Calculate Premium

This documents describes the Calculate Premium Activity to be used together with Apply Registrations to Periods. This process does the forward billing, from the date paid to up to the input calculation date. The process apply registration to periods, determines up to which point the coverage is already paid for. This process determines the premium for the next periods that are after the date paid to and eligible for the input calculation date.

This is similar to the calculate premium process, the next sections describe only the difference with respect to any step as specified in the calculate premium guide.

Parameters for Calculate Premium

The input value of the following parameters is not considered, instead the process always (re)set them to values as specified below:

Name	Description
Look Back Date	This is set to the Date Paid To plus one of the policy. This is to ensure that any periods to which payments have been applied are not accidentally re-calculated. These periods can only be re-calculated by 'Apply Registration to Periods' process. If Date Paid To is unspecified, the look back date is set to the earliest policy enrollment product starts or to the start date of the earliest non reversed calculation result or to the calculation input date, whichever is earlier. This is set per policy.
Generate Policy Calculation Periods?	This is set to true.

Name

Description

Look Back Date

This is set to the Date Paid To plus one of the policy. This is to ensure that any periods to which payments have been applied are not accidentally re-calculated. These periods can only be re-calculated by 'Apply Registration to Periods' process.

If Date Paid To is unspecified, the look back date is set to the earliest policy enrollment product starts or to the start date of the earliest non reversed calculation result or to the calculation input date, whichever is earlier.

This is set per policy.

Generate Policy Calculation Periods?

This is set to true.

Message

POL-VL-CAPR-004 is not raised. It is possible that the policy has been paid far into the future.

Calculate Premium per Group Account

This is similar to the calculate premium per group account process, the next sections describe only the difference with respect to any step as specified in the calculate premium guide.

Policy Selection

The purpose of this activity is to select all policies that may be eligible for calculation. These are all policies (latest Approved versions) that:

belong to the specified group account, or - if the group account parameter has the value unspecified - have no group account
a policy belongs to a group account if the policy group account relation has not ended before the look-back date
have a policy enrollment product that has not ended before the look back date or have a non-reversed calculation result with a calculation period start date that includes or starts after the look back date

Note : Look back date will differ per policy.

Calculate Premium per Policy

This is similar to the calculate premium per policy, the next sections describe only the difference with respect to any step as specified in the calculate premium guide.

Generate Policy Calculation Period

Setting the indicator Generate Policy Calculation Periods to Yes, triggers the process of generation of policy calculation periods. The effect of setting Generate Policy Calculation Periods to Yes is starting the process to generate periods for a policy with the

Generate Up To Date equal to the calculation input date,
Look Back Date same as premium calculation look back date.
Replace From Date set to the earliest of:
- start date of the earliest policy calculation period which starts after the date paid to and has its pay date before the calculation input date.
  - If the date paid to is not set then the start date of the earliest policy calculation period which starts on or after the earliest policy enrollment product and has its pay date before the calculation input date is considered.
- policy mutation effective date that is nearest to and after the premium calculation look back date

For details on policy calculation period generation process refer to the section Generate Policy Calculation Period per Policy of the chapter Generate Policy Calculation Periods.

Check for Mutations

If there are recalculation mutations with an effective date on or before the date paid to (when not null), the process raises error POL-FL-CAPR-019

Code	Sev	Message Text
POL-FL-CAPR-019	Fatal	There is at least one mutations with an effective date on or before the Date Paid To {date paid to} and therefore the premium cannot be calculated as the registrations must be re-applied

Code

Sev

Message Text

POL-FL-CAPR-019

Fatal

There is at least one mutations with an effective date on or before the Date Paid To {date paid to} and therefore the premium cannot be calculated as the registrations must be re-applied

Select Calculation Periods

All the policy calculation periods with the calculation date on or before the input date and that starts on or after the look back date are selected

Reference Date of the Calculation Period Segments

For every identified calculation period the system uses the reference date setting on the policy calculation period; if the policy calculation period reference date is left blank, then the policy calculation period start date is used.

Collection Cycles for System Calculation Period

This step is not applicable.