3. Product Type

You would have maintained various Product Classes. The next step is to maintain various Product Types. You can maintain different types of products in the system. The Product Type is typically an indication of the investment type that the product typifies, such as endowment, annuity, and so on.

Note

Product Types can be defined through the Fund Manager component only.

The Product Type Maintenance screen allows you to capture the generic characteristics of the Product Type you wish to maintain. The next section gives you step-by-step instructions to do the same.

This chapter contains the following sections:

3.1 Product Type

This section contains the following topics:

3.1.1 Creating and Saving Product Type

The following are the steps you need to follow to define a Product Type. Each of these steps is explained in detail in subsequent sections.

3.1.2 Invoking Screen

You can invoke the ‘Product Type Maintenance Detail’ screen by typing ‘LEDPRTYP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You will have to enter information in the following fields:

Product Type

Alphanumeric; 4 Characters; Mandatory

Specify a unique identification for the Product Type that is being defined through this screen. This identification will be used whenever subsequent reference is made to this Product Type in the system.

Description

Alphanumeric; 60 Characters; Mandatory

Give the Product Type a description which will help you identify the same easily.

Life Insurance Feature Supported?

Optional

Select ‘Yes’ option to indicate the Product Type supports Life Insurance features from drop-down list. If you select ‘Yes’ option, you will have to specify the life cover amount at the policy level.

During the initial investment, the specified amount will be set aside for Life Insurance and the remaining amount will be invested in the policy.

Premium and Annuity Applicable?

Optional

Select ‘Yes’ option to indicate the Product Type supports Premium and Annuity from the drop-down list.

If you select ‘Yes’ option, you will have to specify Premium and Annuity details in the Product Maintenance screen. The same is explained in the chapter ‘Product’.

If you select ‘No’ option, you will not have to specify Premium and Annuity details.

Retirement Feature Supported?

Optional

If you select the option ‘Yes’, you will be allowed to capture details such as the retirement age, based on which the maturity date will be calculated. Also, the field ‘Retirement Age’ in the ‘Product Maintenance’ screen will be enabled only if you select the option ‘Yes’.

Allow Investment Into Money Market Funds?

Optional

Select the option ‘Yes’ to indicate the Product Type allows investment into Money Market Funds from the drop-down list.

Override Age Limit?

Optional

Select ‘Yes’ option from the drop-down list to indicate the age limits entered in this screen can be changed for a Product under this Product Type through the Product Maintenance screen.

Note

Funding Feature Supported?

Optional

Select this option to indicate the Product Type supports funding features from drop-down list.

If you select this option, you will have to specify Funding details such as the frequency, period and percentage, in the ‘Product Maintenance’ screen.

Maturity Date Basis

Optional

The option you select here, will decide on what basis the maturity date will be calculated.

The drop-down list displays the following two options:

You can select the option ‘Retirement Age’ only if you have selected the option ‘Yes’ against the field ‘Retirement Features Supported’. In such a case, the maturity date will be calculated on the basis of the age of retirement you will specify at the Product level.

If you select the option ‘Minimum Tenor’, the maturity date will be calculated on the basis of the minimum tenor you will specify at the Product level.

IRA Applicable

Optional

Select the option ‘Yes’ to indicate the Product Type supports IRA features from drop-down list.

Apply 120% Rule

Optional

Select ‘Yes’ option to apply 120% rule from the drop-down list.

120% rule is made available at Product level to select list of transaction types that are applicable for 120% rule validation. The rule also validates the Top Up/ Debit order function of an application that needs to be processed.

Minimum Age for Entry

Numeric; 4 Characters; Mandatory

Specify the minimum age before which a customer cannot subscribe to a policy under a product of this Product Type.

Maximum Age for Entry

Numeric; 4 Characters; Mandatory

Specify the maximum age after which a customer cannot take a policy under a product of this Product Type.

Minimum Age for Exit

Numeric; 4 Characters; Mandatory

Specify the minimum age before which a customer cannot close a policy under a product of this Product Type.

Maximum Age for Exit

Numeric; 4 Characters; Mandatory

Specify the maximum age after which a Policy Holder is not allowed to have holdings in the product.

Allow Unit Based Transactions?

Optional

Select ‘Yes’ if you want to allow unit based transactions from drop-down list.

Included Transaction Sub Types

Transaction Sub Type

Alphanumeric; 3 Characters; Optional

The inflow transactions sub types are selected from the available list. You can click add icon to add Transaction Sub Type. The type of transactions can be selected from the option list.

Description

Display

The system displays the description for the selected transaction.

Note

Refer to the chapter ‘Batch Functions’ of LEP User Manual for further information on the

120% Rule.

3.1.3 Saving Information Entered

When you have entered all the mandatory information, click ‘Ok’ button.

The system displays the following confirmation message as “Record Successfully Saved”.

This indicates the record has been saved. Click ’Ok’ button.

3.2 Transaction Sub Type

This section contains the following topics:

3.2.1 Maintaining Transaction Sub Type

The transaction sub type maintenance screen is added, to combine the sub type transactions for policy creation, top up, withdrawal, status change, and premium annuities to create a localized field to capture the relevant data. This screen is designed to include an input list of transaction sub types applicable for a variety of transactions. You can specify the relevant details according to the type of action you choose to proceed with on this screen.

3.2.2 Invoking Screen

You can invoke the ‘Transaction Sub Type Maintenance Detail’ screen by typing ‘LEDSUBTP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

The following fields require input:

Transaction Sub Type Maintenance

Ref Type

Alphanumeric; 2 Characters; Mandatory

Select the type of Policy transaction for which the sub type is applicable.

Description

Display

The system displays the description for the selected reference type.

Transaction Type

Display

The type of Unit Trust (UT) transaction is defaulted by the system, based on the current transaction under processing.

Transaction Name

Display

The system displays the transaction name for the selected transaction type.

Sub Type

Alphanumeric; 3 Characters; Mandatory

Specify the sub type code after entering the transaction type, for which the Sub type transaction is processed.

Sub Type Description

Alphanumeric; 255 Characters; Mandatory

Specify the description of the sub type selected.

3.3 Transaction Sub Type Maintenance Summary

This section contains the following topics:

3.3.1 Retrieving a Record in Transaction Sub Type Maintenance Summary Screen

You can retrieve a previously entered record in the Summary Screen, as follows:

Invoke the ‘Transaction Sub Type Maintenance Summary’ screen by typing ‘LESSUBTP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button and specify any or all of the following details in the corresponding details.

Click ‘Search’ button to view the records. All the records with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by querying in the following manner:

You can perform Edit, Delete, Amend, Authorize, operations by selecting the operation from the Action list. You can also search a record by using a combination of % and alphanumeric value

3.3.2 Editing Transaction Sub Type Maintenance Record

You can modify the details of Transaction Sub Type Maintenance record that you have already entered into the system, provided it has not subsequently authorized. You can perform this operation as follows:

Click Save to save your changes. The Transaction Sub Type Maintenance Detail screen is closed and the changes made are reflected in the Transaction Sub Type Maintenance Summary screen.

3.3.3 Viewing Transaction Sub Type Maintenance Record

To view a record that you have previously input, you must retrieve the same in the Transaction Sub Type Maintenance Summary screen as follows:

3.3.4 Deleting Transaction Sub Type Maintenance Record

You can delete only unauthorized records in the system. To delete a record that you have previously entered:

3.3.5 Authorizing Transaction Sub Type Maintenance Record

An unauthorized Transaction Sub Type Maintenance record must be authorized in the system for it to be processed. To authorize a record:

When a checker authorizes a record, details of validation, if any, that were overridden by the maker of the record during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the record.

3.3.6 Amending Transaction Sub Type Maintenance Record

After a Transaction Sub Type Maintenance record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:

3.3.7 Authorizing Amended Transaction Sub Type Maintenance Record

An amended Transaction Sub Type Maintenance record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.

The subsequent process of authorization is the same as that for normal transactions.

3.4 Product Type Summary Screen

This section contains the following topics:

3.4.1 Invoking the Product Type Maintenance Summary Screen

Invoke the ‘Product Type Maintenance Summary’ screen by typing ‘LESPRTYP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

3.4.2 Retrieving Product Type in Product Type Screen

You can retrieve a previously entered record in the Summary screen, as follows:

Specify any or all of the following details in the Product Type Summary screen:

After you have specified the required details, click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by doing query in the following manner:-

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operation by selecting from the Action list.

You can also search the record by using combination of % and alphanumeric value.

Example:

You can search the record for Product Type by using the combination of % and alphanumeric value as follows:

3.4.3 Editing Product Type

You can modify the details of a record that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

  1. Invoke the Product Type Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for modification in the Authorization Status field. You can only modify records that are unauthorized. Accordingly, choose the unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen to retrieve the record that is to be modified. All unauthorized records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to modify in the list of displayed records. The Product Type Detail screen is displayed.
  5. Select Unlock Operation from Action list to modify the record. Modify the necessary information.
  6. Click Save to save your changes. The Product Type Detail screen is closed and the changes made are reflected in the Product Type Summary screen.

3.4.4 Viewing Product Type

To view a Product Type you have previously entered, you must retrieve the same in the Product Summary screen, as follows:

  1. Invoke the Product Type Summary Screen from the Browser.
  2. Select the status of the Product Type that you want to retrieve for viewing in the Authorization Status field. You can also view all records that are either unauthorized or authorized only, by choosing the Unauthorized/ Authorized option.
  3. Specify any or all of the details of the records in the corresponding fields on the screen, and click ‘Search’ button. All transactions with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to view in the list of displayed records, in the lower portion of the screen. The Product Type screen is opened in view mode.

3.4.5 Deleting Product Type

You can delete only unauthorized records in the system.

To delete a record that you have previously entered, you must retrieve the same in the Product Type Summary screen, as follows:

  1. Invoke the Product Type Summary screen from the browser.
  2. Select the status of the record that you want to retrieve for deletion.
  3. Specify any or all of the details of the record in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to delete in the list of displayed records, in the lower portion of the screen. The Product Type Detail screen is opened in View mode.
  5. Select Delete operation from the Action list. The system prompts you to confirm the deletion, and the record is deleted physically from the system database.

3.4.6 Authorizing Product Type

An unauthorized record must be authorized in the system for it to be processed.

To authorize a record, you must first retrieve the same in the Product Type Summary screen.

  1. Invoke the Product Type Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for authorization. Typically, choose the Unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. Click ‘Search’ button.All records with the specified details that are pending authorization are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you wish to authorize. The Product Type Detail screen is opened in View mode.
  5. Select Authorize operation from Action list.

When the checker authorizes a record, details of validations, if any, that were overridden by the maker of the record during the Save operation, are displayed. If any of these overrides results in an error, the checker must reject the transaction.

3.4.7 Amending Product Type

After a record is authorized, it can be modified using the Unlock operation from Action list. To make changes to a record after authorization, you must invoke the Unlock operation which is termed as Amend Operation.

  1. Invoke the Product Type Summary screen from the Browser.
  2. Select the status of the record that you wish to retrieve for amendment. You can only amend records that are authorized.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to amend. The Product Type screen will be displayed in Amendment mode. Click the Unlock operation from the Action list to amend the record.
  5. Amend the necessary information. Click the Save button to save your changes.

3.4.8 Authorizing Amended Product Type

An amended product must be authorized for the amendment to be made effective in the system.

Authorization of amended records can only be done from Fund Manager Module and Agency branch Module. The process of authorization is subsequently the same as that for normal transactions.

3.5 Product Nature of Fund Mapping

This section contains the following topics:

3.5.1 Invoking Product Nature of Fund Mapping Screen

You can map nature of fund to specific products. You can map only those products which are marked as PIGS compliant at product level. You can invoke the ‘Product - Nature of Fund Mapping’ screen by typing ‘LEDPNFM’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can specify the following details:

Product ID

Alphanumeric; 10 Characters; Optional

Specify the PIGS complaint product ID. The adjoining option list displays all valid product ID maintained in the system. You can choose the appropriate one.

Nature of Fund

Alphanumeric; 3 Characters; Optional

Specify the nature of fund based on param maintenance. The adjoining option list displays all valid product ID maintained in the system. You can choose the appropriate one.

PIGS

Optional

Select if PIGS value as per product level should be considered or not from the drop-down list. The list displays the following values:

FOREX

Optional

Select if FOREX value as per product level. should be considered or not from the drop-down list. The list displays the following values:

3.6 Product Nature of Fund Mapping Summary

This section contains the following topics:

3.6.1 Retrieving Product Nature of Fund Mapping

You can view the status of a product nature of fund mapping using ‘Product Nature of Fund Mapping’ screen. To invoke this screen, type ‘LESPNFM’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can retrieve previously entered Product Nature of Fund Mapping Details as follows:

3.6.2 Editing Product Nature of Fund Mapping Record

You can modify the details of Product Nature of Fund Mapping record that you have already entered into the system, provided it has not subsequently authorized. You can perform this operation as follows:

Click Save to save your changes. The Product Nature of Fund Mapping Detail screen is closed and the changes made are reflected in the Product Nature of Fund Mapping Summary screen.

3.6.3 Viewing Product Nature of Fund Mapping Record

To view a record that you have previously input, you must retrieve the same in the Product Nature of Fund Mapping Summary screen as follows:

3.6.4 Deleting Product Nature of Fund Mapping Record

You can delete only unauthorized records in the system. To delete a record that you have previously entered:

3.6.5 Authorizing Product Nature of Fund Mapping Record

When a checker authorizes a record, details of validation, if any, that were overridden by the maker of the record during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the record.

3.6.6 Amending Product Nature of Fund Mapping Record

After a Product Nature of Fund Mapping record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:

3.6.7 Authorizing Amended Product Nature of Fund Mapping Record

An amended Product Nature of Fund Mapping record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.

The subsequent process of authorization is the same as that for normal transactions.

3.7 Product Tax Class Maintenance

This section contains the following topics:

3.7.1 Maintaining Product Tax Class

As part of the endowment products regulatory requirements, the taxes are deducted by the Life Company, where as in Life Insurance business taxes are the policy holder’s responsibility. Therefore the Life Company is responsible for payment of such tax to the SARS (Regulatory Authority) so that the investment returns are tax free at the policy holder’s hand. The tax varies among the policy holder depending upon the policy holder’s category, which is one among the following. These are called as Four Fund Tax Classes.

The system supports Four Funds Tax Class functionality in the following manner:

Policy Tax Class will get defaulted from Product Tax Class maintenance. And if UH Category gets modified, upon its authorization, system automatically changes at EOD all the underlying policy Tax Class to new policy tax class (based on the new UH Category and Product combinations) and update the SI’s with new tax class fund id’s and generates 100% switch transactions form the old policy tax class funds

3.7.2 Invoking Product Tax Class Maintenance Detail Screen

You can create four different funds for each Fund Tax Class under one Fund Group. You can maintain the fund tax classes using ‘Product Tax Class Maintenance’ screen. You can invoke this screen by typing ‘LEDPRTAX’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can specify the following details:

UH Category

Alphanumeric; 2 Characters; Mandatory

Specify the Unit Holder category details. Alternatively, you can select the UH Category from the option list. The list displays all valid UH Category details maintained in the system.

Product ID

Alphanumeric; 10 Characters; Mandatory

Specify the product ID. Alternatively, you can select the Product ID from the option list. The list displays all valid Product ID maintained in the system.

Tax Class

Alphanumeric; 3 Characters; Mandatory

Specify tax class details. Alternatively, you can select tax class details from the option list. The list displays all valid Tax Class details maintained in the system.

3.8 Product Tax Class Maintenance Summary

This section contains the following topics:

3.8.1 Retrieving Product Tax Class Record

You can view the product tax class records using ‘Product Tax Class Maintenance Summary’ screen. To invoke this screen, type ‘LESPRTAX’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can retrieve previously entered Product Tax Class Maintenance Details as follows:

3.8.2 Editing Product Tax Class Record

You can modify the details of Product Tax Class record that you have already entered into the system, provided it has not subsequently authorized. You can perform this operation as follows:

Click Save to save your changes. The Product Tax Class Maintenance Detail screen is closed and the changes made are reflected in the Product Tax Class Maintenance Summary screen.

3.8.3 Viewing Product Tax Class Record

To view a record that you have previously input, you must retrieve the same in the Product Tax Class Maintenance Summary screen as follows:

3.8.4 Deleting Product Tax Class Record

You can delete those records with Once_Auth is set as N. For instance, if Record is Created and Authorized Later and amended, then you cannot delete the amended record if tanking is NOT enabled. If Tanking is enabled, you can delete the amended record.

To delete a record that you have previously entered:

3.8.5 Authorizing Product Tax Class Record

An unauthorized Product Tax Class Maintenance record must be authorized in the system for it to be processed. To authorize a record:

When a checker authorizes a record, details of validation, if any, that were overridden by the maker of the record during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the record.

3.8.6 Amending Product Tax Class Record

After a Product Tax Class record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:

Note

Product Tax Class Maintenance will be not be allowed to be amended if there exists a Pol­icy with this tax class (combination of UH category and product ID)

3.8.7 Authorizing Amended Product Tax Class Record

An amended Product Tax Class record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.

The subsequent process of authorization is the same as that for normal transactions.

3.9 Product Bonus Maintenance Detail

This section contains the following topics:

3.9.1 Invoking Product Bonus Maintenance Detail Screen

You can define the bonus factor for a product in ‘Product Bonus Maintenance Detail’ screen. You can invoke this screen by typing ‘LEDPRBON’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can specify the following details:

Bonus ID

Display

The system displays the bonus ID.

Reference Number

Alphanumeric; 16 Characters; Mandatory

Specify the reference number.

Product ID

Alphanumeric; 10 Characters; Mandatory

Specify the product ID. Alternatively, you can select product ID from the option list. The list displays all valid product ID maintained in the system.

Product Name

Display

The system displays the name of the selected product ID.

Bonus Type

Alphanumeric; 2 Characters; Mandatory

Specify the bonus type. Alternatively, you can select bonus type from the option list. The list displays all valid bonus type maintained in the system.

Type Description

Display

The system displays the description for the selected bonus type.

Bonus Basis

Alphanumeric; 2 Characters; Mandatory

Specify the bonus basis. Alternatively, you can select bonus basis from the option list. The list displays all valid bonus basis maintained in the system.

Basis Description

Display

The system displays the description for the selected bonus basis.

Bonus Mode

Mandatory

Select the mode of bonus from the drop-down list. The list displays the following values:

Bonus Value

Numeric; 30 Characters; Mandatory

Specify the bonus value.

Remarks

Alphanumeric; 255 Characters; Optional

Specify remarks, if any.

Valuation Date

Date Format; Mandatory

Select the valuation date from the adjoining calendar.

Bonus From Date

Date Format; Mandatory

Select the bonus period from date from the adjoining calendar.

Bonus To Date

Date Format; Mandatory

Select the bonus period from the adjoining calendar.

Bonus Process Date

Date Format; Mandatory

Select bonus process date from the adjoining calendar.

Bonus Process Flag

Optional

Select the bonus process status from the drop-down list. The list displays the following values:

3.10 Product Bonus Maintenance Summary

This section contains the following topics:

3.10.1 Retrieving a Record in Product Bonus Maintenance Summary Screen

You can retrieve a previously entered record in the Summary Screen, as follows:

Invoke the ‘Product Bonus Maintenance Summary’ screen by typing ‘LESPRBON’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button and specify any or all of the following details in the corresponding details.

 

Click ‘Search’ button to view the records. All the records with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by querying in the following manner:

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operations by selecting the operation from the Action list. You can also search a record by using a combination of % and alphanumeric value

3.10.2 Editing Product Bonus Maintenance Record

You can modify the details of Product Bonus Maintenance record that you have already entered into the system, provided it has not subsequently authorized. You can perform this operation as follows:

Click Save to save your changes. The Product Bonus Maintenance Detail screen is closed and the changes made are reflected in the Product Bonus Maintenance Summary screen.

3.10.3 Viewing Product Bonus Maintenance Record

To view a record that you have previously input, you must retrieve the same in the Product Bonus Maintenance Summary screen as follows:

3.10.4 Deleting Product Bonus Maintenance Record

You can delete only unauthorized records in the system. To delete a record that you have previously entered:

3.10.5 Authorizing Product Bonus Maintenance Record

An unauthorized Product Bonus Maintenance record must be authorized in the system for it to be processed. To authorize a record:

When a checker authorizes a record, details of validation, if any, that were overridden by the maker of the record during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the record.

3.10.6 Amending Product Bonus Maintenance Record

After a Product Bonus Maintenance record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:

3.10.7 Authorizing Amended Product Bonus Maintenance Record

An amended Product Bonus Maintenance record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.

The subsequent process of authorization is the same as that for normal transactions.