Full Screen Cancellation
Which status segment should be used when entering the annual premiums in the prorata calculator - the effective date of the term or the effective date of the cancellation?
The effective date of the term that the cancellation falls between
When is a policy ineligible to be reinstated?
When a payment has been received AFTER 30 days
What is used on the stat chg line during entry?
A33, (med pay limit), RCLM or LSRATO (if applicable at renewal)
What is the formula for calculating the premiums for the entry?
Prorated premiums
__________________ X SFPP balance
total prorated premiums
TRUE OR FALSE -- DO coverage is manually rated for apt only. For condos, the system will rate as long as the policy has less than 1000 units
TRUE
What is needed for the LQ line when completing the entry?
Stat class, exposure, location no (if applicable), prem rate (religious org only), and complex (residential only)
What transaction is used when correcting the premiums after a full screen reinstatement? Is there a note needed when completing this transaction?
CCH, Yes
Excess limits and rates can be found where within the CMP Rate Manual?
Guide A Rates
What is entered that will prevent the earned premium bill from being transmitted to the SFPP account when manually billing for earned premium?
EN CDE,3,SFPPNO,/
Match the numbers with the letters:
1. When a policy is ratable NO --
2. When a policy is ratable YES --
A. only the line changing is entered on the skeletal screen
B. all lines must be entered on the skeletal screen
1B
2A
TRUE OR FALSE -- If the status segment you are going behind was a premium impacted endorsement, you don't have to take that premium increase/decrease into consideration when processing your full screen.
FALSE -- you must take it into consideration by adding/subtracting the accounting premium on the endorsement status segment.
When a TOOF period has been established incorrectly, which 2 mnemonics are allowed correct the TOOF mistake on the stat chg line?
TOOFCH and TOOFPR
TRUE OR FALSE -- When processing a renewal billing entry, the total annual premiums would not be entered for all lines, only the LQ line being updated.
FALSE -- ALL lines requiring premiums are entered at renewal. This is true for mid-term entries.
TRUE OR FALSE -- When manually billing for earned premium, always try to bill “all” earned premium on Line 1. If there is not enough premium on Line 1, the remainder of premium will be billed on Line 2. This process will continue down to all premium lines until the total amount of earned premium is billed.
TRUE
What are the steps to manually rating a minimum premium policy?
BONUS: What is included on the entry? (+50 points)
Step 1: Recalculate the annual premiums for the policy term by using FBL quotes and the requested changes.
Step 2: Compare current policy premiums and prem rate to the quote policy and prem rate to determine the difference
Step 3: Enter the difference into the prorata calculator (NEW-CURRENT)
Step 4: Enter the prorated line premiums and prem rate when doing the entry
BONUS: MINPRE,Y (+50 points)
What is the process when the PICC/SFPP balance is more than the annual premium needed?
Day 1: MIE screen at the flat date of prior term for the difference in premium and then the cancellation entry using annual premiums
Day 2: LIE screen using the calculated earned premium for the current term
Find the TOOF premiums using:
Effective: 2/1/2020
Cancelled: 3/10/2020
Reinstatement: 3/30/2020
Premiums:
$500 AP
$44 LQ
Accounting Premiums:
$520
$50
STEP 3:
449.50-422=27.5
39.56-37.14=2.42
STEP 4:
520-27.5=492.5 AP
50-2.42=47.58 LQ
What are the steps for calculating med pay?
• FBL Quote the policy with $10,000 medical payments
• Manually rate the excess amount
• Add additional premium to existing premium on LQ line
• Enter endorsement entry with manually rated premium with med pay limit
Calculate the premium lines using:
Balance remaining: $200
Premiums:
$600 AP
$350 LQ
600/950*200=126.32 AP
350/950*200=73.68 LQ
What is the base premium for DO in Missouri for an APT with liability at 2 million & 30 units?
876