Automatic Refund/Write Off on Terminating a Group Policy or Individual Membership
On terminating a fully-insured group policy or individual membership, the system derives the refund/write off business rule for the fully-insured group policy or individual membership and stamps it against the policy or membership ID in the C1_ENT_BUS_RULE table.
If the fully-insured group policy is defined for a parent customer, the system derives all accounts of the parent customer and its bill groups and then creates an automatic refund/write off instruction for each account of the parent customer and its bill groups. However, if the fully-insured group policy is defined for a bill group, the system derives all accounts of the bill group and then creates an automatic refund/write off instruction for each account of the bill group. While deriving the parent customer and bill group of the fully-insured group policy, the system considers the Parent Person Type and Bill Group Person Type option types of the C1-PERSTYPE feature configuration. However, in case of individual membership, the system derives all accounts of the financially responsible person and then creates an automatic refund/write off instruction for each account of the financially responsible person.
The system does not create a new automatic refund/write off instruction for an account when an automatic refund/write off instruction already exists for the account in the Pending, Valid, Error, or Pending Completion status.
If you want to create automatic refund/write off instruction for an account on terminating a fully-insured group policy, you need to ensure that the C1-POTR-INS algorithm is attached to the Terminated status of the C1-POLICY business object.
If you want to create automatic refund/write off instruction for an account on terminating an individual membership, you need to ensure that the C1-IMTR-INS algorithm is attached to the Terminated status of the C1-IndMembership business object.
The system calculates the wait date using the wait days specified in the C1-POTR-INS or C1-IMTR-INS algorithm, respectively. In case of a fully-insured group policy, the wait days is added to the policy end date to derive the wait date. However, in case of an individual membership, the wait days is added to the membership end date to derive the wait date. The wait date is later used to calculate the automatic refund/write off request creation date. A new screen named Refund/Write off Instruction is introduced in this release. It enables you to view the automatic refund/write off instructions of an account which are created on terminating a fully-insured group policy or individual membership. On creating an automatic refund/write off instruction, the status of the automatic refund/write off instruction is set to Pending. The following two batches are introduced in this release:
On voiding a refund request created through an automatic refund instruction, the system cancels the transfer adjustments and refund adjustment on the netting contract of the account. And, on canceling a write off request created through an automatic write off instruction, the system cancels the transfer adjustments and write off adjustment on the netting contract of the account.
Parent topic: Automatic Refund/Write Off