Manage Cancellation Billing Statements

As documented in Set up billing statements (invoices), several settings impact billing statements. Many settings directly impact the Cancellation Billing Statement. The following provides further explanation on how you can manage a Cancellation Billing Statement with settings.

Combine Cancellation Billing Statement and Confirmation of Cancellation deliverables

The Cancellation Billing Statement displays an Earned Premium statement, which shows the premium earned but unpaid. Without the Earned Premium statement, the Cancellation Billing Statement is similar to the Confirmation of Cancellation deliverable. Clients can choose to restrict issuing the Cancellation Billing Statement, and instead add the Earned Premium statement to the Confirmation of Cancellation deliverable to avoid printing both deliverables.

To restrict the Cancellation Billing Statement:

  1. Navigate to Settings > Modules > Policies > Policy Lifecycle > Cancellation > Documents.
  2. Ensure Print Cancellation Invoice at Policy End Date isn’t selected. If it’s selected, unselect it.
  3. Select Save at the top or bottom of the screen.

To add the Earned Premium statement to the Confirmation of Cancellation deliverable:

  1. Navigate to Settings > Deliverables > Mass Deliverables > select a state from the State dropdown list > Stock Deliverables.
  2. Locate the Confirmation of Cancellation deliverable and select the pencil icon. The Mass Deliverable Setup dialog box will open.
  3. Under Additional Components, select the green + next to Add a Text Area.
  4. In the Text Area box, type the information you want to include in the Earned Premium statement.

    Note: The Text Area box supports dynamic text and decorative tags. To learn how to use dynamic text and decorative tags, select the Help link directly above the Text Area box.

  5. When you’re finished, select Save.

Issue the Cancellation Billing Statement

If you choose to issue the Cancellation Billing Statement in addition to the Confirmation of Cancellation deliverable, you can enable one or both of the following settings:

  • Print Cancellation Invoice at Policy End
  • create_cancellation_statements_with_account_balance

To issue the Cancellation Billing Statement on all canceled policies:

  1. Navigate to Settings > Modules > Policies > Policy Lifecycle > Cancellation > Documents.
  2. Select Print Cancellation Invoice at Policy End Date. This will cause the Cancellation Billing Statement to print with every cancellation.
  3. Navigate to Settings > Advanced.
  4. In the Search for a Setting box, type create_cancellation_statements_with_account_balance, and then press Enter/Return on your keyboard or select Go.
  5. Select False. This will ensure the Cancellation Billing Statement will issue whenever a policy is canceled whether or not an account balance exists.

To issue the Cancellation Billing Statement on canceled policies that have an earned but unpaid premium:

  1. Navigate to Settings > Modules > Policies > Policy Lifecycle > Cancellation > Documents.
  2. Select Print cancellation invoice at policy end date. This will cause the Cancellation Billing Statement to print with every cancellation.
  3. Navigate to Settings > Advanced.
  4. In the Search for a Setting box, type create_cancellation_statements_with_account_balance, and then press Enter/Return on your keyboard or select Go.
  5. Select True. This will ensure that Cancellation Billing Statements will only be generated when a policy is canceled with an account balance.

Issue Cancellation Billing Statement for unearned, earned, or adjusted premium

The cancel_invoice_bill_for advanced setting allows you to select the type of premium you want to bill for.

  • If you need to report unearned premium, then you may want to change the setting to unearned.
  • If a policy cancels and the earned premium is more than the amount paid, you may want to bill for the unpaid earned premium. To bill for the unpaid earned premium, change the setting to earned.
  • If a policy cancels with unpaid premium, but a payment has been made on the policy and the total premium isn’t owed, then the amount due will be adjusted to show the amount of premium owed to the date of cancellation. To enable billing for the adjusted premium, change the setting to adjusted.

To change the cancel_invoice_bill_for advanced setting:

  1. Navigate to Settings > Advanced.
  2. In the Search for a Setting box, type cancel_invoice_bill_for, and then press Enter/Return on your keyboard or select Go.
  3. Depending on your company’s needs, change the setting to either unearned, earned, or adjusted.