Oracle® Insurance Policy Administration 9.4.1.0 E23637_01

# Initial Fund Reallocation

When premium is applied to the policy during the Initial Cooling Period, it is applied to a general fixed fund. Once a unit linked policy is issued and becomes active, the Initial Fund Reallocation activity is automatically spawned. This activity will re-allocate any premium money applied to the policy during the Initial Cooling Period into the funds designated in Future Allocations.

When the activity is processed, a warning icon will be generated. This stops the activity processing just after assignments have been processed but before spawns and accounting have been processed. To override the warning, click the warning icon and check the Override box.

## Activity Details

After the activity processes, click the Activity Detail icon to the left of the activity to see how the money was applied to the policy. The Allocations link displays the fund information. Expand the plus box next to a fund to see the exchange information.

###### Activity Detail Window for InitialFundReallocation Activity

## How Money is Applied to Multiple Funds

When the InitialFundReallocation activity processes, the premium applied to the policy is directed to an initial fund (for example, Fund U). When the Cooling Period expires, the premium amounts are redirected to the funds identified in Future Allocations. If multiple funds are identified, then any interest accrued during that time is first passed to one fund, then the remaining amount is divided between the funds so that the interest plus the principal in one fund is equal to the principal in the other fund.

This fund movement can be seen in the Activity Detail window of the InitialFundReallocation activity. Click the Activity Detail icon to the left of the activity to open the Activity Detail window. Click Allocations. The fund activity will display.

###### Funds Allocation From InitialFundReallocation Activity

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