How Reinsurance Management selects a projected program if active program is unavailable

At a particular point in time, the reinsurance programs for the coming year may not have been entered into PolicyCenter, or may not be finalized. Regardless, PolicyCenter needs to determine if reinsurance coverage will be adequate. For example, you are processing renewals in 10/2011 for policies effective in 1/2012, but the 2012 programs have not yet finalized. PolicyCenter estimates the reinsurance coverage if an active program is not yet available. This behavior avoids having policies appear to be inadequately reinsured, if the next year’s programs are not yet finalized.

Programs for succeeding years may either be in draft status or not yet entered into PolicyCenter. There may be no active program for the date range and coverage group. If so, PolicyCenter selects the program for a risk in the following order:

  1. Draft program for the date range and coverage group
  2. Prior year active program for the coverage group
  3. If not matches are found, PolicyCenter writes an error to the log file, but does not block progress on the policy.

If PolicyCenter selects a draft or prior year program, the agreements from that program are marked as Projected in the policy. PolicyCenter uses projected programs only for testing adequacy. PolicyCenter does not consider these projected reinsurance coverages when ceding premium or sending reinsurance coverage information to a claim system.

In the default configuration, the implementation of the RIProgramFinder interface selects the program. In the default configuration, the RIProgramFinderImpl class implements this interface.

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