Splitting or ending a general liability exposure in a policy change

In a general liability policy change, there is sometimes a need to split the basis of an exposure into two rating periods. In other circumstances, you need to end an exposure and replace it with another one. Although this happens infrequently, you can select certain types of exposures and split them or end them at the policy change effective date. PolicyCenter prorates the original basis and displays the prorated value for each rating period. PolicyCenter also prorates the basis when you end an exposure. You can edit the basis amounts.

The basis for an exposure can be rate scalable or basis scalable. In a policy change, you can split or end exposures that are basis scalable.

If an exposure is rate scalable, the length of the policy period does not affect the basis amount. If the length of time is shortened, the rate is adjusted to reflect the shorter period of time, but the basis remains the same. The number of square feet of an office building is an example of an exposure with a rate scalable basis. The square feet remains the same regardless of the length of the policy period.

If an exposure is basis scalable, the length of the policy period can affect the basis amount. Payroll or sales, are examples of exposures that are base scalable. For example, the payroll basis will probably be smaller for a six month period than for a one year period.

Each exposure has a class code and associated basis type. Class codes are specified in GLClassCode. You can view class codes in the gl_class_code.xml system table in Product Designer.

Basis types are specified in ClassCodeBasis. You can view the basis types in the class_code_basis.xml system table in Product Designer. If the Auditable field is true, then exposures using class codes with that basis type are basis scalable, and can be split or ended.