Future Annual Premium (FAP) Scenarios

Modified on Wed, 31 Jul, 2024 at 1:52 AM

The following scenarios provide examples where the FAP would be calculated and available for display:

A policy with a period of insurance that is either longer than or shorter than 12 months, where the insurer has quoted an Annual Premium.

Mid-Term Endorsements to extend or shorten the policy’s period of insurance.
Mid-Term Endorsements to change the premium amounts due to addition or deletion of vehicles, or increasing/decreasing sums insured.
Mid-Term Endorsements to charge a one-off special premium, i.e. the Client wants to increase the limit of indemnity from $1 million to $2 million for one week for a specific contract then it will revert to normal. 

Marine Cargo Monthly Declaration Policies, where there is no annual premium, but a series of monthly invoices based on monthly sendings.



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