Changing contingency status

On the Contingency screen, you can change the status of a pending contingency to resolved or waived. Both Resolved and Waived status indicate that the contingency is closed. The Closed By and Closed On fields indicate by whom and when.

A contingency can be resolved or waived regardless whether it has open activities. Similarly, closing all activities related to a contingency does not resolve the contingency.

If the contingency is not closed by the due date, PolicyCenter changes the status to Failed.

If you close or waive a contingency and the contingency started a policy transaction, that transaction is unaffected by the change in contingency status. Therefore, if you resolve or waive a contingency that is past its action date, you, the user, need to take appropriate action. In some simple cases, the appropriate action is to close the policy transaction.

In other complex cases, the appropriate action is to continue the policy transaction even though the driving contingency has been resolved. For example, during the underwriting period for a commercial policy, on-site inspection reveals that the policy rating is not accurate. You modify the policy change to reflect these rating changes. Or, if documents have been sent to the insured or third parties, further action on the policy may be required. This action is more complex than simply withdrawing the policy transaction.