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Life Policies, Variations & Clawback

A policy variation typically involves an addition or reduction to a policy’s current premium. Extra commission or claw-back may result from this, and a new set of compliance checks may be required. A variation cannot be created unless a basic policy record already exists. Variations are not pre-determined at the outset of a policy, so are quite different from premium increments (e.g. for a “Low Start” endowment).

To add premium increments to a policy (e.g. for a “Low Start” type) see “Life, Premium & Increments”.

To view existing variations in your scrolling list of all policies see “Policies, Filtered Views”. You can also view them from the scrolling list of policies by clicking the “Signpost” button, followed by “Life / Variations / Display / All policies”.

To create a “Variation”, starting from Durell’s Main Menu…

  • Click the “Policies” button
  • Use the green “Binoculars” button and locate the basic policy record
  • Click the “New” or “Starburst” button
  • Click “Variation for current policy” on the “Start New Record” dialogue, shown below
  • Click “OK”
  • On the following “Variation Compliance” dialogue…

  • Choose “Retain the compliance” if the variation does not require new compliance checks
  • Choose “Clear the compliance” if the variation does require new compliance checks
  • Click “OK”
  • On the following “New Variation” dialogue enter a reason for the variation (e.g. “Premium increase”) then click “OK”.

    After this you’ll be presented with a standard policy screen, into which you should enter all of the variations details as if it were a normal policy, using the black “Curve-Right Arrow” button to move through the investment and commission screens, as required.

    Checking & Updating Existing Variations

    Once a variation exists for a policy, a tick will appear in the “Varied” field towards the middle right of the “flat view”, as shown above. If you click on the “>” button to the right of this tick you’ll be presented with a list of all the variations, as shown below….

  • Click “Show index entries” to add pre-agreed premium increments
  • Double-click any of the listed entries to jump to its record for editing
  • Clawback

    Clawback is simply indemnified commission (i.e. paid in advance by the insurer) that has to be refunded, typically because of either a reduction in premium or early termination (e.g. lapsing a policy). In any event, to refund commission you simply create a variation, as described above, with a NEGATIVE amount of indemnified commission (e.g. minus £500.00) and post it to the accounts as normal, where it will then appear as a Sales Credit.