Allocation Overview

After funds are created, the next step is to structure how funds are selected in OIPA. The term allocation structure is used to describe the form, fields and tables that are used for fund selection in OIPA. Both the allocation structures and the logic that defines what the user is displayed for selection must be configured. When users select allocations, they map the movement of money in and out of funds for a policy.

OIPA functionality allows allocations to be configured that display either specific funds, fund classes or fund models.

Allocation Levels in OIPA

Allocations can be defined at the plan, policy and transaction level. An explanation of each type is given below.

  • Plan-level allocations: allocations that are specific to a plan, not a client or policy. For example, during the Freelook period all deposits are invested in Fund A until the end of the Freelook period is reached. After the Freelook period the fund allocations specified by the client will take place. Configure the AllocationScreen business rule and the Plan Data node associated with the plan in the Rules Palette.
  • Policy-level allocation: these are typically selections for future allocations or systematic withdrawal. Configure the PolicyAllocationScreen business rule for allocations at this level.
  • Transaction level-allocations: after the policy goes into effect, allocation links can be disabled and allocations are added via an activity. The TransactionAllocationScreen business rule should be used for allocations at this level.

Allocation Configuration Methods: Default or Model Supported

Allocations structures can list specific funds for users to select or they can use allocation models so users have to select from a predetermined diversifying strategy of funds. There are two different methods to configure allocations depending whether you are going to upgrade from V7 or V8 and your allocations only select funds; or if you configure allocations that use allocation fund classes or models. You must distinguish in the New Plan setup (or Plan Maintenance after the plan has initially been setup) which method you will use.

When setting up a plan in the New Plan Wizard, there are two options for plan allocations: Default or Model Supported. Default is for configuring allocations that will just use funds for selections. The Default selection is intended for clients that want to upgrade from V7 or V8 to V9 because all the same rules and syntax are used and this is backwards compatible. For clients new to V9 or previous V7 or V8 clients that use fund classes or models, selecting Model Supported is the optimal choice, as new rules were introduced that separate allocation structure by level, which reduces the confusion of having all allocations configured in one rule.

Configuring Allocations Rules

There are various rules that can be used to configure allocations. The following list of rules shows the pre-built functionality that can be used. The rules are divided according to what can be used for the Default method, the Model Supported method and also rules that can be used in both methods.

Rules and Elements For Configuring the Default Method

  • AllocationScreen: This business rule is used to configure the funds allocation structure for a product at the plan, policy and segment level. This rule should be used when configuring allocations that use the Default (aka upgrade method) and not the Model Supported method (aka new V9 clients).
  • <Allocation> element: This element in a transaction rule allows the configuration of fund allocation structures in an activity. These elements can only be used when Default Model method is selected for a Plan.
  • FundAllocation: This business rule allows the display of allocations for an activity on the Activity Details screen.

Rules and Elements For Configuring the Model Supported Method

  • PolicyAllocationScreen: This business rule is used to configure policy-level allocation structures that will use allocation models. This rule can only be used when the Model Supported method is selected for a plan.
  • PlanAllocationScreen: This business rule is used to configure plan-level allocation structures that will use allocation models. This rule can only be used when the Model Supported method is selected for a plan.

  • TransactionAllocationScreen: This attached business rule is used to configure activity-level allocations. This rule can only be used when the Model Supported method is selected for a plan.

Rules and Elements For Configuring both Default and Model Supported Methods

  • FundListForAllocation: This attached business rule controls the fund drop-down box on the Activity screen.
  • WriteDefaultAllocations: This attached business rule determines whether a transaction uses the default plan or policy level allocations.
  • ReassignAllocations: Use this attached business rule to configure all allocations to move to an assigned fund. For instance, with new policies all allocations might be moved into a low risk account/fund until a waiting period has expired ensuring money.

Database Tables for Allocations

Refer to the Allocation Database Table section.

Code Names Needed For Allocations

The following code names and values must be created to support Allocations.

  • AsCodeAllocationMethod: the method in which the allocation will be made, such as units, amounts or percent.
  • AsCodeAllocationType: this is used when configuring the Allocation screen. This code identifies the type of allocation being configured.
  • AsCodePlanAllocationMethod: this is identified in the Plan setup and it tells the system whether to use funds for allocations or allocation models.

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