Section-based charging and negotiated commission in APD

Section-based charging in APD groups related commercial coverages for pricing, settlement currency handling, and commission management. Negotiated commission lets insurers apply commission rates by section risk profile.

Large commercial policies include groups of similar coverages used for section-based charging. This process is beneficial for underwriting, rating, and specifying payment and settlement currencies. You can define premiums and costs based on sections. You can also set commission rates for sections based on their risk or exposure, known as negotiated commission.

A section is identified by a section type defined in PolicyCenter. Sections are created as part of the submission workflow in PolicyCenter.

For example, consider a commercial policy for an airline. It includes coverage for a fleet of airplanes, liability coverage, and much more. Coverage for the fleet can be in a property coverage section, and liability coverage can be in a general liability/liability of conduct section.

Enable section-based charging and negotiated commission in APD

Enable section-based charging and negotiated commission on a product so APD can support section-specific premium and commission behavior for large commercial policies.

Procedure

  1. On the Product Model screen, in the navigation pane, select the product.
  2. Choose Edit from the product's vertical ellipsis menu.
  3. In Element Details, check Section Based Charging and Negotiated Commission.

Provide a section type for a coverage or cost in APD

Assign section types to coverages and costs in APD so section-based charging can map product elements to PolicyCenter section definitions. This workflow covers coverage, product line, and risk object levels.

About this task

You can assign a coverage, product line, or risk object to a section by providing a section type. You must define the SectionType typelist in Guidewire Studio.

Procedure

  1. At the coverage level:
    1. Edit any coverage.
    2. In Element Details, click Manage Clause Categories.
    3. Edit the appropriate clause category.
    4. In Element Details, in Section Type, copy and paste the code from PolicyCenter.
  2. At the product line level:
    1. On the Billing screen, under Other Costs for the product line, add a cost.
    2. In Section Type, copy and paste the code from PolicyCenter.
  3. At the risk object level:
    1. On the Billing screen, under Other Costs for the risk object, add a cost.
    2. In Section Type, copy and paste the code from PolicyCenter.