Servicing > Endorsement

An endorsement is an amendment that modifies an insurance policy usually requiring a change request form. The change request form is submitted to the carrier for approval and processing. Endorsement changes in Nexsure are made on the applicable line of business application, populated to the change request form, and submitted to the carrier or processed through a download. When endorsing policies, the coverage effective date indicates the effective date of coverages on the policy.

To Add an Endorsement

1. On the Primary menu, click SEARCH.
2. Click the Details icon next to the appropriate client.
3. On the Client menu, click SERVICING.

Tip: To check the list of policies prior to executing the endorsement, click Client menu > POLICES to display a list of policies. The policy hot link may also be selected from the client card file, which is located under the stick-e-note.

4. On the servicing tab, select Endorsement.

5. Select an effective date for the endorsement by clicking the Calendar icon and selecting a date. The date can also be typed into the date box using the format: mm/dd/yyyy. The effective date will default to the current date, enter the effective date of the endorsement if other than today’s date. The date entered here will populate in the policy header coverage effective date.

Important: If the endorsement is originated from a policy using the context tool, the effective date will default to the coverage term From date of that policy.

6. Select the policy to be changed/endorsed. The policy selection list shows whether the policy is A = active or in H = history, the line of business, policy number and the current policy description for the selected group of policies. The line of business name will be displayed if the policy is monoline. If the policy is a package policy, the word Package will be displayed.
7. Enter a description for the endorsement. The description will pre-fill with the standard description “Process endorsement”; – highlight the standard description and type in the unique description for the current endorsement. A maximum of 95 characters can be entered in this box.
8. Enter additional notes to be displayed in the action Memo section. The memo notes will pre-fill with “Process endorsement”; – highlight the memo and type in the unique memo for the current endorsement.
9. Once a policy is selected, the policy or policies and all LOBs associated with those policies will be displayed. By default, all LOB check boxes will be selected if there is only one policy listed. Clear each LOB selection that will not be endorsed. Nexsure uses the selections to determine the change request form to add to the policy.
10. Click Create Endorsement. The underwriting tab is displayed.

Important: If any units associated to the selected policy were updated at the client level and not propagated to the policy level, a dialog box is displayed showing the units that are out of sync. A code is displayed to indicate the type of change that was made. A = Add, C = Change, D = Delete. Select the check box next to the unit to update and the Update Selected button becomes available. The updates will be made to the selected policy. In the event the updates should not be propagated to the policy, select the Skip button.

Note: Until the units are in sync, a prompt will continue to display when servicing.

11. On the underwriting tab, the Coverage Term effective date has been updated to the date entered on the servicing screen. The Coverage Term indicates the dates that the coverages on the policy are effective. The Policy Term will remain unchanged as it indicates the original policy term effective and expiration dates.

Note: If a policy displays a Lock icon, the policy is not in a status that can be endorsed at this time. For example a policy with a Pending status may not be serviced until the pending item is posted, aborted, or the status of the pending item has been changed to submitted, 2nd or 3rd Request.

On the policy underwriting tab the endorsement status defaults to Pending. The endorsement status will also display on the policies summary screen and the HOME > ENDORSEMENTS menu until the endorsement is posted or aborted.

An action is created using the description entered for the endorsement on the servicing tab. The action is used as a notation of the event, therefore, make sure the status is Closed. The annotation status will default to what is selected in setup for endorsement annotations. The status can be left open for follow-up purposes. All endorsements should be tracked from the HOME > ENDORSEMENTS menu until the endorsement is either aborted or posted.

If additional information is needed to complete the endorsement leave the status set to Pending, make sure the action status is Open and enter the appropriate number of days to follow-up on the action.

Additional memos may be added to the associated action as needed. Keep in mind that the last memo entered is what will display on the policy summary and will remain with the policy after the endorsement is posted. Therefore it is important to make sure the final description entered is what is needed to identify the policy or endorsement from policy summary.

12. To enter the change, first note that the navigation tab is displayed on the right with links to the Pending Endorsement and the applications in the tree view. Use the following guidelines when making changes to a policy:
13. Make the changes on an application for the appropriate line of business form(s).

• Adding a new item to a schedule will display an A on the schedule summary view to the right of the item. Deleting an item (select the Remove  icon) will display a D on the right side of the item on the summary view and changing a scheduled item will display a C to the right side of the item.

• It is important to make any applicant, location, or billing changes to the ACORD 125 for commercial lines policies as the change request is mapped to the ACORD 125 for these details.
• Use the Compare Policy: [On] [Off] link on the Navigation Toolbar in the application to compare this edited version of the application to the original application. Anything highlighted in red is an item that is different from the original application.

To Populate the Change Request

1. Once all changes have been added, click the Underwriting link at the top of the navigation tab to close the tree view.
2. In the Endorsement area under the Populate column, click the Populate icon to populate the change request form.

Review the endorsement by clicking on the "+" next to the Pending Endorsement link on the navigation tab.

3. Enter any necessary information to complete the endorsement and click Save Changes on the Navigation Toolbar.

4. In the Status list on the policy header, select Submitted and click Save Changes. The Change Analysis screen is displayed.

On the Change Analysis screen, information from the previous policy, the current policy and any additional policies will be displayed for review.

Note: Future renewal policies will also be displayed so that updates can be made to future policies that have changes made prior to the renewal effective date and prior to the renewal being placed in force.

5. On the Change Analysis screen, review the information and select the Policy changes have been reviewed for each policy iteration check box. The Accept button becomes active.
6. Click Accept. The Endorsement Creation Process dialog box is displayed. The Continue Working button can be clicked to minimize the window and allow other actions in Nexsure while the endorsement is being processed.

Or

Click Cancel to return to the underwriting tab.

7. Once the endorsement creation process is complete, a confirmation dialog box is displayed. Click OK. The endorsement can be posted when necessary.

Tip: Prior to posting the endorsement, the Change Analysis screen can be accessed at any time on the navigation tab under the Pending Endorsements > ACORD XXX > Change Analysis section of the tree. The changes shown will only be editable until the endorsement is submitted. Once the endorsement is posted, the Change Analysis link will be removed from the tree.

To Post an Endorsement

When the endorsement is received from the carrier, the endorsement will be posted. Posting the endorsement will remove it from the HOME > ENDORSEMENTS screen since tracking is no longer necessary.

Note: An endorsement in a Pending status cannot be posted. The status in the policy header must be changed to Submitted and saved before the Post Endorsement link becomes active. Posting is also possible if the status is 2nd or 3rd request.

1. On the Utility menu, click HOME.
2. On the Home menu, click ENDORSEMENTS.
3. Click the Details icon beside the desired endorsement. The underwriting tab will be displayed.
4. On the Navigation Toolbar, click Post Endorsement. The policy will again be in force.

Note: In the event there is more than one endorsement to post, the Endorsement Posting dialog box is displayed. The dialog box gives the option to post the current endorsement, all endorsements in the group or to return to the underwriting tab.

Tip: To view the dates of the changes, click the "+" next to Endorsement(s) on the navigation tab.

5. In the Form column of the Line of Business area, click on the form title to view the Live Form Documentation screen.

The Live Form Documentation screen gives the following options when working with endorsements:

• Click the Compare Forms icon to view, side-by-side the source form and the change request form. A comparison can be made to see where the source information is placed on the change request form.

Click the Expand icon to open a view of the data mapping that occurs on the forms.

The data mapping shows what data is being pulled from the source form and where it is being sent to on the target form. When there is no space on the target form, mapped data will be sent to a Change Request Overflow target section on the change request form.

Tip: The Change Request Overflow information can also be viewed and edited by accessing the section through the navigation tree.

Note: The overflow section will hold any information that either does not have a place on the change request form or does not fit on the change request form. A "See Overflow" message will then be displayed on the affected section of the change request form.

Aborting an Endorsement

An endorsement may only be aborted (removed) if the status is still Pending.  Once the status has been changed and saved by clicking on the Save Changes link in the Navigation Toolbar, the endorsement may not be aborted. The status cannot be changed back to Pending.

Endorsement Statuses

• Pending: Indicates that the endorsement is incomplete and not ready to be submitted to the carrier. As long as the status is identified as pending any changes may be made to the endorsement. However, another endorsement cannot be added until it is either aborted or the status is changed. As long as an endorsement does not have a status of pending, a new endorsements may be added.
• Submitted: Indicates that the endorsement is ready for submission to the carrier and has been sent to the carrier.
• 2nd and 3rd Request: Indicates the number of times that endorsement has been submitted to the carrier to be handled. Once the status has been changed from Pending to Submitted, 2nd or 3rd Request the endorsement may not be changed nor can the status be changed to show Pending again.

If the status was changed from Pending and the Save Changes link was selected by mistake, the only recourse is to post the endorsement and enter a description indicating the mistake. It is recommended prior to posting, that the action memo be modified to indicate the mistake as well. The policy remains on the HOME > ENDORSEMENTS menu as a reminder that the actual endorsement has not been received from the carrier. To identify that the endorsement has been received, post the endorsement. Posting the endorsement removes it from the HOME > ENDORSEMENTS menu.

Related Topics

Endorsements and Installment Billing