SplitPercentage Assignments Prototype

OIPAnow supports two new assignment types: SplitPercentageRemoval and SplitPercentageApply. SplitPercentageRemoval removes a specified percentage from each undepleted deposit of each underlying fund associated with a policy, while SplitPercentageApply applies the removed money to a different policy on either the same plan or a different plan.

Prototype Prerequisites

  • The policy needs to be in Pending status.
  • In the Dynamic Prototype Plan, the Balanced fund has deposit-level tracking enabled.
  • The funds and fund codes listed below have been made available to their respective plans.
    Dynamic Prototype PlanFunctional Prototype PlanFund Code
    Dynamic Calc Fund 1Interest Rate Calc 1F1
    Variable Fund 1Variable Fund 1Var1
    Variable Fund 2Variable Fund 2Var2
    BalancedInterest Rate Calc 2Bal
  • Two new MoneyTypes have been made available in AsCodeMoneyType:
    • 83 – SplitPercentageRemoval
    • 84 – SplitPercentageApply

Prototype Explanation

The following business rules and transactions were configured in the Prototype Company to demonstrate this new functionality.

Transactions

  • PolicySplit (DynamicPrototypePlan): When processed, this transaction creates a new policy under the chosen plan complete with the specified policy roles. To view the prototype configuration, navigate in the Main Explorer to Companies | Prototype Company | Plans | Dynamic Prototype Plan | Transactions | PolicySplit. The key configuration for this transaction is explained below.
    • Five fields are configured to capture necessary information:
      • Owner of the new policy
      • Insured of the new policy
      • Percentage of split
      • Redemption fee (Yes/No)
      • Plan name for the new policy
    • A new policy number is created using the MathVariable NewContractNumber.
    • A new transaction, TransferAssetsOut, is spawned by PolicySplit. The new contract number, as well as the values of the Redemption Fee and SplitPercentage fields, are passed as the inputs for TransferAssetsOut on the same day.

Note: Note: PolicySplit does not showcase any of the new functionality implemented by this enhancement. Instead, it serves as a mechanism for setting up different assignment scenarios.

  • TransferAssetsOut (Dynamic PrototypePlan): This transaction is spawned from PolicySplit. It calculates the percentage of each fund's remaining value that will be removed and, upon successful processing, removes this percentage from the funds. To view the prototype configuration, navigate in the Main Explorer to Companies | Prototype Company | Plans | Dynamic Prototype Plan | Transactions | TransferAssetsOut. The key configuration for this transaction is explained below.
    • Three fields are passed from PolicySplit, all of which are disabled for editing:
      • SplitPercentage
      • TransferToPolicy (policy number of the new policy created by PolicySplit)
      • RedemptionFee
    • The SplitPercentageRemoval assignment type is used to remove the split percentage from each undepleted fund.
    • The MathVariable GrossedUpSplitPercentage grosses up the split percentage entered in the PolicySplit transaction to ensure that the proper amount of the fund's remaining balance is removed.
    • A new transaction, TransferAssetsIn, is spawned to the new policy created by PolicySplit.
  • TransferAssetsIn (Dynamic PrototypePlan): This transaction is spawned from TransferAssetsOut. It applies money to the same funds as the removal. To view the prototype configuration, navigate in the Main Explorer to Companies | Prototype Company | Plans | Dynamic Prototype Plan | Transactions | TransferAssetsIn. The key configuration for this transaction is explained below.
    • This transaction has only one field, TransferAssetsOutsActivityGUID, which is passed in from TransferAssetsOut. This field is disabled for editing.
    • The SplitPercentageApply assignment type is used to apply money to the funds. This assignment uses the Split Percentage Apply MoneyType.
  • TransferAssetsIn (Functional PrototypePlan): This transaction is spawned from TransferAssetsOut. It applies money to different funds than the removal. To view the prototype configuration, navigate in the Main Explorer to Companies | Prototype Company | Plans | Functional Prototype Plan | Transactions | TransferAssetsIn. The key configuration for this transaction is explained below.
    • This transaction has only one field, TransferAssetsOutActivityGUID, which is passed in from TransferAssetsOuts. This field is disabled for editing.
    • The SplitPercentageApply assignment type is used to apply money to the funds. This assignment uses the Split Percentage Apply MoneyType.
    • A collection MathVariable called FundList is populated with destination funds using a SQLstatement. The SQLstatement funds a match for the source funds to the destination funds using a FundField called FundCode.

Business Rules

  • RedemptionAmountFormula (Dynamic Prototype Plan): This business rule provides the formula for calculating a redemption fee. To view the prototype configuration, navigate in the Main Explorer to Companies | Prototype Company | Plans | Dynamic Prototype Plan |Business Rules |System Rules | RedemptionAmountFormula. The key configuration for this business rule is explained below.
    • If the plan uses Inception valuation, this rule will use the Original Deposit Date from AsValuation (if present) instead of the valuation record's Effective Date.
    • If the plan uses Point-in-Time valuation with deposit-level tracking enabled, this rule will use the Original Deposit Date (if present) from AsDepositValue instead of the valuation record's Effective Date.

View Prototype in OIPA

  1. Log in to OIPA using the Prototype Company user ID and password.
  2. Open a policy or create a shell policy belonging to the Dynamic Prototype Plan.
  3. Add the PolicySplit activity and enter the required information.
  4. Process PolicySplit. Note that the TransferAssetsOut activity is spawned.
  5. Process TransferAssetsOut.
  6. Navigate to the new policy created by PolicySplit. Note that the TransferAssetsIn activity was spawned.
  7. Process TransferAssetsIn.
  8. View the allocation information for both the original policy and the policy created by PolicySplit. Note that the designated percentage of each fund was moved from the original policy to the new policy.