Out of Sequence Changes

When creating an Endorsement or Adjustment transaction, several settings in the product can affect what effective dates are allowed, and how the new transaction affects other transactions. If the product allows new endorsement and adjustment transactions to be created with an Effective Date earlier than other bound endorsements or adjustments, these are referred to as Out of Sequence (OOS) transactions.

Depending on product settings, these OOS transactions may have no effect on other transactions, and can be created as needed. Otherwise, the changes introduced by the new transaction must be merged into all later bound endorsement and adjustment transactions. These changes may affect the premium on those transactions, potentially producing refunds or additional charges.

To determine how OOS transactions are handled for your product, please contact your insurance representative.

Creating the Transaction

When creating a new endorsement or adjustment transaction within a product that performs Out of Sequence (OOS) changes, the Effective Date must be provided upon clicking the Endorse or Adjustment actions.

All bound endorsement and adjustment transactions with a later effective date are referred to as blocking transactions, and will receive any changes resulting from the new transaction.

Once the OOS transaction is created, the Effective Date can be modified, but only within the period between the previous and next Effective Dates for other transactions in the term.

While the new transaction may have some differences exclusive to OOS transactions, most of the process for filling in the transactions will likely be similar. However, when a quote is calculated, an additional widget becomes available below the Premium widget. This Affected Transactions widget displays the affects to the premium, taxes, and fees for all blocking transactions. Click on a transaction in the widget to view additional details.

Note that when creating an Out of Sequence Endorsement transaction, the client data entered in the replacement transactions for the Assured is always the most recent date from the Client record.

Changes to Blocking Transactions

When the Out of Sequence (OOS) transaction is quoted, Replacement versions of the blocking transactions are created and quoted. This produces the premium changes displayed in the Affected Transactions widget.

When the Out of Sequence (OOS) transaction is bound, the original blocking transactions are Voided, Offset transactions are created and bound, and the Replacement transactions are bound with the necessary changes.

Changes are applied according to the following rules.

• If the OOS transaction changes the main distributor, the replacement transactions receive the Term Distributor as the main distributor. Any additional distributors are added to the replacement transactions.
• If the client information is changed, the client information in the replacement transactions is copied form the core client record.
• Values that are changed in the OOS transaction are copied to the replacement transactions. The system does not combine changes from the OOS transaction and the blocking transaction, such as two increases of 5 resulting in a total increase of 10 in the replacement transaction.
• If a value is changed in the OOS transaction that was already changed in the blocking transaction, the value in the blocking transaction is kept for the replacement transaction.
• Files attached to File Upload fields in the OOS transaction are not duplicated in the replacement transaction.

Managing Grid Data in OOS Transactions

There are times where an OOS transaction requires changes to grid data. When adding grid rows, the system must determine what values to propagate forward for the resulting Replacement transactions. Otherwise, discrepancies or the duplication of data may occur.

Certain grid configurations allow the system to identify matching grid rows in the blocking and OOS transactions. If configured, and a duplicate grid row is identified, a single entry will be made in the Replacement transaction.

If a grid row is deleted in the blocking transaction and added back with new field values, and this same grid row is edited in the OOS transaction, the values replaced in the blocking transaction are propagated to the Replacement transaction.