Policy Endorsement Workflow

Add a Policy Endorsement

Use an endorsement to adjust a policy mid‑term when a change increases or decreases premium, fees, or commissions (vehicle added/removed, coverage change, surcharge added, etc.). Endorsements keep the original policy history intact while adding delta transaction lines.

Tip: Prefer a lightweight endorsement over cloning or rewriting unless the risk fundamentally changes (e.g., moving to a new carrier or line).

Where to Start

From the Policy Details page click the gear action menu and choose Add Endorsement. This opens policy edit mode directly on the Transactions section with a new endorsement bundle inserted.

Policy action menu showing Add Endorsement option — Action menu – choose **Add Endorsement** to create mid‑term adjustments.

What Happens Automatically

Endorsement Transaction Lines: A dedicated endorsement transaction item group is added (usually empty amount placeholders).
Commission Items: Related commission entries appear beneath the new transaction lines reflecting product commission structure.
Delta Modeling: Only the net change (positive or negative) should be entered—never re‑enter full original premium.

Best practice: Keep endorsement descriptions concise (what changed + effective date) so reporting summaries remain readable.

Entering the Change

Type the delta amount (positive for increases, negative for reductions) in the endorsement transaction lines. The commission rows automatically recalc based on the product’s commission layers; adjust only if this specific change should alter agent share.

Important: Do not zero out original transactions—endorsement deltas preserve the audit trail and simplify reconciliation.

Recalculating the Payment Schedule

If the policy uses the Smart Payment Matrix, the schedule can absorb the endorsement difference evenly or in the next payment depending on the product’s Payment Difference Handling setting.

Automatic Recalc: In many cases the matrix recalculates immediately after saving the endorsement lines.
Manual Recalc: If not auto‑applied, click Recalculate under the payments section to update remaining installments.
Negative Delta: Future installment amounts reduce (spread) or next payment decreases if handling is “Goes to next payment”.
Positive Delta: Additional amount distributed across remaining installments or added to next payment per handling rule.

Note: Use “Goes to future payments” for smoother customer experience—large spikes can trigger confusion and support calls.

Endorsement transaction lines and commission items ready for delta entry — Endorsement transaction + commission lines—enter only the net change.

Validation Checklist

Endorsement delta lines saved (positive or negative as needed)
Commission amounts reflect new delta
Payment schedule recalculated (if Smart Payment Matrix enabled)
Description concise & meaningful
No original transaction amounts altered

Troubleshooting

Schedule didn’t change: Click Recalculate or verify product Payment Difference handling allows spreading.
Commission looks off: Confirm commission tiers are delta‑based (not cumulative) for endorsement lines.
Negative delta ignored: Ensure handling isn’t set to disallow differences or schedule is unlocked.

Tip: For large premium reductions consider a partial refund workflow if a payment already settled—endorsement delta adjusts future schedule only.