Installment Loan: Insurance

Use

You use this function to assign to an installment loan insurance policies that the borrower has concluded for that installment loan. Once you have assigned insurance policies to a loan, the system displays these insurance policies in a list.

Note Note

Only use this function for loans that are based on the product category Installment Loans (360).

End of the note.

Integration

The insurance policy master data is managed in an external insurance management system. You access existing data in the external system by using the Change Installment Loan function. In Loans Management, you cannot change data relevant to the insurance contract.

You can use this function from within the Change Installment Loan function.

Prerequisites

  • You have entered in the relevant system all insurance policies that you want to assign to installment loans. You can use the Collateral Management (CMS) component, for example, as the insurance management system.

    For more information, see Collateral Management.

  • The installment loan to which you want to assign an insurance policy has been created in the system.

    Note Note

    You cannot assign an insurance policy to an installment loan until the installment loan has been saved on the database. The system does not issue a loan number until the installment loan has been saved. One of the uses of this loan number is as the basis for the unique relationship between the installment loan and the insurance policy.

    End of the note.

  • In Customizing for Loans Management, you have performed the following activities:

    • In the activity Determine System Settings for Insurance Handler, you have specified the link to the insurance management system relevant to your system.

    • In the activity Determine Condition Types for Payment Plans, you have specified the condition types that the system uses to portray the outstanding insurance premiums as conditions in the loan contract.

  • You have specified whether insurance policies are mandatory or optional for the product on which the installment loan is based.

    For more information, see Product.

Features

Note Note

The main loan partner must be identical to the borrower and the payer.

End of the note.
Assign Insurance Policies

You can create a new insurance policy for an installment loan or assign existing insurance policies using the Application Programming Interface (API) /FSIH/API_ASSIGN_POL. You manage these insurance policies in an external insurance management system. The master data for these insurance policies, such as the insurance premiums to be paid by the borrower, can only be processed in the external insurance management system. In Loans Management, you only assign insurance policies to a loan.

You can assign multiple insurance policies to an installment loan. Similarly, you can assign the same insurance policy to multiple installment loans.

The system can transfer changes in the insurance policy data to Loans Management or to the insurance management system as part of end-of-day processing. You do this using the program Compare Payment Plans for Insurance Policies.

To assign an insurance policy to an installment loan, choose (with the quick info text Create Insurance Policy). The system calls the insurance management system in which you create or select the relevant insurance policy.

Note Note

You can assign as many insurance policies to an installment loan as you wish. The insurance policies can belong to different insurance types.

End of the note.

When you assign an insurance policy to an installment loan and execute the program Compare Payment Plans for Insurance Policies, the system generates payment conditions for the installment loan on the basis of the payment conditions that you specify in the insurance management system. Furthermore, the system updates the payment plan and the cash flow with the outstanding insurance premiums.

Note Note

We recommend that you only change the payment conditions for an insurance policy in the insurance management system and that you then update those conditions in Loans Management using end-of-day processing.

End of the note.
Display Insurance Policies

The system displays a list of all insurance policies that have already been assigned to a loan.

If you want to display additional information for an insurance policy, select the relevant insurance policy and choose (Display Insurance Policy). The system switches to the insurance management system and displays the insurance policy.

Give Notice on Insurance Policies

You can give notice on insurance policies in the linked insurance management system as well as with the program Give Notice on Expired Insurance Policies. The system updates the payment plan and the cash flow.

The data in Loans Management and in the linked insurance system is not synchronized automatically. You can synchronize the data using the program Compare Payment Plans for Insurance Policies, which you need to schedule as a recurring job in end-of-day processing.

Activities

  1. In the SAP Easy Access menu, choose Start of the navigation path Accounting Next navigation step Bank Applications Next navigation step Loans Management Next navigation step New Business Next navigation step Installment Loan Next navigation step Edit End of the navigation path.

  2. In the Change Installment Loan function, choose Insurance Policy.

  3. Display the required information, make assignments, or switch to the insurance management system to create a loan.

  4. Save your entries.

See also

Insurance

Give Notice on Expired Insurance Policies

Compare Payment Plans for Insurance Policies

Disburse Insurance Premiums