C1-DLNQMNRL

A new algorithm type named C1-DLNQMNRL is introduced in this release. This algorithm creates a new delinquency process for a person or an account when the person's or account's debt is overdue and does not meet the tolerance limit. Before creating a new delinquency process for a person or an account, it checks whether a delinquency process in the given status already exists for the person or the account. If a delinquency process already exists for the person or the account in the given status, the system will add new overdue bills in the existing delinquency process and will not create a new delinquency process for the person or the account. While adding a bill to an existing delinquency process, the system enables you to create a To Do for the delinquency process.

While executing the C1-PRDLQ or C1-ACDLQ batch, the system derives the delinquency monitor rule algorithm attached to the delinquency control of the respective collection class for each derived person or account, respectively. This algorithm then determines whether the person's or account's debt should be monitored for delinquency based on their respective credit rating. The system considers the sum of account's credit rating and credit rating threshold (defined in the installation options) to determine whether the account's debt should be monitored for delinquency. However, the system considers the sum of person's credit rating and credit rating threshold (defined in the installation options) to determine whether determine whether the person's debt should be monitored for delinquency.

If you specify the value for the Only Process Customers with Credit Rating Less than or Equal to This Value parameter, the system checks whether person's or account's credit rating is less than or equal to the specified value. If the person's or account's credit rating is greater than the specified value, the system does not monitor the person's or account's debt for delinquency. However, if the person's or account's credit rating is less than or equal to the specified value or if the value is not specified for the Only Process Customers with Credit Rating Less than or Equal to This Value parameter, the system monitors the person's or account's debt for delinquency.

While monitoring the account's debt for delinquency, this algorithm fetches all the completed bills of the account which are unpaid and not yet linked to any delinquency process of the account. Here, the system considers the delinquency process of the account which is in the non-final status. While monitoring the person's debt for delinquency, this algorithm fetches all the unpaid bills of the person's accounts and all the unpaid bills of the child persons' accounts. It considers only those accounts of the person, its child persons, and the child persons’ accounts where the collection method in the respective collection class is set to Parental Delinquency and not where the collection method in the respective collection class is set to Self-Control Delinquency or Not Eligible for Collection. In addition, it considers only those child persons who are associated with the parent person using a person relationship type which is not specified in the Person Relationship Type Exclusion List parameter. Note that if an active promise to pay exists for an account, the system does not monitor the delinquency of the account.

While fetching the unpaid bills of the accounts, the system checks the following:

  • Whether the bill is included in any payment agreement request which is in the non-final status. If the bill is included in any payment agreement request which is in the non-final status, the system does not consider the overdue bill for monitoring the person or account's debt. However, if the bill is not included in any payment agreement request which is in the non-final status, the system considers the overdue bill for monitoring the person or account's debt.

  • Whether a characteristic using the characteristic type specified in the Postpone Date Characteristic Type parameter is defined for a bill. If the postpone overdue review until date is specified for the bill, the system checks whether postpone overdue review date of the bill is later than the batch business date. If the postpone overdue review date of the bill is later than the batch business date, the system does not consider the overdue bill for monitoring the person or account's debt. However, if the postpone overdue review until date is not specified for the bill or if the postpone overdue review date of the bill is earlier than or equal to the batch business date, the system considers the overdue bill for monitoring the person or account's debt.

  • Whether the age of a bill is greater than or equal to the value specified in the Only Process Bills with an Age Greater than or Equal to This value parameter. The system calculates the age of a bill using the value specified in the Which Date Determines Age (‘D’ - Due Date or ‘B’ - Bill Date) parameter. If the parameter value is set to B, the system calculates the invoice age from the bill date until the system date. However, if the parameter value is set to D, the system calculates the invoice age from the bill due date until the system date. If the invoice age is greater than or equal to the value specified in the Only Process Bills with an Age Greater than or Equal to This value parameter, the system considers the overdue bill for monitoring the person or account's debt. However, if the invoice age is less than the value specified in the Only Process Bills with an Age Greater than or Equal to This value parameter, the system does not consider the overdue bill for monitoring the person or account's debt.

Note that the system validates the former two conditions on both the debit and credit bills of the account. However, the system validates the age of a debit bill and not of a credit bill.

Once the list of overdue bills is finalized, the system derives the original and unpaid amounts for each overdue bill of the person or account whose debt is monitored. While monitoring the debt of an account, the system calculates the following:

  • Sum of the unpaid amounts of the account's bills (that meet the above criteria)

  • Sum of the original amounts of the account's bills (that meet the above criteria)

However, while monitoring the debt of a person, the system calculates the following:

  • Sum of the unpaid amounts of the bills (that meet the above criteria) of the person's derived accounts (including the ones from its hierarchy)

  • Sum of the original amounts of the bills (that meet the above criteria) of the person's derived accounts (including the ones from its hierarchy)

While monitoring the debt of a person, the system also checks whether the Include On Account Payments In Threshold Evaluation - Y/N parameter is set to Y or N. If the Include On Account Payments In Threshold Evaluation - Y/N parameter is set to Y, the system derives all the on account payments which are made against the on account payment contracts. The system considers the on account payment contracts which are created using the contract types that are specified in the On Account Payment Contract Types parameter. Once the on account payments (if any) are derived for the person, the system deducts the on account payments of the customer from the total unpaid amount of the customer.

Note that, while calculating the sum of the original amounts, the system considers the Use Current Revenue Period Billed For Latest Overdue Due Date - Y/N parameter. If the Use Current Revenue Period Billed For Latest Overdue Due Date - Y/N parameter is set to Y, the system considers all those financial transactions of the account whose coverage start date is earlier than or equal to the bill due date while calculating the total billed (i.e. original) amount. This option helps to handle the scenario wherein an individual short pays by just enough each month but still does not become delinquent. This is because, in this case, the system calculates the unpaid percentage or amount based on the total amount billed for the coverage period rather than the total amount billed for the overdue bills.

Once the total unpaid amount and the total billed amount is calculated for the person or account, the system checks the value of the Unpaid Amount and Percentage Required ('Y' or 'N') parameter. If the Unpaid Amount and Percentage Required ('Y' or 'N') parameter is set to Y or N, the system checks the following:

  • Total unpaid amount is greater than or equal to the tolerance limit

  • Unpaid percentage value (i.e. unpaid amount with respect to original amount) is greater than or equal to the tolerance limit

If the Unpaid Amount and Percentage Required ('Y' or 'N') parameter is set to Y, the person or account should meet both the above two conditions. The system then considers the person or account as delinquent. However, if the Unpaid Amount and Percentage Required ('Y' or 'N') parameter is set to N, the person or account should meet either of the above two conditions. The system then considers the person or account as delinquent.

Once the person or account is considered as delinquent, this algorithm creates a new delinquency process using the delinquency process type which is specified in the given delinquency process type preference. You can specify two separate delinquency process type preference - one for the fully insured group business and another for the fully insured individual business. Depending on whether the person or account is linked to policies or individual memberships, the system will accordingly refer the given delinquency process type preference. For more information about the delinquency process type preference, refer to the Delinquency Process Type Preference section. The status of the new delinquency process is set to the value (for example, Initiated) specified in the Delinquency Process Initiated Status attribute of the delinquency process preference. Note that if the delinquency process already exists for the person or account in the given status, then the system will add new overdue bills in the existing delinquency process and will not create a new delinquency process for the person or account. While adding a bill to an existing delinquency process, the system enables you to create a To Do for the delinquency process.

Note: The system considers the delinquency process preference which is specified in the Delinquency Process Field Mapping option type of the DELINPROC feature configuration. For more information about the feature configuration, see Setting the DELINPROC Feature Configuration

In addition, this algorithm adds a log entry for each overdue bill in the delinquency process. This algorithm contains the following parameters:

  • Only Process Customers with Credit Rating Less than or Equal to This Value - Used when you want to initiate the delinquency process for only those persons or accounts whose credit rating is less than or equal to the specified value. This parameter is optional.

  • Only Process Bills with an Age Greater than or Equal to This value - Used to specify the number of days. The system considers a bill while monitoring the person or account's debt when its age is greater than or equal to the specified number of days. This parameter is optional.

  • Which Date Determines Age ('D' - Due Date or 'B' - Bill Date) - Used to indicate whether you want the system to determine the age of the invoice (i.e. bill) using the due date or the bill date. The valid values are D and B. This parameter is mandatory.

  • Use Current Revenue Period Billed For Latest Overdue Due Date - Y/N - Used when you want to consider all those financial transactions of the account whose coverage start date is earlier than or equal to the bill due date while calculating the total billed (i.e. original) amount. The valid values are Y and N. This parameter is optional. If you do not specify the parameter value, by default, it is set to N.

  • Include On Account Payments In Threshold Evaluation - Y/N - Used to indicate whether you want to consider the payments made against the on account contracts of the account while calculating the unpaid amount. The valid values are Y and N. This parameter is optional. If you do not specify the parameter value, by default, it is set to N.

  • On Account Payment Contract Types - Used to indicate the on account contract types that you want to consider while determining the total unpaid amount. Here, you must specify a contract type which is already defined in the system. You can specify maximum twenty comma-separated values for this parameter. This parameter is only required when the Include On Account Payments In Threshold Evaluation - Y/N parameter is set to Y.

  • Only Process Person/Account with an Unpaid Percentage Greater Than or Equal to This Value - Used to specify the unpaid percentage value (i.e. unpaid amount with respect to original amount). The system then considers a person or an account as delinquent only when the unpaid percentage of its overdue bills is greater than or equal to the specified value. This parameter is required.

  • Only Process Person/Account with an Unpaid Amount Greater Than or Equal to This Value - Used to specify the flat unpaid amount. The system then considers a person or an account as delinquent only when the unpaid amount of its overdue bills is greater than or equal to the specified value. This parameter is required.

  • Person Relationship Type Exclusion List - Used when you do not want to consider the child persons who are associated with the parent person using a particular person relationship type while fetching the unpaid bills from the person's hierarchy. Here, you must specify a person relationship type which is already defined in the system. You can specify maximum 10 comma-separated values for this parameter. This parameter is only applicable for the fully insured group business and not for the fully insured individual business.

  • To Do Entry Required For Delinquency - Used to indicate whether you want the system to create a To Do when a new overdue bill is added to an existing delinquency process. The valid values are Y and N. This parameter is mandatory.

  • To Do Type of To Do Entry for Delinquency - Used to indicate the To Do type using which you want to create the To Do for the existing delinquency process. Here, you must specify a To Do type which is already defined in the system. This parameter is only required when the To Do Entry Required For Delinquency parameter is set to Y.

  • Delinquency Process Status For Existing Delinquency Process - Used to specify the status of the delinquency process. The system then checks whether any delinquency process exists for the person or account in the specified status. If so, the system adds a new overdue bill in the respective delinquency process and does not create a new delinquency process for the person or account. You can specify comma-separated values for this parameter. This parameter is mandatory.

    Note: The system allows you to add new bills to a delinquency process when it is in any of the following three statuses - INITIATED (i.e. Initiated), INPROGRESS (i.e. Delinquency In Progress), and HOLD (On Hold). Therefore, you need to accordingly specify the value in the Delinquency Process Status For Existing Delinquency Process parameter.

  • Postpone Date Characteristic Type - Used to indicate a characteristic type which is used to store the postpone overdue review until date for a bill. Here, you must specify a characteristic type where the characteristic entity is set to Bill. The ADMRVWDT characteristic type is shipped with the product. This parameter is optional.

    Note: You have an option to set the specified characteristic type on the bill if you want to postpone the overdue review date of the bill. If the specified characteristic type is defined on the unpaid bill and if the postpone overdue review until date is later than the batch business date, the system does not consider the overdue bill for monitoring the person or account's debt.

  • Unpaid Amount and Percentage Required ('Y' or 'N') - Used to indicate whether you want to consider both the unpaid amount and the unpaid percentage to check whether the person or account is delinquent. The valid values are:

    • Y - If you set the value to Y, the system considers both the unpaid amount and the unpaid percentage to check whether the person or account is delinquent.

    • N - If you set the value to N, the system considers either the unpaid amount or the unpaid percentage to check whether the person or account is delinquent.

    This parameter is mandatory.

  • Delinquency Process Type Field Mapping - Individual - Used to specify a preference where the preference category is set to Delinquency Process Type. The system uses the preference to determine the delinquency process type using which the delinquency process should be created for an account to which individual memberships are billed. This parameter is mandatory. It is not applicable for the fully insured group business. For more information about the delinquency process type preference, see Delinquency Process Type Preference.

  • Delinquency Process Type Field Mapping - Group - Used to specify a preference where the preference category is set to Delinquency Process Type. The system uses the preference to determine the delinquency process type using which the delinquency process should be created for a person or an account to which policies are billed. This parameter is mandatory. It is not applicable for the fully insured individual business. For more information about the delinquency process type preference, see Delinquency Process Type Preference.