Sometimes a policy needs to be cancelled before the end of the policy term.
BrokerCentral lets you record cancellations so the policy status is updated and your records remain accurate.
Before cancelling a policy, check whether any return premium is due back to the client. If the client is due a refund, you must complete an MTA (Mid-Term Adjustment) before cancelling the policy.
It can be tempting to cancel the policy immediately, but doing so before recording the return premium may result in inaccurate financial records. Completing the MTA first ensures any refund due to the client is processed correctly.
Completing an MTA
Start by locating the policy you need to cancel. You can search for the policy using the client name or policy number.
Open the policy and select Mid-Term Adjustment from the actions menu.
Note: If you ever need to review previous MTAs completed against a policy, click the policy title at the top of the screen.
Selecting Mid-Term Adjustment will open the MTA Breakdown on the Risk Capture page. Since we don't need to update the policy, only refund it you can skip directly to the Adjustment Section of the MTA Breakdown.
Enter the amounts agreed to be refunded to the client, along with any retained fees.
Enter the refund amount as a negative value. This tells BrokerCentral that money is being returned to the client.
When complete, click Finish. On the following screen, review the documentation and click Activate Proposal.
You will then be returned to the Policy Overview page where BrokerCentral will automatically generate the next tasks required to complete the process.
These tasks include issuing the MTA documentation and creating a credit note.
Complete these tasks to issue the updated documentation to the client and create the credit note required for accounts to process and reconcile the refund.
Once these tasks have been completed, open the actions menu on the policy and select Cancel Policy.
You will be asked to provide a reason for the cancellation. This information is used within the Reports module, so it is important that an accurate reason is selected.
When There Is No Return Premium Due
If there is no return premium due, you can cancel the policy directly.
Open the policy and select Cancel Policy from the actions menu.
Enter the cancellation details, provide a cancellation reason, and confirm the cancellation.
Once cancelled, the policy status will update automatically in BrokerCentral.
Quick Steps
If there is a return premium:
Open the policy
Create an MTA
Enter the refund as a negative adjustment
Activate the proposal
Complete the generated tasks
Cancel the policy
If there is no return premium:
Open the policy
Select Cancel Policy
Enter the cancellation reason
Confirm the cancellation