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Background documentationValidity Periods for Individualization

 

In individualization, there are special dependencies between the validity periods of the standard condition, the rule set, and the individualized condition.

Note Note

For general information about the validity period of a condition, see Validity Period.

End of the note.

The following figure uses the time bars to show how validity periods are structured. A shaded bar shows a validity period that is not allowed.

Validity Period of the Standard Condition

The time bar shows that a new validity period is triggered by a change to the standard condition, for example, a change to the interest rate. This is represented by the vertical lines on the time bar. There is a sequence of validity periods with no gaps. You can interrupt or end the time bar only by restricting the standard condition with a valid-to date.

Validity Period of the Condition Rule Set

You can create a markup condition that replaces an existing condition, that is absolute, or relative, even if there is no valid standard condition. This is not possible in individualization. There must be a valid standard condition throughout the validity period of the condition rule set.

Validity Period of the Individualized Condition

There must a valid rule set throughout the validity period of the individualized condition. The rule set is not allowed to be changed during this validity period.

Effects of Other Valid Individual Conditions on Individualization

  • If an individualized condition and a zero condition are valid at the same time, the system ignores the individualization and uses the zero condition. The system does not calculate any interest or charges.

  • If an individualized condition and a complete replacement individual condition are valid at the same time, the system ignores the individualization and uses the complete replacement condition. In the rule set, you can allow both replacement categories at the same time (selective and complete replacement), but we do not recommend that you do so. If you individualize a condition, you must not allow the creation of an individual condition that is a full replacement (Replace Completely checkbox on the Rule Set tab page on the Allowed Replacement Categories tab page).

  • If an individualized condition and an absolute or relative markup condition are valid at the same time, the system applies the individualization to the markup condition.

More Information

Condition Rule Set