The cancel_invoice_bill_for advanced setting allows you to configure the type of premium you want the Cancellation Billing Statement to bill for: adjusted, earned, or unearned.
- Adjusted premium is the amount owed on a policy up to the date of cancellation.
- Earned premium is the current premium amount due on the policy.
- Unearned premium is the remaining premium amount on the policy term, prior to the policy’s cancellation.
The cancel_invoice_bill_for advanced setting requires the following buttons: adjusted, earned, and unearned.
By default, the system processes Cancellation Billing Statements for unearned premium, so the cancel_invoice_bill_for advanced setting is set to unearned.
Changing the default
To change the default, navigate to Settings > Advanced. In the Search for a Setting box, type cancel_invoice_bill_for. Press Enter/Return on your keyboard or select Search. To change the default, you can select the earned button or the adjusted button.
- If you select the earned button, the Cancellation Billing Statement will bill for the earned premium. Earned premium is the amount currently due on a policy term, which occurs when a policy earns more premium than has been paid.
- If you select adjusted, the Cancellation Billing Statement will bill for the adjusted premium. Adjusted premium is the amount owed on a policy to the date of cancellation. The policy premium may be adjusted if a policy cancels and the customer has made a payment, but there is still an unpaid earned premium. The adjusted premium Cancellation Billing Statement will bill for the remaining amount still owed.