Processing rating overrides across policy transactions

You can enter rating overrides in any PolicyCenter policy transaction (job). Overrides set for a policy period are preserved in future policy transactions. For example, if you override the rate for liability coverage, that override will be there in a policy change that occurs in the future.

If you create a new policy period, PolicyCenter makes a copy of the policy as of the end of the prior policy period. The end of the prior policy period is the expiration date on renewal and usually the cancellation date for rewrite. The new policy period picks up overrides for that date.

Overrides are not preserved in the following cases:

• Reinstatement – Overrides are not preserved if overridden costs occur after the cancellation date. This situation might occur:
  • If the cost of a coverable is overridden and the effective date of the coverable is after the cancellation date.
  • In workers’ compensation policy with an anniversary rating date (ARD). If the cancellation date is before the start of the second policy period, the costs after the cancellation date are deleted at cancellation. When new costs are created on reinstatement, the prior overrides are not preserved.
• Rewrite – Whether or not overrides are preserved depends upon the date copied from. If the overridden costs is effective only after or only before this date, then PolicyCenter does not pick up the override.
• Renewal – If a renewal policy transaction has rating overrides from the previous policy term that were in effect as of the expiration date of that term. PolicyCenter copies the overrides to the renewal policy transaction, and creates a referral reason for an underwriter. The underwriter decides whether it makes sense to continue the overrides on the new policy term.
• Anniversary rating date – Moving the anniversary rating date (ARD) can cause changes to rating overrides on workers’ compensation class codes. Be sure to recheck rating overrides after you change the ARD.