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 categorycancellation.delinquencyLevel: Eitherpolicyorinvoice. If the setting ispolicy, then when other invoices for that policy become past due, they will be managed with the existing workflow. If the level isinvoicethen 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 notissued, 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
delinquencyPlanNameon the policyThe
delinquencyPlanNameon the accountThe
defaultDelinquencyPlanin configuration
If a delinquency plan is found, then a delinquency workflow is created, and the delinquency workflow beings. Using the plan settings and past-due data, the delinquency will have the following settings established:
The
accountLocatorfor the involved insured accountThe
graceStartedAttime, which is usually the time the delinquency is createdThe
graceEndsAttime, when the policy will lapse, based on thegracePeriodDayssettingreferences, which describe the policies and invoices that are involved in the delinquency.settingsare stored for reference:advanceLapseTo,gracePeriodDays,lapseTransactionType, anddelinquencyLevel
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.
Delinquency Events
In addition to the lapse event, you can add any number of custom events for delinquencies. This is done by adding delinquency events to the delinquency plan.
Each event is defined with:
offsetDays, which describes the number of days delay for the eventoffsetBasis, which indicates whether the offset is applied to the start of the delinquency or the planned lapse date.
Note
If the offsetBasis is gracePeriodEnd, then the offsetDays property can be negative, to schedule events before lapse occurs.
If the delinquency’s graceEndsAt property is changed, this will not change the time when custom events based on lapse will fire. These can be updated manually with the Update Delinquency Event endpoint.