New percentage option for non-pay threshold

Release Date: November 2021

We modified the non-pay cancellation threshold logic by adding​​ another option to the non-pay threshold configurations for a percentage of premium rather than just a flat dollar amount.

Note: The option for the flat dollar amount threshold is still available. We evaluate the amount due based on the total term premium versus amount due.

  • A policy won’t go into non-pay when the total amount due on the policy is less than the percentage provided of pro-rata term premium.
  • A policy won’t go into non-pay when the past due amount is less than the dollar amount provided.
  • When both amounts are provided (flat amount and percentage) the greater amount will take precedence.


Within the Policy Lifecycle Non-Pay settings, under the Threshold section, a new option named (A factor of premium threshold. A policy will enter Non-Pay Cancellation Pending when the total amount due is higher than this value multiplied by the total pro-rata premium.) is now available for use.

When you select the percentage option, the policy will cancel for non-pay only when the overdue balance exceeds the greater of X% of the total policy premium (annual premium) OR the threshold dollar amount.

How this impacts you

When both thresholds are present, the policy doesn’t enter non-pay cancellation pending as long as one of the two of the following conditions is fulfilled:

  • The latest invoice is underpaid by less than the flat threshold.
  • The total payoff amount on the policy is less than the factor of premium threshold multiplied by pro-rata premium.


For more information, please contact your customer service representative or support team.