Exposure file Accounting screen overview

In some claims, the law may dictate that a barrier be created between adjusters who manage different coverages on the same claim for the same party. To address this need, depending on roles and permissions, the system is designed to allow an adjuster to manage a claim either at the claim file level or at the exposure file level. For example, an exposure-level adjuster can manage an exposure file on a claim without the need to navigate to the parent claim file or access other exposures.

With this design, some information available on the claim file level is also available at the exposure file level. For example, the information in the Claim Accounting Summary related to an exposure is also available in the Exposure Accounting Summary. The ability to set reserves and make payments on an exposure is available only at the exposure file level.

The exposure file Accounting screen provides a view of the financials for one exposure, whereas the claim file Accounting screen provides a view of the financials for all exposures on the claim file.

The exposure file Accounting screen provides:

  • An Exposure Accounting Summary for standard reserves and payments.
  • The ability to set standard reserves and make payments.
  • A Recovery Accounting Summary for recovery reserves and recovery receipts.
  • The ability to set a budget for anticipated recoveries and record recovery receipts.
  • A view of the Coverage Limits and limit balance.
  • The ability to manage the coverage Deductible.
  • A Transaction table.
  • The ability to filter the Transaction table.

The Reserve Category column of both the Exposure Accounting Summary and the Recovery Accounting Summary is configurable based on the line of business and the coverage established in BriteLines. The payment codes associated with each reserve category can be configured for each line of business and coverage, as well.

Note: Configuration occurs when the Accounting Model is set up during implementation.

Access the exposure file’s Accounting screen

You can access the Accounting screen of an exposure file in various ways.

Access the exposure file’s Accounting screen from the Exposures screen

  1. Navigate to the claimant associated with the exposure you want to access the Accounting screen for.
  2. Select the claimant row to open the Exposure tree.
  3. Navigate to the exposure you want to access the Accounting screen for.
  4. Select the amount link in either the Reserve or Payment column. The Accounting screen for that exposure will open.

Access the exposure file’s Accounting screen from the exposure file’s Details screen

  1. In the exposure file’s Details screen, select the Accounting tab. The Accounting screen for that exposure will open.

Access the exposure file’s Accounting screen from the claim file’s Accounting screen

  1. Access the Accounting screen of the claim file.
  2. In the Claim Accounting Summary table, select the caret next to the claimant associated with the exposure you want to access. A list of exposure IDs/coverages will populate beneath the claimant.
  3. Navigate to the exposure ID/coverage you want to access and select the link. The Accounting screen for that exposure will open.

Understanding the Accounting screen

Figure 1: The Standard view of the exposure file’s Accounting screen.
Figure 2: The Recovery view of the exposure file’s Accounting screen.

 

Coverage limits and deductibles

Coverage limits appear directly beneath the Exposure Accounting Summary title in the Standard view and Recovery view. Coverage limits are read-only and are pulled from the limits established on the policy the claim is linked to.

The deductible will appear beneath Coverage Limits in the Standard view and Recovery view. Deductibles are pulled from coverage information on the linked policy. You can edit deductibles by selecting the pencil icon.

Standard and Recovery views

When you access the Accounting screen of an exposure file or a claim file, you can select the Standard view or Recovery view. The Standard view displays by default.

The Standard view displays the Exposure Accounting Summary table for standard reserves. In the Reserve Category column, you will find both Level 1 reserve categories and Level 2 sub-reserve categories. As mentioned, reserve categories are configured based on the line of business and coverage established in BriteLines. In Figure 1 above, note that Loss and Expense are listed in the Reserve Category column. In this configuration, Loss and Expense are Level 1 reserve categories. You will also notice that Collision and Loss of Use (Rental) are listed under Loss and Adjuster and Legal are listed under Expense. In this configuration, Collision, Loss of Use (Rental), Adjuster, and Legal are Level 2 sub-reserve categories.

The Recovery view displays the Exposure Accounting Summary table for recovery reserves. In the Recovery Reserve Category column, you will find both Level 1 reserve categories and Level 2 sub-reserve categories. Reserve categories are configured based on the line of business and coverage established in BriteLines. In Figure 2 above, note that Subrogation and Salvage are listed in the Recovery Reserve Category column. In this configuration, Subrogation and Salvage are Level 1 reserve categories. You will also notice that Loss, Adjuster, and Legal appear under Subrogation and Loss appears under Salvage. In this configuration, Loss (subrogation), Adjuster, Legal, and Loss (salvage) are the Level 2 sub-reserve categories.

Standard Exposure Accounting Summary

With the columns Reserve Category, Reserve, Payment, Total, Total Recovery, and Net Incurred, the Standard Exposure Accounting Summary table provides a current snapshot of the exposure’s financials. Each reserve set, payment made, or recovery receipt made will add a transaction to the Transaction table. If the transaction has a status of Approved or Posted, it will update the accounting summary.

Note: If multiple people are making changes to exposure accounting on the same claim or exposure simultaneously, the screen will need to be manually refreshed by the user to reflect the changes made by another user.

Reserve Category

The Reserve Category column is made up of Level 1 reserve and Level 2 sub-reserve categories. The Level 1 reserve categories are expandable and collapsible. To expand or collapse the view, select the caret icon next to the Level 1 reserve category. See Figure 1. The Level 1 reserve categories in Figure 1 are Loss and Expense. When you expand the view, the Level 2 sub-reserve categories The Level 2 sub-reserve categories in Figure 2 are Collision, Loss of Use (Rental), Adjuster, and Legal.

Reserve

The Reserve column provides an overview of the remaining reserves for each reserve category for the exposure. The amount displayed in the Reserve column of a Level 1 reserve category is a summation of the amounts displayed in the associated Level 2 sub-reserve categories. The amount displayed in the Reserve column of a Level 2 sub-reserve category is the amount of reserve for that sub-reserve category. See Figure 3. When you select the amount link in the Reserve column, you will filter the Transactions table by Transaction Type: Reserve and the Reserve Category:<Category>. When you filter the Transactions table by a figure in a cell in the Exposure Accounting Summary table, the figure in the cell will be underlined. When the filter is removed, the underline of the figure is removed.

 

Figure 3: Reserves set for Level 2 sub-reserve categories and summarized in the Level 1 reserve category.

 

Payment

The Payment column provides an overview of the payments issued on each reserve categories of the exposure. The amount displayed in the Payment column of a Level 1 reserve category will list the total of payments issued for its Level 2 sub-reserve categories. The amount displayed in the Payment column of a Level 2 sub-reserve category will display the payments issued for itself. When you select the amount link in the Payment column, you will filter the Transactions table by the Transaction Type: Payment and Reserve Category: <Category>. When you filter the Transactions table by a figure in a cell in the Exposure Accounting Summary table, the figure in the cell will be underlined. When the filter is removed, the underline of the figure is removed.

Total

The Total column provides an overview of the total loss incurred based on set reserves and payments issued. The Reserve column plus the Payment column will equal the amount in the Total column. The amount displayed in the Total column of a Level 1 reserve category row will display the total of the associated Level 2 sub-reserve categories. The amount displayed in the Total column of a Level 2 sub-reserve category will display the total for itself. See Figure 4.

Figure 4: View of the Reserve, Payment, and Total columns. Notice that Reserve + Payment = Total.

Total Recovery

The Total Recovery column provides a snapshot of the amount recovered, which is entered in the Recovery Exposure Accounting Summary. The Level 1 reserve categories will display the total amount of recovery for that category. The Level 2 sub-reserve categories won’t display the amount of recovery associated with that sub-reserve category. See the Total Recovery amount in Figure 5.

Figure 5: The Total Recovery column.

Net Incurred

The Net Incurred column provides the total of losses incurred determined by the Total column minus the Total Recovery column. See the Loss row in Figure 5, the Total is $2100 and the Total Recovery is $400. Subtract $400 from $2100 to get $1700, which is the Net Incurred.

Actions

From the Actions column, you can manage the financials of the exposure by selecting one of the two buttons Edit Reserve and Make Payment.

Recovery Exposure Accounting Summary

With the columns Recovery Reserve Category, Reserve, Recovered, and Total Recovery, the Recovery Exposure Accounting Summary table provides a snapshot of Total Recovery associated with the exposure of the loss.

Recovery Reserve Category

In the Recovery Reserve Category column, you will see the Level 1 reserve categories, configured based on your needs. In Figure 2, the Level 1 reserve categories are Subrogation and Salvage. The Recovery Reserve Category column is expandable and collapsible. You can expand the Level 1 reserve categories by selecting the caret next to the Level 1 reserve. When you expand the view, the Level 2 sub-reserve categories display. In Figure 2, the Level 2 sub-reserve categories are Loss (subrogation), Adjuster, Legal, and Loss (salvage).

Reserve

In the Reserve column, the total remaining recovery reserve will display for all recovery reserves. In the Reserve cell of the Level 1 reserve category is a summation of the Reserve cells for the associated Level 2 sub-reserve categories. The remaining recovery reserves for a Level 2 sub-reserve category will display the total reserve for itself. See Figure 6.

When you select the amount link in the Reserve column you will filter the Transactions table by Transaction Type: Reserve and Reserve Category Type: <Reserve Category>. When you filter the Transactions table by a figure in a cell in the Exposure Accounting Summary table, the figure in the cell will be underlined. When the filter is removed, the underline of the figure is removed.

Figure 6: The Recovery view of the Exposure Accounting Summary.

Recovered

In the Recovered column, the total recovered amount will display for all recoveries. The Recovered column of the Level 1 reserve category is a summation of the recoveries for the associated Level 2 sub-reserve categories.  The Recovered column of the Level 2 sub-reserve category will display the recovered amount for that sub-category. See Figure 6.

When you select the amount link in the Recovered column, you will filter the Transactions table by Transaction Type: Recovered and Reserve Category Type: <Reserve Category>. When you filter the Transactions table by a figure in a cell in the Exposure Accounting Summary table, the figure in the cell will be underlined. When the filter is removed, the underline of the figure is removed.

Total Recovery

The Total Recovery column is the sum of the Reserve column and the Recovered column. See Figure 6. The remaining Subrogation Loss Reserve is $100 and the Subrogation Loss Recovered is $300, which equals $400, the Total Recovery.

The Total Recovery column will also appear in the Standard Exposure Accounting Summary as a means to provide the Net Incurred loss associated with the exposure.

Actions

From the Actions column, you can manage the financials of the Recovery Exposure Accounting Summary table by selecting one of the two buttons associated with a Recovery Reserve Category, Edit Reserve, or Add Recovery.

Transactions table

The Transactions table provides an overview of each type of transaction created within an exposure file’s Accounting screen. The Transaction table is constant, even when toggling between the Standard and Recovery Exposure Accounting Summary tables. You can filter transactions by Transaction Amounts, Transaction Type, Transaction Code, and Transaction ID.

Note: If you select Payment from the Transaction Type dropdown list, then additional filters will appear, such as: Payee, Payment Method, Check Number, Check Date range, Check Cleared Status, and Check Cleared Date range.

The Transaction table consists of the following columns:

  • Posted Date: The date the transaction is posted, or deemed in a finalized status, in either the Standard or Recovery Exposure Accounting Summary tables.
  • Amount: Amount of the transaction added. For reserves, this is the new or updated reserve amount. For payments, it is the amount of the payment or check. Negative amounts represent the amount subtracted from the reserve and are labeled Reserve Change.
  • Payee/Payor: In the event of an issued payment or recovery receipt, a name will appear in this column. If payment is issued, to one or more payees on the payment, all payees’ names will appear. If a recovered amount is received, the payor’s name will appear in the column.
  • Reserve Category: The type of standard or recovery reserve category, for example, Legal (Expense), Collision (Loss).
  • Type: The type of transaction. Notes will accompany the type of transaction, such as Reserve Close if the transaction is a change to the reserve to close the reserve. Additional examples of notes include: Reserve (Reserve Open), Reserve (Reserve Change), Recovery Reserve (Reserve Changes), and Recovered (Recovery Receipt).
  • Comments: Comments added to the transaction. For some transactions, comments will automatically populate in this section to help auditors cross-reference one transaction with another transaction. For example, a comment will be added for Reserve Change and it will reference the payment transaction that reduced the reserve. A comment will also be made for Void transactions and the original transaction being voided will be referenced.
  • Status: The status of the transaction will appear in this column. The status options are Draft, Approved, Posted, and Void.
  • Due Date: For payments that must be issued, a due date can accompany the payment and will appear in this column.
  • Check Number: If payments are issued by check, the check number will appear in this column.
  • Check Date: If payments are issued by check, the date the check is written on will appear in this column.
  • Cleared Date: When payments are issued, the Cleared Date of the payment will appear in this column.
  • Transaction ID: All transactions will have a unique ID. This will be used by automated comments to cross-reference transactions.
  • Actions: The Actions column provides the opportunity to View Detail of the transaction. For issued payments, you also have the opportunity to Void or Clear Check. You can also Unapprove certain transactions.

Manage the exposure file’s financials

You can manage the exposure file’s financials by doing the following:

  • Manage deductibles
  • Set reserves
  • Make payment
  • Save a payment as a draft
  • View transaction details
  • Edit transaction from the Accounting screen
  • Unapprove a transaction from the Accounting screen
  • Delete transaction from the Accounting screen
  • Void transaction from the Accounting screen
  • Clear check fro a transaction from the Accounting screen
  • Enter recovery transactions
  • Filter Transactions table