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Differences Between a Full-term & Mid-term Cancellation

Auto Allocation vs Manual Allocation

Auto Allocation

Manual Allocation

Differences Between a Full-term & Mid-term Cancellation

	Full-term		Mid-term
	This applies when the policy is being cancelled from the start of the policy.		This applies when the policy is being cancelled during the current period of insurance.
	To create a Full-term Cancellation, the Effective Date field must match the From Date field.		To create a Mid-term Cancellation, enter the date the client wishes to cancel the policy in the Effective Date field.
	If the original policy has NOT been paid, INSIGHT will auto-allocate the cancellation credit to the debt. Otherwise, you will need to arrange a refund of the cancellation credit.		INSIGHT will NOT auto-allocate credits for a Mid-term Cancellation. You must manually allocate the cancellation credit to the original policy (if NOT paid) or arrange a refund of the cancellation credit (if paid).

Auto Allocation vs Manual Allocation

A cancellation's distinguishing feature is that it always generates credit. Once the cancellation is posted to accounts, the Summary step of the wizard will confirm whether an auto-allocation has happened or if you need to do a manual allocation.

Auto Allocation

• The original policy has not been paid (ie: outstanding debt) 
• Applies when a Full-term Cancellation is done
• The cancellation credit must be equal to the debt amount

Manual Allocation

• The original policy has not been paid (ie: outstanding debt) 
• Applies to Mid-term and Full-term Cancellations 
• The cancellation credit does not equal the debt amount

 NOTE: For scenarios where the client has paid the original policy, the cancellation credit will not be auto-allocated. The cancellation credit will be in the Client's account, available for the accounts team to process the refund.