Data model for rating

The Cost entities contain premium values. Guidewire recommends that you record each premium entry at the smallest available level. For each cost subtype, attach each cost to the object that generates the cost and attach each cost for the shortest-priced period of time.

Create an abstract Cost delegate for the new line of business. In the preceding illustration, the GOCost entity represents the Cost delegate. For all objects that have costs, create Cost subtypes of this delegate. The cost subtypes are arrays off of coverages on the policy line and other coverages and objects that affect the premium value. The preceding illustration shows cost subtypes as GOLineCovCost and GOCartCovCost. In most cases, Cost subtype entities attach to Coverage entities, because coverages have associated premiums. Always attach Cost subtypes to the most discrete items to be rated. For example, because auto liability coverage has rates for each vehicle, personal and business auto lines have Cost subtypes as arrays both on the coverages and on the rated vehicles.

The Transaction entities record the individual premium debits and credits for the current policy period. Transactions relate to costs in the same manner that journal entries relate to the general ledger. Model transactions in your line of business as an array on the PolicyPeriod.

Costs are subtyped and associated with a particular entity, however transactions are not subtyped. Each policy line has a single transaction type. Each transaction is associated with a particular cost item.