All functions make use of the
policyStructure which supports the definition of all available attributes. For a good understanding of the functions it is important to note that there are several types of policies, a brief explanation of each type is given below.
- Single policy
A sole policy which is not part of a package and is not governed by any framework agreement.
- Package policy
Both personal and business lines may contain package policies, this usually is a combination of policies to cover the most common family or enterprise situations. The ‘package’ serves as an additional level to register the combined premium and the payment method which is binding for all underlying policies. There may also be some advantages like a premium discount and/or more extensive coverage, lowered or no deductibles and so on. These are all registered on the individual policies, and governed by the package policy. The package policy itself offers no insurance cover by itself, and the only specific attributes are total amounts of the combined premium, discount percentage and number of policies.
- Policy under collective arrangement
A collective agreement is negotiated between an insurance company and an employer or umbrella organization which provides employees or members certain advantages compared to the standard product of the insurance company. This may be better cover or conditions, or a lower premium or deductible. The policies that benefit from a collective arrangement carry a reference to the collective arrangement and reflect its stipulations in the standard policy attributes. Apart from that they are policies in their own right.
- Policies under framework agreement
A framework agreement is drawn up when the number or shape of individual occurrences is not known beforehand. This could be the number of insured vehicles in a fleet, or the individual cargos under a transport insurance. The framework agreement provides a blueprint for individual policies which are underwritten under the agreement. Certain aspects of the policy are determined by the agreement, like coverage, premium rate, deductibles etc. Policies under a framework agreement carry a reference to that agreement and reflect its stipulations in the standard policy attributes. Apart from that they are policies in their own right.
- Multi-line policy
A type of insurance that provides coverage for multiple different types of property within a single insurance policy. For instance a homeowner’s insurance which is an umbrella insurance policy that covers damages to both the home and the contents of the home. Also known as an “umbrella policy,” “blanket policy,” or “blanket insurance.” A business line example is a farm policy which covers the farmhouse, stables, livestock and agriculture machinery.
Rules for policy functions
- A function only regards one single policy, with the exception of the
policyStructurealways contains at least one
policyentity of entityType
- The policy reference should always (when known) be used in the same notation.
- The attribute
externalReferenceis mandatory in an application for the variant
newas a link to the environment which sends the application.
- The following attributes may only be populated on policy level if their value is the same in all coverages. (The AFD 1.0 label is added between brackets as reference)
- insuranceTaxPercentage (ASSPER)
- acquisitionCommission (TAC)
- acquisitionCommissionPercentage (APRC)
- renewalCommission (TPC)
- renewalCommissionPercentage (PPRC)
- bonusMalusStep (BMNAAND)
- bonusMalusPercentage (BMPERC)
- noclaimDiscountPercentage (NCPRC)
- indexLinked (INDEX)
- ongoingAcquisitionCommissionNumberOfInstallments (AANTDAP)
- ongoingAcquisitionCommissionEffectiveDate (INGDDAP)
- ongoingAcquisitionCommissionPaymentTerm (UTRMDAP)
Additional requirements on policy messages are listed in the AFD 1.0 documentation. This information will be added in the next versions of this document.