Co-Insurance is used when multiple insurance companies insure one valuable item to split the liability and lower their individual risks. For example a ship may have one insurer covering the cargo, one insuring the boat itself and another insuring the crew against personal injury. Each insurer will have different premiums and commissions but the client will only receive one overall invoice.
To do this you create one main or "header" policy for the client, with separate policies for all the insurers involved with it. The "header" policy will contain the overall premium and commission figures. Starting from the Main Menu....
- Click the “Setup” button.
- On the list on the right hand side double click “Insurers (General)”.
- Click the blue Starburst and create a new insurance company called ‘CO-INSURANCE’. No details are required (e.g. leave the ABI Insurer name blank), as this is purely for grouping purposes, although a code (e.g. "COIN") will still need to be entered, as shown below.
- Go back to the Setup screen, this time selecting “Products”. Create a new product with ‘Co-Insurance’ as the insurer, choosing the Type and Product and entering a Plan name that relates to the policy in question, as shown below.
- Go to the Client’s screen and find the client in question.
- Create a new policy for this client, selecting the ‘Co-Insurance’ product. Fill in all the policy details you know, but on the Premium screen only set the Invoice date and the Payment Method dropdown to 'CC - Co-insurance, no invoice to insurers'. DO NOT ENTER ANY OTHER PREMIUM DETAILS and do not post it to the accounts yet - just save and exit.
- Once the policy has been saved, back on the scrolling list of the client's policies highlight it, click the ‘Signpost’ button, then ‘Groups’, then click ‘Make current policy a group header’.
- Keeping the policy highlighted, to create the first insurer's policy click the ‘Signpost’, then ‘Groups’, then click ‘Add a new policy to current group’.
- Create a Policy for the first insurer in the normal way, the only difference is on the Premium screen you will need to change the Payment Method to ‘CI - Co-insurance, no invoice to client’.
- All the policy STAGES (e.g. Active, prompt renewal") and INVOICE DATES will need to be the SAME throughout all the grouped policies in order for the premiums to be accumulated automatically.
- To check everything is correct, use the preview option before posting each insurer’s policy, noting that for each policy there shouldn't be an invoice to the client - just the insurer.
- Repeat this for all the insurers
- Once all the insurer policies have been created and posted to the accounts, highlight the Co-insurance header policy, then...
- click the ‘Signpost’ button
- select ‘Groups / Update Current Group’
- click ‘Accumulate premiums’
- select the stage where all the policies have been set to (e.g. “Active, prompt renewal”)
- set the common invoice date
- Click “OK”
- This will add together all the insurers’ premiums and commissions and update the header Co-Insurance policy accordingly with a total premium and average commission percentage.
- Reselect the header Co-Insurance policy and page through the screens using the black Curve Right button. On the premium screen check that the premium has been accumulated properly, and double-check that the Payment Method is set to ‘CC Co-Insurance, no invoice to insurers’. Then click the black Curve Right button and post the client’s invoice to the accounts.
- N.B. If there are any commission pay-aways to advisers or introducers they should be included on the header Co-Insurance policy only.
In the accounts you should find that you have one sales invoice posted to the client and one purchase invoice for each insurer.