Policy earned premium web services

To calculate earned premiums from an external system, use the web service PolicyEarnedPremiumAPI. It has a single method called calcEarnedPremiumByPolicyNumber, which calculates the earned premium for a given policy number. The method accepts the following arguments.

  • A String Policy number
  • A Date object on which the policy to find is in effect. If the policy has multiple terms, the date determines which policy term to use. The method selects the most recent version of the policy for the given term.
  • The date as of which to calculate earned premium amounts
  • A Boolean value (includeEBUR) that specifies whether to include data that is earned but not reported (EBUR).

The method returns a list of PolicyEarnedPremiumInfo objects, one for each line of business on the policy. Each PolicyEarnedPremiumInfo contains two properties.

  • LOB – the line of business code as a String value
  • EarnedPremium – the earned premium as a BigDecimal value

For EBUR data, it is standard practice for premium reporting policies to use actual reported premium rather than a pro rata estimate of estimated premium as the basis for earning. However, suppose PolicyCenter received monthly premium reports through the end of May (received June 15) and now wants to do June month-end earning accruals as of July 5. There is no report for premiums earned in June, because it is not expected until July 15). If you include EBUR data, PolicyCenter estimates how much of the policy premiums are earned during this period of elapsed coverage but with no actual premium report. After the last report is received or a final audit is complete, no portion of the period remains unreported.

The includeEBUR parameter interacts in a special way with the status of the policy as a reporting policy.

  • If includeEBUR is true and the policy is not a reporting policy, the calcEarnedPremiumByPolicyNumber method returns an error.
  • If the policy is a reporting policy but final audit is complete, PolicyCenter treats the includeEBUR parameter as if it were false even if you passed true.