Handle Administration Conditions

On the Administration Conditions window you define the accounts and the details of the accounts applicable for the business. Conditions related to the accounts such as advice- and payment conditions, currency exchange and closed period handling are also defined in the Administration Conditions.

When you select the Administration Conditions button, you see the Administration Conditions window. The window that you see varies depending on the type of business.

Administration Condition must be defined on main level of the business and cannot be overridden on sub-sections.

The Administration Conditions are not available for businesses without any insured period specified.

Note! This type of To be Advised Insured Period only exist if your System Administrator has set up the system to allow for it.

The system can also be set up to only have the Administration Conditions available for Proportional Treaty business. (See your System Administrator for further information.)

Define Accounts Conditions #

You can define accounts and accounts details for all levels- and types of business in the Administration Condition’s Accounts tab.

The Closed Period handling conditions are available from the Accounts tab for Inward Proportional Treaty Business. For Outward Proportional Treaty Business, the Closed Period handling conditions are defined in a separate tab. (Refer to Closed Period Handling for Outward Proportional Treaty Business.)

Define Cession- and Accounting Bases #

| **Remember:
** Accounting Basis must be defined before Accounts Calculations can take place. | A business (Proportional/Non-Proportional Treaty/Facultative) is always based on a Cession Basis, which describes the method the Cedent applies for calculating the reinsurance cessions from the primary portfolio. The Accounting Bases for Premium and Claim define which method that has been agreed between the Cedent and Reinsurer by termination of the business' agreement. The Cession Basis determines the available Premium- and Claim Accounting Basis values. Cession- and Accounting Bases must be defined before Accounts Calculations can take place. |

1. Open your business and select the Administration Conditions button
2. Select Edit from the menu button in the lower right corner
3. Define Cession Basis
4. Further define Accounting Bases for Premium and Losses
5. Define other accounts conditions, e.g. Details per Occurrence Year, Last accounting year, etc. if applicable. (Refer to field description below.)
6. Click OK

Update Last Accounting Year Details #

For security reasons, you may only be allowed to update the last accounting year details in the Administration Condition.

1. Open your business and select the Administration Conditions button
2. From the menu button, select option Edit Last Accounting Year Details
3. Update Last Accounting Year and/or Last Complete Accounting Year with wanted details
4. Click OK

Calculate Accounts #

You calculate single accounts for one or more accounting years depending on the Cession-/Accounting bases of the business. The number of accounts to be calculated per accounting year is determined by the accounts frequency. The accounts frequency has been agreed upon by termination of the business' agreement.

1. Open your business and select the Administration conditions button.
2. Select Edit from the menu button in the lower right corner
3. Define Cession- and Accounting Bases.
4. Select Calculate Accounts form the pop-up list in the Details section of the Accounts tab. The Calculation Basis window appears.
5. Define Account Frequency. Define other conditions such as Last Accounting Year for Calculation and time for producing, response, payment etc. if applicable. (Refer to field description below).
6. Click the Calculate Accounts button in the lower right corner. The Accounts are calculated in the Details section of the Accounts tab.
7. Click Save.

You can recalculate accounts or calculate additional accounts, i.e. if more accounting years are to be calculated. It is also possible to calculate accounts for different Account Frequencies. I.e. if the first part of an accounting year has been run on monthly basis, it is possible to continue for the accounts not yet booked, with quarterly, trimester, H/Y or Yearly accounts, but only if the new frequency match the remaining period. If bookings already exists for the accounting year you can recalculate accounts for this accounting year on assumed businesses only. Follow the procedure above, redefine your conditions and calculate again.

Create Single Accounts #

Single accounts can be created manually. This functionality may be relevant if only a few accounts are to be created or when single accounts are required in addition to the accounts already being calculated.

1. Open your business and select the Administration Conditions button.
2. Select Edit from the menu button in the lower right corner
3. Define Cession- and Accounting Bases if not already defined.
4. Select Create from the pop-up list in the Details section of the Accounts tab. The Create Single Account window appears.
5. Define the conditions that apply for the account. (Refer to the field description below.)
6. Click Save.

NOTE - the following for Proportional Treaty Outward Cedent’s Contract;

If you create Accounts in addition to the calculated Accounts for the same Accounting Year/Period, the result produced by the Retrocession (Estimation) Calculation Order and Retrocession Account Order may be unpredictable (e.g. for Accounting Year 2016, 1st and 2nd Half-Year Accounts are already calculated. If you then create an additional Yearly Account for the same Accounting Year, you may receive unexpected result in Proportional Treaty Retrocession Accounting).

Also if you create Accounts with Accounting Year higher than the value in the last Account Year, the result may be unpredictable as Portfolio Withdrawal/Entry is calculated in the Last Account of the Insured Period i.e. the year value in the field ‘Last Accounting Year’

Edit Single Accounts #

Details for a single account can be changed until the account is updated as received. All fields of the Edit Single Account window can be changed except the Account number and Accounting Year/Period fields.

1. Open your business and select the Administration Conditions button.
2. Select Edit from the menu button in the lower right corner
3. Select the single account that you want to modify.
4. Select Edit from the pop-up list in the Details section of the Accounts tab. The Edit Single Account window appears.
5. Change the applicable conditions. (Refer to the field description below.)
6. Click Save.

Delete Single Accounts (Not Booked) #

If an account has been created by mistake or you want to remove accounts for other reasons, you can select to delete single accounts. You can however only delete the last of the listed accounts. Accounts marked with a Closed Date cannot be removed bu use of this option.

1. Open your business and select the Administration Conditions button.
2. Select Edit from the menu button in the lower right corner
3. Select the last of the listed accounts.
4. Select Delete from the pop-up list in the details section of the Accounts tab. The account is removed.
5. If more single accounts are to be deleted, select the last account in the list and select delete from pop-up list again.

Delete Booked Single Accounts #

If you want to remove accounts for any reasons, and you have made bookings on these accounts you can still select to delete these single accounts. This option can only be used if the account is marked with a Closed Date, but all the bookings with a reference to the actual account must have been reversed and summed up to zero, or else an error message will appear. You can however only do this on Assumed Business and only delete the last of the listed accounts.

1. Open your business and select the Administration Conditions button.
2. Select Edit from the menu button in the lower right corner
3. Select the last of the listed accounts.
4. Select Delete Booked Account from the pop-up list in the details section of the Accounts tab. The account is removed.
5. If more single accounts are to be deleted, select the last account in the list and select delete from pop-up list again.

Create Retrocession Calculation Order #

For each account to be run for a Proportional Treaty OCC Business, a Retrocession Calculation order has to be created and run. The order transfers the OCC preliminary (asOriginal) bookings to the OCC- and RP’s asBooking business ledgers. Calculations according to OCC-/RP conditions are also performed when running the order.

1. Open your business and select the Administration Conditions button.
2. Select the account no. to be run from the Accounts Details section (it is recommended to run the accounts in sequence). Note - If Accounts have been manually created and different Account frequency exist for the same Accounting Year, e.g. Half-Yearly/Yearly Accounts for same Accounting Year, the result may be unpredictable.
3. Select Create Retrocession Calculation order from the pop-up list.

The New Retrocession Calculation order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Calculation order.)

Create Retrocession Estimation Calculation Order #

When the OCC preliminary (asOriginal) bookings are estimates, you process the estimated figures to as Booking business ledger by creating and running the Retrocession Estimation Calculation order.

1. Open your business and select the Administration Conditions button.
2. Select the account no. to be run from the Accounts Details section (it is recommended to run the accounts in sequence). Note - If Accounts have been manually created and different Account frequency exist for the same Accounting Year, e.g. Half-Yearly/Yearly Accounts for same Accounting Year, the result may be unpredictable.
3. Select Create Retrocession Estimation Calculation order from the pop-up list.

The New Retrocession Estimation Calculation order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Estimation Calculation order.)

Create Retrocession Account Order #

To convert figures in booking currencies (as Booking) to account currencies (as Account) for the RP’s, the Retrocession Account order has to be created and run. Proportional Retrocession Accounting documents such as Technical Account, Statement of Account, Profit Loss, etc. are created from the Retrocession Account order.

1. Open your business and select the Administration Conditions button.
2. Select the account no. to be run from the Accounts Details section (it is recommended to run the accounts in sequence). Note - If Accounts have been manually created and different Account frequency exist for the same Accounting Year, e.g. Half-Yearly/Yearly Accounts for same Accounting Year, the result may be unpredictable.
3. Select Create Retrocession Account order from the pop-up list.

The New Retrocession Account order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Account order.)

View Retrocession Calculation Order #

When a Retrocession Calculation order has already been created for an account, you can access the order from the administration conditions. You can select to view the Worksheets created from the order or to run the order if the status of the order is ‘Open’.

1. Open your business and select the Administration Conditions button.
2. Select the account no. for which a Retrocession Calculation order is already created from the Accounts Details section.
3. Select View Retrocession Calculation order from the pop-up list.

The View Retrocession Calculation order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Calculation order.)

View Retrocession Estimation Calculation Order #

When a Retrocession Estimation Calculation order has already been created for an account, you can access the order from the administration conditions. You can select to view the Worksheets created from the order or to run the order if the status of the order is ‘Open’.

1. Open your business and select the Administration Conditions button.
2. Select the account no. for which a Retrocession Estimation Calculation order is already created from the Accounts Details section.
3. Select View Retrocession Estimation Calculation order from the pop-up list.

The View Retrocession Estimation Calculation order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Estimation Calculation order.)

View Retrocession Account Order #

When a Retrocession Account order has already been created for an account, you can access the order from the administration conditions. You can select to view the Worksheets created from the order or to run the order if the status of the order is ‘Open’.

1. Open your business and select the Administration Conditions button.
2. Select the account no. for which a Retrocession Account order is already created from the Accounts Details section.
3. Select View Retrocession Account order from the pop-up list.

The View Retrocession Account order window appears. (Refer to the Proportional Retrocession Accounting chapter for further information about the Retrocession Account order.)

Create Technical Account Production Order #

For a Non-Proportional Treaty OCC business, the production of Technical Account- and Statement of Account documents are initiated from the OCC’s Administration Conditions. The documents are created through the Technical Account Production order

1. Open your business and select the Administration Conditions button.
2. Select the account no. for which a Technical Account Production order is to be created from the Accounts Details section.
3. Select Create Technical Account Production order from the pop-up list.

The New Technical Account order window appears. (Refer to the Non-Proportional Retrocession Accounting chapter for further information about the Technical Account Production order.)

View Technical Account Production Order #

When a Technical Account Production order has already been created for an account, you can access the order from the administration conditions. You can select to view the Documents created from the order or to run the order if the status of the order is ‘Open’.

1. Open your business and select the Administration Conditions button.
2. Select the account no. for which a Technical Account Production order is already created from the Accounts Details section.
3. Select View Technical Account Production order from the pop- up menu.

The View Technical Account order window appears. (Refer to the Non-Proportional Retrocession Accounting chapter for further information about the Technical Account Production order.)

Closed Period Handling for Inward Proportional Treaty Business #

For Inward Proportional Treaty business the Closed Period Handling conditions are defined in the Accounts tab of the Administration Conditions. The conditions define how the figures for the Insured Period are handled after the last defined account for the Insured Period has been received and the defined Last Accounting Year has expired.

1. Open your business and select the Administration Conditions button.
2. Select Edit from the menu button in the lower right corner
3. Define Closed Period Handling conditions.
4. Define other Accounts conditions if applicable.
5. Click OK.

Closed Period Handling for Outward Proportional Treaty Business #

For Outward Cedent Contract (OCC)- and Retrocessionaire’s Participation (RP) Proportional Treaty business the Closed Period Handling conditions can be defined on a separate tab. in the Administration Conditions.

The Insured Period is considered closed after the defined Last Accounting Year value. If, for instance for an OCC business, the Insured Period 2002 has 2004 defined as Last Accounting Year, the period is open for accounting in accounting year 2002, 2003 and 2004. From 2005 the Insured Period is considered closed.

In the Closed Period Handling tab we define what the system should do when figures are booked to the closed Insured Period in accounting years after the last accounting year.

You can select to define closed period handling for:

• Insured Period (all/remaining classes of business)
• Per Class of Business

Define Closed Period Handling for Insured Period #

When all classes of business defined for the Insured Period are to be closed at the same time and with the same conditions you follow the below procedure.

1. Open the Administration Conditions of a Proportional Treaty OCC business.
2. Select Edit from the menu button and define the Last Accounting Year in the Accounts tab if not already defined.
3. Select the Closed Period Handling tab.
4. Select a value from the Closed Period Handling drop-down list.
5. Search for/define an OCC business in the Transfer to Business field when ‘Transfer to Business’ is selected as value from the drop-down list.
6. Click OK to update your conditions.

Define Closed Period Handling per Class of Business #

The different Class of Business values defined for a business may run-off differently. (I.e. short-/long tailed class of business.) Instead of closing all classes of business at the same time when the class with the longest “tail” is run-off, you can close the different classes of business individually in due time for each class. The class of business can be Main Class of Business, Class of Business or Sub Class of Business. (Your system administrator determines what is mandatory for your company.)

1. Open the Administration Conditions of an OCC business.
2. Select the Edit from the menu button and open the Closed Period Handling tab.
3. Select Add Class of Business from the pop-up list. The ‘Select Available Class of Business’ window appears listing all the insured period’s defined classes of business that is not already closed.
4. Further enter the Last Accounting year value and select the Closed Period Handling value from the drop-down list.
5. Add other Classes of Business if applicable.
6. Click OK to update your conditions.

When the Insured Period is to be closed as such including all classes not already specified with a specific closed period handling condition, follow the procedure described under Define Closed Period Handling for Insured Period.

Define Account Requirements Conditions #

In the Account Requirements Conditions tab of the Administration Conditions you can define conditions related to advice and payments. Available conditions and how these conditions are to be defined depend on the Level- and Type of Business.

Define Advice and Payments Conditions #

In the Advice and Payments section of the Requirements tab., Cash Claim conditions are defined. The conditions are applicable for Proportional Treaty business (Inward and Outward).

1. Select the Administration Conditions button from the business conditions.
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab.
4. Define the Advice and Payments Conditions (Refer to field descriptions below).
5. Further define other requirements conditions relevant for your business if applicable.
6. Click OK.

Define Statements of Accounts Conditions #

The Statement of Account section of the Administration Condition’s Reference tab is applicable for Proportional and Non-Proportional Facultative and Direct Business (Inward and Outward).

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab
4. Define the Statements of Accounts conditions. (Refer to field descriptions below).
5. Further define other requirements conditions relevant for your business if applicable
6. Click OK

Define Bordereaux Conditions #

The Bordereaux section of the Administration Condition’s Reference tab is applicable for Proportional Treaty and - Facultative business (Inward and Outward). The section also applies for Non-Proportional Facultative Retrocessionaire’s Participation (RP) business.

You define conditions to indicate whether or not the accounts are to include a specification of premium per risk covered by the business and/or specification of losses that are accounted for. You should also indicate how often these specifications (bordereaux) are to be included.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab
4. Define the Bordereaux conditions. (Refer to field descriptions below).
5. Further define other requirements conditions relevant for your business if applicable
6. Click OK

Define Documents to Intermediary Conditions #

The Documents to Intermediary section of the Administration Condition’s Reference tab is applicable for Outward Proportional- and Non-Proportional Treaty Business. The condition also applies for Proportional Facultative Outward Cedent’s Contract (OCC) business.

1. Select the Administration Conditions button from the business conditions.
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab.
4. Define the Documents to Intermediary conditions. (Refer to field descriptions below).
5. Further define other requirements conditions relevant for your business if applicable.
6. Click OK.

Define Recovery Currency #

Select the currency that the recovery calculation facility should use.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab
4. Select or clear Original Currency Recovery, as you require.
5. Click OK

Refer to the Conditions on the Outward Cedent’s Contract section of the Non-Proportional Retrocession Accounting chapter for more details.

Handle Business Partners with Accounting/Payment Task #

The ‘Handle Business Partner with Accounting/Payment task’ section in the Administration Condition’s Requirement tab. is applicable for all Types- and Levels of Business.

1. Select the Administration Conditions button from the business conditions.
2. Select Edit from the menu button in the lower right corner
3. Select the Requirements tab.
4. Define the Business Partners with Accounting/Payment Task conditions. (Refer to field descriptions below).
5. Further define other requirements conditions relevant for your business if applicable.
6. Click OK

Define Currencies and Exchange Conditions #

Open the Currencies tab (or Currencies/Entry Codes tab in case of Outward business) of the Administration Conditions window in order to select currencies and exchange conditions to be used for payments and accounting. In case of Outward Proportional treaty business Entry Code Transformation Term conditions can also be defined. The Entry Code Transformation Terms are also available on Assumed prop and non-prop Facultative business, and used in the Intra Group Contract when entry codes coming from the source ORP and can be transformed to another entry code on the AB.

Define Booking, Accounts and Payment Currencies #

The Currency Transformation Term determines the terms for exchanging currencies. Your System Administrator defines general Currency Transformation Terms. (See your system administrator for further information.) You can select the pre-defined transformation terms from all types- and levels of business.

For Assumed Businesses you can in addition create and select a term that only applies for the business you are working with. (Refer to the Create Business Specific Currency Transformation Term section below.)

If you have selected/defined a currency transformation term by mistake you can remove the term as such by selecting <None> among the term names.

Select Pre-defined Currency Transformation Term:

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Select a predefined Currency Transformation Term from the Name field.
5. Click OK

The currencies that appear in the Booking Currency, Account Currency and Payment Currency columns depend on the term you selected. Your system administrator predefines the term. (Contact your System Administrator for further information.)

|

View Details button | Click the View Details button if you want to see the details of the selected Currency Transformation Term. You cannot, however, edit the currency values for the predefined Currency Transformation terms. |

Create Business Specific Currency Transformation Term

You can create a currency transformation term that applies only for the business you are working with. The term is only available for Assumed Businesses.

1. Select the Administration Conditions button from the Assumed Business
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Select the Currency Transformation Term Name defined as the business’ ‘Business ID (Insured Period) - Main Section’
5. Click the View Details Button. The Currency Details Properties window appears.
6. Select New in the Original/Booking- and/or Booking/Account/Currency Type- and/or Account/Payment section of the Currency Details Properties window. The New Currency Term Detail window appears for each of the selected sections.
7. For each of the selected sections, define currencies to be converted in the From Currency field. In the To Currency field you define the currencies they are to be converted to.
8. Click OK

If you not want a currency to be converted, do not select it in the From Currency drop-down list. There is, however, one instance when you need to specify the currency that you do not want to be converted. That is when you leave the From Currency field blank and select a currency, for instance EUR from the To Currency drop-down list. In this case, all currencies are to be converted to EUR. If you want to exclude a currency from being converted to EUR, for instance GBP, you can do so by selecting GBP in both the From Currencies- and To Currencies lists. All currencies except GBP will consequently be converted to EUR.

Edit Business Specific Currency Transformation Term

You can make changes to a Business Specific Currency Transformation Term created for an Assumed Business.

1. Select the Administration Conditions button from the Assumed Business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab. The Currency Transformation Term Name defined as the business’ ‘Business ID (Insured Period) - Mains Section’ is already selected.
4. Click the View Details Button. The Currency Details Properties window appears with currencies selected.
5. Select Edit in the Original/Booking- and/or Booking/Account/Currency Type- and/or Account/Payment section of the Currency Details Properties window. The Edit Currency Term Detail window appears for each of the selected sections.
6. Make your modifications for each of the selected sections
7. Click OK to save your changes

Remove Business Specific Currency Transformation Term

You can delete the Business Specific Currency Transformation Term defined for an Assumed Business.

1. Select the Administration Conditions button from the Assumed Business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab. The Currency Transformation Term Name defined as the business’ ‘Business ID (Insured Period) - Main Section’ is already selected.
4. Click the View Details Button. The Currency Details Properties window appears with currencies selected.
5. Select Delete in the Original/Booking- and/or Booking/Account/Currency Type- and/or Account/Payment section of the Currency Details Properties window.
6. Click OK to save your changes

Define Entry Codes for Exchange Adjustment #

You can revaluate booking entries for old accounting periods within current and previous accounting years for entry codes defined for this condition. When movements are booked for these entry codes in current accounting period, booking entries made in previous accounting years/ periods are also exchanged according to current rate.For Reserves- and Deposits bookings this functionality ensures that the sum of booking entries results in zero in the RP’s business ledgers when last account has been run.

The functionality only applies when Currency Transformation Term is defined for an Outward Cedents Contract (OCC) business and for each account when Retrocession Calculation order/Retrocession Estimation Calculation order is run. The Exchange Adjustment of the Entry Codes can be excluded or the revaluation can be limited by specifying an underwriting year to start the revaluation. Refer to field Revaluate Per EC From UW-year on the Retrocession Calculation order/Retrocession Estimation Calculation order.

This entry code specific exchange rate adjustments condition is in addition to the general exchange adjustment condition. (Refer to the Define Exchange Adjustment Frequency chapter for further information about the general exchange adjustment conditions).

1. Open the Currencies/Entry Codes tab in the Administration Conditions of an OCC business
2. Select Currency Transformation Term if not already defined.
3. Select Edit from the Entry Codes for Exchange Adjustment display area. The Select Entry Codes window appears.
4. Find and select Entry Codes from the available list and transfer them to the list of selected entry codes. Click Save to update.

Example A:

Exchange adjustments do not apply for Entry Code 83 Loss Reserve
Condition;
Loss Reserve= 100% of original, yearly
RP Share= 100%
Entry Code 83 = Original Loss Reserve
Original bookings in NOK converted to USD

Cumulated Loss Reserve on OCC ‘As Original’ Business Ledger = 0,00
Cumulated Loss Reserve on RP ‘As Booking Business Ledger = 63,84

Example B:

Exchange Adjustments apply for Entry Code 83 Loss Reserve
Condition;
Loss Reserve= 100% of original, yearly
RP Share= 100%
Entry Code 83 = Original Loss Reserve
Original bookings in NOK converted to USD

Cumulated Loss Reserve on OCC ‘As Original’ Business Ledger = 0,00
Cumulated Loss Reserve on RP ‘As Booking Business Ledger = 0,00

Define Profit Loss Currencies #

When Profit Commission conditions apply for the business, you define the currency to be used calculating the Profit Commission in the Currencies (Currencies/Entry Codes) tab of the Business’ Administration Conditions. Profit Loss Currency condition is applicable for Inward- and Outward Proportional Treaty business.

For Outward Proportional Treaty business the calculation of Profit Commission is done across all booking currencies converted to Main- or Base currency. Which currency that is used for calculation and booking of the Profit Commission depends on the definition of Profit Loss Currency on the OCC business.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Define Profit Loss Currency conditions
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

The Rate of Exchange to be used calculating the Profit/Loss is defined in the Define Experience Refund Exchange Rate Basis on page 6-551that is also located in the Currencies/Entry Codes tab of the Administration Conditions.

Define Exchange Adjustment, Initial Portfolio #

When Portfolio conditions apply for the business, you can select to recalculate the Portfolio Entry when the Insured Period is being closed. The condition applies for Inward- and Outward Proportional Treaty business. The condition is only applicable when the Portfolio Entry is calculated as Percent of Premium or Percent of Reserves.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Select/Clear the Exchange Adjustment, Initial Portfolio condition
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

Define Account Exchange Rate Basis #

When Currency Transformation Term conditions apply for the business, the exchange rate to be used when converting Original Currencies into Booking Currencies and Booking Currencies into Account Currencies should be defined in this condition. The condition applies for Inward- and Outward Proportional Treaty business.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Define Account Exchange rate Basis conditions
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

The Account Exchange Rate Basis defined on the business may be overridden for single accounts by condition defined on Retrocession Calculation- and Retrocession Account orders.

Define Exchange Adjustment Frequency #

You can specify whether or not booking items included in previous technical accounts within the same accounting year shall be adjusted with the new exchange rate. You can select to adjust in each account, only for the last account, or not at all.

The condition is applicable for Inward- and Outward Proportional Treaty business.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Define Exchange Adjustment conditions
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

Define Experience Refund Exchange Rate Basis #

The settings of the Experience Refund Exchange Rate Basis indicate which rate of exchange that is used for calculating the Profit Commission. The calculation of Profit Commission is done across all booking currencies converted to Main- or Base Currency. (Refer to Define Profit Loss Currencies on page 6-544.)

The condition is applicable for Inward- and Outward Proportional Treaty business.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Define Experience Refund Exchange rate Basis conditions
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

Define the Advice Exchange Rate Basis #

When Currency Transformation Term conditions apply for Inward- and Outward Non-Proportional Treaty business, the exchange rate that applies for converting should be defined in this condition.

1. Select the Administration Conditions button from the business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab
4. Define the Advice Exchange Rate Basis conditions
5. Define other Currencies/Entry Codes conditions if applicable
6. Click OK

Define Closing Exchange Rate Basis #

When Currency Transformation Term conditions apply for the Inward- and Outward Facultative and Direct business, the exchange rate that applies for converting currencies should be defined on this condition.

1. Select the Administration Conditions button from the business conditions.
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies tab.
4. Define the Closing Exchange Rate Basis conditions.
5. Define other Currencies/Entry Codes conditions if applicable.
6. Click OK.

Define Entry Code Transformation Terms #

The Entry Code Transformation Term determines the terms for transforming entry codes. General Entry Code Transformation terms are defined by your system Administrator. (Contact your System Administrator for further information.) You can select the pre-defined transformation terms from Outward Proportional Treaty and Outward Proportional Fac (OCC) businesses. Can also be defined on prop and non-prop Facultative AB to be used to transform entry codes from the source ORP to the AB in intra group contracts.

1. Select the Administration Conditions button from the OCC/Fac AB business conditions
2. Select Edit from the menu button in the lower right corner
3. Select the Currencies/Entry Codes tab
4. Select a predefined Entry Code Transformation Term from the drop-down list
5. Select the Details button next to the drop-down field to see the details of the term
6. Click OK

Define Entry Code Transformation Terms on Section Level #

The Entry Code Transformation Term defined on Main Section level may be overridden on Sub Section level or defined on Sub Section level only. The override of the Entry Code Transformation Terms is dependent on the field ‘Automatically booked figures on section level’ being selected on the business (refer to Business/Accounting Info tab). General Entry Code Transformation terms are defined by your system Administrator. (Contact your System Administrator for further information.) You can select the pre-defined transformation terms (Sub Section level) from Outward Proportional Treaty (OCC) businesses only.

1. Select the Administration Conditions button from the Sub Section of the OCC business conditions.
2. Select the Currencies/Entry Codes tab
3. Navigate to a Sub Section
4. Select option Override/Edit EC Transformation Term from the menu button in the lower right corner (This option is available on Sub Section Level of Prop Treaty OCC only)
5. Select a predefined Entry Code Transformation Term from the drop-down list in the field ‘Overridden Entry Code Transformation Term on Sub Section’
6. Select the Details button next to the drop-down field to see the details of the term
7. Click OK

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View Details button | Click the View Details button if you want to see the details of the selected Entry Code Tr ansformation Term. The details show the entry codes to be transferred from the ‘as Original’ to the ‘as Booking’ Business Ledger and/or from the ‘as Booking’ to the ‘as Account Business Ledger. You cannot, however, edit the entry code values for the pre-defined Entry Code Transformation terms. If you have selected an entry code transformation term by mistake, you can remove the term by selecting <None> among the term names. |

Note! Entry codes booked in preliminary (as Original) business ledger of the OCC can be transferred to ‘blank’ entry codes in the business ledger in booking currency. It is, however, not possible to transfer liquid entry codes from business ledger in booking currency to blank entry code in business ledger in account currency. This is only allowed for non-liquid entry codes.

Entry Code Details Properties window for an OCC Proportional Treaty or Fac business

Default Entry Code Transformation Term #

Your system administrator may have set up the Defaulting Rules of Entry Code Transformation Terms which will be applied to the circumstances when you create or link an Intra Group Contract Inward Assumed Business to an Outward Retrocessionaire Participation. Depending on the set of by your system administrator, if the cedent and reinsurer of the created Inward Contract match an entry code transformation term defaulting rule for the base company, the system defaults these Entry Code Transformation Terms.

For more details, check the section of Set Up Defaulting Rules of Entry Code Transformation Term on System Administration Guide, Intra Group Contract Creation Features and Intra Group Contract Validations in the User Guide.