Premium

Premium (or Money In) is the receipt of premium and allocation of the premium received to the appropriate unit linked funds. The plan currency will be allowed for premium. The allocations of the premium may be by dollar amount, percent, or a mixed method of dollar and percent. The Base Coverage segment must be added to the policy before this activity will process.

The activity will automatically allocate to fixed fund U when the policy is pending or active during the cooling period. This can only be overridden if the configuration provides a check box on the Premium Add Activity screen to Bypass the Default Allocation.

After the cooling period, the policy-level future allocations will be used. The future allocations can be overridden on the Allocation tab if configuration provides a check box on the Premium Add Activity screen to Override Policy Allocation. If allocations are overridden and the Override Policy Allocation checkbox is clicked, then these overridden allocations will be written back to the policy as new future allocations.

Note: The activity will use plan fields to calculate the Price Override and Trade Override days. This will be added to the Price Date (Transaction Effective Date or Override Price Date if entered) to determine the price and trade dates for the activity.

Steps to Add Premium Activity

Open a unit linked policy and select Add Activity from the Secondary menu.
Select Premium from the Activity drop down box.
Enter the Effective Date.
Enter the Premium Amount and select the currency type.

Note:If configuration provides an Override Policy Allocation checkbox, then checking this box will allow a user to click the Allocation link and change the funds the premium is allocated to.

Note:If configuration provides a Bypass Default Allocation checkbox, then checking this box will allow the funds to go straight to the funds identified in Future Allocations.

Click the Allocation link at the top of the window to change default allocations. If allocations do not need to be changed, then skip to step 9.
Select the number of funds from the Number of Funds drop down box.
Select the allocation method from the Allocation Method drop down box.
Select the funds from the Fund drop down box and enter the percent to allocate to that particular fund.
Click OK and the activity will be listed on the Activity screen with a lightning bolt icon next to it.
Click the lightning bolt icon to process the activity.

Premium Activity screen

Add Activity Window with Premium Selected

unit linked premium activity allocation tab

Allocation Section of Add Activity Window