Policy Accounting

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Accounting can be easily summarized as the analysis of the financial position of a business. However, as simple as this summary may be, it masks the great complexity of managing the billing and premiun logic within BriteCore. There's much more to it than just following the flow of money. It’s a complete record of all financial activities that makes bookkeeping, summarizing and reporting (the generation of data) a quick step rather than a lengthy process.

Bookkeeping is the portion of accounting that manages financial transactions. For insurance carriers, bookkeeping at the policy-level is the tracking of insurance policies from their inception date to the date of their termination or reinstatement. Recording transactions includes documenting revenues by premiums and fees and comparing them to return premiums by tracking and manipulating all the payments, receivables, adjustments, and processing of the money trail.

During the policy term, there are really only a handful of stages that a policy can pass through: Billing, Payment, Non-Pay, Cancellation, Non-Renew, and Reinstatement. In short, there has to be some way to bill for a policy (Billing), to collect payment (Payment), to deal with lack of payment (Non-Pay), to handle cancellations (Cancellation), to refuse to renew (Non-Renew), and to be able to reinstate a policy (Reinstatement). These six basic considerations encapsulate the essence of policy-level accounting.

BriteCore’s role in this process is to process and provide a complete record of all billings and payments and then provide access to this trail in a clear and concise manner. To make your processing system even better, we've recently overhauled the accounting logic to handle the bookkeeping, summarizing, and reporting processes with ease. The documentation below will help you work with BriteCore's Policy Accounting.

Introduction

Revisions and Terms

Billing

Payments

Account History Box

Canceling Policies

Reinstating Policies

Rewriting Policies

Non-Renewing Policies

Accounting Settings

Frequently Asked Questions

Accounting Reports