Release Date: January 25, 2022
A new Full earned premium checkbox is available when configuring items within BriteLines, allowing users to indicate when item premium is fully earned. This will allow carriers to keep an item's full premium regardless of its duration on a policy.
What's new and changing?
Now, when editing or creating an item within BriteLines, a new Fully earned premium checkbox will display. By default, the checkbox will be unchecked.
How will this impact you?
When the Fully earned premium checkbox is checked, the premium won't be pro-rated and no part of the premium will be returned to the insured.
Currently, item premium is set to $0 if one of the following conditions is met:
- A risk is deleted.
- An item is deleted.
- The transaction type is Cancellation.
If the Fully earned premium checkbox is checked for the item, then the premium isn't changed.
Examples
Example 1: Coverage premium is $20.
| Pro-rata calculation; Fully earned premium unchecked | Fully earned calculation; Fully earned premium checked | |
| Added at start of policy with a 1 year term | $20 | $20 |
| Removed after 1 day of coverage | 1/365 of $20 | $20 |
| Removed after 182 days of coverage | 182/365 of $20 | $20 |
Example 2: Cancellations.
Term Premium = $105 (including fully earned fee of $5)
Pro Rate Cancel mid term:
Pro Rate Premium = $55
Term Premium = $5
Flat Cancel:
Pro Rate Premium = $0
Term Premium = $0