When a policy is first cancelled, the Simfuni system uses the closing balance to determine the cancellation status and whether the cancellation is complete or not.
If the policy has been cancelled with $0 as the closing balance then the policy cancellation is complete, as no further action is required to balance out the policy. If the policy is scheduled to be cancelled in the future, or was over- or under-paid on its cancellation effective date, then the cancellation is not complete.
In total there are four cancellation statuses:
- Scheduled - the policy cancellation is scheduled to be effective on a future date. Assuming all expected payments are made in the lead-up to the cancellation, the policy will automatically cancel on the effective date with a closing balance of $0 and the system will mark the cancellation as complete.
- Overpaid - the policy cancellation is not yet complete, as the policy has an overpaid closing balance. The policy cancellation will remain in the overpaid status until either the cancellation is manually marked as complete (to acknowledge that the policy is overpaid but no further action is required) or an external transaction is added to zero out the balance. If an external transaction is added that brings the closing balance $0, then the system will automatically mark the policy cancellation as complete.
- Underpaid - the policy cancellation is not yet complete, as the policy has an underpaid closing balance. The policy cancellation will remain in the underpaid status until either the cancellation is manually marked as complete (to acknowledge that the underpaid amount will not be collected) or an external transaction is added to zero out the balance. If an external transaction is added that brings the closing balance $0, then the system will automatically mark the policy cancellation as complete.
- Completed - the policy cancellation is finished and doesn't require further attention. The completed status may have been assigned automatically if the policy closing balance was $0 on the cancellation effective date, or if an external transaction was added after cancellation to bring the policy closing balance to $0. Alternatively, the completed status may have been assigned manually if the closing balance of the policy is still currently over- or under-paid but a team member manually marked the policy cancellation as complete.
Adding an external transaction will balance the account in the Simfuni platform but does not charge or refund the client; external transactions are a way to reflect any manual adjustments which are made outside the Simfuni platform, for example during a claim settlement. Accurately logging transactions against each policy will ensure the integrity of reconciliation and reporting, especially in the event the policy is reinstated in the future. For more information about external transactions, see here.
After a policy cancellation is complete, regardless of whether the policy was cancelled with a closing balance or not, then the policy is able to be reinstated. More information on policy reinstatements can be found here.
Cancellation Worklist
To make it easy to keep track of all cancellations, Simfuni lists cancelled policies on the Cancellations page. This list shows the cancellation reason, client, effective date, cancellation status, and closing balance for each cancelled policy, and can be filtered by status to only display policy cancellations that still require attention.
