C1-MPCONCREA

This algorithm is invoked when the following conditions are met:

• A member person who is financially responsible for the membership is added to the membership

• One or more accounts already exist for the member person in the system

If the above conditions are met, this algorithm derives the membership in which the member person is added. It then derives the policy plan to which the membership belongs. It creates contracts for each account of the member person in either of the following ways:

• If a price item is associated with the policy plan, it creates a contract using the contract type which is associated with the price item.

• If a pricing rule type is associated with the policy plan and the pricing rule type contains one or more price items, it creates a contract using a distinct contract type which is associated with each price item.

  Let us assume that PRT1 is associated with the policy plan and it contains three price items - PI1, PI2, and PI3. Now, if the PI1 is associated with the CT1 contract type, PI2 is associated with the CT2 contract type, and PI3 is associated with the CT3 contract type, this algorithm will create three contracts - C1 using CT1, C2 using CT2, and C3 using CT3. However, if the PI1 and PI3 are associated with the CT1 contract type and PI2 is associated with the CT2 contract type, this algorithm will create two distinct contracts - C1 using CT1 and C2 using CT2.

  If multiple pricing rule types are associated with the policy plan and each pricing rule type contains multiple price items, it creates a contract using a distinct contract type which is associated with each price item on each pricing rule type.

The status of each contract is set to Active. The contract start date is set to the start date of the respective plan. The default rate schedule specified on the respective contract type is added to the contract in the rate information and its effective date is set to the contract start date.