Changes to due dates, non-pay notices, and cancellation dates

Feature summary

The changes to the due dates, non-pay notices, and cancellation dates feature ensures that:

  • Non-pay notices issue only on business days, not non-business days. This means the non-pay notice issue date will equal the mail date.
  • The cancellation dates are calculated from the date the non-pay notice is issued and are determined by the number entered in the existing Policy Lifecycle setting Length (In Days) of Non-Pay Cancellation Pending.
  • With the offset-invoice-dates-for-non-business-days setting enabled, due dates and cancellation dates will fall only on business days, not non-business days.

This feature consists of changing the core functionalities of non-pay notification and calculation of cancellation dates and creating the advanced setting offset-invoice-dates-for-non-business-days. This feature mitigates legal compliance risks, as it ensures that the required number of days for non-pay notification is met before the policy is canceled. Adopting this feature also removes the need for staff to manually edit invoice due dates and cancellation dates to make sure they land on a business day.

Non-pay notice and cancellation date

The core functionalities of the non-pay notice issue date and the cancellation date have changed.

Non-pay notice issue date

Previously, the non-pay notice would process and issue on the invoice due date, even if the invoice due date fell on a non-business day. Now, the non-pay notice will process and issue on the invoice due date if it falls on a business day, but if the invoice due date falls on a non-business day, the non-pay notice will process and issue on the first business day following the non-business day. For example, if no payment is made on a policy that has an invoice due date on a Saturday, and Saturday and Sunday aren’t considered business days, the non-pay notice will issue on Monday. If Monday is a holiday, the non-pay notice will issue on Tuesday. This change ensures that the issue date equals the mail date.

Cancellation date

Previously, the cancellation date was calculated from the invoice due date, even if the invoice due date fell on a non-business day. Now, the cancellation date is calculated from the non-pay notice issue date, which is also the mail date. This change ensures that the required period of notice is met before canceling a policy.

Offset invoice dates for non-business days

With the offset-invoice-dates-for-non-business-days advanced setting enabled, invoice due dates and cancellation dates will no longer fall on non-business days. By default, the advanced setting is set to False and is disabled. When the setting is disabled, invoice due dates and cancellation dates can fall on business or non-business days. When the setting is set to True or enabled, invoice due dates and cancellation dates will fall only on business days. To enable this setting, contact your customer service representative or support team.

Note: The changes made to the non-pay notice date and the calculation of the cancellation date are core functionality changes. They aren’t impacted by the offset-invoice-dates-for-non-business-days setting.

Calendar

The non-pay notice change and the offset-invoice-dates-for-non-business-days advanced setting use the Calendar in System Wide settings. In the Holidays section, any holiday selected, including any number of days entered in the Days Before or Days After column, is considered a non-business day. In the Business Days section, any day not selected is considered a non-business day.

Adoption considerations

  • The existing invoices will have the original due dates and the original cancel dates unless you choose to regenerate the invoices. When a non-pay notification is created and the non-pay cancellation date is recalculated, it will account for non-business days. If the invoices aren’t regenerated, the non-pay notice cancellation date won’t match the original invoice cancellation date.
  • At the time of implementation, the existing non-pay notices won’t be updated.
  • If you enable the offset-invoice-dates-for-non-business-days advanced setting, it won’t change the existing invoices. To change the existing invoices, you must regenerate invoices.
    • Actions that regenerate invoices are:
      • Changing the billing schedule.

        Note: When you change the billing schedule, to change the dates on existing and issued invoices, you must select the option to regenerate all invoices.

      • Processing a premium change endorsement.

        Note: This only changes future invoices.

      • Cancellation and reinstatement.
  • If the Policy Lifecycle Non-Pay setting Length (In Days) of Non-Pay Cancellation Pending included additional days to compensate for weekends or holidays, it should be adjusted, as these factors are now considered with regular processing.
  • If you enable the offset-invoice-dates-for-non-business-days advanced setting and use the Display Due Date on Invoices As Day: setting, the due date displayed on the invoice won’t necessarily be a business day.
  • In the Business Days section of the Calendar, if a client selects a weekend day, then the system will consider that weekend day as a business day and non-pay notices can then be issued on that day.
  • If you use printing partners such as MassPrinting or O’Brien, remember that our printing partners only print and mail Monday through Friday.

 

Additional information