The Reinstatement Adjustment page allows you to adjust the reinstatement premiums. The system will automatically calculate the reinstatement adjustment premium according to an internally defined formula with the following variables: actual adjustment deposit premium, layer capacity, ceded amount and the reinstatement method defined in the layer page
Date factor formula:
· Temporize = (end of year – loss date ) / 365 days
· Capita = 1
Formula:
· Actual Reinstatement Premium = Sum (Layer actual Deposit Premium * ceded amount /Layer Capacity)* Date Factor) - Sum (Layer Minimum Deposit Premium * ceded amount / Layer Capacity)* Date Factor) for all reinsured XL transactions.
And the Actual reinstatement premium will be posted to financial.
To calculate the reinstatement premium click
and
then go through the following steps:
§ Select the Treaty Layer of which the treaty adjustment will be based on;
§ The Adjustment Date will be automatically set by the system to the date of entry. However, you can change it if so desired;
§
Once you have finished entering
all necessary data, click
;
§ Upon calculation, the following fields will be auto-filled :
o
Reinstatement Premium which
is the sum of the calculated reinstatement premium for each ceded transaction
;
o
Reinstatement Premium LC
which is the sum of the calculated reinstatement premium in the local
currency for each ceded transaction ;
o
Actual Deposit Premium which is the calculated adjustment deposit
premium ;
o
Actual Deposit Premium
LC which is the calculated adjustment deposit premium in the local currency
;
o
Actual Reinstatement
Premium which is the sum of the actual calculated reinstatement
premium for each ceded transaction (
depending on the actual deposit premium instead of the minimum deposit premium
);
o
Actual Reinstatement
Premium LC which is the sum of the actual calculated reinstatement
premium in the local currency for each
ceded transaction;
o
Net Reinstatement
Premium which is the difference between the actual reinstatement premium
and the calculated reinstatement premium;
o
Net Reinstatement
Premium LC which is the difference between the actual reinstatement premium
and the calculated reinstatement premium in the local currency;
§ The system will automatically calculate and display the Treaty Adjustment Details which distributes the net reinstatement premium on the reinsurers ;
§
Click 
to
post this adjustment amount to the financial system.
Where you
can view the voucher initially and edit the notes if so desired; click 
to post the voucher to financial system, and 
if you need to review the reinsurance and try
to create voucher again.
§
Click 
to view the voucher of the selected production
reinsurance record(s) if the selected records were already posted.
If you want to un-post a voucher, make sure to select a posted
voucher and then click then
.
Accordingly, the system will reverse its effect on the financial system.