Overview
The payments.delay-cancel-process-days setting allows insurance carriers to introduce a grace period for processing non-pay cancellations, reducing the administrative burden caused by reinstating policies due to late payments. By delaying the cancellation process, carriers can account for mailed payments that arrive shortly after the cancellation date without altering the effective cancellation date.
Behavior
- Default Setting: The delay is set to 0 days, meaning no delay.
- Configured Delay: If a delay is specified (e.g., 3 days), the system delays the processing of non-pay cancellations by that many days.
- Example:
- A policy is scheduled to cancel on May 5, 2024.
- With a 3-day delay, the system processes unpaid debits set to cancel through May 2, 2024 during the May 5th nightly processing
- Payments received on May 5, 6, or 7 will be applied, and the policy will be reinstated without cancellation.
- If payment is not received by May 8, the policy will cancel with:
- Commit Date: May 8, 2024
- Effective Cancellation Date: May 5, 2024
- Example:
Key Benefits
This setting streamlines policy management by:
- Reducing the need for manual reinstatement of policies.
- Allowing accounting staff to handle late payments more efficiently.
- Ensuring cancellations remain effective on their original dates for compliance purposes.