Scenario G
This scenario is based on a policy without a group account and a contract period. It has one policy enrollment product.
Policy Code |
POL2340 |
Group Account |
- |
Contract Period |
- |
Collection Frequency |
7 days [1] |
Member |
A. Brown |
Enrollment Product |
FIT PLAN with start date 01-Jan-2015 |
The premium calculation process for the policy starts by identifying the policy calculation period. The look back date is 1/1/2014, therefore, all the policy calculation periods with the calculation date between the calculation input date (15/1/2015) and up to 1/1/2014 are considered for premium calculation.
The next step is to verify the calculation periods. Since the policy enrollment started on 1/1/2015, there are no past periods that require recalculation.
The calculations are performed for the person W. Brown for the enrollment product FIT 50 PLAN.
Suppose the Policy Calculation Periods are generated as follows:
| Start Date | End Date | Calculation Date | Reference Date |
|---|---|---|---|
01/01/2015 |
07/01/2015 |
01/01/2015 |
01/01/2015 |
08/01/2015 |
14/01/2015 |
08/01/2015 |
08/01/2015 |
15/01/2015 |
21/01/2015 |
15/01/2015 |
15/01/2015 |
22/01/2015 |
28/01/2015 |
22/01/2015 |
22/01/2015 |
29/01/2015 |
04/02/2015 |
29/01/2015 |
29/01/2015 |
… |
… |
… |
.. |
23/04/2015 |
29/04/2015 |
23/04/2015 |
23/04/2015 |
30/04/2015 |
03/05/2015 |
30/04/2015 |
30/04/2015 |
04/05/2015 |
06/05/2015 |
30/04/2015 |
04/05/2015 |
07/05/2015 |
13/05/2015 |
07/05/2015 |
07/05/2015 |
14/05/2015 |
20/05/2015 |
14/05/2015 |
14/05/2015 |
21/05/2015 |
27/05/2015 |
21/05/2015 |
21/05/2015 |
Calculations for Jan'15
The system considers the reference date setting on the policy calculation period as the reference date for the calculations. Once the reference date for the calculation period is selected the next step is to select the time periods. In this case, the reference date belongs to BASIC PLAN 15-16, therefore, the enrollment product time period - FIT 50 PLAN 15-16 is selected. The enrollment product time period drives the selection of the default time period. The start date of the enrollment product time period 1/1/2015 belongs to Calendar Year 2015. The Calendar Year 2015 is therefore selected as the applicable default time period.
Enrollment Product Premium
The system identifies the calculation method to be applied as 'Policy Calculation Period Based' as the policy calculation periods are present'.
Premium Schedule line evaluation
The premium schedule lines applicable within the selected default time period are considered (see the image above). The premium schedule lines are based on the dynamic dimensions of Age. Therefore as per person’s age the premium is applied. The person’s birth date is 4/5/1950, thus as of the policy calculation periods in Jan'15 his age is 64 years (referenced as of 1/1/2015, 08/01/2015, 15/01/2015 ). The premium schedule line with the age range 50-65 is therefore selected and the premium amount of 22.00 per week is charged for the policy calculation period
Calculation Period 30th April'15 - 6th May
The member turns 66 as of 4th May 2015, and must be charged a different premium (as per configuration 25.00 per week) from 4th May onward. Therefore the weekly period starting from 30th April is split based on his birthday. However note that the calculation date on the spit period is kept same as the original period to ensure that the periods are calculated together.
Calculation for period 30th April - 6th May 2015
| Start Date | End Date | Calculation Date | Reference Date | Premium Charged |
|---|---|---|---|---|
30/04/2015 |
03/05/2015 |
30/04/2015 |
30/04/2015 |
(22/7)*4 |
04/05/2015 |
06/05/2015 |
30/04/2015 |
04/05/2015 |
(25/7)*3 |