Some insurance policies have premium that is calculated retrospectively; that is, only after the policy term or a portion of the term is completed will the actual premium be knowable. These are often called pay as you go policies because the billing is based on actual experience during the policy term.
The Premium Reporting feature is used to handle these types of policies. Unlike standard policies, billing is based on premium reports as they are filed, and not by premiums attributed to perils. There is one invoice per premium report, generated at the time the report is issued, rather than a schedule of invoices known up front.
See the Premium Reporting API topic for technical details about the API, and the Premium Reporting Configuration Guide for information about how to configure the feature.
Premium Reports are created in draft state. While in draft state they can be updated as many times as desired. Then, when the report data is ready, the report can be issued, at which time the pricing will be calculated, and documents and invoices will be generated. Issued reports can no longer be updated.
Reports in draft state may be manually discarded. After they are issued they are no longer allowed to be discarded.
When reports have data that needs to be corrected, there are two mechanisms, called “reversal” and “replacement.” See the section Updating Premium Reports for details.
Reports are submitted to cover sequential segments of time. The first report has a start time equal to the start time of the policy, and an endTimestamp that can be specified to any time after the start time and before the policy expires. The subsequent report will start at the time the previous report ends, and again can end at any time before policy expiration.
Each report has a startTimestamp and an endTimestamp. The startTimestamp is always set automatically by the system.
Because of this structure, there will never be time gaps between premium reports.
The invoice for a premium report will be due at midnight on the day the report is issued, unless that is overridden with the invoiceDueTimestamp.
No automated proration or scaling will ever be done for calculating premium report premium, fees, taxes, and commissions. The actual monetary amounts supplied will be those amounts presented on the report’s invoice.
Premium reports that have already been issued may be corrected in either of two ways:
Reversing a premium report such that it is invalidated and its time period is no longer covered by a report. A new report can be issued at a subsequent time.
Replacing a premium report by creating a new report to take the place of an issued report.
When a premium report is reversed or replaced, the following actions are taken:
Any payment applied against its invoice is reversed.
The invoice itself is then settled as invalidated.
The premium report will take the state reversed.
The event stream will have an event for the payment reversal if there was a payment reversed.
To reverse a premium report, no payload is required for the API. Use the reversal endpoint.
Reversed premium reports will have the optional reversedTimestamp property set.
Only the last of the premium reports for a policy can be reversed. To modify earlier reports, use the Replace feature.
To replace a premium report, pass the data required to construct its replacement using the Replace a premium report endpoint.
Replacement can be tracked with the following optional properties for the premium report:
replacementOfLocator: The locator of the premium report that this one replaced
replacedByLocator: The locator of the premium report that replaced this one
replacedTimestamp: The time the replacement was executed