Tracking policies term by term

Within the PolicyCenter base configuration integration to BillingCenter, both applications track policies term by term. A policy within PolicyCenter typically starts with one term, and creates additional terms with any renewal or rewrite. However, other PolicyCenter transactions, such as policy change, create a new policy period but not a new term. Within PolicyCenter, there are various IDs for a PolicyPeriod, such as policy number, model number, term number, and period ID.

Your billing system must match a policy period by using both of the following IDs:

• The policy number, which remains constant throughout the life cycle of a policy period
• The term number, which starts with 1 and increments by 1 for each renewal or rewrite

PolicyCenter and BillingCenter correlate a common policy term between them by a common policy number and term number. The data models of each application differ, however. In BillingCenter, a policy number and term number uniquely identify a single entity instance. In PolicyCenter, a policy number and term number often identify multiple entity instances, due to the way that PolicyCenter implements policy revisioning.