Midterm changes to producer of record or producer of service

BillingCenter allows midterm change of the primary producer, which in PolicyCenter is known as the producer of record. PolicyCenter does not allow midterm changes to the producer of record, but can add a producer of service midterm. In the base configuration, this new producer becomes the producer of record on renewal. The new producer is the policy’s representative. PolicyCenter must determine the share of commissions that go to:

• The new producer, who is representing the insured currently
• The former producer, who actually arranged the original contract

To avoid getting commissions wrong in downstream systems, PolicyCenter requires a cancel and rewrite if you want to give commission credit to the new producer. A cancel and rewrite makes the new producer the producer of record without waiting for renewal.

PolicyCenter sets the producer of service, which you can change in BillingCenter to give the new producer commissions credit. BillingCenter allows you to allocate commissions between the old and new producer according to rules for splitting the existing charges.

If in PolicyCenter, the Producer of Service changes midterm, PolicyCenter does not push an update to BillingCenter. When Producer of Service becomes Producer of Record on renewal, PolicyCenter pushes that producer to BillingCenter with the new policy period.

To give some commission credit to the new producer midterm, you must make the change in BillingCenter.

The most straightforward way to change the producer of record is to issue a cancel and rewrite in PolicyCenter. That change sends the new producer to BillingCenter as part of the new policy period.

If you must change the producer of record without a rewrite, you must perform additional customization so that PolicyCenter has the following behavior:

• Allows editing of producer of record in a policy change.
• Sends the producer change to BillingCenter.
• Provides a means to determine the midterm commission treatment for that change. The commission either has a default value or requires a change in the PolicyCenter user interface that requests the value from the underwriter. The base configuration implementation does not support this feature.