Valuation Element

The <Valuation> element initiates the Valuation process. This is one of the first processing steps of a Policy level financial Activity. The Valuation information will be available to the Activity's Math processing and assignment. Normally, NUVs must exist on the valuation date (activity effective date) for all unit based fund types except for unit linked variable fund types. When the NUVs do not exist the activity will error. This error can be avoided through configuration in this element's structure and only when there are no trade attempts (money movement) in the unit based funds. NUVs must also exist on the System Date in order to calculate the monetary differences between trading units on the Activity's Effective Date and the System Date.

The Activity virtually trades units on the Activity's Effective Date and actually trades units on the System Date. This will generate gain/loss for the carrier who must keep the policy whole based on the Activity's Effective Date. Configuration in this element's structure can avoid the error and progress the Activity to gain/loss status. Activities with this status would be considered successful and complete except for the calculation and accounting of gain/loss.

ValuationElements: Elements and Attributes

Element

Parent Element

Attribute

Description

<Valuation>

<Transaction>

 

Optional:

This element initiates the Valuation process within an Activity and provides options to calculate additional information not provided by the system and deal with the potential lack of relevant unit pricing.

 

<Valuation>

POLICYVALUES

Optional:

This element instructs the system to process the PolicyValue business rule while calculating fund values.

Values:

  • Yes

    • default

    • The PolicyValues business rule will be processed at the end of the Valuation process and the data it calculates are available to the activity's Math.

  • No

    • The PolicyValues business rule will not process and none of the rule's calculated data will be available to the activity's Math.

 

<Valuation>

VALUEFINANCIALENTRY

Optional:

This attribute triggers Financial Entry functionality to be executed and those values will be available to the PolicyValues business rule. The system creates a IsValueFinancialEntry system variable with a value of Yes.

Values:

  • No

    • default

    • Financial Entry functionality is not triggered and no results from Financial Entry calculations are accessible.

    • The IsValueFinancialEntry system variable will have a value of No.

  • Yes

    • Financial Entry functionality is triggered and results from Financial Entry calculations are accessible.

    • The IsValueFinancialEntry system variable will have a value of Yes.

<EffectiveDateNUVMustExist>

<Valuation>

 

Required:

This element indicates if valuation progresses when NUVs dated with the activity's effective date are not present.  Valuation requires NUVs dated with the activity's effective date for each unit based fund type except for Unit Linked Variable and IUL Index Variable fund types.

Values:

  • Yes

    • Valuation will not complete and Activity processing will stop with a NUV error when Valuation is performed on a unit based fund and a NUV for the fund with the activity's effective date is not present.

    • Unit values for Unit Linked Variable and IUL Index Variable fund types are not required to have NUVs for every activity effective date.

  • No

    • Valuation will complete with a NUV of 0 when Valuation is performed on a unit based fund and a NUV for the fund with the activity's effective date is not present.With the condition above, the Activity will error when the fund attempts a change to the fund's units through Assignment.

    • With these conditions, the Activity may complete successfully with the fund's cash value as 0 dependent on the lack of other potential business and system errors.

SystemDateNUVMustExist

<Valuation>

 

Required:

This element indicates if the activity generates an error when NUVs dated for the System Date are not present.  NUVs dated with the System Date are required in order to calculate gain/loss values.  This is relevant for each unit based fund when an Activity's Effective Date is not the same as the System Date.  The activity will trade units with the unit value on the Activity's Effective Date and the buy/sell process will trade units with the unit value on the System Date.  The difference between the value of these two trades is the gain or loss to the carrier.

Values:

  • Yes

    • Activity valuation will generate a NUV-System Date error when NUVs for the System Date are not present.

  • No

    • Activity valuation will not generate a NUV-System Date error when NUVs for the System Date are not present.

    • The Activity status will update to a NUV Pending at the time that gain/loss calculations are attempted and a NUV for the System Date is not present.

XML Schema

<Transaction>
...
    <Valuation>
        <EffectiveDateNUVMustExist>[Yes | No]</EffectiveDateNUVMustExist>
        <SystemDateNUVMustExist>[Yes | No]</SystemDateNUVMustExist>
    </Valuation>
...
</Transaction>

XML Example

<Transaction>
...
    <Valuation>
        <EffectiveDateNUVMustExist>Yes</EffectiveDateNUVMustExist>
        <SystemDateNUVMustExist>No</SystemDateNUVMustExist>
    </Valuation>
...
</Transaction>