Splittable entities

A splittable entity enables flexible, accurate handling of policy changes by allowing entities to be divided into independently managed segments over the policy lifecycle. These segments are called splits.

A splittable entity refers to a data model object such as a risk or exposure that can be divided into multiple segments or "splits" based on changes in policy terms, such as effective dates, locations, or other relevant criteria. Splitting allows you to manage, rate, and apply rules to each segment independently, reflecting changes in risk or policy structure over time.

Key characteristics of a splittable entity include:
  • An entity can be split as of a specific effective date, creating separate slices for different periods or conditions within the policy term.
  • When an entity is split, certain fields can have different values in each split, allowing for accurate rating and rule application for each period.
  • Splitting is commonly used for exposures or risks that are basis scalable, for example payroll or sales amounts that change mid-term, or risks that need to be tracked separately due to changes in coverage or location.
  • Values such as basis amounts are prorated for each split, ensuring that calculations and coverages are accurate for the split's timeframe.

For example, consider a case where a policy covers a building and there is a change in occupancy or a new location is added mid-term. The building risk entity can be split at the change date. Each split represents the risk for a specific period, with its own set of attributes and coverages.

Splittable Risk contains Clauses or Modifiers

A splittable Risk has at least one Split by Rating Periods field. If a splittable Risk contains Clauses or Modifiers, they can be changed for the splits, regardless of whether the associated Clause Term or Modifier Rate Factor has Split by Rating Periods selected in APD.

Rules on splittable entities

Take care when writing rules on splittable entities. Rules on splittable entities such as availability, default, and min/max evaluate on the value for each split:
  • For scalable fields, value comparisons are against the scaled value.
  • Fields that cannot be split are editable only in the first version. Modifications propagate to the other versions.

Split risk object by rating period

In APD App products, you can define risk objects as splittable into multiple rating periods. Risk objects are splittable if one or more of their fields can be split.

About this task

In the product definition, define a risk object as split by rating period.

Procedure

  1. In your APD App product, click to view a risk object.
  2. In Elements > Attributes, select the attribute that you wish to split, and select ... > View Details.
  3. In Element details, select Split By Rating Periods.
  4. If the field is a number, decimal, or monetary amount, select Scalable if the field is scalable.

Splittable entities in a policy transaction

Take note of the following when working with splittable entities in a policy transaction:
  • When working with transactions involving splittable entities, if changes to clauses, modifiers, or child risks on the splittable entity are required as of the policy change effective date, the splittable entity can be split as of the policy change effective date and the changes can be made effective on that split date.
  • Depending on the availability, default, and min/max rules, there may be cases where you need to split the exposure to accommodate specific rule requirements.
  • If multiple splittable entities exist within the risk hierarchy, it is recommended to keep splits synchronized with their ancestor risk splits.

Split risk objects in a policy transaction

About this task

In a PolicyCenter policy transaction, you split the risk object and can modify independently the values of the split fields. Any number of splits may be performed on risk objects. Different risk objects may have different numbers of splits or different split dates.
Note: Because the Split button is on the risk objects tab, you can only split child risk objects of the product line and not the line itself.

Procedure

  1. In a policy transaction for a policy line that has risk objects that can be split, advance to Risk Details and select the risk objects tab.
  2. Add the risk object that can be split.
    For risk objects that can be split, Effective Date and Expiration Date appear in the list view and the Split button appears above the list.
  3. Select one or more of these risk objects to enable the Split button.
  4. Click Split.
    The Split Risks popup appears.
  5. Choose the Date on which to split the risks and click Split.
    An error appears if the date is outside the policy period range or if a split already exists on the given date.

    After a successful split, there are two versions of the risk object. You can click to view either version of the risk object but only fields that can be split are editable in the second version.

    Both versions initially have the same data, except for scalable fields which are prorated based on the split date. You can edit splittable fields independently in both versions. Fields that cannot be split are editable only in the first version. Upon save, changes made in the first version propagate to the second version.

    You can Remove or Split only the first version of a risk object. Removing a risk object removes all versions. There is no way to remove a single version. There is no way to undo the split to a risk object.
    Note: The risk object popup lets you edit other product elements besides fields, such as clauses, exposures, and child risk objects. In the base implementation, these elements are independently editable in both versions of the risk object.