Policy Accounting

The STEP Product Configurator allows flexible accounts to be set up as part of the product configuration. Each plan code within the product can be set up with its own accounts – placeholders for the financial attributes related to the policy product.  Some of the policy accounts that are managed at the plan code level may, depending on the type of the insurance product, include the following accounts:

  • Cash (Suspense) accounts
  • Premium accounts
  • Income accounts
  • Cash Surrender value accounts
  • Benefit accounts
  • Commission accounts (Multiple Hierarchies, Agent Financial groups, Agent Campaigns, Bonus, Commissions, Garnishments, etc.)
  • Federal, state and local tax, licenses fees accounts
  • General insurance expense accounts
  • Policy / claim reserve accounts
  • Retrospective rate credits

Typical financial processing of the policy products are managed in cycles during a policy period. These processing cycles may include billing, premium receipts, commission processing and carrier financial processing cycles. During these processing cycles, the policy account attributes are updated based on the policy accounting rules. The policy accounting rules are managed as part of the product configuration and triggered as part of the processing cycle or as part of the business transactions during the policy life cycle. Policy accounts are updated dynamically during these processing cycles and any financial reporting/roll-ups on the policies provide a real-time view of the policy accounts.