Net Insurer Premium = The initial premium that the insurer has charged for the policy, this can be found on the AA function screen on CDL and would be listed as INIT/PROV or REN. If there has been MTAs processed during the policy period, then it would be calculated as INIT/PROV or REN minus any MSC2’s (Return Premium from the insurer) or plus any MISD’s (Additional Premium from the insurer).
Inception Date: This is the date that the policy has incepted. This can be found on the AA function screen on CDL and would be listed under the Effective date column, if there is no date under the Effective date column then you would use the date that is listed under the posted date.
The reason as to why the dates may be different is if the client has set up the policy to start for a future date, then you will see two different dates under the posted and effective date column however, if it was quoted and set up on the same day then you will only see a date under the posted column.
Cancellation Date: This is the date that you are cancelling the policy from.
Insurer Refund: This is the refund that the insurer is giving back for the remainder of the policy period. This can initially be found on P86 and will be listed as Gross Refund prior to the policy being cancelled. After the policy has been cancelled you will not be able to access P86 so you will see this figure on the AA function screen and will be listed as CANC.
Pro rata refunded add ons: This will calculate any add ons on a pro rata basis. This will take into account the add ons from inception which can be found on the AA function screen on CDL and would be listed as a LEGD. Once it has processed the pro rata refunded add on it will appear as a LEGC on the AA function screen on CDL.
Inception Discount: This is the discount that is given to the client at inception. This can be found on the AA function screen on CDL and would be listed as either a DISC or COMC.
Inception Fee: This is the fee that is charged at inception. This can be found on the AA function screen on CDL and would be listed as a FEE (only at inception).
CPF Clawback: This is the amount that Close Brothers Premium Finance (CPF) claw back upon cancelling the loan. This can be found on CPF under redemption quote tab.
If the loan is already cancelled, then it can be found on CPF under the transaction tab.
Please note that should there be more than one loan e.g. Main loan and adjustment loans. All loans would need to be cancelled in order to get the total clawback amount. If they are cancelled on different dates, then CPF will show more than once cancellation amount which would then need to be added together.
Please also check loan notes for any indemnity claims that may have been processed as these amounts would not be included in the clawback and would need to be added to the total figure.
If the calculator has [Missing] next to CPF Clawback section, you will need to enter in the amount.
CPF Clawback Date: Date in which the clawback was generated or when the loan was cancelled.
Was an add on sold within the last 14 days: You would need to select Yes or No. If yes, then it will open up the cost of the add on section for you to enter the value as add ons are refundable in full within 14 days of being sold. If you select no, then the cost of the add ons section remains greyed out.
Cancellation Fee: This is the amount we charge to cancel the policy. Our standard cancellation fee within cooling off or midterm is £45.00. If the client rebrokes with us, then it is reduced to £25.00. If the fee has been reduced or waived, you will need to adjust the amount accordingly.
INT: This is the broker charge for setting up the loan agreement with CPF. This can be found on the AA function screen on CDL.
DISD: This is the reclaimed inception discount on a pro rata basis. This can be found on the AA function screen on CDL after the policy has been cancelled. It may also be listed as COMD.
If we provide the client with a broker discount at inception, this means that we have paid a discounted portion of the clients coverage in order to offer them a better price. In order to be fair, we reclaim the unused discount on a pro-rata basis upon cancellation. This ensures that the discount is only applied to the time the client was covered on the policy.
FEEC: This is the refund of the inception fee on a pro rata basis. This can be found on the AA function screen on CDL after the policy has been cancelled.
As of the 25/01/2023 a 25% cap was put into place, meaning that if the inception fee plus the INT equates to more than 25% of the insurer premium, we will pro rata return the value upon cancellation.
CRDI: This is the refund of the INT (broker set up fee for loan). If the policy is cancelled NTU or withing cooling off, this is refunded in full however, if the policy is cancelled outside of the cooling off period this will not be refundable unless the 25% cap has been exceeded.
As of the 25/01/2023 a 25% cap was put into place, meaning that if the inception fee plus the INT equates to more than 25% of the insurer premium, we will pro rata return the value upon cancellation.
Refund due: This is the total refund due to the client. If the amount has a minus, then it is an outstanding balance.
If it is a cash policy, then we cannot put the client into a negative figure as they have paid for the policy in full and we would need to adjust the cancellation fee to ensure there is no refund or outstanding balance before proceeding with the cancellation.
CARP to collect (including fee): This function is no longer active on the calculator however, it refers to the amount that we would attempt to collect from the card guarantee on file upon cancellation.
Letter: This is the letter that will be sent out to the client upon proceeding with the cancellation. It is always set to POLCNX.RTA as a default and needs to be amended accordingly depending on the type of cancellation that is being processed.
- RTA – Cancellation confirmation following a cancellation notice that has been sent. This will go down as an enforced cancellation against the clients name and they would need to disclose this information the next time they attempt to take up insurance.
- CLI – Cancellation confirmation following request from a client either via phone call/email or post.
- REB – Cancellation confirmation following the policy being rebroked with us.
- VOI – Cancellation confirmation following the voidance of the policy by the insurer.
Tick to confirm the loan date and clawback: If you have the clawback amount and the date that the clawback was generated then tick this section.
Tick if the clawback is an estimate, leave empty if not: If the loan is in payment cycle then the claw back is only an estimate and you will need to tick this section so that the appropriate wording and option will be selected on the polcnx letter.
If you have ticked this section, it will state in the letter that we are unable to provide an exact amount due to the loan being in a payment cycle however, as soon as it is out which is usually within 7 days, we will be able to provide the exact amount. This will also then set an automatic 7-day reminder in the initials of the agent that processes the cancelation.
Notes:
CRED:
CLAW:
O/S:
The CRED will be the refund due back to the client if they have paid for their policy in full. If they are paying over instalments, the calculations would be CRED minus CLAW = RP or O/S.
CPF pay the insurers in full for the policy premium upon set up and the client then agrees to pay back the loan by direct debit on a monthly basis up until the loan agreement has been paid in full. Should the client decide to cancel the policy midterm, they are still liable to pay back what ever is owed to CPF however, if the insurer provides a refund for the remainder of the policy period, we would then subtract our fees and the money that is left over will be used towards paying back the clawback, if the credit to payback the clawback is not enough, the client will then be responsible for the difference.