ChainThat

With the insurance landscape in constant flux, innovation is key to staying ahead. Out-of-sequence (OOS) endorsements are a groundbreaking development, and we are thrilled to be at the forefront of this transformation.

Key Highlights of Our OOS Endorsement System

1.      Automated Detection: Our system automatically identifies overlapping endorsements, ensuring transparency and avoiding conflicts.

2.      Seamless Integration: Additional or return premiums seamlessly carry forward, minimizing manual intervention and streamlining operations.

3.      Accurate Calculation: Return premiums are meticulously calculated, ensuring fairness and accuracy in every transaction.

4.      Effortless Document Generation: Essential documents are automatically generated, reducing administrative burdens and enhancing efficiency.

Understanding Out-of-Sequence Endorsement

OOS policy transactions involve transactions with an effective date that precedes the effective date of a previous policy transaction on the same policy. Our cutting-edge product configuration, with the Out of Sequence endorsement set to “true,” drives policy workflows efficiently and seamlessly.

It’s important to note that while OOS transactions offer incredible flexibility, our system ensures integrity by allowing only one in-flight OOS transaction at any given time.

Examples of OOS

Let’s dive into examples to showcase the OOS endorsement:

Example 1: “Non-conflicting” Out-of-sequence Endorsement (Policy changes which are not present in future policy transactions of the same policy)

Key highlights:

  • Our Beyond Policy Administration (BPA) platform automatically detects any overlapping endorsement, and prompts the user with transactions getting impacted at the time of initiating “OOS 1”.

  • On successful continuing with “OOS 1”, any Additional/Return Premium from it is automatically carried forward to “Endorsement 2” and its endorsement # is re-sequenced, without any manual intervention.

  • When the “OOS 1” endorsement is processed, “Endorsement 2” is reversed because its effective date is later than the OOS transaction date. After the OOS transaction is confirmed, “Endorsement 2” is reapplied. Reapplying means applying endorsements on reversed transactions one by one based on the new order. This will be executed in the same order as the sequences are to be applied.

  • Based on the re-sequence, BPA ensures no premium impact from the “Endorsement 2” limit increase on “OOS 1”.

  • Any Documents configured for the Endorsement stage will be automatically generated by BPA for “OOS 1”.

Example 2: “Conflicting” Out-of-sequence Endorsement (Policy change exists on other policy transaction, but an effective date earlier than that other policy transaction). BPA will automatically merge, and in case of conflicts, take the latest transaction’s data as the overriding factor.

Key highlights:

  • BPA automatically detects for any overlapping endorsement, and prompts user with transactions getting impacted at the time of initiating “OOS 2”.

  • On successful continuing with “OOS 2”, any Additional/Return Premium from it is carried forward to “Endorsement 2” automatically, and it’s endorsement # is re-sequenced, without any manual intervention.

  • Based on the re-sequence, after “OOS 2”, when “Endorsement 2” is recalculated, an attributable return premium is invoiced on 29th Feb for 29th Feb till the end of the policy term for the decrease in coverage limit as per the rating algorithm.

  • Any Documents configured for the Endorsement stage will be automatically generated by BPA for “OOS 2” when the transaction is confirmed.

FAQs

Q: What is an Out-of-Sequence Endorsement?

A: It’s a policy change with an effective date earlier than a previous change on the same policy.

Q: How do Out-of-Sequence Endorsements work?

A: They adjust policy details retroactively, ensuring coverage accuracy.

Q: Why are Out-of-Sequence Endorsements important?

A: They provide flexibility and accuracy by allowing policy changes to reflect past circumstances.

July 15, 2024

Introducing Out-of-Sequence Endorsement: Streamlining Policy Management

OOS policy transactions involve transactions with an effective date that precedes the effective date of a previous policy transaction on the same policy. Our cutting-edge product configuration, with the Out of Sequence endorsement set to “true,” drives policy workflows efficiently and seamlessly.

Key Highlights of Our OOS Endorsement System

1.      Automated Detection: Our system automatically identifies overlapping endorsements, ensuring transparency and avoiding conflicts.

2.      Seamless Integration: Additional or return premiums seamlessly carry forward, minimizing manual intervention and streamlining operations.

3.      Accurate Calculation: Return premiums are meticulously calculated, ensuring fairness and accuracy in every transaction.

4.      Effortless Document Generation: Essential documents are automatically generated, reducing administrative burdens and enhancing efficiency.

Understanding Out-of-Sequence Endorsement

OOS policy transactions involve transactions with an effective date that precedes the effective date of a previous policy transaction on the same policy. Our cutting-edge product configuration, with the Out of Sequence endorsement set to “true,” drives policy workflows efficiently and seamlessly.

It’s important to note that while OOS transactions offer incredible flexibility, our system ensures integrity by allowing only one in-flight OOS transaction at any given time.

Examples of OOS

Let’s dive into examples to showcase the OOS endorsement:

Example 1: “Non-conflicting” Out-of-sequence Endorsement (Policy changes which are not present in future policy transactions of the same policy)

Key highlights:

  • Our Beyond Policy Administration (BPA) platform automatically detects any overlapping endorsement, and prompts the user with transactions getting impacted at the time of initiating “OOS 1”.

  • On successful continuing with “OOS 1”, any Additional/Return Premium from it is automatically carried forward to “Endorsement 2” and its endorsement # is re-sequenced, without any manual intervention.

  • When the “OOS 1” endorsement is processed, “Endorsement 2” is reversed because its effective date is later than the OOS transaction date. After the OOS transaction is confirmed, “Endorsement 2” is reapplied. Reapplying means applying endorsements on reversed transactions one by one based on the new order. This will be executed in the same order as the sequences are to be applied.

  • Based on the re-sequence, BPA ensures no premium impact from the “Endorsement 2” limit increase on “OOS 1”.

  • Any Documents configured for the Endorsement stage will be automatically generated by BPA for “OOS 1”.

Example 2: “Conflicting” Out-of-sequence Endorsement (Policy change exists on other policy transaction, but an effective date earlier than that other policy transaction). BPA will automatically merge, and in case of conflicts, take the latest transaction’s data as the overriding factor.

Key highlights:

  • BPA automatically detects for any overlapping endorsement, and prompts user with transactions getting impacted at the time of initiating “OOS 2”.

  • On successful continuing with “OOS 2”, any Additional/Return Premium from it is carried forward to “Endorsement 2” automatically, and it’s endorsement # is re-sequenced, without any manual intervention.

  • Based on the re-sequence, after “OOS 2”, when “Endorsement 2” is recalculated, an attributable return premium is invoiced on 29th Feb for 29th Feb till the end of the policy term for the decrease in coverage limit as per the rating algorithm.

  • Any Documents configured for the Endorsement stage will be automatically generated by BPA for “OOS 2” when the transaction is confirmed.

FAQs

Q: What is an Out-of-Sequence Endorsement?

A: It’s a policy change with an effective date earlier than a previous change on the same policy.

Q: How do Out-of-Sequence Endorsements work?

A: They adjust policy details retroactively, ensuring coverage accuracy.

Q: Why are Out-of-Sequence Endorsements important?

A: They provide flexibility and accuracy by allowing policy changes to reflect past circumstances.