Delinquency
Overview
Delinquency is a process that includes a workflow to manage actions to be taken when the insured has one or more invoices that are past due, i.e. invoices that have a dueTime
in the past and are not yet fully settled with payments or applied credits.
Delinquencies can be used to create policy lapses, which are policy cancellation transactions that are created and issued automatically based on configuration and plan settings.
Configuration
Delinquency is set up using configuration Delinquency Plans. When policy becomes delinquent, the system looks for the delinquency plan that governs that policy, and uses the settings on that plan to create and manage the deliquency. Each plan has the following settings:
gracePeriodDays
: An integer value that sets the timespan in days between the onset of the delinquency and the time at which the policy system will be signalled to cancel the policy.lapseTransactionType
: The type of the transaction that will be created for the delinquency if it reaches the lapse time. This must be a policy transaction of categorycancellation
.delinquencyLevel
: Eitherpolicy
orinvoice
. If the setting ispolicy
, then when other invoices for that policy become past due, they will be managed with the existing workflow. If the level isinvoice
then a new delinquency workflow will be spawned for each invoice.advanceLapseTo
: The state to which the system should automatically advance the lapse transaction. If this is notissued
, then the lapse will have to be manually issued for cancellation to be effective.
Delinquency Onset
A policy becomes Past Due when any invoice which contains any invoice item for that policy reaches its dueTime
without being fully settled. When that happens, the system will look for a delinquency plan, in this order:
The
delinquencyPlanName
on the policyThe
delinquencyPlanName
on the accountThe
defaultDelinquencyPlan
in configuration
If a delinquency plan is found, then a delinquency workflow is created, and the delinquency workflow begins. Using the plan settings and past-due data, the delinquency will have the following settings established:
The
accountLocator
for the involved insured accountThe
graceStartedAt
time, which is usually the time the delinquency is createdThe
graceEndsAt
time, when the policy will lapse, based on thegracePeriodDays
settingreferences
, which describe the policies and invoices that are involved in the delinquency.settings
are stored for reference:advanceLapseTo
,gracePeriodDays
,lapseTransactionType
, anddelinquencyLevel
Note
Before a lapse occurs, you may change the lapse time using the Update Delinquency endpoint.
Lapse
When the graceEndsAt
time arrives for an unsettled delinquency, the system will create a cancellation transaction if the lapseTransactionType
is set on the delinquency plan. This transaction will automatically advance to the state given on the advanceLapseTo
setting, and after that the cancellation may be managed manually if it is not yet issued
.
If not changed by the client, the lapse will become at the end of the day calculated using the gracePeriodDays
setting.
Note
In addition to the lapse event, you can add custom events. See the Delinquency Events Feature Guide for details.