Editing Credit Life Insurance

Use

You use this function to create or change a credit life insurance policy used to secure a loan from the product category Consumer Loans (340).

You can adjust an existing credit life insurance if one of the following values changes:

Amount insured
Development of the insurance contract
Age and/or gender person insured
Insurance rate

Integration

You usually create a credit life insurance together with the model calculation for a loan. You will find more information under Model Calculation . If you want to create this later, you can do so using this function.
If you want to rescind or give notice on a credit life insurance, use the function Rescind/Give Notice on Credit Life Insurance .
If the values listed above change as a result of a business operation, the system adjusts the credit life insurance automatically. This happens in the following cases:
- Rescind Consumer Loan
- Payoff for Consumer Loans (If this has been set up in Customizing.)
- Give Notice on Consumer Loan
- Capitalization of Overdue Items (If this has been set up in Customizing.)
If an insurance case arises, you can enter this in the system using the Enter Insurance Case function.

Prerequisites

You need to have completed the following IMG activities in the Customizing settings for Loans Management :
- Define Rates for Credit Life Insurance
- Define Occupational Groups for Credit Life Insurance
  
  Note
  You can influence the calculation of credit life insurance in the Customizing settings for Loans Management using the BAdIs Calculation of Credit Life Insurance Single Premium and Calculation of Credit Life Insurance Reimbursement Amount .
  
  End of the note.
You can specify which insurance rates are relevant for the loan in the product on which the loan is based. You define Products in the SAP Easy Access screen under Current Settings .
At least one loan from product category Consumer Loans (340) must exist in the system, which either contains a credit life insurance or is based on a product that allows for the creation of credit life insurance.

Scope of Functions

To call the function, choose the Contract tab page in the Change Consumer Loan function. In the Insurance row of the Attachments section, choose Change Attachment .

You can do the following:

Create Credit Life Insurance
1. The system proposes the data for the main borrower from the business partner.
2. Enter the insurance rate and the occupation.
3. Select the row of the insured person and choose Calculate CLI .
4. Choose Copy CLI
5. Save your entries.
Enter Other Persons to Be Insured
1. Choose Include Persons to Be Insured .
2. Enter the data for the person in the new row.
3. Choose Select/Enter Partner to select an existing business partner or to enter a new one.
4. Choose Calculate CLI.
5. Choose Copy CLI
6. Save your entries.
  
  If you want to create a loan from a model calculation and have entered additional insured persons with only date of birth and gender previously, you must now assign a suitable business partner to each person or create a new business partner.
Remove an Insured Person from the Credit Life Insurance
1. Select the corresponding row and choose Delete Row .
2. Choose Calculate CLI.
3. Choose Copy CLI
4. Save your entries.
  
  Note
  You cannot remove the main loan partner from the credit life insurance.
  
  End of the note.
Display History of Credit Life Insurance

Choose History .

The system displays all the existing and terminated insurance policies for the loan.
Display Change Documents

Choose Display Change Documents.

The system displays details of who changed the data for the credit life insurance for this loan and when.
Change Insurance Rate or Occupation
1. Change the insurance rate or occupation in the appropriate row.
2. Select the row of the insured person and choose Calculate CLI .
3. Choose Copy CLI
4. Save your entries.