The collateral protection insurance premium and refund processing utilizes a financed insurance (FIN) balance type. The import module supports the posting of premiums and refunds to Simple Interest loan accounts. Optionally, payments can be recalculated to allow for premiums and refunds using different repayment periods.
Accounts are eligible for processing if the loan’s current account status is either Active (ACT) or Non-Accrual (NPFM). Note: If the status is Non-Accrual (NPFM) and the transaction exception, Loan is Non-Performing (117) is set to Reject Offline = Y, the transaction is not processed.
A report is provided that contains 3 sections, Premiums, Refunds and Exceptions. Accounts that had transactions post may still be included in the exception section for certain conditions and all exceptions should be reviewed. Exceptions can be raised based on the runtime parameters, the external cross reference table or the calculation variables.
Clients using SWBC and Allied - Refunds are indicated as partial or full by using either an F or a P next to the interest adjustment amount. If the F has an * next to it, the * indicates that the refund amount did not match the amount in the transaction history of the account as the original posting for a full refund should, but it was posted using the logic for partial refunds This only occurs when the runtime parameter Process Refund Int Adj YN (8CPA) is set to Y.
Read the User Guide on the "Docs" tab for more information.