Liability Interruption
Purpose
When business objects are interrupted and then reinstated, (for example, insurance contracts), many enterprises interrupt the liability of paid remunerations and the liability period is extended by the same period of time that the interruption lasted when the contract is reinstated.
If the contract is not reinstated as expected, or only partially reinstated, only the interrupted liability is completely reactivated and the recall to the agent(s) carried out.
Prerequisites
In the design phase you decided which subobject types are to be allowed a liability interruption. To do this, you inserted the relevant subobject types in the
CACSDESIGN
transaction in theSTATUS_VAL
field from theCACS00_S_DOCVA_D
structure.You have set up the liability types in Customizing for Incentives and Commission Management. You have maintained the maximum interruption duration (IMPORTANT).
You have maintained logical services for liability interruption in Customizing for Incentives and Commission Management.
Process Flow
Acquisition of a business object:
A commission case is created.
Interruption of a business object:
When a business object is interrupted, a new commission case is created in which the maximum duration of the interruption is specified, and whether the premiums have changed.
Changes to a business object during a liability interruption:
If a business object is changed during a liability interruption, a new commission case is created, and if the premiums have changed, these are also specified. These premiums are reactivated when the business object is reinstated.
Reinstatement of a business object:
A new commission case is created for the reinstatement. This new case specifies any new contributions.
Result
A customer signs a contract with an agent for liability insurance cover of 8000 EUR for a car. The commission contract of the agent states that the agent is only liable for his/her remuneration share of 384 EUR for the period of one year.
Example 1: Liability Interruption without Contribution Change
In this case, the contract is reinstated and the liability period is extended by three months, which is the amount of time that the contract was interrupted.
Example 2: Liability Interruption with Contribution Change
In the case, the insurance contribution is reduced, after which the contract is interrupted. Once the contract has been reinstated, the liability period is extended by the same amount of time that the interruption lasted.
Example 3: Liability Interruption with Cancellation
The customer cancels the insurance contract after an interruption of three months. After these three months, the agent has to pay back 288 EUR (3/4 of the premium).
See also: