Defining conditions on a policy line

Policy conditions are contractual obligations defined in the insurance contract. Policy conditions neither provide nor exclude coverage.

Unlike coverages and exclusions, policy conditions are diverse and cannot be easily characterized. Any variety of additional data might need to be associated with a policy condition. Conditions vary from simple and obligatory such as, “You will pay your bill,” to complex concepts such as retrospective rating in workers’ compensation policies.

Simple conditions that are related to coverages can be modeled as coverage terms that are not limits or deductibles. Other conditions can be modeled as optional values that apply to all the coverages on a policy, such as an aggregate policy limit or a maximum covered item value. A common use of a condition is a deductible that is shared by many different coverages, where the coverages are selected individually and might be attached to different coverables.

Specify optional conditions in the Conditions page of Product Designer. Do not configure standard conditions that apply to all policies such as, “You will pay your bill,” in Product Designer. Instead, configure these as text directly on the standard policy forms.

Adding conditions

Adding conditions to a policy line is similar to adding coverages. However, in most cases, conditions are not rated, so they do not have associated cost subtypes. To add conditions to a line of business, follow the same steps that you would follow for a coverage but omit costs. For instructions, see Coverages on a policy line.

Conditions and schedules

Schedules are lists that contain detailed information about an insured’s coverables. Any condition can be configured to have one or more schedules to collect information about individual items to which the condition applies. Schedules can be configured to display any number of columns to collect the needed information.