Delinquency

Overview

Delinquency is a process that includes a workflow to manage actions to be taken when the insured has one or more invoices that are past due, i.e. invoices that have a dueTime in the past and are not yet fully settled with payments or applied credits.

Delinquencies can be used to create policy lapses, which are policy cancellation transactions that are created and issued automatically based on configuration and plan settings.

Configuration

Delinquency is set up using configuration Delinquency Plans. When policy becomes delinquent, the system looks for the delinquency plan that governs that policy, and uses the settings on that plan to create and manage the deliquency. Each plan has the following settings:

gracePeriodDays: An integer value that sets the timespan in days between the onset of the delinquency and the time at which the policy system will be signalled to cancel the policy.
lapseTransactionType: The type of the transaction that will be created for the delinquency if it reaches the lapse time. This must be a policy transaction of category cancellation.
delinquencyLevel: Either policy or invoice. If the setting is policy, then when other invoices for that policy become past due, they will be managed with the existing workflow. If the level is invoice then a new delinquency workflow will be spawned for each invoice.
advanceLapseTo: The state to which the system should automatically advance the lapse transaction. If this is not issued, then the lapse will have to be manually issued for cancellation to be effective.
events: A set of custom delinquency events that can be added to the delinquency workflow. See Delinquency Events, below.

Delinquency Onset

A policy becomes Past Due when any invoice which contains any invoice item for that policy reaches its dueTime without being fully settled. When that happens, the system will look for a delinquency plan, in this order:

The delinquencyPlanName on the policy
The delinquencyPlanName on the account
The defaultDelinquencyPlan in configuration

If a delinquency plan is found, then a delinquency workflow is created, and the delinquency workflow begins. Using the plan settings and past-due data, the delinquency will have the following settings established:

The accountLocator for the involved insured account
The graceStartedAt time, which is usually the time the delinquency is created
The graceEndsAt time, when the policy will lapse, based on the gracePeriodDays setting
references, which describe the policies and invoices that are involved in the delinquency.
settings are stored for reference: advanceLapseTo, gracePeriodDays, lapseTransactionType, and delinquencyLevel

Note

Before a lapse occurs, you may change the lapse time using the Update Delinquency endpoint.

Lapse

When the graceEndsAt time arrives for an unsettled delinquency, the system will create a cancellation transaction if the lapseTransactionType is set on the delinquency plan. This transaction will automatically advance to the state given on the advanceLapseTo setting, and after that the cancellation may be managed manually if it is not yet issued.

If not changed by the client, the lapse will become at the end of the day calculated using the gracePeriodDays setting.

Note

In addition to the lapse event, you can add custom events. See the Delinquency Events Feature Guide for details.