As a general principle, we do not recommend making changes directly to rating information on policies that are already On Cover.

Where a policy requires amendment after inception, we recommend processing the change as a Mid-Term Adjustment (MTA) wherever possible. An MTA provides a clear audit trail of the change and ensures that any additional premium, return premium and associated accounting transactions are handled correctly.

Direct amendment of an On Cover policy should only be considered where an MTA is not appropriate and there is no practical alternative available. As accounting transactions may already have been created and payments may have been received, reconciled or paid to insurers, changes made directly to an On Cover policy can have significant accounting implications if not managed correctly.

For this reason, direct amendments to On Cover policies should be treated as an exception process and only undertaken where there is a genuine business requirement to do so.

Before Proceeding

Before making any amendment to an On Cover policy:

• Confirm that the change cannot be processed via an MTA.
• Confirm that the amendment is genuinely necessary.
• Some of the steps outlined below involve underwriting activities, whilst others require accounting actions. Please ensure that the appropriate team members are involved at each stage of the process.

Review the policy's Money tab to establish whether payments have been received and whether any insurer payments have already been generated.

Ensure the user carrying out the amendment understands the accounting implications of the change.

Scenario 1 – No Payment Has Been Received

If no payment has been recorded against the policy:

• Remove the accounting entries from the policy using the Contra (Remove) Accounting Records function.
• Make the required changes to the rating information.
• Add the policy back into accounting using the Add Back Into Accounting function.

This will generate new accounting transactions based on the amended premium values.

Scenario 2 – Payment Has Been Received but Not Yet Paid to the Insurer

If payment has been received but the premium has not yet been paid to the insurer:

• Retain a copy of the original remittance information for reference.
• Unreconcile the payment.
• Delete the payment transaction.
• Remove the accounting entries from the affected policy using the Contra (Remove) Accounting Records function.
• Make the required changes to the rating information.
• Add the policy back into accounting using the Add Back Into Accounting function.
• Recreate and reconcile the payment against the amended policy and any other policies included within the original remittance.

This ensures that all accounting transactions are recreated using the revised premium values.

If the Premium Changes

Where the amended premium differs from the amount originally paid:

Option A – Carry Forward the Difference

Reconcile the original amount received.

The policy will show either an outstanding balance or an overpayment, which can be addressed through a future remittance.

Option B – Apply an Adjustment

Where permitted by the scheme configuration and applicable tolerance settings, an adjustment may be used to absorb the difference.

This avoids the need to collect or refund minor differences separately.

Scenario 3 – Premium Has Already Been Paid to the Insurer

If premium has already been paid to the insurer, additional considerations apply.

Because insurer settlements may already have been generated, we recommend contacting Support before proceeding. This will ensure that any required reversals or adjustments are completed correctly and that accounting records remain accurate.

Important

Amending an On Cover policy directly should be viewed as a last resort and not as part of normal policy administration.

Where a policy has been fully paid and the premium is subsequently amended, the original payment transaction must be removed and recreated so that all associated accounting records and insurer payables are recalculated correctly.

Failure to follow the appropriate process may result in discrepancies between:

• Policy records
• Agent balances
• Insurer payables
• Accounting transactions

For this reason, we recommend using an MTA wherever possible and only following the above process where a direct amendment to an On Cover policy is unavoidable.