RISKEND

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RISKEND.PNG
Name Risk Endorsement
Shortcut RISKEND
Area Policy

The RISKEND documents page, has further relevant information.
More information on Tags can be found at the Document tags page.


See the NOVUS Walkthrough Guide for further information.


Risk Endorsement

It is important that the integrity of a risk record is maintained once an accounting transaction (TRANPT) has been processed, as a consequence access to the risk record will be restricted to view only. Once this occurs, the user will be warned accordingly and redirected to the RISKEND risk endorsement program.

Amendment to the risk record may simply be required to correct data input errors or where a change to the terms of the policy/contract has arisen. Such changes are tracked as a matter of good housekeeping and/or for compliance using the RISKEND program.

Note: On a policy with risk details, where an endorsement does not result in an additional or return premium (AP/RP), a zero value adjustment premium must still be processed using TRANPTN before the next endorsement can be processed.

Cancellation of a risk ab initio will set the expiry date to inception date minus one. A return premium (RP) transaction should then be created in TRANPT with the endorsement number created entered in the endorsement field in TRANPT. If the original premium transaction is reversed using TRANREV and a contra premium (CP) transaction used then no further changes can be made to the policy.

All master facilities, lineslips and binders should be "sealed" once firm orders using TRANPTN. this can be as an FDO or ADJ transaction type of zero value. If an LPAN is required for the Bureau this transaction number will form the LPAN submission. if no Bureau is involved it locks the master contract and prevents accidental changes without a suitable audit.

Images: RISKEND.PNG


Note: An extension of a policy is treated as an endorsement of the policy effective as at one day after the expiry date of the policy.

Trying to produce an endorsement on a risk that has had the risk details saved may result in the error message as "endorsement cannot be produced". In this case, run the RISKEND program, make all required changes and save the risk record. Then go to the TRANPTN program and process the zero amount transaction. The next endorsement can be produced successfully.

The effective date entered in the RISKEND program should be the same as the start date of the new risk item. This will then automatically produce the correct date in the risk details.

Where the change requires the underwriter(s) to agree on an endorsement the necessary documentation is produced using the ENDORSE program.

To Record a Risk Endorsement

  1. Enter the policy number and year.
  2. The date, time and user initials will automatically be displayed.
  3. The next available endorsement number is displayed in the endorsement field. Make a note of the change and use the tab key to move forward.
  4. The 'effective date' field must be amended as required. Tab to the next field.
  5. If the change requires an extension of the policy, set the effective date to one day past the expiry date and fill in the new expiry date in the appropriate field. If there are risk details records there will be an option to extend them assuming the expiry date is the same as the policy expiry. Tab to the next field.
  6. Should the change require the addition or deletion of a section enter 'Y' in the appropriate field. Tab to the next field.
  7. Press F10 [COMMIT] and the add/delete section program will be displayed.
  8. If the addition or deletion of a section is not required to navigate to the final field, use the save button or F10 [COMMIT]. The risk enquiry screen will appear with the endorsement number next to the risk number.
  9. To terminate input at any time click the exit button.


Risk endorsement screen.PNG


There are three screens where changes can be made. The risk screen above, the edit risk details screen, and the edit risk clauses screen. Any changes required must be completed in the appropriate screen before any edits can be made to the risk screen.

If a change is made to the edit risk details screen and the save button is clicked, then the risk details will be locked for this endorsement. No further edits can then be made and a padlock will appear on the link to indicate that changes have been made and saved.


Risk details changes.PNG


Locked risk details.PNG


If a change is made to the edit risk clauses screen RCLAUSE, and the save button is clicked, then RCLAUSE will be locked for this endorsement. No further edits can then be made and a padlock will appear on the link to indicate that changes have been made and saved.


Locked risk details and clauses.PNG


When the edit risk details and edit risk clauses screens have been modified and saved, the padlock disappears from the main risk screen and the save button is enabled.


Unlocked risk endorsement screen.PNG


Any edits must be carried out in the correct order.


If the main risk screen is edited, but not saved, a warning will appear if an attempt to edit the risk details or risk clauses is made. If a change is made in the main risk screen only, the save button is enabled, and, if clicked, a warning appears:


Save risk endorsement warning.PNG



When the save button is clicked in the main risk screen no further changes can be made to either risk details or risk clauses.

The save button in the main risk screen will complete the endorsement process and locks the screen so that no further editing can take place.


Updated RISKEND screen.PNG


To Cancel a Risk

RISKEND cancellation.PNG


Enter the policy number and year, tab through the fields, and enter the reason for the change in the new note details. The MTA (mid-term adjustment) effective date must be set and the change period button clicked. This enables the policy period adjustment dropdown boxes to be selected.

Chose the reason for the policy adjustment, either ab initio cancellation, mid-term cancellation, policy extension, or policy reinstatement. Enter the new expiry date and select the reason for the cancellation or reinstatement. These drop-down boxes are dependent on the selection chosen at the top of the policy period adjustment box. On pressing COMMIT, the policy period will change.

N.B. Remember to recalculate all risk items in order to compute the revised premium and remember to commit the new computations.


Case study - incorrect market client on PM transaction

It is advisable for a user to check the risk record set up, the market set up and to take advantage of the provisional transaction summary pop up in TRANPT before committing the transaction to the ledger to avoid incorrect transactions. Despite this, there may be occasions where an incorrect transaction will not be noted until after the event. For example, a risk and market may have been set up with an incorrect market client and the original premium (PM) transaction processed against that incorrect client - how should this be corrected, particularly where risk details are involved and transactions must be associated with an endorsement number before any future endorsements can be processed?

1. Step one is to reverse the original premium transaction - either through a CP contra (where cash has not been matched) or by an equal and opposite side RP if contra is not possible.

2. Using MART, create a market version 02 to select the correct partner for the market client.

3. Using TRANPT, re-enter the PM transaction against this market version 02 but crucially ensuring that the endorsement number is entered as '0' (original PM transactions are associated with 'endorsement 0').

4. RISKEND should now be used to create endorsement 1 to correct the client/market client on the risk record itself.

5. Finally a zero value ADJ transaction must be processed using TRANPTN against 'ALL' sections' and, crucially, ensuring that endorsement number is entered as '1' to associate the transaction with the endorsement, completing the endorsement process and preventing any errors from being returned when next endorsement needs to be processed.

Documentation

The numbered functions fields for producing documentation are found at: Document fields for RISKEND


Version History

v 6.0.0 - updated to the latest version

V 5.1.0 – Updated to latest version.

v56M - The last version
v55J - changed 318 E to be a warning to allow "retrospective" changes
v54M - BAPOLNUM removed (was 6 car). Transaction message changed. Lapsed policies rejected.
v53P - fixed the address output to replace commas with returns.
v41M - First version of this form to use the <a href="New style">new style</a>. No other updates except the restyle.