Policies may either be cancelled manually by a team member, or automatically by the system if the policy is too far in arrears.
This article is about manual cancellations - more information on automatic cancellations due to arrears can be found here.
Account prerequisites:
- User permission: Policy update
Cancelling a Policy Manually
- Navigate to the specific policy to cancel and click on the Actions menu.
- Enter an effective date - this can be a date in the past, today, or a future date. Next to the selected date an estimated projected balance on the effective date is displayed. This projection assumes that any payments which are scheduled between the current date and the cancellation effective date go ahead as expected.
- Selecting either today or a date in the past will stop all upcoming payments, regardless of whether the policy is up-to-date on payments or not.
- Selecting a date in the future that has upcoming payments between now and cancellation will pro-rata the final payment to allow the policy to balance on cancellation.
- Enter a cancellation reason and note. The note is for internal use only and won't be sent to the client.
- Review all details are correct and click Confirm. The client will be sent confirmation of the cancellation via their preferred contact method - more details about communication can be found in the Policy Communications and Client Contact Information articles.
- The policy will display a cancellation banner to show that the cancellation is either effective or scheduled.
- On the cancellation effective date, the final payment will be processed and the policy will be closed.
If the policy balance is under- or over-paid on the effective cancellation date Simfuni will indicate this on the policy banner and via the status displayed on the Cancellations page, but will not automatically process any extra payments or refunds to the client.
Over- and Under-Paid Cancelled Policies
After a policy is cancelled the cancellation details are shown on the policy in both the cancellation banner and the Payment summary. If the policy was cancelled with no balance then the cancellation status will show as Completed, and no closing balance will be displayed on the policy. This may occur, for example, when a cancellation is scheduled in advance and the final payment is successfully pro-rated. More details on the cancellation statuses can be found here.
If the policy was manually cancelled and is over- or under-paid, then the Payment summary will show two figures; the closing balance and the total balance.
- The closing balance is the balance on the cancellation effective date.
- The total policy balance is the balance today - this may be higher or lower than the balance on the closing day if any payments or external transactions were logged in between now and the cancellation effective date.
Overpaid Example
At the start of August Jessica receives notice that a policy needs to be cancelled due to a claim, and sees that the policy cancellation should be backdated to the claim event date.
- At the end of this day, the policy account is $10 ahead on premium payments (i.e. overpaid). This $10 will become the closing balance when the policy is eventually cancelled and backdated to be effective on this date.
- Because the cancellation hasn't been actioned yet and the policy is still active, the system automatically processes the next scheduled premium payment of $20.
- Jessica cancels the policy and backdates the cancellation to July 15th (the date of the claim event).
- The closing balance on July 15th was $10.
- The total overpaid balance of the policy on August 1st is $30, reflecting:
- The $10 overpaid as of July 15th
- The additional $20 payment that was made on July 23rd
If a client has had their policy cancelled but would like it to be reinstated, there is functionality available to do so. You can find more information on policy reinstatement in this article.