Generate Policy Calculation Periods

The Generate Policy Calculation Periods activity is started by through an integration point or via the user interface.

The user can control the scope of the policy calculation period generation by selecting values for the following parameters:

Table 1. Generate Policy Calculation Periods

Name	Description
Brand	If specified, this activity selects only policies for that brand. If not, this activity selects policies from all brands.
Group Client	If specified, this activity selects only policies in group accounts of that group client [1]. If not, this activity selects policies regardless of group account and group client.
Group Account[2]	If specified, this activity selects only policies for that group account. If not, then the policy calculation period generation picks up policies from any account. If the value unspecified is keyed in (it is not available in the pick list), the activity only picks up individual policies. Specifying a group client in combination with a group account value unspecified, results in no policies being selected. Specifying a group client in combination with a group account that is not part of the group client, also results in no policies being selected.
Generate Up To Date	This is the date up to which the policy calculation periods have to be generated, at a minimum. Some policy specific scenarios, explained below, will lead to the creation of policy calculation periods beyond the generate up to date.
Replace From Date	This date specifies the date from which the existing policy calculation periods have to be replaced and recreated.
Look Back Date[3]	This date controls how far back the activity can go with replacing and recreating periods. Existing policy calculation periods that preceed or overlap with the collection setting that ends before the look back date are not replaced.

This activity starts a separate Generate Policy Calculation Periods per Group account activity for each distinct combination of brand and group account.

The following messages can occur during this activity:

Table 2. Generate Policy Calculation Periods: Messages

Code	Severity	Message Text
POL-VL-GPCP-001	Fatal	Brand code {code} is unknown
POL-VL-GPCP-002	Fatal	Group client code {code} is unknown
POL-VL-GPCP-003	Fatal	Group account code {code} is unknown
POL-VL-GPCP-004	Fatal	Segment function dynamic logic code {code} is unknown or has an invalid signature

Generate Policy Calculation Periods Per Group Account

This activity selects all policies that may be eligible for the generation of policy calculation periods. These are all policies that:

• Represent the latest-approved version.

• Belong to the group account specified in the parameters.

• Have no group account if the group account parameter is set to unspecified.

• Have a policy enrollment product that does not end before the look-back date and is not flagged as never in force.

A policy belongs to a group account if its link to the group account has not ended before the look-back date.

Generate Policy Calculation Periods Per Policy

Each "Generate Policy Calculation Periods per Group Account" activity spwans a number of "Generate Policy Calculation Periods per Policy" activities. The following image shows the process steps in this activity:

The following sections contain detailed descriptions of the system logic for each of these steps.

Determine Collection Settings

As a first step the system identifies the applicable collection settings for a policy. The collection setting can be specified on multiple levels: policy, group account or group client. A policy can be associated with multiple group accounts during different time frames. If multiple group accounts are found and/or collection settings on multiple levels for a policy are found then the system identifies the applicable collection settings with their effective time spans.

The system selects group account relationships (when applicable) that have not ended before the look back date and for each relationship it selects the collection settings that have not ended before the look back date by applying the following priority.

1. Policy

   • If no group account relationships are identified, then only policy level collection settings that have not ended before the look back date are considered

2. Group Account

3. Group Client

4. Parent Group (and further up the Group Client hierarchy)

After the system identifies the collection settings, it determines their logical effective time spans. Each collection setting in the set is logically end dated a day before the setting on a more specific level becomes effective. The collecting settings on the group client or group account (not on the policy level) are also bounded by the start and end dates of the group account relationship.

This algorithm flattens all collection settings in the group hierarchy into a single (virtual) time line of applicable collection settings. Consider the following examples.

Table 3. Example 1: Suppose the Collection Settings are Configured as Below

Level	Collection Setting	Start Date	End Date
Group Client ORCL	Setting A	Jan 1, 2018	Dec 31, 2018
Group Account ORCL Active	Setting B	Apr 1, 2018
Policy	Setting C	Oct 1, 2018	Dec 31, 2018
Policy	Setting D	Jan 1, 2019

A policy is linked to group account ORCL Active from Jan 1, 2018 and the activity is started with a look back date set as Jan 1, 2018. In this case the applicable collection settings (in context of the policy) with their effective start and end dates are:

Table 4. Determine Collection Settings

Collection Setting	Start Date	End Date	Description
Setting A	Jan 1, 2018	Mar 31, 2018	The Setting A is logically end dated as a specific level setting Setting B starts from Apr 1, 2018
Setting B	Apr 1, 2018	Sep 30, 2018	The Setting B is logically end dated as a specific level setting Setting C starts from Oct 1, 2018
Setting C	Oct 1, 2018	Dec 31, 2018
Setting D	Jan 1, 2019

Table 5. Example 2: Suppose the Collection Settings are Configured as Below

Level	Collection Setting	Start Date	End Date
Group Client ORCL	Setting A	Jan 1, 2018	Dec 31, 2018
Group Account ORCL Active	Setting B	Apr 1, 2018
Policy	Setting C	Jan 1, 2019

If Policy Group Account (ORCL ACTIVE) relationship starts on Feb 1, 2018 instead of Jan 1, 2018 as in the previous example and ends on Dec 31, 2018; policy is an individual Policy from Jan 1, 2019 onward. The look back date is set as Jan 1, 2018.

Table 6. The Applicable Collection Settings are:

Collection Setting	Start Date	End Date	Description
Setting A	Feb 1, 2018	Mar 31, 2018	The Setting A starts on the start date of the group account relationship as the group account relationship start date is after the collection setting start date
Setting B	Apr 1, 2018	Dec 31, 2018
Setting C	Jan 1, 2019

Alternatively, if Policy Group Account (ORCL ACTIVE) relationship starts on May 1, 2018 (instead of Feb 1, 2018 as in the previous use case), the applicable collection settings are:

Table 7. Applicable Collection Settings

Collection Setting	Start Date	End Date	Description
Setting B	May 1, 2018	Dec 31, 2018	Setting A is not applicable as it logically ends before the group account relationship start date. The logical start date of the Setting B is bounded by the start date of the group account relationship
Setting C	Jan 1, 2019

Table 8. Example 3: Suppose the Collection Settings are Configured as Below

Level	Collection Setting	Collection Setting Start Date	Collection Setting End Date
Group Client ORCL	Setting A	Jan 1, 2018	Dec 31, 2018
Group Account ORCL Active	Setting B	Apr 1, 2018
Group Account ORCL Retire	Setting C	Jan 1, 2018
Policy	Setting D	Jun 1, 2019

Policy Group Account (ORCL ACTIVE) relationship starts on May 1, 2018 and it ends on Dec 31, 2018 ; Policy is moved to another group account ORCL Retire from Jan 1, 2019 onward. The applicable collection settings in context of the policy with their effective start and end dates when the look back date is Jan 1, 2018 are:

Table 9. Example 3: Applicable Collection Settings

Collection Setting	Start Date	End Date	Description
Setting B	May 1, 2018	Dec 31, 2018	The policy group account relationship ends on Dec 31, 2018 , therefore the Setting B is logically end dated on Dec 31, 2018
Setting C	Jan 1, 2019	May 30, 2019	The policy group account relationship starts on Jan 1, 2019, therefore the logical start date of the collection setting C is Jan 1, 2019
Setting D	Jun 1, 2019

If the look back date is set to Jan 1, 2019, then the applicable collection settings are:

Table 10. Applicable Collection Settings when Look Back Date is Jan 1 2019

Collection Setting	Start Date	End Date	Description
Setting C	Jan 1, 2019	May 30, 2019	The policy group account relationship ORCL Active is not selected as it ends before the look back date
Setting D	Jun 1, 2019

Example 4: Suppose the collection settings are configured as below.

Table 11. Example 4

Level	Collection Setting	Collection Setting Start Date	Collection Setting End Date
Group Client ORCL	Setting A	Jan 1, 2018	Dec 31, 2018
Group Account ORCL Active	Setting B	Apr 1, 2018
Group Account ORCL Retire	Setting C	Jun 1, 2018
Policy	Setting D	Jan 1, 2019	May 30, 2019
Policy	Setting E	Jun 1, 2019

Policy Group Account (ORCL ACTIVE) relationship starts on May 1, 2018 and ends on Dec 31, 2018 ; policy is moved to another group account ORCL Retire from Jan 1, 2019 onward. The applicable collection settings when the look back date is set as Jan 1, 2018 are:

Table 12. Example 4: Applicable Collection Settings when Look Back Date in Jan 1 2019

Collection Setting	Start Date	End Date	Description
Setting B	May 1, 2018	Dec 31, 2018
Setting D	Jan 1, 2019	May 30, 2019	Setting C is not applicable as there is setting Setting D on a specific level (policy).
Setting E	Jun 1, 2019

When the look back date is set as Dec 1, 2018, the applicable collection settings are:

Table 13. Applicable Collection Settings when Look Back Date in Dec 1 2018

Collection Setting	Start Date	End Date	Description
Setting B	May 1, 2018	Dec 31, 2018	The group account relationship and Setting B have not ended before the look back date.
Setting D	Jan 1, 2019	May 30, 2019
Setting E	Jun 1, 2019

When the look back date is set as Jan 1, 2019, the applicable collection settings are:

Table 14. Applicable Collection Settings when Look Back Date in Jan 1 2019

Collection Setting	Start Date	End Date	Description
Setting D	Jan 1, 2019	May 30, 2019	Setting B logically ends before the look back date (as the group account relationship ORCL Active ends before the look back date) and is therefore not considered.
Setting E	Jun 1, 2019

Verify Policy for Policy Calculation Period Generation

Policies that meet one of the following conditions are not included in the generation process:

• There is no collection setting (as identified in the previous set) with the indicator policy calculation period set to 'Yes' and no replace from date is specified.

• There is no collection setting (as identified in the previous set) with the indicator policy calculation period set to 'Yes' and there are no policy calculation periods to be replaced from the replace from date onward.

Replace Policy Calculation Periods

The activity has a replace from date parameter. This parameter can be used as a correction functionality to replace previously created policy calculation periods. When used the activity deletes the existing policy calculation periods with end dates on or after the replace from date.

The next step generates new policy calculation periods to replace the incorrect policy calculation periods if appropriate setting are specified.

If the system property indicates that the registrations should be applied to the periods, and the replace from date is on or before the date paid to, then the process replaces periods from the day after the date paid to.

When the policy calculation periods are replaced, then policy mutation of type recalculation is created with an effective date set to the start date of the earliest period (re) generated. The cause on the mutation is set to PCP_REGENERATION.

No change event rules on policy calculation period are triggered when policy calculation periods are added, updated or deleted by this activity.

Generate Policy Calculation Periods

First, this activity creates policy calculation periods for previous collection settings. For all collection settings :

• with the indicator policy calculation periods checked,

• applicable to the policy,

• and with an end date before the generation up to date,

• and with an end date after the end date of the latest policy calculation period,

the activity generates policy calculation periods up to the end date of that collection setting.

If a policy calculation period would span beyond the collection setting end date, it is shortened to end on the collection setting end date instead.

Next, the activity creates policy calculation periods for the collection setting applicable at the generate up to date.

The activity determines the date from which to start generating policy calculation periods. This is always the day after the end date of the most recent policy calculation period. If no policy calculation periods exist, it is the start date of the collection setting.

The start date and end date for the generated policy calculation periods are derived from the following collection setting attributes:

• Span Reference Date
  The span reference date setting identifies the start of the first collection cycle and thus the first policy calculation period generation. The first policy calculation period of all subsequent cycles is determined based on an extrapolation of this date. For example if the Span Reference Date is set to May 12, 2019, the start date of the first generated policy calculation period is set to May 12, 2019. If span reference date is not specified, then the collection setting start date is taken as the span reference date.

  Note

  The system considers any catch up periods which are generated before the span reference date as part of first regular cycle. This situation can occur when the collection setting start date is before the span start date,

• Calculation Period Length & Calculation Period UoM
  These two attributes are always evaluated together. For example if these settings are set to 7 days, Policy Calculation Periods are generated with a time span of 7 days. When not specified, system defaults to 1 month.

• Advance Length & Advance UoM
  These settings control up until which date policy calculation periods are generated. For example, if the advance settings define 70 days, the system generates policy calculation periods that cover a period of time of 70 days starting from the span reference date. All the policy calculation periods that start in this time frame are part of a collection cycle and these advance periods are expected to be calculated together by the premium calculation process.

The other attributes of a policy calculation period get a default value during generation. While setting the defaults the system also takes into account the various offsets as specified by the collection method linked to the collection setting

The following policy calculation period fields are set:

• Calculation Date
  This date determines which policy calculation periods are part of a single collection cycle. Collection cycle time frame is determined based on the setting Advance Length and Advance UoM. Attribute calculation date offset on the collection method is also taken into account while setting this value. For the periods that are part of the first cycle (of the collecting setting), this date is set to the span reference date offset by the number of days as specified by the calculation date offset setting on the collection method. Calculation date for the policy periods that are part of the subsequent cycles is determined based on an extrapolation of the date as given by the span reference date plus the offset.

• Pay Date
  This date is set to the value as given by offsetting the extrapolated span reference date (applicable for the period) with the value as specified by the pay date offset setting on the collection method. Policy calculation periods that are part of a single collection cycle have the same pay date.

• Reference Date
  This date is set to the value as given by offsetting the start date of the policy calculation period with the value as specified by the reference date offset setting on the collection method

• Days

  • When the calculation period UoM setting is Month then:

    • For a policy with contract the days factor is computed as 365/12 multiplied by the calculation period length unless the policy calculation period starts in the contract period that includes Feb 29, in which case it is calculated as 366/12 multiplied by the calculation period length

    • For a policy without contract the days factor is computed as 365/12 multiplied by the calculation period length unless the policy calculation period starts in an annual period as set out from the leap year start month (system property) that includes Feb 29, in which case its 366/12 multiplied by the calculation period length. If the system property is not specified the days factor is computed as 365/12

  • Otherwise it is set to the number of days in the policy calculation period

• Start and end date
  These dates are set accoriding to the cadence defined by the collection setting calculation period length and the calculation period UoM.

The system continues to create consecutive policy calculation periods as long as the generate up to date is on or before the calculation date of the policy collection periods being generated.

The following settings and situations also affect the generation of policy calculation periods:

Billing Cycle

When new policy calculation periods are generated as part of the premium calculation activity, the billing cycle parameter affects how the calculation date is set for past periods.

• If the billing cycle is set to immediate billing, then for all the policy calculation periods that are created, the calculate date is set to the generate up to date and the pay date is set to the system date.

• If the billing cycle is set to forward billing, all the policy calculation periods where the calculation date is before the generate up to date, the calculate date and pay date are set to the dates of the subsequent billing cycle which has the calculation date on or after the generate up to date.

The First Policy Calculation Period

If the span reference date is after the start date of the collection setting, the time span between the collection setting start date and the start date of the first policy calculation period is filled up with policy calculation periods. It is possible that the first policy calculation period is cut short because the period between the start of the collection setting and the span reference date doesn’t map nicely to the policy calculation period length.

Calendar Month Split

If this system property is set to true, the system splits the policy calculation period at the end of the calendar month when the policy calculation period spans over two calendar months.

Policy Contracts and Policy Group Account Split

The system splits policy calculation periods to align with the policy contract periods and policy group accounts, such that a single policy calculation period never spans more than one contract or group account.

User Defined Function Split

This policy calculation period segment function represents a user defined algorithm that splits up policy calculation periods This function is configured through a system property. Details on the system property can be found in the Developer Guide. Details on the can be found in the Developer Guide. In addition, this function can also overide the following values on the policy calculation period:

• Calculation Date

• Reference Date

• Days (for example when evenly distribution is required in monthly calculations)

• Dynamic fields

Examples

Example 1: Monthly Generation 3 Months in Advance

This example shows a regular generation process.The collection setting is defined in the table below:

Table 15. Example 1: Monthly Generation 3 Months in Advance

Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Jan 1, 2019		Jan 1, 2019	3 Months	Yes	1 Month

Generation 1

Generate Up To: Jan 31, 2019
Generation Result:

Table 16. Generation 1

Start Date	End Date	Calculation Date
Jan 1, 2019	Jan 31, 2019	Jan 1, 2019
Feb 1, 2019	Feb 28, 2019	Jan 1, 2019
Mar 1, 2019	Mar 31, 2019	Jan 1, 2019

The policy calculation period starting on Jan 1, 2019 is generated as a result of the activity parameter Generate Up To Date. The consecutive policy calculation periods are a result of the collection setting that defines that premium calculation is done 3 months in advance so future policy calculation periods have to be generated upfront to cover the advance collection settings.

The calculation date for the future policy calculation periods is the same for the whole set of policy calculation periods in the same "advance collection cycle".

Generation 2

Generate Up To: Feb 1, 2019 No policy calculation periods are generated because a policy calculation period already exists for February 2019.

Generation 3

Generate Up To: Mar 1, 2019 No policy calculation periods are generated because a policy calculation period already exists for March 2019.

Generation 4

Generate Up To: Apr 1, 2019
Generation Result:

Table 17. Generation 4

Start Date	End Date	Calculation Date
Apr 1, 2019	Apr 30, 2019	Apr 1, 2019
May 1, 2019	May 31, 2019	Apr 1, 2019
Jun 1, 2019	Jun 30, 2019	Apr 1, 2019

A new set of policy calculation periods is generated for the next premium calculation cycle.

Example 2: Multiple Collection Settings:

Table 18. Example 2: Multiple Collection Settings

Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Jan 1, 2018	Dec 31, 2018	Jan 1, 2018	28 Days	Yes	7 Days
Jan 1, 2019		Jan 7, 2019	28 Days	Yes	14 Days

The span reference date is set to the first Monday in the collection setting so policy calculation periods will always start on a Monday.

The system has generated policy calculations periods up to Dec 30, 2018

Table 19. Policy Calculation Periods Up to Dec 30, 2018

Start Date	End Date	Calculation Date
Jan 1, 2018	Jan 7, 2018	Jan 1, 2018
Jan 8, 2018	Jan 14, 2018	Jan 1, 2018
..	..	..
Dec 3, 2018	Dec 9, 2018	Dec 3, 2018
Dec 10, 2018	Dec 16, 2018	Dec 3, 2018
Dec 17, 2018	Dec 23, 2018	Dec 3, 2018
Dec 24, 2018	Dec 30, 2018	Dec 3, 2018

The next generate policy calculation periods is started with generate up to date Jan 31, 2019

• 1 day is remaining in the first collection setting. A policy calculation period is generated for this day. Calculation date is set based on the extrapolation of the span reference.

• The first policy calculation period under the second collection setting starts at Jan 7, 2019 leaving a gap from the start of the collection setting. The activity fills this gap with a shorter policy calculation period. The calculation date is set to the start date of the system calculation period.

The result of this generate activity is

Table 20. Result of Generate Activity

Start Date	End Date	Calculation Date
Dec 31, 2018	Dec 31, 2018	Dec 31, 2018
Jan 1, 2019	Jan 6, 2019	Dec 10, 2018
Jan 7, 2019	Jan 20, 2019	Jan 7, 2019
Jan 21, 2019	Feb 3, 2019	Jan 7, 2019

Example 3: Collection Settings on Multiple Levels (Group Account & Policy)

This example shows the effect of overlapping collection settings for a policy on different levels like Group Account Collection Settings and Policy Collection Settings.

Suppose that there is only a group account level collection setting with the following specification:

Table 21. Example 3: Collection Settings on Multiple Levels

Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Jan 1, 2018		Jan 1, 2018	1 Months	Yes	10 Days

Policy Calculation Period generation with generate up to date Mar 31, 2018 results in the following policy calculation periods:

Table 22. Policy Calculation Period with Generate up to Mar 31, 2018

Start Date	End Date	Calculation Date
Jan 1, 2018	Jan 10, 2018	Jan 1, 2018
Jan 11, 2018	Jan 20, 2018	Jan 1, 2018
Jan 21, 2018	Jan 30, 2018	Jan 1, 2018
Jan 31, 2018	Feb 9, 2018	Jan 1, 2018
Feb 10, 2019	Feb 19, 2018	Feb 1, 2018
Feb 20, 2018	Mar 1, 2018	Feb 1, 2018
Mar 2, 2018	Mar 11, 2018	Mar 1, 2018
Mar 12, 2018	Mar 21, 2018	Mar 1, 2018
Mar 22, 2018	Mar 31, 2018	Mar 1, 2018

Now, a new policy level collection setting is defined from February 2018 that will generate weekly calculation periods.

Table 23. New Policy Level Collection Setting

Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Feb 1, 2018		Feb 1, 2018	7 Days	Yes	7 Days

Policy Calculation Period generation depends heavily on the parameters passed to the generation process. To clarify consider the various generation scenarios as described below.

Generation 2

Generate Up To Date: Mar 31,2018

Replace From Date: <empty>

No periods are generated as there are periods already present that include the generate up to date

Generation 3

Generate Up To Date: Mar 31, 2018
Replace From Date: Jan 1, 2018
Look Back Date: Jan 1, 2018

Since the collection settings are specified on the group account and the policy level, the system determines collection settings with their effective time spans as:

Table 24. Generation 3

Level	Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Group Account	Jan 1, 2018	Jan 31, 2018	Jan 1, 2018	1 Month	Yes	10 Days
Policy	Feb 1, 2018		Feb 1, 2018	7 Days	Yes	7 Days

Generated Policy Calculation Periods:

Table 25. Generated Policy Calculation Periods

Start Date	End Date	Calculation Date
Jan 1, 2018	Jan 10, 2018	Jan 1, 2018
Jan 11, 2018	Jan 20, 2018	Jan 1, 2018
Jan 21, 2018	Jan 30, 2018	Jan 1, 2018
Jan 31, 2018	Jan 31, 2018	Jan 1, 2018
Feb 1, 2018	Feb 7, 2018	Feb 1, 2018
…​	…​	…​
Mar 22, 2018	Mar 28, 2018	Mar 22, 2018
Mar 29, 2018	Apr 4, 2018	Mar 29, 2018

If the policy collection setting is end dated on Feb 28, 2018

Table 26. If Policy Collection Setting End Dates in Feb 28, 2018

Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Feb 1, 2018	Feb 28, 2018	Feb 1, 2018	7 Days	Yes	7 Days

Generation 4

Generate Up To Date: Mar 31, 2018

Replace From Date: Jan 1, 2018

Look Back Date: Jan 1, 2018

Since the collection settings are specified on the group account and the policy level, the system determines collection settings with their effective time spans as:

Table 27. Generation 4: Collection Settings

Level	Start Date	End Date	Span Ref Date	Advance Length	Policy Calculation Periods	Calculation Period Length
Group Account	Jan 1, 2018	Jan 31, 2018	Jan 1, 2018	1 Month	Yes	10 Days
Policy	Feb 1, 2018	Feb 28, 2018	Feb 1, 2018	7 Days	Yes	7 Days
Group Account	Mar 1, 2018		Jan 1, 2018	1 Month	Yes	10 Days

Generated Policy Calculation Periods:

Table 28. Generated Policy Calculation Periods

Start Date	End Date	Calculation Date
Jan 1, 2018	Jan 10, 2018	Jan 1, 2018
Jan 11, 2018	Jan 20, 2018	Jan 1, 2018
Jan 21, 2018	Jan 30, 2018	Jan 1, 2018
Jan 31, 2018	Jan 31, 2018	Jan 1, 2018
Feb 1, 2018	Feb 7, 2018	Feb 1, 2018
Feb 8, 2018	Feb 14, 2018	Feb 8, 2018
…​.	…​	…​
Feb 22, 2018	Feb 28, 2018	Feb 22, 2018
Mar 1, 2018	Mar 1, 2018	Mar 1, 2018
Mar 2, 2018	Mar 12, 2018	Mar 1, 2018
Mar 12, 2018	Mar 22, 2018	Mar 1, 2018
Mar 22, 2018	Mar 31, 2018	Mar 1, 2018

---

1. 'Group accounts in the group client' also include those group clients that are part of the hierarchical structure under the group client in the parameter

2. The system picks up other group accounts for period generation even though a group account is specified as parameter when multiple group accounts are encountered in the period between the look back date and the generate up to date.

3. If the look back date on the group account’s group client has a value, this value overrules the look back date activity parameter.