Policy Basics

A policy consists of five basic building blocks, which are listed below.

• Client

• Policy

• Role

• Segment

• Activity

Variable products also require Allocations to be identified.  Allocations define how the money invested into the policy should be allocated.

A requirement is an additional feature  that can be attached to an activity in order to control when the activity processes.  Requirements are optional and give the user additional control over activity processing.  Requirements are configured in the Rules Palette, but can be managed in OIPA from the Activity screen.

Building Block Definitions

• Client is the person or entity that purchased a policy and is associated to a policy via a role.

• Policy is the information needed to define the foundation of the contract, such as issue date or free-look end date.

• Role is the association of a client with responsibilities or duties related to a policy, such as beneficiary, insured, owner or payer.

• Allocations are the investment choices a policy owner directs his premium payments to when the money is applied to a variable annuity policy.

• Segment is a policy coverage, feature, rider or extension of a policy, such as basic coverage, AD&D or disability waiver.

• Activities are business processes, changes, additions, terminations and other action items that occur on a policy during its life cycle, such as premium payments, claim payouts or coverage lapse.

• Requirements can be placed around activities to prevent them from processing on a policy unless specific conditions are met.  Requirements are managed through the Activity screen.

Using the OIPA application screens, enter all the information required to successfully create a policy.  After a policy is created, use the screens to make modifications to the policy as needed.