Deposits in submission, renewal, or rewrite jobs

When the PolicyCenter user selects a reporting plan on the Payment screen, PolicyCenter displays a default deposit requirement. PolicyCenter gets this default value from the audit schedule that you configure in Studio.

The deposit amount is a percentage of the total cost subject to reporting. Typically, taxes are not subject to reporting. The subject-to-reporting premium is the subset of the total premium for which premium costs are marked as subject to reporting.

PolicyCenter users can override the default deposit. If you override a default deposit, PolicyCenter recalculates the deposit requirement and displays the value in the user interface.

When the PolicyCenter user binds a policy, PolicyCenter sends the deposit collateral amount to BillingCenter with the PolicyPeriod. In response, BillingCenter stores this data in the property PlcyBillingInstruction.DepositRequirement. This deposit is the amount of collateral to consider segregated for the specified policy period.

When BillingCenter receives the deposit amount, BillingCenter creates a Collateral Requirement of type Cash on the BillingCenter account. This collateral requirement is segregated. In the user interface BillingCenter displays the status “not compliant” until the insured pays it. The BillingCenter property ColleralRequirement.Compliance controls collateral requirements.

BillingCenter also creates a collateral charge. The charge generates a collateral invoice item which appears on an invoice to the account holder. Whenever the insured pays the collateral invoice items, BillingCenter adds this to the amount on the collateral requirement. Because it is segregated, BillingCenter shows the cash balance in the category of “cash held by requirements”. If the entire amount is paid, the collateral’s compliance status (the ComplianceStatus property) changes to compliant.

Each policy period (policy term) has its own segregated collateral requirement stored on the account.