Apply a Regional Surcharge

This example shows the configuration of basic surcharge rule that applies a surcharge on the base premium, depending on where the person or object is registered.

In this example the schedule definition includes additional logic to evaluate the state on a person’s living address.

Step 1 - Setup Time Period

The first step is to set up the time period that governs the 'condition' columns on the adjustment rule. In this example, the conditions are the 'from' and 'trough' columns for the deductible.

Table 1. Step 1 - Setup Time Period
Time Period

Name

Start

End

Calendar year 2020

2020-01-01

2020-12-31

More time periods can be set up later, for example, to specify that from calendar year 2021 going forward other states will be included in the surcharge schedule that were not included before.

Step 2 - Setup Deductible Logic to Compare the Country Region

The second step is to set up the logic that compares the person’s country region to the values in the surcharge rule.

Table 2. Step 2 - Setup Deductible Logic to Compare the Country Region
Dynamic Logic Condition

Code

Logic

EVALUATE STATE

return person.addressList.asOf(lookUpDate).countryRegion .code = surchargeRule.state

Step 3 - Setup a Schedule Definition

The next step is to set up a schedule definition. The schedule definition controls which columns the surcharge rule shows in addition to the columns for the value and value type. Add a single column (dimension) for the state of residence. The dimension name has to be the same as the name used in the dynamic logic condition, that is, surchargeRule.state.

Table 3. Step 3 - Setup a Schedule Definition
Schedule Definition

Code

Description

Type

Surcharge Rule Evaluation

Distribute?

Line or Rule Evaluation Condition

TX_STE

State Tax

Surcharge

On Premium

Y

EVALUATE STATE
Table 4. Step 3 - Setup a Schedule Dimensions
Schedule Dimensions

Header

Name

Type

Parameter

Dyn Field

Usage

State of Residence

state

Generic

-

-

Value

Now that the schedule definition has been created, a new surcharge type has become available. The next step is to set up surcharge rules the new type.

Step 4 - Setup Adjustment Rules

Table 5. Step 4 - Setup Adjustment Rules
Surcharge Type

Code

Description

TX_STE

State Tax
Table 6. Step 4 - Setup Adjustment Rules: Surcharge Rules
Surcharge Rules

State of Residence

Surcharge

ME

1.7 %

MA

2.3 %

NH

1.4 %

RI

2.0 %

The surcharge rule configuration is now complete. All surcharge rules are evaluated by default for any calculation.