MCAS Configuration Guide for BriteCore

An MCAS report refers to the Market Conduct Annual Statement, a standardized report that U.S. insurance companies are required to file with state regulators, coordinated through the National Association of Insurance Commissioners (NAIC).

This document outlines the necessary configurations and setup requirements for generating Market Conduct Annual Statement (MCAS) reports in BriteCore.

Set up MCAS System Tags on Britecore

To align the MCAS with BriteCore, we need to use system tags to classify the Lines, Policy Types, Sublines, Line Items, and Line Item categories that should be counted as MCAS.

Note: The system tags are segmented by effective date. Since some policies have effective dates from previous years and the carrier wants to see tagged policies, we should tag all effective dates.

Module: > Settings/System Tags

Example to Set Up MCAS System Tags

1. Example MCAS System Tags for Lines and Policy Types 

2. Example MCAS System Tags for Line Items

3. Example MCAS System Tags for Line Item Categories

Example to setup Cancellation Reason

In the MCAS report, there are sections regarding Non-renewal policies. To serve this purpose, we need to set up the cancellation category properly to reflect different numbers to be reported. Below outlines an example of how you can categorize the policy cancellation reasons

1. Go to Settings -> Policies, you will see `Edit` under the Policy Lifecycle, and click on `Edit` button.

2. Select a Policy Type that required by MCAS reports, e.g. `Dwelling Fire`. Note that `Lifecycle Parameters Are the Same for All Business` was disabled in production and shouldn’t be used for MCAS reporting purposes.

3. Click on the `Cancellation` tab located in the middle of the bar selectors.

4. Scroll down to the bottom, you will see the `Cancellation Reasons` section, this is where we want to categorize the reason for the cancellation.

* Note that as currently we haven’t set this up, we are using the policy statuses to reflect different categories of cancellation reasons. Once this is set up on BriteCore, we can adjust the report to categorize more accurately based on user inputs.

For example:

 

We category a cancellation as non_pay based on:

               r.policy_status_reason LIKE '%suffi%'

                    OR r.policy_status_reason LIKE '%pay%'

We category a cancellation as insured_request based on:

               r.policy_status_reason LIKE '%request%'

                    OR r.policy_status_reason LIKE '%sold%'

                    OR r.policy_status_reason LIKE '%deceas%'

                    OR r.policy_status_reason LIKE 'Premium too high%'

                    OR r.policy_status_reason LIKE '%elsewhere%'

                    OR r.policy_status_reason LIKE '%foreclos%'

                    OR r.policy_status_reason LIKE '%owner%'

MCAS Reports

These reports were created using the new reporting system, Logical Layer and SQL Runner, to present the MCAS reports.

To kick off the MCAS report, simply go to Report List, search for `MCAS Report`, then run the report with both `Start Date` and `End Date` parameters provided. For example, if you want to run a report for the year `2024`, provide Start Date as `01/01/2024`, End Date as `12/31/2024`.

Each sheet in the MCAS report contains info to either provide answers to the MCAS questions or to provide more detailed information for more answer validation. Here is the list of contents covered within each sheet.

1. Policy Overview

Answers to Schedule 3 –– Homeowners Underwriting Activity

• 3-41 Number of dwellings which have policies in-force at the end of the period
• 3-42 Number of dwelling fire policies in force at the end of the period.
• 3-43 Number of homeowner policies in force at the end of the period.
• 3-44 Number of tenant/renter/condo policies in force at the end of the period.
• 3-45 Number of all other residential property policies in force at the end of the
• period.
• 3-46 Number of new business policies written during the period
• 3-47 Dollar amount of direct premium written during the period

2. MCAS Policies Overview

The MCAS information about Policies at an overview level

3. Policies Details

Contains more policy details

4. Policy Transactions

Contains detailed policy transactions

5. Claim Activities

Answers to Schedule 2 –– Homeowners Claims Activity, Counts Reported by Claimant and by Coverage

• 2-23 Number of claims open at the beginning of the period
• 2-24 Number of claims opened during the period
• 2-25 Number of claims closed during the period, with payment
• 2-26 Number of claims closed during the period, without payment
• 2-27 Number of claims open at the end of the period
• 2-28 Median days to final payment (WIP)
• 2-29 Number of claims closed with payment within 0-30 days
• 2-30 Number of claims closed with payment within 31-60 days
• 2-31 Number of claims closed with payment within 61-90 days
• 2-32 Number of claims closed with payment within 91-180 days
• 2-33 Number of claims closed with payment within 181-365 days
• 2-34 Number of claims closed with payment beyond 365 days
• 2-35 Number of claims closed without payment within 0-30 days
• 2-36 Number of claims closed without payment within 31-60 days
• 2-37 Number of claims closed without payment within 61-90 days
• 2-38 Number of claims closed without payment within 91-180 days
• 2-39 Number of claims closed without payment within 181-365 days
• 2-40 Number of claims closed without payment beyond 365 days

6. Claim Details

Contains all claim details including MCAS system tag information

7. Policy Underwriting

Contains count of inforce-policies with MCAS tags.

8. Cancelled Policy Details

Contains all cancelled policy details.

9. Company Request Cancellations

Answers to Schedule 3 –– Homeowners Underwriting Activity

• 3-51 Number of Company-Initiated cancellations that occur in the first 59 days after effective date, excluding rewrites to an affiliated company
• 3-52 Number of Company-Initiated cancellations that occur 60 to 90 days after effective date, excluding rewrites to an affiliated company
• 3-53 Number of Company-Initiated cancellations that occur greater than 90 days after effective date, excluding rewrites to an affiliated company

10. Cancelled Policy by Reason

Answers to Schedule 3 –– Homeowners Underwriting Activity

• 3-48 Number of Company-Initiated non-renewals during the period
• 3-49 Number of cancellations for non-pay or non-sufficient funds
• 3-50 Number of cancellations at the insured’s request

11. MCAS System Tags

Contains all MCAS system tags defined by clients.