PC Assignment 4-Answers

1. There are three refund methods (flat, pro rata, and short rate). Which is most likely
to be used by a cancellation job that cancels a policy before it becomes effective?
Why?
Ans=>Flat cancellation is an most convenient answer for insured, because in flat
cancellation insured person don’t have to pay premium or any additional fees.
and get total amount of policy.
Pro rata – The insurer bills the policyholder for the time that the policy that was
already in effect.
Short rate – The insurer charges the policyholder a penalty in addition to the pro rata
amount.
Flat – The insurer refunds the total amount of the policy.

2. Is the effective date of a reinstatement job required to match the effective date of
the corresponding cancellation job?
Ans=> NO, The expiration date remains the same.
Reinstatements are a type of policy change that returns a canceled policy to in force
status. The policy becomes in force again as of the reinstatement date. The
reinstatement removes the cancellation from the policy period. Hence, the policy
expiration date remains the same.
In a reinstatement policy transaction, you cannot reinstate with a lapse in coverage
or change the policy expiration date.

3. What is the difference between rescinding a cancellation and executing a

reinstatement job?
Ans=>

Rescinding Cancellation Executing Reinstatement

Rescinding cancellation means Reinstatement means removes the

cancelling the cancellation process. cancellation from the policy and returns
a canceled policy to in-force status.

Cancellation policy transaction is when Reinstatement policy transaction is

the policyholder does not pay the when the insured and insurer both
premium, so the insurer begins the mutually wants to reconsidered policy
cancellation process. again.
4. Assume that for policy A, there is a "Reinstate Policy" menu action, but for policy B,
there is no "Reinstate Policy" menu action. What is the difference between policy A
and policy B?
Ans=>

Policy A Policy B

If policy A having Reinstate policy menu If policy B don’t have Reinstate policy
action then policy A must be in a menu action then policy B must be in a
cancelled state. active state.

5. What makes a transaction out-of-sequence?

Ans=> An out-of-sequence conflict occurs when a policy change has a transaction
date later than another policy transaction, but an effective date earlier than that
other policy transaction.
A policy transaction is out-of-sequence if its effective date is earlier than the effective
date of another policy transaction that is already bound on the policy for that
contractual period.

6. Can a submission be out-of-sequence? Why or why not?

Ans=> No, submission never be out of sequence. because no policy exists until a
submission is complete. Out of sequence occurs when the effective date is earlier
than the effective date of another policy. And for submission there is no such
situation to make out of sequence transaction.

7. Can a change be out-of-sequence? When you start an out-of-sequence transaction,

how do you know that it's an out-of-sequence transaction?
Ans=> yes, if a change is bound to take effect before a previous change (that is,
earlier in effective time)
PolicyCenter automatically detects out of sequence jobs. Some changes may not
need user intervention. In other cases, you must review out-of-sequence conflicts in
the Policy Review > Out-of-Sequence Conflicts tab before binding the job.

8. What criteria does PolicyCenter use to determine if an out-of-sequence transaction

conflicts with a "later effective" transaction?
Ans=> if an out of sequence transaction conflicts there are additional implications for
completing this change. Depending on what changes already happened to the policy,
sometimes PolicyCenter requests that you review how to apply changes for the rest
of the contractual policy period.
9. If there are no conflicts, what additional work must the end user do?
Ans=> If there are no conflicts, then we can make Notes for future understanding.
Notes work as reminder or to-do-list it store information as text so we can save notes
for to reminder what changes we did what changes we don’t have to do.

10. If there is at least one conflict, what additional work must the end user do?
Ans=> If there are out-of-sequence conflicts then, the Side-by-Side Quoting screen
displays a warning message and does not create multiple versions. If the policy
transaction is already in side-by-side mode, then PolicyCenter prevents you from
editing the side-by-side data.
The Policy Review page for the job contains an Out-of Sequence tab. PolicyCenter
alerts you to out-of-sequence conflicts when you try to bind the job.

11. Name one example of each of the following:

a. "Policy file" information defined in the product model
Ans=> Product
b. Business logic defined in the product model
Ans=> Policy Line
c. Rating-relevant information in the product model
Ans=> Modifiers

12. What is the difference between the pattern entities and the instance entities?
Ans=> Pattern Entities: - A pattern entity, also known as a base entity or abstract
entity, represents a predefined data structure or model that defines common
business patterns or concepts within the insurance industry. It serves as a blueprint
or template for creating instance entities.
Pattern entities define the common attributes, relationships, and behaviors associated with a
specific business concept. Examples of pattern entities in Guidewire include PolicyPeriod,
Policy, Claim, and Contact.
Instance Entities: - An instance entity, also known as a concrete entity, represents an
individual occurrence or instance of a business concept within the Guidewire system.
Instance entities are created based on the structure defined by pattern entities.
Instance entities store actual data and represent specific records in the system. They
inherit the attributes, relationships, and behaviors defined by the pattern entities
they are based on.

13. Name the three ways in which availability can be specified.

Ans=> In product designer
1. Products
2. Modifiers
3. Question set
14.

1) Ans=> A coverage
2) Ans=>Required

15. What is a package term? Under what business circumstances is one required?
Ans=> A package coverage term type is a compound collection of limits or
deductibles selected as a group, rather than a single value as with an Option
coverage term type. You select a package in PolicyCenter from a predefined list of
values.
Whenever business need to classify coverage terms in specific fixed limit or
deductible then package term is required.

16. Other than package, what are the other coverage term pattern types? (These
influence the UI behavior of the coverage term.)
Ans=>
1. Direct
2. Option
3. Typekey
4. Generic

17. Other than coinsurance, what are the three other coverage term pattern model
types? (These influence the legal meaning of the coverage term.)
Ans=>
1. Deductible
2. Exclusion
3. Limit
18. Name several of the modifier types.
Ans=>
 Experience modifier (exp mods)
 Schedule rates (credits and debits)
 Individual Risk Premium Modification (IRPM)
 Package modifiers

19. Name the permissible modifier data types.

Ans=>
 boolean
 date
 rate
 typekey

20. Describe how an Experience Modifier works.

Ans=> An experience factor that indicates whether the insured has a less or more
favorable loss history than peers in its industry. Various rating bureaus publish
Workers’ Compensation experience modifiers. In other lines, each insurer calculates
experience modifiers as part of the rating process.

21. Describe how a Schedule Rate modifier works.

Ans=> A schedule rate modifier that provides credits or debits within established
value ranges. Use them for factors such as management, property, and other
intangibles that you cannot quantify as part of the submission.
When adding a modifier in Product Designer, If you did not select Schedule Rate, the
Modifier home page displays a Rate is Relative field:
0 – Modify rate as an offset relative to 0. For example, 0.10 represents a 10%
increase in the rate, -0.15 represents a 15% reduction. Sets renderRateAsMultiplier
to false on the modifier pattern object, (ModifierPattern).
1 – Default. Modify rate as a multiplier. For example, 1.1 represents a 10% increase
on the rate, 0.85 represents a 15% reduction. Sets renderRateAsMultiplier to true on
the modifier pattern object (ModifierPattern). If you do not specify the
renderRateAsMultiplier attribute in the XML definition of ModifierPattern, 1 is the
default value.
22. Name the four places you might use question sets.
Ans=>
1. Pre Qualification
2. Product Qualification
3. Offering Selection
4. Supplemental

23. How many types of question data formats are there?

Ans=>
1. String
2. Integer
3. Boolean
4. Date
5. Choice