Process and Procedure Manual

PROCESS & PROCEDURE

Processing the Audit: Time Standards

Agency contracts allow, on average, 30 days to return a disputed audit, therefore, audits must be processed within five (5) days of received to
ensure we have adequate time to return the audit if client disputes or does not pay additional premium. Note: Invoicing references are for agency bill
audits only.

1. Complete the Audit Exposure Comparison Worksheet or Audit Verification Worksheet.
2. Invoice in Sagitta on expiring (audited) term as applicable.
3. Deliver audit using the appropriate Audit to Insured (Single or Multiple) Quick Part and invoice, if applicable, to client.
4. Update AUD activity item in Sagitta to 10 days to follow-up on payment of additional premium.

a. Notify AE if no payment received.
5. Close AUD activity item when audit completed and/or payment is received.

Processing the Audit: Audit Worksheets

Audit worksheets confirm rates, experience mods, premium credits/debits, and classifications, etc. used on the audit and is collected from the expiring
and renewal policies as well as premium-bearing endorsements issued during the audited term. While the Audit Exposure Comparison Worksheet and
Audit Verification Worksheet are similar in purpose and design, the amount of information provided is different.

For policies with premium $4,999 and below the Audit Exposure Comparison Worksheet is sufficient. For policies with premium $5,000
and above the Audit Verification Worksheet should be used. This detailed worksheet includes the code with description, exposure basis, rate,
discounts and premium details for the Workers’ Comp, General Liability, and/or Auto policy(s).

Audit Worksheets: Completing the Worksheet

1. Choose the coverage spreadsheet(s) to be completed – complete them one at a time.
a. Complete Client Information – customer name, issue date, insurer, policy term, and policy number.
b. Complete Classification column using the audited policy.
c. Enter Estimated Exposures from the audited policy at the time it was issued.
i. Does premium total match initial premium at inception? If not, determine difference and make any necessary changes.
d. Update Classification and Estimated Exposure columns based on any premium-bearing endorsements issued during audited term.
i. Do premium totals match the adjusted policy premium? If not, determine difference and make any necessary changes.
e. Enter Actual Exposure from audit and verify premium total matches.
f. Verify Difference column for accuracy or hide if not needed – it auto-calculates based on Estimated and Actual Exposure columns.
g. Complete Renewal Exposure column, as applicable or hide if not needed (ex: lost client, lost WC)
h. Complete Premium Adjustment fields as applicable or hide if not needed.

2. Save completed worksheet to CBDDoc using the Commercial Lines CBDDoc Guidelines.

Processing the Audit: Sagitta Procedure

1. Maintain AUD transaction and update Miscellaneous Remarks to indicate audit received.
2. Save audit copy to CBDDoc using the Commercial Lines CBDDoc Guidelines.
3. Invoice the AP or RP for agency bill audits.
4. Email AE if AP is greater than $5,000 on agency or direct bill audits.
5. AM should discuss with Sr. CSC or CSC to see if they want to review the audit or make a call to the client or discuss with AE prior to the

audit being sent to the client.
6. Email audit, applicable invoice and completed worksheet to the client using the appropriate Audit to Insured (Single or Multiple) Quick Part.
7. Update AUD activity item.

a. If AP due on current or lost agency bill account, set follow-up days to 15 and update memo description to verify payment received.
b. If no AP due (RP or No Change) or a company/direct bill account, close AUD activity item using today’s date.

Note: Do not update any exposure or rating information as a part of the AUD transaction. If the carrier issues an endorsement
updating the exposures on the renewal term based on audited figures, this is completed on the renewal policy using an END transaction type.

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PREMIUM AUDITS

PROCESS & PROCEDURE

Processing the Audit: Payment Received

1. Verify AP payment has been received when AUD activity item is due.
a. If AP payment was received – update AUD activity item showing payment received and close using today’s date.
b. If AP payment has been mailed – pend AUD activity item for additional five (5) days then confirm receipt.
c. If AP is being disputed – notify carrier of dispute.
d. If AP payment will not be paid – notify AE client has declined to issue payment and pend AUD activity item for additional 10 days
then confirm with AE on how to proceed.

Premium Audit: Lost Account Audits

Include these additional items when collecting AP on a lost account (i.e. cancelled or non-renewed policy(s), out-of-business accounts, etc.):
1. If AP payment was received – update AUD activity item showing payment received and close using today’s date.
2. If AP payment was not received – return audit to carrier as uncollectible and cc the carrier’s Accounting contact on email then close the AUD
activity item using today’s date.

Premium Audit: Disputed Audits

An audit dispute can be initiated by the CSC/AM or the client and are typically based on an error in the information used to complete the audit.

Disputed Audits: Issuing dispute

1. Email written statement to underwriter and cc the Holmes Murphy carrier Accounting contact within designated timeframe and include:
a. Client name;
b. Policy information; and
c. Reason why audit is being disputed.

2. Invoice AP or RP indicated on disputed audit for agency bill audits or update for the Premium Summary for direct bill audits.
Note: This step is not optional – all premiums must be invoiced or documented.

3. Email client confirming audit has been disputed and cc the Holmes Murphy carrier Accounting contact with invoice included as applicable.
4. Update AUD activity to show carrier notified of dispute and change follow-up days to 30.

Disputed Audits: Response Received

1. Update audit worksheet to show the revised exposure information.
2. Maintain AUD transaction in Sagitta and revise invoice as appropriate.
3. Email revised audit to client and cc the Holmes Murphy carrier Accounting contact along with the updated invoice and worksheet included as

applicable. Use the appropriate Audit to Insured (Single or Multiple) Quick Part.
4. Update and close AUD activity item using today’s date.

Premium Audit: Uncollectible Audits

An audit may be deemed uncollectible for a variety of reasons such as refusal to pay, unresolved disputes, or late payment.

Uncollectible Audits: Notifying the Carrier

1. Email written statement to underwriter and cc the Holmes Murphy carrier Accounting contact within designated timeframe and include:
a. Client name;
b. Policy information; and
c. Reason why audit is deemed uncollectible.

2. Update AUD activity to show carrier notified of uncollectible audit and change follow-up days to 30.

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PREMIUM AUDITS

PROCESS & PROCEDURE

Uncollectible Audits: Response Received

1. Verify with carrier AP has been written off.
2. Maintain AUD transaction in Sagitta and void original invoice as appropriate.
3. Update and close AUD activity item using today’s date.

Premium Audits: Estimated or Revised Audits

Estimated or revised audits can be issued for a variety of reasons (i.e. payroll not available, additional documentation needed, etc.) and are processed
in the same manner as an original audit with these exceptions:

1. A new AUD transaction should be created in Sagitta. Do not maintain the original AUD transaction.
2. A new Audit Exposure Comparison Worksheet or Audit Verification Worksheet should be completed and saved to CBDDoc using the

Commercial Lines CBDDoc Guidelines.

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PREMIUM AUDITS

What is it? PROCESS & PROCEDURE

The premium comparison is a Premium Comparison
Holmes Murphy Excel document
which provides an assessment of A premium comparison uses initial, bound premium amounts not including audits or endorsements. These
premium and exposure from one figures can be changed to reflect annualized amounts when large premium-bearing, mid-term endorsements
year to the next. have been issued.

When is it used? Premium Comparison: Getting Started

A premium comparison is used for The following items are used to complete the Premium Comparison:
new or renewal presentations. □ Premium Comparison worksheet
□ New comparisons – save copy of Premium Comparison template to client’s CBDDoc
Why is it used? WIP folder using Commercial Lines CBDDoc Guidelines.
□ Existing comparisons – copy previous term worksheet tab in the existing Premium
An AE uses the premium Comparison to keep historical record.
comparison to explain changes in □ Previous term final, bound quote – found in CBDDoc or information on existing comparison.
the cost of insurance. This is an at- □ Current term quote – found in CBDDoc or marketing file.
a-glance overview of how changes
in exposure can impact premium. Premium Comparison: Completing the Worksheet

The comparison worksheet must be completed to reflect the current information.
 Rename each worksheet to show term (i.e. 2015-2016) by right-clicking on tab.
 Coverage items can be edited to remove, add or update line of business descriptions which
fit the client’s needs.
 Change columns calculates % of change based on exposure and premium information entered.
 Comm $ column will calculate once premium and commission percentage is complete.

Completing the Worksheet: New

□ Customer name
□ Update the policy term under Exposure to reflect applicable term years (i.e. 2014-2015) –

this will update the Premium term as well
□ Complete each applicable Coverage line items

□ Basis value – the valuation basis is shown on the Premium Comparison template
(i.e. Sales, Employees, etc.)

□ (previous) Exposure as available – enter Not Applicable or N/A for any missing or
incomplete information.

□ (current) Exposure – as shown on quote.
□ (previous) Premium as available – enter Not Applicable or N/A for any missing or

incomplete information.
□ (current) Premium – as shown on quote.
□ Comm % for current term as shown on quote – this information is only visible in the

Excel format; it is outside the print area for paper and PDF format.
□ Complete applicable Notes information

□ W.C. Experience Modification – final mod for (previous) Premium and
(current) Premium terms

□ Add any additional notes specific to client

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PREMIUM COMPARISON

PROCESS & PROCEDURE

□ Complete applicable Options information
□ Complete applicable Conditions information
□ Complete applicable Pay Plans information

Completing the Worksheet: Renewal

Update copied comparison worksheet to include current term information.

□ Move the expiring term information from the second Exposure column to the first using copy/paste – this will update the Premium
column as well

□ Update the policy term in the second Exposure column to reflect the renewal term year (i.e. 2015-2016) – this will update the
Premium column as well

□ Complete the renewal information for each applicable Coverage line item
□ Basis value
□ (current) Exposure – as shown on quote
□ (current) Premium – as shown on quote
□ Comm % for current term as shown on quote – this information is only visible in the Excel format; it is outside the print area
for paper and PDF format.

□ Update applicable Notes information
□ W.C. Experience Modification – final mod for (previous) Premium and (current) Premium terms.
□ Add any additional notes specific to client.

□ Update applicable Options information
□ Update applicable Conditions information
□ Update applicable Pay Plans information

Premium Comparison: Client Copy

Print a copy or save in PDF format for use within the RMR.

Premium Comparison: CBDDoc

Save the completed worksheet in Excel format to the permanent CBDDoc folder using the Commercial Lines CBDDoc Guidelines.

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PROCESS & PROCEDURE

What is it? Premium Finance

Premium Financing is a loan When a client requests premium financing for their account you will need to work with the Accounting
arrangement with a third party Department to establish the financing. A copy of the premium financing request can be located in the
lender for premium payment to a Accounting section of the intranet.
carrier.
Premium Finance: Requesting Finance Arrangements
When is it used?
To request premium financing once the Policy Record has been opened:
Premium Financing is requested by 1. Click Maintain and select the NEW or REN transaction.
a client following new business, a 2. Type “Annual Premium Financed” on the second line of the Miscellaneous Remarks field.
renewal or used with a large Entering the note on the second line prevents it from being deleted by any subsequent
premium. transactions.
3. Complete a basic invoice but do not bill on installments when using premium financing.
a. Agency Bill- Invoice the FULL annual premium with FULL commission and include
“Premium Financed” in the Comments section of the invoice.
b. Company/Direct Bill- Invoice the FULL annual premium with 0% commission on an
AGENCY BILL invoice and include “Premium Financed” in the Comments section.
4. Complete the Premium Financing Request Form located in the Accounting section of the intranet
and submit the completed form to Dan Tye.
5. When financing terms are provided to you, forward the agreement to the client requesting it be
signed and returned to Dan Tye’s attention with the 25% down payment made out to Holmes
Murphy. If the signed agreement is returned after any installments are due, those installments
must also be included in the down payment.
6. Create an activity in Sagitta to verify receipt of the signed agreement with payment using 10 as
the number of Follow-Up Days and add Dan’s user id (TYED1) in the To: field. You may need to
adjust the number of follow-up days based on the effective date of the policy(s).
7. If the activity is due and has not been closed or updated, check in CBDDoc to see if a copy of the
agreement has been scanned and check with Dan Tye to see if you need to follow-up with the client.

Reminder:

The carrier is NOT paid until the appropriate Accounting contact receives an invoice or statement from the
carrier. It is critical an invoice is sent to Accounting for carriers not on account-current or statement based
(i.e. AIG, surplus/excess lines) billing. Set an activity for the receipt of the invoice so you remember to
forward it.

Premium Finance: BOR Accounts

When taking over an account with premium financing by BOR, you will need to notify the lender that Holmes
Murphy is the new broker/agent of record and request their records be updated.

Premium Finance: Company Bill Accounts

DIRECT BILL POLICIES SHOULD NEVER BE FINANCED. Please request that the carrier change the policy to
Agency Bill if Premium Financing is needed. If this is not an option, discuss with Dan Tye in Accounting for
direction on finance set-up.

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PREMIUM FINANCE

What is it? PROCESS & PROCEDURE

The quote review is the process of Quote Review
comparing the quote from the
carrier to our original submission Carrier quotes are reviewed for completion and accuracy based on the submission before any information is
and/or current policy. This ensures presented to the client for consideration.
the coverage terms and conditions
are as requested. Quote Review: Receiving the Quote
A quote is the coverage proposal
provided in response to a Submissions include a quote need by date and the quote should be received within the requested
submission. timeframe. Quotes can be sent by email or downloaded from a carrier website or system.

Why is it done? Receiving the Quote: Sagitta Procedure

Quote reviews confirm the carrier When a submission is tracked in Sagitta as a part of the new business marketing or renewal procedure, the
is providing the coverage associated activity item should be updated to reflect the quote was received.
exposures, terms, and conditions The quote should be saved to CBDDoc according to the Commercial Lines CBDDoc Guidelines.
set forth in the submission.
It allows errors to be corrected or Quote Review: Checking the Quote
incomplete information to be
completed before the AE presents Review the quote for the following items when received:
to the client. □ Named Insured and address are correct.
□ Effective dates are correct.
When is it done? □ Limits are as requested.
□ Exposures are provided in the submission.
A quote review is done after the  If not, outline incorrect information and ask for a revised quote.
quote is received from the carrier. □ All quote options included or noted accordingly – alternate limits, etc.
□ Retro and/or continuity dates same as expiring for claims-made policy(s).
□ Compare forms list with expiring, including endorsements, as applicable.
 If forms list not provided in quote, request it from carrier.
 If incumbent carrier unable to provide the list, request written confirmation forms will
remain the same as expiring.
□ Compare updated forms and forms with new edition dates to expired and note changes – check
the Insurance Coverage Forms folder to see if form has been reviewed. NOTE: This is a tool to
help, not to replace your knowledge of the form and how it affects coverage. You still need to
make notes on the form and compare to the intent of coverage.
 If an updated form is unacceptable (i.e. changes are too restrictive for exposures) –
request expiring form be used or negotiate with carrier.
□ Verify remaining forms still provide best coverage – if the form was there last year does not
mean it is right or the best fit.
 If an updated form provides better coverage – request it.
□ Review open endorsement requests and activities items to ensure all changes/updates are
incorporated into quote.
 If not, provide the updated information and ask for a revised quote.

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QUOTE REVIEW

PROCESS & PROCEDURE

□ Review quote subjectivities and/or binding conditions.
 If subjectivities have already been met, confirm with carrier.
 If subjectivities are excessive or unnecessary, negotiate removal with carrier.

□ Request revision in a summary format to the carrier by line of business or send separately as you see fit.

Checking the Quote: Revised Quotes

When a revised quote is provided it must be reviewed again to make sure all requests have been satisfied. If not, request revisions again.

Quote Review: Next Steps

Once the quote is deemed correct, begin working on the client presentation for the AE as a part of the renewal or New Business Proposal.

□ Create the New Business Proposal or HMA PSR as applicable.
□ Update the Premium Comparison.
□ Send to AE for Review.

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QUOTE REVIEW

PROCESS & PROCEDURE

What is it? Statement Hold List

The statement hold list provides The statement hold list is used to assist with a client’s billing requests and/or concerns. Placing a hold on
alternate instructions to Office the monthly statement still allows the report to be printed but reroutes it according to alternate
Services on the handling of a instructions.
client’s monthly statement.
Statement Hold List: Alternate Instructions
How is it used?
Whenever a monthly statement hold is needed on an account, the CSC or AM must provide alternate
The hold list is used when the instructions for Accounting, Tech Support, and Office Services. These instructions are recorded on the
client has requested, or requires, Statement Hold List spreadsheet.
alternate handling of their
monthly statements. The following information must be added to the Statement Hold List spreadsheet when requesting a hold on
It allows automatic printing of statements:
monthly account statements for
the client but prevents them from □ Date Added – to spreadsheet.
being mailed directly to the □ Bill-To Code – of entity receiving statement; can be the main client or a multi bill-to.
responsible party. □ Client Name – of bill-to client in Sagitta.
□ Servicer 1 – user id from Sagitta.
Why is it used? □ Send Statement To – full name of the person who should receive the held statement.
□ Notes – additional information relating to statement hold.
A CSC or AM can also request a
statement hold if the automatic Statement Hold List: Process Workflow
mailing has created a service
issue. On the 1st business day of each month Tech Support runs the statement list generation report from Sagitta.
A few reasons a hold may be This report generates statements for every account with a credit on account, current balance due, and past
requested include: due balance.
 Client wants to receive
This report is then processed by Office Service into printed statements. Any statement matching a Client
statements for all multi bill-to Code listed on the Statement Hold List is separated for further review. Office Services then sends the held
accounts at the same time. statement to the CSC or AM according to the alternate instructions provided.
 CSC or AM needs to include
additional information with Statement Hold List: No Statements
the monthly statement(s).
 CSC or AM needs to review
monthly statement(s) for
accuracy.

Statement holds are not the same as the NST – No Statement status code in Sagitta.
When a client has requested to not receive statements at all, the NST – No Statement code is entered
into the Status field of Sagitta on the Client Details screen. This stops the printing of the statements all
together rather than having them printed then thrown away.
Review the attached diagram for assistance in determining if a statement hold or NST code is necessary.

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STATEMENT HOLD LIST

What is it? PROCESS & PROCEDURE

A submission is the action of Submissions
presenting a proposal, application
and/or other documents to an A submission is sent to an insurance company underwriter(s) as a request for a quote. This request for
insurance company for review and quotation typically includes more than just ACORD or carrier-specific application(s); unless the application(s)
placement consideration. contain all of the information needed for an evaluation of the client’s risk.
This request typically includes
more than just the ACORD Submissions: Determining Carriers
application(s) unless the request is
to the incumbent for a renewal When creating submissions it is important to understand which carrier(s) will be receptive to the risk. Each
quote. carrier has preferred exposures and the area(s) of focus may change from time to time based on overall
market conditions.
When is it used? Choosing the correct carrier(s) is just as important as creating a complete submission for review. Multiple
carriers should be selected to receive the submission. Our goal is to have three quotes to present to the
A submission is created for new client. If you need assistance determining which carriers to choose, check with a Placement Team Consultant
business placement and can also or the CSC on the account for suggestions.
be effective for some renewal
processes. The submission is Submissions: Creating the Request
usually created after the AE has
met with the client and has Submissions can be created using several systems including Sagitta, Adobe, CBDDoc, Word, and Excel.
obtained exposure and coverage
information. Creating the Request: Incumbent Carrier

Why is it used? Typically the incumbent carrier is looking for changes to the existing program. Therefore, we don’t need to
send updated ACORD applications to the underwriter. An email outlining changes requested for renewal is
Submissions allow the agent to sufficient. This is easiest when spelled out by coverage line, such as:
“tell the client’s story” with
factual information about the  Property: Increase building at 123 Main Street from $100,000 to $120,000
business to the insurance company  Autos: Add 2015 Chevy VIN: XXXXX; Service Use, garaged in Des Moines, Liability, Medical
underwriter.
In addition, the submission Payments, Um/Uim; $1000 Ded Collison; $250 Deductible Comp. Delete the 2013 Chevy VIN: XXXX
provides the insurance company  Drivers: Updated list attached
with the client’s exposures and Include any supplemental applications that might be required as well as other information that the
coverage needs in order to underwriter has requested. Also provide any details that the underwriter should be aware of since the last
process the data and issue an renewal. Set an activity with your email request and a quote need by date.
insurance quote.
Creating the Request: Documents to Include

New (new client) and renewal (to other markets) submissions tend to be the same when regarding the
information you will need to submit to your carriers.

 Quote Need by Date – date you need the underwriter to provide you their quote.
 Loss Control Contacts – for client and/or Holmes Murphy as appropriate for inspections, etc.

When this information is complete in Sagitta, this information is copied to the ACORD Application)
 Narrative – a detailed written account describing the client’s business. The AE provides this

written account which includes factual representation of the business mission, vision, goals,
aspirations, etc. including:

o Date business started
o Ownership structure and history
o What type business it is? What products or services are provided?

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SUBMISSIONS

PROCESS & PROCEDURE

 ACORD Applications – Completed to the best of our ability using information provided by client and/or AE. These are generated from
Sagitta using the Submissions or Forms tabs. On renewal business, policies should be in re-market status and Sagitta up-to-date with
changes received from client. ACORD Applications are generated from Sagitta Forms- See the Property Casualty Reference Manual for more
information.

 Supplemental Applications – Completed by the client for a specific line of business or carrier. We typically try to complete what we can
for the insured based upon information from our files, but rely upon the client to correct our information and provide additional information
as needed.

 Loss Summary – Completed by Placement, CSC or Claims. See Loss Summaries for more information. Include details for any large losses:
what occurred, current status, loss prevention steps, etc.

 Loss Runs –Five (5) years should be provided but may depend on availability and/or carrier requirements. See Loss Summaries for more
information.

 Experience Modification Worksheet – Provided by client, carrier or NCCI for new and renewal business. Authorization for release to
NCCI can be provided on new accounts using the NCCI Authorization Letter. See Loss Summaries for templates and more information.

 Schedules – For vehicles, drivers, locations, equipment, etc. May be included on ACORD applications or in Excel format or Sagitta Schedules.
 Marketing Report – Completed by Loss Control for large and/or complex accounts.
 Additional Items – As required for large accounts and/or risk type including, but not limited to:

o Employee Handbook (some carriers accept the TOC due to size of document)
o Safety Manual (some carriers accept the TOC due to size of document)
o Contracts and/or Subcontracts
o 5500 forms
o Required filings
o Rent rolls
o Photos, diagrams, brochures, etc.
o Historical Exposures
o Financial Statements

Submissions: Sending to Carrier(s)

Submissions must be encrypted when sent outside of Holmes Murphy whether sent by email or uploaded to a carrier system. When sending by email,
the [secure] encryption indicator should be used in the Subject line.
If the submission exceeds the size limitation of Outlook (30MB) then it should be sent using ShareFile. See the ShareFile System Manual in the Property
Casualty Reference Manual for more information.

Sending to Carrier(s): Sagitta Procedure

Once the submission has been sent to the carrier(s) the NEW or REN activity item is Sagitta should be set for follow-up to ensure the quote is received
by the quote need by date. If the Submission tab is used to create the applications, the associated activity item should be used. See the Submission tab
of the Property Casualty Reference Manual for more information.

Sending to Carrier(s): Helpful Hints

Sometimes a call to the carrier after a submission is sent to discuss the account will help with placement and/or quote options. This increases the level
of engagement between us as an agent and the underwriter analyzing the risk. Generating excitement for an account can be more impactful when
information is discussed rather than just detailed within the submission.

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SUBMISSIONS

PROCESS & PROCEDURE

What is it? Tail Coverage

Tail coverage is a claims-made Tail coverage can be provided by endorsement to activate the extended reporting period option on an
policy provision which allows existing liability policy or issued as a “stand alone” policy.
claims to be made after the policy
term has ended, if the incident Tail Coverage: Added by Endorsement
causing said claim occurred during
the policy term. When the carrier issues an endorsement on the existing liability policy to activate the Tail coverage, this
This coverage requires payment of transaction must be recorded in Sagitta.
additional premium.
Added by Endorsement: Sagitta Procedure
When is it used?
□ Create a client-level Note indicating Tail coverage exists, the LOB, and coverage term
Tail coverage is used to provide an (i.e. Tail coverage for PRO effective 1/1/2015-16).
extended reporting period for a
liability policy. □ Create an Endorse transaction on the affected policy – see the Policy Transaction section of
the Property Casualty Reference Manual for more information. Note: Do not change the
How is it provided? effective/expiration dates of the existing policy term.

Tail coverage can be provided in □ Invoice the additional premium.
two ways: □ Change the effective date of the invoice to the existing policy term effective date to
 Endorsed onto the existing, avoid annualization of the one-time premium charge.

active policy to activate the □ Update and/or close the END activity item as appropriate.
extended reporting period
option; or Tail Coverage: Issued as a Policy
 Issued as a “stand alone”
policy which provides tail Issued as a Policy: Sagitta Procedure
coverage for a specified
period of time. □ Create a client-level Note indicating Tail coverage exists, the LOB, and coverage term
(i.e. Tail coverage for PRO effective 1/1/2015-16).

□ Create a Renewal Policy Record in Sagitta for the coverage term
□ Invoice the premium.
□ Update and/or close the END activity item as appropriate.

Tail Coverage: Expired Coverage

When an active client has tail coverage which has expired, the policy must be non-renewed in Sagitta to
show the termination of the tail coverage. See the Policy Nonrenewal process and Non-Renew transaction
instructions in the Policy Transaction section of the Property Casualty Reference Manual for more
information.
Note: Expired tail coverage is not always the same thing as tail coverage on a lost account.

Tail Coverage: Lost Business

If the tail coverage will be the only active coverage remaining on a lost business account, process the tail
coverage then complete the Lost Business process.

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TAIL COVERAGE

PROCESS & PROCEDURE

Lost Business: Tail Coverage Expired

Once tail coverage expires on a lost business account, Sagitta must be updated to reflect no active coverages remain.

Tail Coverage Expired: Sagitta Procedure

Make the following changes in Sagitta when tail coverage expires on a lost business account:
□ Nonrenew the tail coverage Policy Record
□ Change Client Name from “ZZT – Client Name” to “ZZZ – Client Name”
□ Remove the TL code from the Statuses field on the Client Details screen.

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TAIL COVERAGE