AIM Cancellations and Reinstatements

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TABLE OF CONTENTS

Cancelling a Policy

This process will walk you through the steps to process a final cancellation of an active policy.

Import the cancellation endorsement into ImageRight. This is a required document in ImageRight.

NOTE: Cancellations must be processed using this process and not by using the Endorsement Feature.

1. Search and select the policy. Click Policy|Cancel Policy.

2. The Policy Cancellation dialog box will appear. On the Basic Information tab, enter or select the cancellation effective date and time. Click ‘Yes’ on the Confirm prompt stating the current tax values will be reset to the defaults for this state.

3. Select the return premium method from the Return Prem. Method radio buttons. AIM will auto-calculate the return premium and taxes. You may find from time to time it is necessary to manually enter the premium. If so, select Manual from the Return Premium Method buttons and select Manually Entered from the Basis drop-down list in order to manually enter the return premium and taxes.

4. In the Return Premium field, review or enter the return premium. Note: The text in this field is in red. This is an automatic identifier this is a negative number. Do not use the (-) in front of red premium numbers.

5. If there are any cancellation fees, click the Taxable Fees magnify glass.

6. In the Fee Schedule screen, enter all fees being returned to the retail agent/Insured (RTS fees and company fees). In the Reason drop-down list, select the fee being returned. Enter the amount in the Amount field. The Charging Party and Paid To fields will default based off the information entered into the system by Surplus Lines.

Taxes On Fees - When the carrier is non-admitted in the given state, you must refer to the applicable state sheet on the Compliance web portal to understand the taxing status of fees.

SL Tax has configured the state fee controls to default based on the home state. Refer to the applicable state sheet for further explanation of the taxing status of fees.

7. Click OK on the Fee Schedule screen.

NOTE: Any fees will be split into the Taxable Fees and Non Taxable Fees fields.

8. Taxes will be determined by the way the policy was bound and if the Filing/Home state considers any taxes fully earned. Click the taxes magnifying glass.

If the risk is a single-state, the Surplus Lines Tax Calculator screen appears for the given state. Each state tax or surcharge is listed individually. You should refer to the applicable state sheet to review all taxes/surcharges are listed at the correct rates. As a best practice to ensure you have the most up to date tax rates in AIM, click Reset Taxes. If you have any questions about the calculated taxes, contact Surplus Lines Tax.

If the risk is a multi-state (as indicated with the NRRA Multi-State checkbox in the Submission Entry screen), the Multi-State Tax Allocation screen appears. Add each state, and allocate the risk premium, TRIA premium, and any applicable fees over the applicable states and click Calculate. If necessary, you can click on the magnify glass on each state allocation. The single-state Tax Calculator screen is presented. After referring to the applicable state sheets, review and update if necessary. As a best practice to ensure you have the most up to date tax rates in AIM, click Reset Taxes. If you have any questions about the calculated taxes, contact Surplus Lines Tax. Click OK on the single-state Tax Calculator screen. Click Save on the Multi-State Tax Allocation screen.

NOTE: The Tax amount will not show up as a negative on the Surplus Lines Tax Calculator. The number will appear red on the Policy Cancellation dialog box.

9. Click OK.

10. Select the party who requested cancellation in the Requested By drop-down list.

11. Select the reason for cancellation in the Reason drop-down list.

12. Click OK. If you are processing the cancellation any time after the Cancellation Effective date, the system will request your confirmation: “Cancellation date is prior to current date. Process this cancellation?” Yes will finish out the workflow. No will take you back to the Policy Cancellation window.

13. In the Document Processing window, review and edit the document template; click Save.

You will want to save the Cancellation Cover Letter by clicking File|Print Pages and print to PDF. You can save this to a temporary folder where the invoice and cancellation endorsement can be added to it and sent to your retail agent.

14. In AIM, close the Document Processing window. At the Information prompt, click Yes to invoice the cancellation premium. Choosing No will end this portion of the workflow, and the status of the policy will update to show Policy Cancelled.

15. If Yes is selected, the reason defaults based on the invoice process and should not be updated. This process should populate the Cancellation reasoning.

16. The description defaults based on the reason. You can manually change this as needed.

17. If a premium finance company has been documented on the policy, it will display.

18. The Due Date and Market Due Date fields should be left at their defaults.

19. The Billing Type defaults from the selection on the Issue Binder screen when the account was bound.

20. As an option, select an invoice message from the drop-down list or type a custom message. This message will print as a centered footer on the invoice. There is a field in the next screen where a more comprehensive message can be entered.

21. Click OK.

22. The Invoice Screen appears. In this window, you will verify all premium, fee, and tax information (if applicable) is correct. You can review this from the Detail (AR) tab and/or Detail (AP) tab. In the Note text box, enter a detailed note if applicable.

23. Click Post. The invoice document window appears. Print or Export the invoice to your PDF.

24. Close the invoice window.

Combine the invoice with the endorsement using the Adobe PDF platform. In the Save As window, select a location on your hard drive to temporarily store the PDF document and Click Save.

Import the PDF document into the appropriate AIM submission (via the ‘Add’ action on the Attached Files Tab).

Update the Description and apply the appropriate Folder if needed.

Email the Endorsement Cover letter, endorsement, and invoice to the retail agent via F5 on your keyboard. Update your AIM Activity Note as needed on the Activity Tab.

Cancel/Rewrite

If you need to rewrite a policy that is currently in Policy Cancelled status, you can use the Rewrite Cancelled Policy workflow.

1. Select Policy|Policy Cancellation|Rewrite Cancelled Policy

2. You’ll notice when the Submission Entry appears the system will automatically update your policy dates, (although in the case of a coverage lapse, they may still need to be adjusted), and the submission type automatically updates to Rewrite of Cancelled Policy.

3. Click Save after verifying updates.

4. Click No to not send acknowledgement letter on this submission

5. The system will update the status of the account to Rew of CXL Policy.

6. Bind the rewrite submission by going to Submssion|Bind or using the Bind tool on the tool bar.

7. Select the applicable option for entering the policy number.

8. Enter the Policy Number of the rewritten policy.

9. Review and Verify Binding information:

10. Review and verify applicable surplus lines tax by clicking the magnifying glass and resetting taxes to ensure correct tax amount. Click OK upon verification

11. Proceed to Issue Binder by clicking the Bind button in the lower right hand corner. You will want to select Bind again on the Issue Binder screen.

12. Review and update the rewritten Confirmation of Insurance. Print your Confirmation of Insurance to Adobe PDF and save to your computer.

13. The system will prompt you to Create a suspense for this action? If you would like to set a follow-up for a later date, select Yes. Otherwise, select No to continue the workflow.

14. On the Invoice Transaction – Header screen, change the Reason to Rewrite and the Description to Rewrite of Cancelled Policy.

15. Finish the workflow by creating and saving the invoice and sending it out with the Confirmation of Insurance and any other documentation on the re-write.

Reinstating a Cancelled Policy

Import the reinstatement endorsement into ImageRight. This is a required document in ImageRight.

1. Search and select the canceled policy. Click Policy|Reinstate.

2. In the Policy Reinstatement window, AIM will set the effective date based on the effective date of the cancellation. Update as necessary.

3. Select the party who requested reinstatement in the Requested By drop-down list as well as selecting the Reason for reinstatement.

4. Select the appropriate Lapse in Coverage radio button.

5. Click OK.

6. In the Document Processing window, review and edit the document template. Save the document and print it to Adobe PDF printer to a temporary location on your computer.

7. In AIM, close the Document Processing window. You will receive a prompt to create a suspense, if desired. At the Invoice prompt, click Yes.

8. Review and Post the invoice

9. Finish the workflow by creating and saving the invoice and sending it out with the Reinstatement document.

Version 8, 10/7/2022

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