Initial Premium

This activity applies the first premium payment to the policy.  It must be processed before the policy can be issued.  Associate a suspense record with this activity so that the money can be tracked in the system.

Note:  Create any necessary suspense records before adding activities that apply money to the policy.  This work flow is necessary to avoid closing the Policy screen in the middle of adding an activity.

Click Add Activity on the Secondary menu and select Initial Premium from the Activity drop-down box.  

Add Activity Window with InitialPremium Selected

Enter the values for this activity, add the suspense information and then click OK.  A description of each field is listed below.

• Effective Date:   The date the initial premium becomes effective.

• Gross Amount:  The total amount of the initial premium.

• PreTEFRA Amount:  Tracks money contributed before the TEFRA law went into effect.

• Cost Basis Provided:  In the case of a transferred policy, this is the amount of money indicated as cost basis from the transferring company.

• Funding Method:  Determines whether the policy is funded with pre or post tax contributions.

• If the policy is a Qualified policy, then the Funding Method displays Premium and Replacement options that must be selected.

• If the policy is a Non-Qualified policy, then the Funding Method displays Premium and 1035 Exchange Options

• PostTERFRA Amount:  Tracks money contributed after the TEFRA law went into effect.

• Replacement Type:  Can be traditional or rollover.

Steps to Associate a Suspense Record with an Activity

1. Click Add Activity on the Secondary menu and select the activity from the drop down box.

2. Enter all of the activity details.

3. Click the Suspense link at the top of the window.

4. Enter the suspense record number in the current suspense field and select OK at the bottom of the screen.  The activity will be displayed on the Activity screen along with a lightning bolt icon to process the activity.