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 Provisional Premium Requests


When insurance contracts are concluded, there may be a time delay between the conclusion of the contract and the calculation of the exact amount that is to be paid as the premium.

Since insurance companies do not want to delay collections until the final calculation is available, it is possible to create provisional estimates for premiums and import them into Collections/Disbursements (FS-CD) as estimated items.

These are referred to as provisional premium requests, and are treated by the system as statistical down payment requests that are not relevant for the general ledger. Instead, they can be used to initiate provisional payments from customers and correspondence.

At a later date the exact final premium is calculated by the insurance company and transferred to Collections/Disbursements. Then the provisional premium requests are cleared, and the payments received from customers ( down payments on premium requests) are cleared against the premiums.

It is also possible to transfer more accurate estimates as they become available to Collections/Disbursements before the final exact premium has been calculated. In this case, the previous provisional premium requests are cleared, and the down payments received from the customer for the premium requests are cleared against the more accurate estimate (the current provisional premium request).