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Policy Administration PDF Print
Policy Administration

More on this page:

arrowClient Database
arrowSample Contract Inquiry Screen
arrowMaturity / Expiry Processing
arrowClient Reinstatement
arrowUndo / Redo
arrowAnniversary Processing
arrowPolicy Loan Processing

Policy Administration includes those functions that enable customer service personnel to provide assistance to a company's policy owners, agents, and beneficiaries.


Interactive, Online Access

All customer service functions are interactive. Transactions immediately update appropriate master files and history files. All processing is real-time, on-line. No batch cycles are required to update files.



Client Database

The FIMMAS client database provides full customer information for primary insureds, additional insureds, joint insureds, payors, owners, beneficiaries, and other individuals with a business relationship to your company, such as agent, brokers, marketing prospects, referrals, insurance carriers, and reinsurers. As policies or customers are added to the system, FIMMAS checks against pre-defined identifiers to prevent duplication of records.

Once the customer record is located, authorized users have on-line access to current status, transaction history, correspondence history, outstanding requirements, all policies to which a particular customer has a relationship, and relationships to other policy holders.

Customer information can be maintained by any authorized user. If a customer is associated with multiple policies, all changes to name, address, Social Security number, and other items of customer information are automatically effected for all policies.


Sample Contract Inquiry Screen

Click to enlarge
Contract Action HQ

All client and contract information is linked. Find client detail from contract inquiries; find contract detail from client inquiries. Client information can be accessed by name, Social Security number, date of birth, telephone number, or other user-specified search keys.

An unlimited number of notes and reminders can be attached to a client, policy, agent, or new business application. Users may enter reminders about future optional activities, such as change of ownership or seasonal billing address change. Users control the implementation of scheduled changes. Activity logs record key changes to master file information.

Click on the thumbnail to view a larger screen.



Maturity / Expiry Processing

FIMMAS flags all maturities and expiries prior to their scheduled termination date. Users can control the timing of when this is done relative to the scheduled termination date. This capability extends to contracts and to riders.

FIMMAS provides on-line quotations to calculate maturity or expiry value. This calculation may also include the following:

  • Dividend Values
  • Loan Balances and Accrued Interest
  • Premium Deposit Fund Values
  • Terminal Dividends

On-line screens assist the user in generating disbursements for maturities and expiries. The system calculates the termination value, reflecting the same components as indicated for the quote calculation. The following real-time updates are triggered:

  • Update policy master file information to reflect a change to terminated status
  • Generate accounting transactions
  • Create a disbursement record (used to control or interface with checkwriting)
  • Update all financial balances of the policy


Client Reinstatement

FIMMAS supports the reinstatement of policies and individual riders. Since master file information is retained following a termination, it is easy to do a reinstatement.

The reinstatement screen provides real-time updates to place the policy rider in active status. As soon as this is done, policy activities may be resumed. Payments may be applied for retroactive periods with an adjusted paid-to date.

FIMMAS provides screens for reinstating reinsurance. A reinstatement may be reversed by terminating the policy / rider. If the contract is reinstated on the termination date, it is considered to be correcting a termination and not a true reinstatement.


Undo / Redo

To correct an error, you make a single on-line entry, indicating the adjustment and the applicable date. The system automatically recalculates values without further manual intervention. No batch cycle update is required.

The database design of FIMMAS allows you to undo and redo processing at any time, retroactive to any point in time, without manual calculations. This feature extends both to traditional participating products for recalculating dividends, and to non-traditional and interest-sensitive products, such as Universal Life and annuities, for calculating values.


Anniversary Processing

FIMMAS was designed to support the product calculation and the "versary" processing requirements of complex non-traditional life and annuity products. From that base, FIMMAS has been extended to support a wide range of traditional insurance products. Some products call for anniversary processing and others call for monthaversary processing. FIMMAS allows a plan to be implemented either way.

FIMMAS incorporates sophisticated reverse / reapply capabilities in processing non-traditional products. For example, for a Universal Life policy, when a user applies a retroactive premium payment or coverage change, FIMMAS automatically flags the policy. Anniversary or values processing may be run immediately to recalculate values from the date of the retroactive changes. FIMMAS will automatically cycle the policy forward through as many monthly or annual periods as necessary to recalculate to the current date.

FIMMAS retains detailed history of "versary" calculations and results. This enables users to display historical results on-line to answer customer questions. Users may also run standard reports of detailed or summary historical information, including cost of insurance charges, expense charges, dividends, interest credits, etc.


Policy Loan Processing

Policy loan disbursements and loan repayments are supported in FIMMAS. The system creates accounting transaction records when transactions are posted and also creates loan interest transactions. A permanent record of the transactions (check amounts and interest) are stored in the Accounting History File.

The actual amount that the policyholder receives for a loan is shown in FIMMAS as the check amount. For each transaction, an advance interest calculation is made. The user enters the check amount in disbursements or repayments. When the batch is posted, an interest transaction is created. The total of all loan transactions equals the current loan principal.

Records from Accounting History are used by Cash Value calculations to transfer the loan transaction amount from the regular portion of the cash value to the loaned portion of the cash values. Interest is computed independently on the two portions of cash values.

Billing functions support preparation of annual notices for loan interest. When the first loan transaction is entered for a contract, the system creates a loan value and loan interest billing date in the Contracts Funds File during cash values processing. The Contract Funds File maintains the outstanding principal balance and any information that controls billing for loan interest.

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