The structure and rating for each line of business are built in the Lines module. Various settings and tools allow clients to configure lines for optimal processing and reporting.


Core Concepts

Setup

Set up your lines of business with the agent experience and your reporting requirements (reinsurance, MCAS, business intelligence) in mind. In other words, build with the end in mind.

Effective Date

Provides a chronological reference for managing versions of your lines of business and rates. Effective dates serve as a historical record of changes over time. Learn more about effective dates.

Policy Type

This is a flexible word that can either refer to a line of business or forms within a line of business, depending upon your setup.

Forms

Forms are documents that print with the Declaration. Their form codes and edition numbers (e.g., ML-42 1/17) appear on the Quote Summary, Policy Application, and Declaration deliverables. Learn more about forms.

Primary Exposures vs. Policy Wide Sections

The Lines module and policies are divided into two mutually exclusive sections. Items in the Primary Exposures section do not affect the Policy Wide section, and vice versa.

Primary Exposures

This section is for items that apply on a per property basis. For example, Coverage A.

Policy Wide

This section is for items that apply to the entire policy, regardless of the number of properties. For example, a Policy Fee.

Line Item

A line item is an individual item, which can be classified as a coverage, adjustment, non-ratable, fee, calculation, or dividend. Learn more about line items.

Subline

A subline is a collection of line items.

Subline Types

A subline can be identified as liabilty, property, or inland marine. Loss reporting vendors such as ISO APLUS and LexisNexis CLUE depend on the correct identification of a subline for accurate reporting. Also, the Claims module references the subline type to correctly identify a claim as property or liability.

Subline Options

A subline can be set as mandatory or default:

  • Mandatory sublines are added to a policy automatically and cannot be removed by the user
  • Default sublines are added to a policy automatically but can be removed by the user

Subline Multiples

A subline can be added to a policy multiple times via the Allow multiples of this subline setting.

Rate Chain

The rate chain is the step-by-step order in which a line item's rate is calculated.

Rate Chain Variables

Any individual step in the chain can be stored as a definable variable for reference later in the chain.

Rate Objects

Rate objects are tools, listed below, for calculating rates.

Limit

Define the limit of the line item.

When the limit of a line item is determined from another line item (e.g., Coverage B is 10% of Coverage A), check the Shared Limit checkbox. The Shared Limit checkbox will cause the limit of the dependent line item (Coverage B) to show as *** on the Declaration rather than as a numerical number. Thus, Coverage B's limit would be included in Coverage A's limit rather than having it's own separate limit.

Categories

Define categories to which rates can be applied. Learn more about categories. See examples below:

  • Construction type
  • Protection class
  • Territory

Flat Rate

Applies a single rate:

  • Policy fee is always $25

Rate Per

Applies a rate per unit:

  • Charge $1 per $25,000 in Primary Coverage Limit
  • Charge $2 per Sump Pump
  • Charge $0.03 per $1 of Premium

Factor Table

Applies factors to category combinations:

  • For unprotected, masonry homes apply a factor of 1.2

Rate Table

Applies rates to category combinations and limits:

  • For unprotected, masonry homes apply a rate of $250 for $50,000 in coverage

Premium Basis

Applies rates to a unit of exposure, which is common in commercial liability rating.

Deductible

Define the deductible offerings and how they impact the rate calculation. Many clients elect to make a deductible category rather than use the deductible rate object. See an example below:

  • A $2,000 deductible provides a discount of $15

Minimum Premium

Define a minimum premium.

Maximum Premium

Define a maximum premium.

Evaluation

Allows for the assignment of variables and use of math via Python. Learn more about the evaluation rate object.

Rounding

Limits and premiums can be rounded.

Limits

Limits can be rounded to the nearest one ($125,315), hundred ($125,300), or thousand ($125,000).

Premium Calculation

Premiums can be rounded at each step of the rate chain.

By default, each step rounds to the nearest penny for precision. The setting is unchangeable on the interface as it is recommended to retain rounding to the nearest penny. Any rounding preferences should be enacted when building a line item with the evaluation rate object.

Line Item Rounding

Line item rounding can be defined after all steps of the rate chain for the line item are complete.

Policy Premium

Policy premiums can be left unrounded, rounded to the nearest dollar, or rounded up to the nearest dollar. This is defined in Settings > Modules > Lines and is also mentioned below.

Supplemental Questions

Provide the ability to capture additional information, such as an underwriting question, a description of an item, or a schedule. Learn more about supplemental questions.

Components

In Lines > Effective Date > Components, line item groups, deductible groups, and min/max premium groups are tools to help build your lines of business.

Line Item Groups

Allow a relationship to be established among line items. When line items are related or when one of the items of the Line Item Group is added to a policy, the user is prompted to add the other items within the group. This functionality has been superceded by underwriting rules.

Deductible Groups

Create a single set of deductibles across line items and sync the deductibles across line items. For example, a Homeowner's Deductible Group with deductibles of $100.00, $250.00, $500.00, $1,000.00, and $2,500.00 can be referenced during the lines build. The five deductibles will load when the group is selected, eliminating the need to retype them. In addition, syncing allows line items to share the same deductible without being individually updated and allows the display of the deductible on multiple line items.

Deductible groups permit discounts for higher deductibles and surcharges for lower deductibles. These modifications to the premium amount will be calculated automatically during policy issuance once a deductible group is added to a line item.

Min/Max Premium Groups

Identify a minimum or maximum premium amount for coverage groups. For example, Coverages A, B, C, and D can be grouped with a minimum premium of $100. In this case, the system will charge at least $100 for this coverage group.

Underwriting Rules

Underwriting rules add or remove line items and category options when a specified category option is selected in Builder. Learn more about underwriting rules.

Reporting vs. Rating vs. the Experience

Lines of business should be built with reporting requirements, accurate rating, and agent experience in mind. Though the tools discussed above will achieve those ends generally, the table below indicates which tools should be used for each specific end goal.

Tool Usage
Calculation line item (reporting) Only use when you need to break out premium for reporting; for example, when Wind and Hail or Fire/EC premiums in Coverage A must be reported separately
BriteData does not presently capture calculation line items. A report of this nature will need to be built with Jupyter
Evaluation rate object (rating) Calculate the rate of a line item by employing variables and algorithms
Underwriting rules (the experience) Add or remove categories, line items, and sublines based upon previous selections
Can be set to appear in both BriteQuote and BriteCore, BriteQuote only, or BriteCore only

BriteCore Setup

Settings > Modules > Lines

Blank Category Default

Defaults all category dropdowns to None Selected with the exclusion of premium basis, deductibles, and limits. A category with None Selected prevents the rating of a policy. Using None Selected is a way to ensure an agent answers a category question.

For the most flexibility, use None Selected as a default category option when building categories rather than employing this setting.

Exclude Supplemental Questions

Allows users to exclude Supplemental Questions from Persistent Builder. This setting makes it possible for users to add Supplemental Questions to BriteCore for new business without causing conflicts for renewal business.

Derive Deductible Selection When Previous Selection Is Removed

When enabled, the system will automatically determine a deductible if a coverage's current deductible amount is no longer an option. In this case, the next closest value will be selected. If there are 2 values equidistant from the current value, preference will be given to the larger amount.

Policy Annual Premium Rounding

Defnes premium rounding for the annual premium of all policies.

Settings > System Wide > Administrative Alerts > Lines

Line Item Modifications Impacting Policies

The below email is sent when changes made to an active effective date affect in-force policies:

BriteCore Alert: Line Item Modifications
On 2016-10-13, the line item, Coverage A - Commercial Building, was modified by [username of person who made change]. All potentially affected revisions from the following policies were set to uncommitted. They each require attention in order to preserve data sanctity. This email has been sent with high priority.
10-2016-1
10-2016-2
10-2016-3


How-Tos

See the complete list of How-Tos.


FAQs

My site is live. I would like to make a form no longer available to agents while keeping it available to staff. How do I accomplish this?

  1. Locate the line item with the form
  2. In the line item setup, check the Line item not available in BriteQuote box

If my site is live and I create a new effective date, can I rename line items, sublines, and categories?
To reduce workload on underwriters when policies renew, you should avoid renaming anything in the Lines module.


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