See the NOVUS Walkthrough Guide for general information about the system.
Up to 26 sections can be created for a policy. These are identified alphabetically, ‘A’, ‘B’ etc. Non-sectioned policies have a section named ‘A’. For proportional treaties, percentages can be defined for treaty commission, over-riding commission, premium reserves, retained, premium reserve interest, claim reserve interest, tax on interest, and tax, which are used in computing the proportional treaty accounts each period. See the proportional treaty module in this wiki for more information.
These fields are additional to and work in conjunction with the commission and brokerage applicable to other policy types.
The number of sections on a policy must be specified at the time the policy is set up. The system creates identical risk records for each section starting with section ‘A’, ‘B’ etc.
The User must define each section with a unique section code.
the choice of section codes is the user's decision but care should be taken when selecting the sections based on reporting requirements. For example Lloyd's Premium Reporting tool for US property will expect to see sections for buildings, other structures, contents, business interruption, and terrorism.
A different class of business may use sections for layers thereby codes to reflect this such as L1, L2, L3 could be selected. Products grouped together on a master lineslip, or binder may combine a variety of coverage which a client may select on their individual off-policy or declaration, such as engineering, D&O, EL, PL etc.
Morning Data make no guarantees as to the effects of using the same code twice. This is requirement is not enforced at set up due to legacy data issues.
Considerations which might influence the need for a section in NOVUS:
- Different order percent
- Different client commission
- Different carriers/underwriters or their signed proportions or Brokerage %
- Different London Market risk code.
- Reporting requirements on outward BDX
Markets across sections can be processed as either nett or gross but not a combination of the two.
Adding a section can be performed using the SECTADD program from the main menu.
It is not possible to change a market version once there are transactions on the ledger involving that market version and section.
v4.2.0 – Updated to latest version