and the effective date of the policy transaction:

	Action	Action start date	Effective date
Policy change
	Change policy retroactively	5 days before the due date	Policy period start date
	Change policy for remainder of term	5 day before the due date	One day after the due date
Cancellation
	Cancel retroactively	30 days before the due date	Policy period start date
	Cancel remainder of term	30 days before the due date	One day after the due date
	Cancel / Rewrite	30 days before the due date	Policy period start date

The action start date is calculated in the updateActionStartDate method in ContingencyEnhancement.gsx.

In Due Date, enter the due date for the contingency. The due date is used to calculate the action start date. The Handle Unresolved Contingency work queue initiates action on pending contingencies with an action start date of today or a date in the past for contingencies on which action has not yet started.