Example of cascaded lookup in rate book

With cascaded lookup, the rate query uses relaxation to find rate books containing a matching rate routine or rate table. By default, new rate books have cascaded lookup enabled.

This example shows cascaded lookup in personal auto and assumes the rate books have no group and have cascaded lookup enabled. For simplicity, the example omits the required fields and underwriting company and offering. Assume that PolicyCenter has the following rate books:

Rate book	Rate routine	Rate table	Policy line	Jurisdiction
Country-wide Rate Book	Vehicle Coverage Premium Algorithm	Base Rate
California Rate Book		Base Rate	Personal Auto	California
Massachusetts Rate Book	Vehicle Coverage Premium Algorithm		Personal Auto	Massachusetts

Assume that all instances of the Vehicle Coverage Premium Algorithm rate routine access the Base Rate rate table.

To rate a vehicle coverage on a California policy, the rating query finds the most appropriate rate book: California Rate Book. The California rate book does not contain a Vehicle Coverage Premium Algorithm rate routine. Therefore, the rating query uses cascaded lookup to find the rate routine. The query relaxes jurisdiction then policy line to find the Vehicle Coverage Premium Algorithm rate routine in the Country-wide Rate Book. The rate routine accesses the Base Rate rate table. The query finds the Base Rate rate table in the California Rate Book.

To rate a vehicle coverage on a Massachusetts policy, the rating query finds the most appropriate rate book: Massachusetts Rate Book. The Massachusetts Rate Book contains a Vehicle Coverage Premium Algorithm rate routine. This rate routine accesses the Base Rate rate table, but the Massachusetts Rate Book does not contain the Base Rate rate table. Therefore, the query uss cascaded lookup and relaxes jurisdiction then policy line to find the Base Rate rate table in the Country-wide Rate Book.

Cascaded lookup and rate book edition

Cascaded lookup enables state-specific rate books to access the latest country-wide content. Without cascading, the state-specific editions must contain the full data from country-wide rate book along with state-specific data. Without cascaded lookup, a change to country-wide data must be replicated in each state-specific edition.

For example, in the following diagram, the current rate book edition is A. For 2016, you must implement changes to the credit factor rate table. This rate table is in the country-wide rate book. To implement these changes, create a new B-2016 edition of the country-wide rate book effective on January 1, 2016. In the B-2016 edition, update the rate table with the 2016 factors. Now, a California or Massachusetts policy with an effective date on or after January 1, 2016 uses the credit factor rate table in the country-wide B-2016 edition. California and Massachusetts policies effective prior to January 1, 2016 use the credit factor rate table in the country-wide A edition.