2.1.1.1 Product Defaulting and Exchange Rate Details

This topic explains the Product Defaulting and Exchange Rate Details sections of the Policy Maintenance Detail screen.

1. On Policy Information tab, you can enter the Product Defaulting and Exchange Rate Details.
2. On Policy Information Tab, specify the Dates Defaulting and Product Level Defaulting fields.
   For more information on fields, refer to the field description table.

   Table 2-4 Policy Information Tab - Field Description

   Field	Description
   Product Defaulting	Click Default Product button to default the product values.
   Rule Status	Optional Select the rule status from the drop-down list. The list displays the following values: Open Closed
   Funding Factor	Numeric; 5 Characters; Optional The funding factor that is applicable to Policy transactions in this Product, which would have been set up at product-definition level, is displayed here. You can override this value at this stage. This must be expressed as a percentage and cannot exceed one hundred percent.
   Funding Repayment Period	Numeric; 3 Characters; Optional The duration of the repayment period, at the end of which the entire funded amount will be paid back to the investor, which would have been specified for this product, is displayed here. You can change the same for the Policy.
   Asset Allocation	Optional The asset allocation for the Policy can be specified either by the sponsor of the product, or by the Policy Holder. The drop-down list contains two options By Fund By Policy Holder Select the required option.
   Cession Status	Display When Policy Holders exercise the option of ceding their policies on either a temporary or a permanent basis, the ceded Policy will be designated a Cession ID and Cession Status in the system. The Cession Status for this Policy is displayed here. Typically, at the time of Policy creation, the newly created Policy does not have a Cession ID or Cession Status, and this field is blank, and locked. Subsequently, whenever this Policy record is viewed, any changes to Cession Status will be displayed in this field.
   Funding Frequency	Alphanumeric; 1 Character; Optional The frequency at which the funded amount will be repaid to the investor, which would have been set up at the time of Product definition, is displayed here. It cannot be changed at this stage.
   Description	Display The system displays the description of the specified funding frequency.
   Sub Type	Alphanumeric; 3 Characters; Mandatory Specify the sub transaction type.
   Description	Display The system displays the description of the specified sub type.
   Preferred Fund for Redemption	Alphanumeric; 6 Characters; Optional You can select or amend the redemption fund during the creation or amendment of the policy. If you maintain adequate balance to recover periodic fees in Preferred Fund for Redemption, system will redeem entire periodic fees from the preferred fund. If you do not maintain adequate balance Preferred Fund for Redemption system will follow the present logic to recover the periodic fees. Note: For a CMA applicable Product, system would treat CMA Fund as preferred fund for periodic fee redemptions, provided no preferred fund is selected at Product level. The system will consider Policy level Preferred fund for redemption and if this is not available then at unit holder level, the system will consider the ratio of funds, i.e. same as monthly ongoing fee transaction generation. Refer the section Cash Management Account in this section for more details on the operation of the Cash Management Account.
   Description	Display The system displays the description of the specified preference for fund redemption.
   Initial Investment Policy Txn Number	Display The system displays the transaction number of the initial investment policy.
   Exchange Rate Details:	The exchange rate details that are defaulted here or that you modify here will be used to convert the policy transaction amount as well as the interest on initial investment amount into the policy base currency.
   Amount Applied	Display The system displays the transaction amount in terms of the policy base currency.
   Source ID	Alphanumeric; 6 Characters; Optional You can select the source ID required from the adjoining option list. If you do not specify any, the system will default the source ID when you save the policy. Note: Exchange rate defaulting logic will default from default setup where user has overridden or given a source, system will give preference to overridden value.
   FX Deal Date	Date Format; Optional Enter the deal date for exchange rate.
   FX Value Date	Date Format; Optional Enter the value date for the exchange rate.
   Exchange Rate Applied	Numeric; 21 Characters; Optional Specify the exchange rate to be used to convert the transaction amount from transaction base currency to policy base currency, if you have chosen to override the exchange rate.
   Override Exchange Rate	Optional Select Yes if you wish to change the exchange rate that is displayed here. If you select Yes, however, you need to specify the exchange rate to be used for the transaction in the Exchange Rate Applied field. Select No if you want to retain the exchange rate that is displayed by the system.