Section 9

Insurance Processing

Objectives

Upon completion of this section, you will be able to:

 List and describe at least 5 insurance rate methods

 Define the two billing methods used to bill premiums
 Differentiate between account level and plan level premium calculation
 Explain the parameters for delinquency warning and cancellation
 State the three ways that CMS handles delinquent premiums
 Define the following terms as they relate to insurance processing; insured date of
birth, minimum age, enrollment age, and maximum age
 Indicate how Insurance tables relate to the Processing Control Table
 Explain the function of the Enrollment ID to insurance processing
 Explain how the address change effect field on the Logo record relates to insurance
CMS 8.0

INSURANCE PROCESSING OVERVIEW

Insurance tables can be established to define the parameters for processing
insurance on accounts. You can set up as many as 998 Insurance tables at each
processing level in CMS (system, organization, and logo). Each table can contain
multiple insurance products. The insurance products identify the different types
of insurance that you can assign to accounts. Insurance table parameters include:
 Rate method used to calculate the insurance premium
 Billing frequency defining whether the premium is billed monthly,
bimonthly, quarterly, semiannually, or annually
 Tiered premiums by age that allow you to vary the premium base upon
the age of the insured party
 Billing method indicating how CMS adds the premium to the account
balance and the payment amount
 Minimum, enrollment and expiration ages used to define age
parameters for each product
 Delinquency warning and cancellation levels altering how insurance is
processed.
Each account can have six insurance products. The insurance products added to
the account must be defined on the Insurance table assigned for the insurance
enrollment ID.

INSURANCE ENROLLMENT ID

The insurance enrollment ID is a three-character alphanumeric code that serves as

the default control over insurance processing for the insurance product (the PCT
ID for insurance). Every insurance product on an account must have an
enrollment ID. The enrollment ID can be entered on the Account Insurance Data
screen (ARDM) page 02 for each insurance product or the RESIDENCE ID from the
Account Base Segment (ARMB) page 03 can be used for all products on the
account.

Section 9–2
 Insurance Processing

ADDING INSURANCE TABLES

Use the Locate screen in maintenance mode (ARMI00) or inquiry mode
(ARQI00) to identify an existing Insurance table that you want to modify or view.
Use the Locate screen in add mode (ARAI00) to add a new insurance table. In the
add mode, you can copy an existing table to use as a model for the new table.
ARMI Page 00

ARMI ( ) * USER DEFINED TITLE * PAGE 00 02/01/2000

INSURANCE TABLE 10:40:57

ORGANIZATION ( ) LOGO ( ) TABLE ( ) PROD ( )

PF1=ARMU PF2=ARAF PF3=ARAI PF4=ARMR PF5=ARAR PF6=INQUIRY

 An Insurance table can be assigned only to a Processing

Control Table that is established at the same processing level
—system, organization, or logo. For example, you cannot
assign a system-level Insurance table to a Processing Control
Table established at the organization or logo level.

 When using a system-level table, all organizations should be

assigned the same currency code. If organizations have
different currency codes, do not use a system-level table.

RELATED FIELDS
PROD Two character code that identifies an insurance product associated
with this Insurance table. Multiple insurance products can be
associated with this Insurance table.

Section 9–3
CMS 8.0

ARMI PAGE 01

ARMI ( ) * USER DEFINED TITLE * PAGE 01 02/01/2000

INSURANCE TABLE 10:52:45

ORGANIZATION 300 LOGO 304 TABLE 001 PROD CP

MAINTENANCE TO THIS RECORD AFFECTS THE FOLLOWING PCT IDS.

SC FL

PF1=ARMU PF2=ARMF PF3=*TOP* PF4=*BOT* PF5=*BWD* PF6=*FWD*

This screen displays in maintenance mode (ARMI) only. The PCT IDs listed on
the screen identify Processing Control Tables to which the Insurance table has
been assigned. Each Processing Control Table contains processing parameters for
a state, province, or country. If you do not want to modify the Insurance table
associated with the Processing Control Tables listed on this screen, exit before
performing any maintenance or adding any insurance products to the table.

Section 9–4
 Insurance Processing

DEFINING INSURANCE PREMIUM CALCULATION OPTIONS

The amount that CMS uses to calculate insurance premiums is referred to as the
amount subject to insurance. The RATE METHOD field on page 02 of the Insurance
table indicates the calculation method and defines the amount subject to
insurance. CMS provides 12 different rate methods. CMS can calculate insurance
premiums based on:
 The amount subject to insurance multiplied by an assessment rate. The RATE
METHOD field determines the balance or amount used as the amount subject to
insurance. The PER VALUE BY AGE fields on ARMI03 determine the assessment
rate (rate method values 0, 1, 2, 3, 4, 5, 9, and 10).
 A flat rate established on the Insurance table or the Account Base Segment
record (rate method values 6, 7, and 8).
 A user defined method (rate method value 20).
Insurance premiums can be calculated at the account level or the credit plan level
as defined on the Organization record (ARMO) page 10. Certain rate methods are
valid for insurance premium calculations at the account level, or at the credit plan
level, or at either level.
The fields shaded below, along with the PER VALUE BY AGE fields on page 03, also
control how insurance premiums are calculated and billed.

Section 9–5
CMS 8.0

ARMI PAGE 02

ARMI ( ) * USER DEFINED TITLE * PAGE 02 02/01/2000

INSURANCE TABLE 16:08:41

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/01/2000
DESCRIPTION ( CREDIT CARD PROTECTION )

REPORT ( C )
COMPANY ( CO ) RATE METHOD ( 01 )
BILLING METHOD ( 0 ) BILLING FREQUENCY ( 0 )
PAST DUE/OVERLIMIT FLAG ( 0 ) ( 0 ) INCREMENTS ( 0 ) ( 0000000100 )
FIXED PREMIUM ( 000000250 ) ENROLL/EXPIRE AGE ( 64 ) ( 65 )
MINIMUM AGE ( 20 ) REINSTATEMENT ( 2 ) ( 1 )
MAX. COVERAGE ( 00000000000010000 ) TRUNCATION FLAG ( 1 )
VENDOR ID ( 300 000000001 ) ENROLLMENT ID ( 1 )
CLAIM BALANCE ( 0 ) INSURANCE ROUNDING ( 0 )
MINIMUM PREMIUM ( 000000500 ) MINIMUM BAL ( 00000000000001000 )
DEL CAN ( 1 ) W: R ( 0 ) C ( 3 ) FICHE NBR ( 0 ) ( 000 ) ( 000 )
C: R ( 0 ) C ( 5 ) ( 04 )

TRAN CODES: PREMIUM ( 000 ) CLAIM PAYMENT ( 000 ) DIRECT CLM PMT ( 000 )
PREM REV ( 000 ) CLAIM PMT REV ( 000 ) DIR CLM PMT REV ( 000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

RELATED FIELDS

RATE METHOD Code that indicates the amount and method CMS uses to
calculate insurance premiums. The values are:
0 = Average daily balance. Multiply the
assessment rate (per value by age on
ARMI03) by the average daily balance for
the cycle. Add the fixed premium amount
defined on the Insurance table (fixed
premium on ARMI02). This method is valid
for insurance premium calculations at the
account level or credit plan level. (Default)
1 = Cycle-ending balance. Multiply the
assessment rate (PER VALUE BY AGE on
ARMI03) by the balance as of the end of the
cycle. Add the fixed premium amount
defined on the Insurance table (FIXED
PREMIUM on ARMI02). This method is valid
for insurance premium calculations at the
account level or credit plan level.

Section 9–6
 Insurance Processing

2 = Payment last requested. Multiply the

assessment rate (PER VALUE BY AGE on
ARMI03) by the amount of the payment last
requested. Add the fixed premium amount
defined on the Insurance table (FIXED
PREMIUM on ARMI02). This method is valid
for insurance premium calculations at the
account level or credit plan level.
3 = Credit limit. Multiply the assessment rate
(PER VALUE BY AGE on ARMI03) by the credit
limit of the account. Add the fixed premium
amount defined on the Insurance table (FIXED
PREMIUM on ARMI02). This method is valid
for insurance premium calculations at the
account level only.
4 = Original principal balance. Multiply the
assessment rate (PER VALUE BY AGE on
ARMI03) by the original principal balance of
the credit plan. Add the fixed premium
amount defined on the Insurance table (FIXED
PREMIUM on ARMI02). This method is valid
for insurance premium calculations at the
credit plan level only.
5 = First purchase amount. Multiply the
assessment rate (PER VALUE BY AGE on
ARMI03) by the amount of the first purchase
on the credit plan. Add the fixed premium
amount defined on the Insurance table (FIXED
PREMIUM on ARMI02). This method is valid
for insurance premium calculations at the
credit plan level only.
6 = Flat rate defined on the Insurance table
except for accounts with a zero balance or a
credit balance. The insurance premium equals
the fixed premium assigned to the Insurance
table (FIXED PREMIUM on ARMI02). CMS
does not charge this flat rate on accounts with
a zero balance or a credit balance. This
method is valid for insurance premium
calculations at the account level only.

Section 9–7
CMS 8.0

7 = Flat rate defined on the account. The

insurance premium equals the fixed premium
assigned to the account (PREMIUM RATE on
ARDM02). This fixed premium overrides
any other premium amount calculated by the
Insurance table. CMS does not charge this
flat rate on accounts with a zero balance or a
credit balance. This method is valid for
insurance premium calculations at the
account level only.
8 = Flat rate defined on the Insurance table (FIXED
PREMIUM on ARMI02) applies to accounts
with a zero balance or a credit balance; flat
rate and per value amount or percentage (PER
VALUE BY AGE on ARMI03) applies to
accounts with a debit balance. This method is
valid for insurance premium calculations at
the account level only.
9 = Plan cycle-ending balance. Multiply the
assessment rate (PER VALUE BY AGE on
ARMI03) by the plan balance as of the end of
the cycle. This method does not add the fixed
premium amount defined on the Insurance
table (FIXED PREMIUM on ARMI02). This
method allows CMS to consolidate insurance
premiums for posting to the consolidated
insurance plan established on the Account
Control Table (CONS INS PLAN on ARMY02).
This method is valid for insurance premium
calculations at the plan level only.

 The INCLUDE/EXCLUDE flags on the Credit Plan Master

(ARMC) page 06 that allows for the exclusion of plan balances
from the balance subject to insurance may not be used with
rate method 9.

 For precomputed insurance, this option is not valid since the

insurance is not system generated, an aggregate balance is
not carried, and an average daily balance is not calculated.

Section 9–8
 Insurance Processing

10 = Combined minimum payment due at cycle

time for two or more retail and cash credit
plans. The premium is based on the total of
the minimum payment amounts. CMS posts
the premium to the consolidated insurance
plan indicated on the Account Control Table.
For other credit plans, premiums are
calculated based on the individual minimum
payment due and posted to the respective
credit plan. This method is valid for
insurance premium calculations at the
account level or credit plan level.

 If the RATE METHOD is 9 or 10, CON INS PLAN (ARMY02)

must be greater than zero. If CONS INS PLAN does not
identify a valid credit plan, CMS uses the default fee credit plan
on the Service Charge/Fee table (DEFAULT PLAN on
ARVM02) to post insurance premium transactions.

20 = User defined balance or amount. Multiply the

assessment rate (PER VALUE BY AGE on
ARMI03) by an amount or balance
determined by a user exit. Add the fixed
premium amount defined on the Insurance
table (FIXED PREMIUM on ARMI02). This
method is valid for insurance premium
calculations at the account level or credit plan
level.

 If the RATE METHOD is 20 (user defined), CMS calls a user exit

during the insurance processing segment of Posting (ARD140).
The user exit contains user defined logic to calculate or
determine which balance or amount to using for insurance
premium calculations.

 When using the consolidated insurance option with RATE

METHOD 20 (user-defined), CON INS PLAN (ARMY02) must
be greater than zero. If CONS INS PLAN does not identify a
valid credit plan, CMS uses the default fee credit plan on the
Service Charge/Fee table (DEFAULT PLAN on ARVM02) to
post insurance premium transactions.

Section 9–9
CMS 8.0

ARMI PAGE 02

ARMI ( ) * USER DEFINED TITLE * PAGE 02 02/01/2000

INSURANCE TABLE 16:08:41

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/01/2000
DESCRIPTION ( CREDIT CARD PROTECTION )

REPORT ( C )
COMPANY ( CO ) RATE METHOD ( 01 )
BILLING METHOD ( 0 ) BILLING FREQUENCY ( 0 )
PAST DUE/OVERLIMIT FLAG ( 0 ) ( 0 ) INCREMENTS ( 0 ) ( 0000000100 )
FIXED PREMIUM ( 000000250 ) ENROLL/EXPIRE AGE ( 64 ) ( 65 )
MINIMUM AGE ( 20 ) REINSTATEMENT ( 2 ) ( 1 )
MAX. COVERAGE ( 00000000000010000 ) TRUNCATION FLAG ( 1 )
VENDOR ID ( 300 000000001 ) ENROLLMENT ID ( 1 )
CLAIM BALANCE ( 0 ) INSURANCE ROUNDING ( 0 )
MINIMUM PREMIUM ( 000000500 ) MINIMUM BAL ( 00000000000001000 )
DEL CAN ( 1 ) W: R ( 0 ) C ( 3 ) FICHE NBR ( 0 ) ( 000 ) ( 000 )
C: R ( 0 ) C ( 5 ) ( 04 )

TRAN CODES: PREMIUM ( 000 ) CLAIM PAYMENT ( 000 ) DIRECT CLM PMT ( 000 )
PREM REV ( 000 ) CLAIM PMT REV ( 000 ) DIR CLM PMT REV ( 000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

RELATED FIELDS
BILLING Code that indicates the method CMS uses to bill the insurance
METHOD premium. The values are:
0 = Add the insurance premium to the account
balance only (default)
1 = Add the insurance premium to the account
balance and to the payment amount due.

Example: Assume the balance of an account is $1000, the

payment due is $100, and the insurance premium is $20. If the
BILLING METHOD is 0, CMS adds the $20 premium to the $1000
balance making the new balance $1020 and the payment amount
due remains $100.

If the BILLING METHOD is 1, CMS adds the $20 premium to the

$1000 balance making the new balance $1020 and CMS adds the
$20 premium to the payment amount due making a new payment
amount due of $120.

Section 9–10
 Insurance Processing

BILLING Code that indicates the frequency at which CMS assesses

FREQUENCY insurance premiums. The values are:
0 = Monthly on the cycle date (Default)
1 = Bimonthly
2 = Quarterly
3 = Semiannually
4 = Annually.

INCREMENTS Two part field that determines the increment amount and whether
CMS uses partial increments or exact increments when
calculating insurance premiums.

The first part is a code that indicates whether CMS processes

partial increments or exact increments of the amount subject to
insurance (RATE METHOD on ARMI02). The values are:
0 = Process partial increments (Default)
1 = Process exact increments.

The second part of this field identifies the amount of each

increment in whole monetary units. The values are 00001–99999.
The default is 00100.

FIXED PREMIUM Fixed premium amount, in monetary units and subunits, that CMS
uses when calculating insurance premiums, as follows:

 If the RATE METHOD is 6, the fixed premium amount is the

insurance premium
 If the RATE METHOD is 8, the fixed premium amount is the
insurance premium for accounts with a zero balance or a
credit balance
 If the RATE METHOD is 0, 1, 2, 3, 4, or 5, CMS adds the fixed
premium to the calculated insurance premium.

MAX. COVERAGE Maximum at-risk amount covered by this insurance product. The
amount is in whole monetary units. This amount may be the
current account balance, the average daily balance of the account,
or the current payment amount due, depending on the rate method
selected (RATE METHOD on ARMI02). CMS cancels the insurance
product when this amount is reached if the TRUNCATION FLAG
value is set to 0 or 1 on ARMI02.

CMS then assigns the value T in the CANCEL RSN field in the

Section 9–11
CMS 8.0

Account Insurance Data function (ARDM02) during the posting

run (ARD140). You can also assign this value manually.

Examples:

If working in U.S. dollars, enter $1,000 as:

00000000000001000

If working in French francs, enter Fr2.500 as:

00000000000002500

If working in Brazilian cruzeiros, enter Cr$5,000 as:

00000000000005000

INSURANCE Code that indicates the rounding method that CMS uses to round
ROUNDING or truncate the calculated insurance premiums. The values are:
0 = Standard rounding (If the third decimal
position is 1 to 4, CMS rounds down; if the
third decimal position is 5 to 9, CMS rounds
up.) (Default)
1 = Always round up (If the third decimal
position is 1 to 9, CMS rounds up.)
2 = Truncate. (CMS does not round.)

MINIMUM Minimum amount, in monetary units and subunits, that a

PREMIUM premium must equal for CMS to assess the premium. If the
calculated premium is less than this minimum premium amount,
CMS does not assess an insurance premium. The default is zero.

MINIMUM BAL Minimum balance, in monetary units and subunits, required for
CMS to assess insurance. CMS compares this minimum balance
amount to the balance determined by the rate method (RATE
METHOD on ARMI02). The default is zero.

Section 9–12
 Insurance Processing

TRAN CODES
The following fields—PREMIUM through DIR CLM PMT REV—identify transaction
codes associated with this Insurance table.

PREMIUM Transaction code that CMS uses for automatically generated

premium transactions. Use this field when you want to use a
transaction code other than the code defined for Insurance
Premium Assessed on ARMX01. The transaction code entered
must be associated with Logic Module 15.

CLAIM PAYMENT Transaction code that CMS uses for customized processing of
claim payment transactions. The transaction code entered must be
associated with Logic Module 30.

DIRECT CLM Transaction code that CMS uses for customized processing of
PMT claim payment transactions directed to a specific plan. The
transaction code entered must be associated with Logic Module
33.

PREM REV Transaction code that CMS uses for insurance premium reversal
transactions. Use this field when you want to use a transaction
code other than the code defined for Acc Delq Ins Prem Refund
on ARMX02. The transaction code entered must be associated
with Logic Module 16.

CLAIM PMT REV Transaction code that CMS uses for customized processing of
claim payment reversal transactions. The transaction code entered
must be associated with Logic Module 31 or 32.

DIR CLM PMT Transaction code used for customized processing of directed
REV claim payment reversal transactions. The transaction code entered
must be associated with logic module 34 or 35.

Section 9–13
CMS 8.0

ARMI PAGE 03

ARMI ( ) * USER DEFINED TITLE * PAGE 03 02/02/2000

INSURANCE TABLE 08:33:18

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/02/2000
DESCRIPTION CREDIT CARD PROTECTION

PER VALUE BY AGE: P/A: ( 1 )

( 000000355 ) ( 25 ) ( 000000359 ) ( 30 ) ( 000000400 ) ( 35 )
( 000000450 ) ( 40 ) ( 000000455 ) ( 45 ) ( 000000459 ) ( 50 )
( 000000500 ) ( 55 ) ( 000000552 ) ( 56 ) ( 000000553 ) ( 57 )
( 000000554 ) ( 58 ) ( 000000555 ) ( 59 ) ( 000000600 ) ( 65 )

STATEMENT/LETTER CODES:
ACTIVE ( 0 ) ( ) ENROLL AGE ( 0 ) ( ) MIN AGE ( 0 ) ( )
EXPIR AGE ( 0 ) ( ) MAX COVER ( 0 ) ( ) FREE PD ( 0 ) ( )
DELQ WARN ( 0 ) ( ) DELQ CANCEL ( 0 ) ( ) CHARGE-OFF ( 0 ) ( )
CUST REQ ( 0 ) ( ) MISC ( 0 ) ( )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

The following fields—P/A, (PER VALUE), and (BY AGE)—establish tiered premiums
based on the age of the insured party. You can establish up to 12 percentages or
amounts by age. The untitled fields (PER VALUE) and (BY AGE) display immediately
below PER VALUE BY AGE. Each (PER VALUE) field has a corresponding (BY AGE)
field to the immediate right.

RELATED FIELDS
P/A Code that indicates whether the (PER VALUE) fields are
percentages or amounts. The values are:
0 = Percentage (Default)
1 = Amount.

PER VALUE Percentage of the account balance or amount assessed for

insurance premiums based on the age of the insured party in the
corresponding (BY AGE) field. You can establish up to 12 different
percentages or amounts. These fields are percentages or amounts
based on the value in the P/A field.
BY AGE The maximum age of the insured party at which CMS will assess
an insurance premium based on the percentage or amount in the
corresponding (PER VALUE) field. You can establish up to 12
different ages. The values are:
01–99 = Maximum age at which CMS uses the
corresponding percentage or amount.
ARMC PAGE 06

Section 9–14
 Insurance Processing

ARMC ( ) * USER DEFINED TITLE * PAGE 06 02/02/2000

CREDIT PLAN MASTER 09:14:35

ORG 300 PLAN 00001

ACT RECAP CONTROL RPT 1 DTL RPT 2 DTL RPT 3 DTL RPT 4 DTL
( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N )

INSURANCE I/E PRD 1 PRD 2 PRD 3 PRD 4 PRD 5 PRD 6

( E ) ( A1 ) ( II ) ( I2 ) ( ) ( ) ( )

PMNT PRI/CNTRL - NORMAL ( 00 ) ( F ) OVER ( 00 ) ( F ) UNDER ( 00 ) ( F )

AMORTIZATION TABLES
PRINCIPAL ( 000 ) INTEREST ( 000 ) INSURANCE ( 000 )
USER FEE 1 ( 000 ) USER FEE 2 ( 000 )
USER FEE 3 ( 000 ) USER FEE 4 ( 000 )
USER FEE 5 ( 000 ) USER FEE 6 ( 000 )
STLMT SYSTEM DATE LTR ( ) STLMT SELECTED DATE LTR ( )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS
I/E Code that indicates whether to include or exclude the specified
list of insurance products (PRD 1 to PRD 6) from credit plans when
calculating insurance premiums. The values are:
Blank = Do not use this option to include or exclude
specific insurance products when calculating
insurance premiums (Default)
I = Include the specified insurance products in
PRD 1 to PRD 6 to calculate insurance
premiums for credit plans; Exclude insurance
products not listed
E = Exclude the specified insurance products in
PRD 1 to PRD 6 to calculate insurance
premiums for credit plans; Include insurance
products not listed

PRD 1 - 6 Code that identifies an insurance product to include or exclude

when calculating insurance premiums for credit plans controlled
by the Credit Plan Master record. You can enter up to six
insurance products.
ARMO PAGE 10

ARMO ( ) * USER DEFINED TITLE * PAGE 10 02/02/2000

ORGANIZATION RECORD 08:45:43

Section 9–15
CMS 8.0

ORG 300

CUSTOMER/RELATIONSHIP NUMBER GENERATION TABLE

AUTO GENERATION ( Y ) DATE LAST USED 02/01/2000
INCREMENT BY ( 04001 ) DATE LAST MAINT 12/16/1999
LAST NUMBER ASSIGNED ( 0004000270000329163 )
BEGIN / END NBR ( 0004000270000000000 ) ( 0004488149990009999 )

DC/DD/ACH INDICATOR ( 1 ) RPT DELV METH ( 1 )

FRAUD FILE ACTIVE USER INPUT ( I ) ONLINE ( B ) CDM ( I )
CROSS CHECKS ACTIVE PHONE CD ST/PR ( Y ) POSTAL CD ST/PR ( Y )

CRM ACTIVE ( 2 ) INS CALC LEVEL ( 0 ) PAYOFF CALCULATION ( 0 )

REL RET MOS ( 06 ) AMORT HST MOS ( 02 ) COMMERCIAL CARD ( 1 )
INSTALLMENT ACTIVE ( 1 ) AMORT ACTIVE ( 1 )
BATCH SETTLEMENT QUOTE ( 0 )
EURO REPORTING ACTIVE ( 0 )
USER FEE 1 ( 0 ) ( USER FEE 1 ) USER FEE 2 ( 0 ) ( USER FEE 2 )
USER FEE 3 ( 0 ) ( USER FEE 3 ) USER FEE 4 ( 0 ) ( USER FEE 4 )
USER FEE 5 ( 0 ) ( USER FEE 5 ) USER FEE 6 ( 0 ) ( USER FEE 6 )

PF1=ARMU PF2=ARMS PF3=ARQS PF4=ARAL PF5=ARML PF6=INQUIRY

RELATED FIELDS
INS CALC LEVEL Code that indicates if insurance premiums are calculated at the
account level or the plan level. The values are:
0 = Insurance premiums are calculated at the
account level (default)
1 = Insurance premiums are calculated at the plan
level.

Section 9–16
 Insurance Processing

RATE METHODS & CALCULATION LEVEL

The rate method that you select on the Insurance table (ARMI) page 02 must
match the premium calculation level selected on the Organization record (ARMO)
page 10. The rate methods and the calculation levels allowed are listed below:

Rate Method Calculation Method Account Level Plan Level

Average Daily Balance subject to finance
Balance charges  
Cycle Ending Current account or plan balance
Balance at cycle time  
Payment Last Account or plan payment last
Requested requested excluding past due  
amounts
Credit Limit Account credit limit 
Original Principal Original balance of the 
Balance principal component Plan type =
L
First Purchase Amount of the first purchase 
Amount
Flat Rate Flat rate on the Insurance table 
or flat rate on the account
Plan Ending Current plan balance at cycle 
Balance time
Minimum Payment Combined minimum payment
Amount amounts for retail and cash 
plans at cycle time
User Defined Calculation method is
Method determined in the user exit  

Section 9–17
CMS 8.0

PREMIUM RATE INCREMENTS

Insurance premiums may be based on a partial or exact increment as defined in

the two part INCREMENTS field on the Insurance table (ARMI) page 02.
INCREMENTS ( 0 ) ( 00100 )
The first part of the field indicates whether the premium calculation uses whole
increments or if a partial increment of the RATE METHOD is used. The values are:
0 = Partial increments
1 = Exact increments.
The second part of the field indicates the increment to use.
The PER VALUE BY AGE fields on the Insurance table (ARMI) page 03 are also used
in the calculation.

PER VALUE BY AGE: P/A: ( 1 )

( 000000355 ) ( 25 ) ( 000000359 ) ( 30 ) ( 000000400 ) ( 35 )
( 000000450 ) ( 40 ) ( 000000455 ) ( 45 ) ( 000000459 ) ( 50 )
( 000000500 ) ( 55 ) ( 000000552 ) ( 56 ) ( 000000553 ) ( 57 )
( 000000554 ) ( 58 ) ( 000000555 ) ( 59 ) ( 000000600 ) ( 65 )

The table shows examples of partial and exact increment calculations when the
increment is set at 200 currency units.

If using. . . Then the calculation is . . .

Partial increments with a per (BSTI*per value)/200
value amount per 200 units
Exact increments with per value (BSTI/200 rounded to the nearest whole
amount per 200 units digit)*per value
Partial increments with a (BSTI/200)*per value %
percentage of 200 units
Exact increments with a (BSTI/200 rounded to the nearest whole
percentage of 200 units digit)*per value %

Section 9–18
 Insurance Processing

Example 1: Partial Increments – per value amount per 200 units

BSTI = 425.00
Per value amount = .355
(425 * .355) / 200 = .75437
Standard rounding = .75

Example 2: Exact Increments – per value amount per 200 units

BSTI = 425.00
Per value amount = .355
(425 / 200) = 2.125
CMS rounds to nearest full increment = 2.0
2.0 * .355 = .71

Example 3: Partial Increments – Per value percentage per 200 units

BSTI = 425.00
Per value % = 15
(425 / 200) * .15 = .31875
Standard rounding = .32

Example 4: Exact Increments – Per value percentage per 200 units

BSTI = 425.00
Per value % = 15
(425 / 200) = 2.125
CMS rounds to nearest full increment = 2.0
2.0 * .15 = .30

Section 9–19
CMS 8.0

PREMIUM TRANSACTIONS

Insurance premiums may be calculated at the account level or the plan level. The
INS CALC LEVEL field on the Organization record (ARMO) page 10 defines at
which level premiums are calculated. The values are:
0 = Account level
1 = Plan level.
Additionally, credit plan balances may be included or excluded at both levels of
processing by using the parameters on the Credit Plan Master (ARMC) page 06.
The table below provides examples of premium calculations at the account level
versus the plan level. The ‘Y’ indicates the plans are included for the product and
the ‘N’ indicates the plans are excluded for the product.

PRODUCT PLAN 123 PLAN 234 PLAN 345 PLAN 456

AB Y N Y Y
CD N Y Y Y
EF Y Y Y N

ACCOUNT LEVEL
If insurance premiums are calculated and assessed at the account level, the
balances on the plan are totaled and the insurance premium is calculated. CMS
then generates a separate insurance premium transaction for each product. Using
the table above, transactions would be generated as follows:
 An insurance premium for Product AB is calculated using the balances on
Plans 123, 345 and 456. Three insurance premium transactions, using Logic
Module 15, are generated for each of the three plans for a pro-rated amount.
 An insurance premium for Product CD is calculated using the balances on
Plans 234, 345 and 456. Three insurance premium transactions, using Logic
Module 15, are generated for each of the three plans for a pro-rated amount.
 An insurance premium for Product EF is calculated using the balances on
Plans 123, 234 and 345. Three insurance premium transactions, using Logic
Module 15, are generated for each of the three plans for a pro-rated amount.

Section 9–20
 Insurance Processing

PLAN LEVEL
If insurance premiums are calculated and assessed at the plan level, each plan
balance is used to calculate the premium. CMS then generates a transaction for
each plan. Using the table above, transactions would be generated as follows:

 Three L/M 15 insurance premium transactions for Product AB will be

calculated and assessed; one for Plan 123, one for Plan 345 and one for Plan
456.
 Three L/M 15 insurance premium transactions for Product CD will be
calculated and assessed; one for Plan 234, one for Plan 345 and one for Plan
456.
 Three L/M 15 insurance premium transactions for Product EF will be
calculated and assessed; one for Plan 123, one for Plan 234 and one for Plan
345.

Section 9–21
CMS 8.0

INSURANCE CONSOLIDATION
If you are using rate method number 09 (plan cycle-ending balance), insurance
premiums can be consolidated and posted to the consolidated insurance plan
established on the Account Control Table (ARMY) page 02.

ARMY PAGE 02

ARMY ( ) ** USER DEFINED TITLE ** PAGE 02 11/15/2001

ACCOUNT CONTROL TABLE 06:36:18
ORGANIZATION 000 LOGO 000 TABLE 001 LAST MAINT 09/06/2001

PMT DUE DAYS ( 99 ) PMT DUE DATE ( 00 ) GRACE DAY BAL ( D )

MINIMUM INTEREST ( 000000050 ) GRACE DAYS ( 25 )
MIN PYMT: AMT ( 000000015 ) PERCENT ( 0100000 ) IND ( 4 )
MIN INT WAIVE LVL ( A ) MAXIMUM AMOUNT ( 000000025 )
MAXIMUM BAL ( 00000000000001001 )

CASH LIMIT FLAG ( P ) % OR AMT ( 00000000000750000 ) CONS PMT PLAN ( 00000 )

LOAN LIMIT FLAG ( P ) % OR AMT ( 00000000000500000 ) CONS INS PLAN ( 00000 )
FEE DISCL IND ( 1 ) CASH PLAN ( 10001 )
FEE DISCL CYCLE ( 2 ) RETAIL PLAN ( 10002 )

CO ACCR INTEREST ( 1 ) SECURITY % ( 100 )

VAR RATE DISCL DAYS ( 060 )

IMMED DORMANT ACCOUNT RATIFICATION ( 1 )
ITO INTEREST OPTIONS ( 1 )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARMR PF4=ARMI PF5=ARVM PF6=INQUIRY

RELATED FIELDS
CONS INS PLAN Credit Plan Master record number to which CMS posts
consolidated insurance premiums. The consolidated insurance
option is valid only for insurance RATE METHOD 9, 10, or 20
(ARMI02).

 If RATE METHOD on the Insurance table (ARMI02) is set to 9,

10, or 20, CONS PMT PLAN must contain a valid credit plan
number.

Section 9–22
 Insurance Processing

REVIEW
1. Listed below are examples of the two billing methods used to bill insurance
premiums. In each example, assume the balance of the account is $2000, the
payment amount due is $200 and the insurance premium is $40. Indicate the
appropriate billing method value for each example.

Value Example
______ CMS adds the $40 premium to the $2000 balance making the new
balance $2040. Additionally, CMS adds the $40 premium to the
payment amount due making a new payment amount due of $240.

______ CMS adds the $40 premium to the $2000 balance making the new
balance $2040. The payment amount due remains $200.

2. Listed below are descriptions of account level premium calculation versus

plan level premium calculation. Indicate the appropriate calculation level for
each description.

Level Description
______ CMS calculates the premium on each plan balance and generates a
transaction to post the premium back to the plan.
______ CMS adds the balances for all included plans together and
generates the insurance premium based upon the total plan balance.
CMS then generates transactions to prorate the premium back to the
included plans.

3. Using the chart below, define 5 rate methods indicating their calculation
method and at which level the method may be used.

Rate Method Calculation Method Account Level Plan Level

Section 9–23
CMS 8.0

DELINQUENCY WARNING AND CANCELLATION LEVELS

You can establish parameters in the Insurance table that control whether CMS
suspends or cancels insurance for recency delinquency or contractual delinquency.
The level of delinquency at which CMS warns the account holder of impending
cancellation is called the delinquency warning level. The level of delinquency at
which CMS cancels insurance is called the delinquency cancellation level.
You can also specify how CMS handles premiums on delinquent accounts. You
can indicate that CMS:
 Does not accrue premiums during delinquency
 Accrues premiums during delinquency and bills the premiums if
delinquency is cured or waives the premiums if insurance is canceled
 Accrues premiums during delinquency and bills the premiums if
delinquency is cured or refunds the premiums if insurance is canceled.

ARMI PAGE 02

ARMI ( ) * USER DEFINED TITLE * PAGE 02 02/01/2000

INSURANCE TABLE 16:08:41

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/01/2000
DESCRIPTION ( CREDIT CARD PROTECTION )

REPORT ( C )
COMPANY ( CO ) RATE METHOD ( 01 )
BILLING METHOD ( 0 ) BILLING FREQUENCY ( 0 )
PAST DUE/OVERLIMIT FLAG ( 0 ) ( 0 ) INCREMENTS ( 0 ) ( 0000000100 )
FIXED PREMIUM ( 000000250 ) ENROLL/EXPIRE AGE ( 64 ) ( 65 )
MINIMUM AGE ( 20 ) REINSTATEMENT ( 2 ) ( 1 )
MAX. COVERAGE ( 00000000000010000 ) TRUNCATION FLAG ( 1 )
VENDOR ID ( 300 000000001 ) ENROLLMENT ID ( 1 )
CLAIM BALANCE ( 0 ) INSURANCE ROUNDING ( 0 )
MINIMUM PREMIUM ( 000000500 ) MINIMUM BAL ( 00000000000001000 )
DEL CAN ( 1 ) W: R ( 0 ) C ( 3 ) FICHE NBR ( 0 ) ( 000 ) ( 000 )
C: R ( 0 ) C ( 5 ) ( 04 )

TRAN CODES: PREMIUM ( 000 ) CLAIM PAYMENT ( 000 ) DIRECT CLM PMT ( 000 )
PREM REV ( 000 ) CLAIM PMT REV ( 000 ) DIR CLM PMT REV ( 000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

Section 9–24
 Insurance Processing

RELATED FIELDS
DEL CAN Code that determines whether insurance is suspended or canceled
due to delinquency, and if so, how CMS handles delinquent
premiums. The values are:
0 = Cancel insurance based on recency (R) or
contractual (C) delinquency values. (Default)
1 = Suspend insurance based on recency (R) or
contractual (C) delinquency values, but
maintain insurance values and assess missed
premiums if account cures before it is
cancelled. When insurance is suspended,
premiums continue to accrue but are not
billed.
2 = Cancel insurance based on the delinquency
cancellation level (C:R/C). When delinquency
reaches the warning level, premiums continue
to bill. When insurance is canceled, premiums
billed after the warning level was reached are
refunded.

W:R/C Codes that establish the level of recency (R) and contractual (C)
delinquency that suspend the insurance and warn the account
holder of impending cancellation. The values are:
0 = Do not use delinquency to suspend insurance
(Default)
1–9 = Level of delinquency at which CMS warns
the account holder.

Section 9–25
CMS 8.0

C: R/C Codes that establish the level of recency (R) and contractual (C)
delinquency at which CMS automatically cancels insurance and
the number of cycles that an account can remain at the
delinquency warning level before CMS automatically cancels
insurance. The values for the first two parts of this field are:
0 = Do not use delinquency to cancel insurance
(Default)
1–9 = Level of delinquency at which CMS cancels
insurance.

The third part of this field (untitled) establishes the maximum

number of cycles that an account can remain at the delinquency
warning level without reaching the cancellation level. When this
occurs, CMS automatically cancels insurance using cancel reason
D (CAN RSN on ARDM01). The values are 00–99.

REINSTATEMENT Two part field that controls reinstatement of insurance products

that were canceled or suspended for delinquency or that expired
because of the age of the account holder.

The first part of this field controls reinstatement of insurance

products canceled or suspended due to delinquency. The values
are:
0 = Manually reinstate canceled or suspended
insurance by changing STATUS on ARDM02
to F (Default)
1 = CMS automatically reinstates suspended
insurance when delinquency is cured below
the delinquency warning level (W: R/C on
ARMI02)
2 = CMS automatically reinstates canceled
insurance when delinquency is cured below
the delinquency cancellation level (C: R/C on
ARMI02).

Section 9–26
 Insurance Processing

The following examples illustrate how to complete the DEL CAN, W:R/C, and C:R/C
fields on the Insurance table to establish delinquency warning levels and
delinquency cancellation levels.

EXAMPLE 1: INSURANCE NOT CANCELED DUE TO DELINQUENCY

DEL CAN ( 0 ) W: R: ( 0 ) C ( 0 )
C: R: ( 0 ) C ( 0 ) ( 00 )

1. These fields/options are not used to suspend or cancel insurance due to

delinquency.

EXAMPLE 2: INSURANCE CANCELED DUE TO DELINQUENCY

DEL CAN ( 0 ) W: R: ( 0 ) C ( 3 )
C: R: ( 0 ) C ( 5 ) ( 00 )

1. When the account becomes a CD 3, a warning letter and/or statement message

is sent to the customer, if specified. Insurance premiums continue to be
assessed. A zero in the recency field indicates that recency delinquency is not
used to warn or cancel insurance. If the account cures delinquency below the
warning level, insurance will bill as normal.
2. When the account becomes CD 5, insurance is canceled (INS STATUS set to ‘C’
and INS REASON CANCELED set to ‘D’). If the account cures delinquency below
the warning level, the insurance product is reactivated and the premium is
assessed as normal (if automatic reinstatement is selected).

EXAMPLE 3: ACCRUE/WAIVE METHOD

DEL CAN ( 1 ) W: R: ( 0 ) C ( 3 )
C: R: ( 0 ) C ( 5 ) ( 04 )

1. When the account becomes a CD 3, a warning letter and/or statement message

is sent to the customer, if specified and the INS STATUS set to ‘S’. Insurance
premiums are NOT assessed, but will accrue. The accrued insurance will be
added to the ACCRUED DELQ INSURANCE field on the account base segment for
this product. A zero in the recency field indicates that recency delinquency is
not used to warn or cancel insurance.
2. If/when the account becomes CD 5, insurance is canceled (INS STATUS set to
‘C’ and INS REASON CANCELED set to ‘D’). Any premiums held in the
ACCRUED DELQ INSURANCE field are waived and never charged to the account.

Section 9–27
CMS 8.0

3. If the account delinquency is equal to or above the warning level, but never
reaches the cancel level (i.e., CD is 4 for several months), the last field (04 for
this example) determines the number of cycles the delinquency remains
between the two levels before the insurance product is canceled. If this
condition is met, the insurance product is canceled and the ACCRUED DELQ
INSURANCE is waived and never charged to the account.

4. If the account delinquency is above the warning level, but still below the
cancel level and cures delinquency below the warning level, the ACCRUED
DELQ INSURANCE is billed. A separate transaction is generated to bill ACCRUED
DELQ INSURANCE.

5. If the account cures delinquency below the warning level, the insurance
product is reactivated and the premium is billed as normal (if automatic
reinstatement is selected).

EXAMPLE 4: BILL/REFUND METHOD

DEL CAN ( 2 ) W: R: ( 0 ) C ( 3 )
C: R: ( 0 ) C ( 5 ) ( 04 )

1. When the account becomes a CD 3, a warning letter and/or statement message

is sent to the customer, if specified. Insurance premiums continue to be
assessed and the insurance status remains in force. A zero in the recency field
indicates that recency delinquency is not used to warn or cancel insurance.
2. If/when the account becomes CD 5, insurance is canceled (INS STATUS set to
‘C’ and INS REASON CANCELED set to ‘D’). Any premiums assessed since the
account reached the warning/suspend level are refunded to the customer.
3. If the account delinquency is equal to or above the warning level, but never
reaches the cancel level (i.e., CD is 4 for several months), the last field (04 for
this example) determines the number of cycles the delinquency remains
between the two levels before the insurance product is canceled. If this
condition is met, the insurance product is canceled and the premiums assessed
since the account reached the warning level are refunded to the account.
4. If the account delinquency is between the warning level and the cancel level
and then cures delinquency below the warning level, the insurance product
will continue to be billed as normal.

Section 9–28
 Insurance Processing

INSURANCE DEFERMENT OPTIONS

You can choose to defer insurance premium assessment for a number of cycles,
days, or months, or until a specific date. Insurance deferment parameters are set
on the Credit Plan Master record (ARMC) page 01. At the end of the deferment
period, you can select from the following disposition options:
 Insurance is waived completely for the deferral period (insurance-free period).
 Insurance is conditionally waived at the end of the deferral period only if the
balance of the plan is paid in full. This value will cause the insurance to be
assessed to the account if the balance of the plan is not paid in full.
 Insurance is deferred for the specified period and assessed at the end of the
deferral period, regardless of the plan balance.

 For more information on deferments, see the Credit Plan

Master section of this manual.

Section 9–29
CMS 8.0

AGE RESTRICTION OPTIONS

You can specify in the Insurance table the minimum and maximum ages at which
an insured may enroll for insurance. In addition, you can specify the age of the
insured at which insurance automatically expires.

ARMI PAGE 02

ARMI ( ) * USER DEFINED TITLE * PAGE 02 02/01/2000

INSURANCE TABLE 16:08:41

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/01/2000
DESCRIPTION ( CREDIT CARD PROTECTION )

REPORT ( C )
COMPANY ( CO ) RATE METHOD ( 01 )
BILLING METHOD ( 0 ) BILLING FREQUENCY ( 0 )
PAST DUE/OVERLIMIT FLAG ( 0 ) ( 0 ) INCREMENTS ( 0 ) ( 0000000100 )
FIXED PREMIUM ( 000000250 ) ENROLL/EXPIRE AGE ( 64 ) ( 65 )
MINIMUM AGE ( 20 ) REINSTATEMENT ( 2 ) ( 1 )
MAX. COVERAGE ( 00000000000010000 ) TRUNCATION FLAG ( 1 )
VENDOR ID ( 300 000000001 ) ENROLLMENT ID ( 1 )
CLAIM BALANCE ( 0 ) INSURANCE ROUNDING ( 0 )
MINIMUM PREMIUM ( 000000500 ) MINIMUM BAL ( 00000000000001000 )
DEL CAN ( 1 ) W: R ( 0 ) C ( 3 ) FICHE NBR ( 0 ) ( 000 ) ( 000 )
C: R ( 0 ) C ( 5 ) ( 04 )

TRAN CODES: PREMIUM ( 000 ) CLAIM PAYMENT ( 000 ) DIRECT CLM PMT ( 000 )
PREM REV ( 000 ) CLAIM PMT REV ( 000 ) DIR CLM PMT REV ( 000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

RELATED FIELDS
ENROLL/EXPIRE Two part field that indicates the maximum enrollment age and the
AGE expiration age. The first part of this field is the maximum age at
which the insured party may enroll in the insurance product.

The second part of this field is the age of the insured party at
which the insurance coverage expires and CMS automatically
cancels insurance.

MINIMUM AGE Minimum age at which the insured party may enroll in the
insurance product.

Section 9–30
 Insurance Processing

REINSTATEMENT Two part field that controls reinstatement of insurance products

that were canceled for delinquency or that expired because of the
age of the account holder.

The first part of this field controls reinstatement of insurance

products canceled due to delinquency. The values are:
0 = Manually reinstate canceled insurance by
changing STATUS on ARDM02 to F (Default)
1 = CMS automatically reinstates canceled
insurance when delinquency is cured below
the delinquency warning level (W:RC on
ARMI02)
2 = CMS automatically reinstates canceled
insurance when delinquency is cured below
the delinquency cancellation level (C:RC on
ARMI02).

The second part of this field controls reinstatement of insurance

products canceled because the age of the insured exceeds the
expiration age allowed and the age has been changed. The values
are:
0 = Manually reinstate by changing STATUS on
ARDM02 to F (Default)
1 = CMS automatically reinstates insurance.

The insured party’s date of birth is captured on the Name and Address record
(ARMN) page 03 and defaulted to the INSURED DATE OF BIRTH field in the Account
Base Segment file (AMBS). During the daily run, CMS validates the enrollment
age of the ensured on newly added insurance products only. CMS validates the
minimum and maximum age at cycle time during insurance processing.

Section 9–31
CMS 8.0

STATEMENT AND LETTER CODES

You can establish parameters in the Insurance table that indicate various insurance
conditions under which LTS, if installed, sends letters to the insured. The
Insurance table also controls whether CMS produces messages on statements. You
can generate letters and/or produce messages for the following conditions:
 Insurance activation (ACTIVE on ARMI03). When you activate an
insurance product for an account, you can generate a letter (via LTS),
produce a statement message, or both.
 Delinquency suspension (DELQ WARN on ARMI03). When an insurance
product is suspended due to account delinquency, you can generate a letter
(via LTS), produce a statement message, or both.
 Delinquency cancellation (DELQ CANCEL on ARMI03). When an insurance
product is canceled due to account delinquency, you can generate a letter
(via LTS), produce a statement message, or both.
 Charge-off cancellation (CHARGE-OFF on ARMI03). When an insurance
product is canceled because the account is in charge-off status, you can
generate a letter (via LTS), produce a statement message, or both.
 Customer request (CUST REQ on ARMI03). When an insurance product is
canceled at the request of the customer, you can generate a letter (via
LTS).
 Miscellaneous cancellation (MISC on ARMI03). When an insurance
product is canceled for a miscellaneous reason (CAN RSN on ARDM01 is
X), you can generate a letter (via LTS).

Section 9–32
 Insurance Processing

ARMI PAGE 03

ARMI ( ) * USER DEFINED TITLE * PAGE 03 02/02/2000

INSURANCE TABLE 08:33:18

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/02/2000
DESCRIPTION CREDIT CARD PROTECTION

PER VALUE BY AGE: P/A: ( 1 )

( 000000355 ) ( 25 ) ( 000000359 ) ( 30 ) ( 000000400 ) ( 35 )
( 000000450 ) ( 40 ) ( 000000455 ) ( 45 ) ( 000000459 ) ( 50 )
( 000000500 ) ( 55 ) ( 000000552 ) ( 56 ) ( 000000553 ) ( 57 )
( 000000554 ) ( 58 ) ( 000000555 ) ( 59 ) ( 000000600 ) ( 65 )

STATEMENT/LETTER CODES:
ACTIVE ( 0 ) ( ) ENROLL AGE ( 0 ) ( ) MIN AGE ( 0 ) ( )
EXPIR AGE ( 0 ) ( ) MAX COVER ( 0 ) ( ) FREE PD ( 0 ) ( )
DELQ WARN ( 0 ) ( ) DELQ CANCEL ( 0 ) ( ) CHARGE-OFF ( 0 ) ( )
CUST REQ ( 0 ) ( ) MISC ( 0 ) ( )

CURRENCY 840 NOD 2 PER ITEM NOD 3 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

The following fields—ACTIVE, ENROLL AGE, MIN AGE, EXPIR AGE, MAX COVER, FREE
PD, DELQ WARN, DELQ CANCEL, CHARGE-OFF, CUST REQ, and MISC—control whether
CMS generates customer letters and statements when you activate certain
insurance product parameters.
The first part is a code that indicates whether CMS generates a letter, statement
message, or both:

0 = Do not generate a letter or statement message (Default)

1 = Generate a letter
2 = Generate a statement message
3 = Generate both a letter and a statement message.

The second part is the identification code of the letter or statement message that
will be sent to the customer.

STATEMENT MESSAGES

Insurance statement messages can be defined on the Statement Messages record

(ARMW) page 07. Four insurance messages are available. They include:
 Insurance active message
 Insurance warning message
 Insurance cancellation message
 Insurance free-month message.

Section 9–33
CMS 8.0

CLAIM REASONS AND DESCRIPTIONS

The Insurance table identifies valid claim reason codes and descriptions used to
enter insurance claims via the Account Insurance Data screens (ARDM). You can
define up to 20 claim reasons on page 04 of the Insurance table.

ARMI PAGE 04

ARMI ( ) * USER DEFINED TITLE * PAGE 04 02/02/2000

INSURANCE TABLE 13:25:14

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/02/2000
DESCRIPTION CREDIT CARD PROTECTION

USER-DEFINED CLAIM REASONS:

( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )

PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

This screen enables you to establish up to 20 claim reasons. Each claim reason is
identified by a claim reason code and a description. Claim reason codes are
required when entering claims for insurance products assigned to an account.

RELATED FIELDS
CODE User defined code that identifies the reason for the claim under
the insurance claim information.

DESCRIPTION Description associated with the claim reason code. This

description is available for reports, letters, and statement
messages.

Section 9–34
 Insurance Processing

ENROLLMENT ID AND ADDRESS CHANGES

The Insurance table can specify whether you can assign an enrollment ID to the
insurance product that is different from the residence ID on the Account Base
Segment record. In some environments, insurance premiums are based upon
where the insured party currently resides. In other environments, the premiums
are based upon the state, province or country of residence of the insured at the
time of initial enrollment.
CMS provides the following options:
 The enrollment ID is entered on the Account Insurance Data screen
(ARDM)
 The enrollment ID defaults the from residence ID on the Account Base
Segment record
 The enrollment ID is updated when the residence ID on the Account
Base Segment record changes.

These options are defined on the Insurance table (ARMI) page 02 and the Logo
record (ARML) page 13.

Section 9–35
CMS 8.0

ARMI PAGE 02

ARMI ( ) * USER DEFINED TITLE * PAGE 02 02/01/2000

INSURANCE TABLE 16:08:41

ORG 300 LOGO 304 TABLE 001 PRODUCT 01 LAST MAINT 02/01/2000
DESCRIPTION ( CREDIT CARD PROTECTION )

REPORT ( C )
COMPANY ( CO ) RATE METHOD ( 01 )
BILLING METHOD ( 0 ) BILLING FREQUENCY ( 0 )
PAST DUE/OVERLIMIT FLAG ( 0 ) ( 0 ) INCREMENTS ( 0 ) ( 0000000100 )
FIXED PREMIUM ( 000000250 ) ENROLL/EXPIRE AGE ( 64 ) ( 65 )
MINIMUM AGE ( 20 ) REINSTATEMENT ( 2 ) ( 1 )
MAX. COVERAGE ( 00000000000010000 ) TRUNCATION FLAG ( 1 )
VENDOR ID ( 300 000000001 ) ENROLLMENT ID ( 1 )
CLAIM BALANCE ( 0 ) INSURANCE ROUNDING ( 0 )
MINIMUM PREMIUM ( 000000500 ) MINIMUM BAL ( 00000000000001000 )
DEL CAN ( 1 ) W: R ( 0 ) C ( 3 ) FICHE NBR ( 0 ) ( 000 ) ( 000 )
C: R ( 0 ) C ( 5 ) ( 04 )

TRAN CODES: PREMIUM ( 000 ) CLAIM PAYMENT ( 000 ) DIRECT CLM PMT ( 000 )
PREM REV ( 000 ) CLAIM PMT REV ( 000 ) DIR CLM PMT REV ( 000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMF PF3=ARDM PF4=ARMR PF5=ARAR PF6=INQUIRY

RELATED FIELDS
ENROLLMENT ID Code that determines whether CMS allows you to assign an
insurance enrollment ID to an insurance product (ENROLLMENT ID
on ARDM02). The values are:
0 = CMS does not allow data entry in the
ENROLLMENT ID field on ARDM02. CMS uses
the residence ID from the account
(RESIDENCE ID on ARMB03) as the insurance
enrollment ID. (Default)
1 = CMS allows data entry in the ENROLLMENT ID
field on ARDM02.

Section 9–36
 Insurance Processing

ARML PAGE 13

ARML ( ) * USER DEFINED TITLE * PAGE 13 02/02/2000

LOGO RECORD 14:40:35
ORGANIZATION 300 LOGO 304
PROCESSING CONTROL OPTIONS PERM ISS ID ( ) ISS ID ( PER )
DELQ AGING ( S ) NEW CARDS ( Y ) PLAN STRUCTURE ( P )
1ST USAGE FLAG ( Y ) P/D DAYS 1 ( N ) ( 99 ) P/D DAYS 2 ( 99 )
1ST USAGE LETTER ( 001 ) P/D LETTER 1 ( ) P/D LETTER 2 ( )
ADDRESS CHG EFFECT ( F ) AUTH DURATION ( N ) # ISSUE ATTEMPTS ( 006 )
FIRST CARD DAY ( 99 ) MAXIMUM CREDIT LIMIT ( 00000000000015000 )
OVERLIMIT RPT % ( 110 ) OVERLIMIT LTR % ( 000 ) OVERLIMIT AUTH % ( 110 )
OVERLIMIT LETTER ( ) ITS ORG ( 001 ) CREDIT BUREAU MTHS ( 00 )
ALL STMTS - FLAG ( N ) FLAG EXPIRE ( ) DISPUTE LETTER ( )
CLLTRL RET MONTHS ( 06 ) BATCH STTLMT QUOTE ( 0 ) CARD TERM MONTHS ( 024 )
AUTO CLOSE MONTHS ( 06 ) AUTO PURGE MONTHS ( 06 ) AUTO CHGOFF MONTHS ( 06 )
LETTER ORG ( 100 ) INACTIVE MONTHS ( 06 ) PLAN PURGE DAYS ( 090 )
DD CHG LETTER CD ( ) INSTALLMNT ACTIVE ( 1 ) STMT FREQ ( 01 )
FINAL PMT FCTR 1 ( ) ( 0000000 ) FINAL PMT FCTR 2 ( ) ( 0000000 )
FINAL PMT IND ( 0 ) TERM EXTENDED ( 00 )
PSEUDO LETTER: NC PMT ( ) CASH PMT ( )
ASSOC TYPE MAIL CONTROL 1 2 3 4 5 6 7 8 9
STMT CD ( 3 ) ( 4 ) ( 5 ) ( 3 ) ( 4 ) ( 5 ) ( 3 ) ( 4 ) ( 5 )
LTR CD ( 2 ) ( 3 ) ( 4 ) ( 2 ) ( 3 ) ( 4 ) ( 2 ) ( 3 ) ( 4 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS
ADDRESS CHG Code that defines when to change the enrollment state for a
EFFECT customer moving from one state to another. The values are:
I = Change is effective immediately
S = Change becomes effective after the next cycle
based on the billing threshold (BILL THRESH on
ARML14) (Default)
F = Do not change the enrollment state regardless
of customer movement from one state to
another.

Section 9–37
CMS 8.0

ORGANIZATION AND LOGO CONTROLS

Options on the Organization record and the Logo record also effect insurance
processing. Account insurance history can be retained by setting a flag on the
Organization record (ARMO) page 04. This history is visible on the Insurance
Display screens (ARDM). Insurance source codes can be defined on the Logo
record (ARML) page 36 to identify how the insurance product was acquired on
the account.

ARMO PAGE 04

ARMO ( ) * USER DEFINED TITLE * PAGE 04 02/02/2000

ORGANIZATION RECORD 13:23:53
ORGANIZATION 300

--OPTIONS--
SHORT NAME ( Y ) RES ID ( Y ) RET MAIL ( Y ) PRIOR ADDR ( Y )
BEHAVIOR HSTY ( Y ) FREQ SHOP ( Y ) CLLTRL/SCRTY ( Y ) SVC CHARGES ( n )
BILL HISTORY ( 1 ) PAY HISTORY ( 1 ) INS HISTORY ( 1 ) CNSLDTD ( 1 )
CSF ACTIVE ( 1 )

MOD CHECK CUSTOMER ( N ) MOD CHECK ACCOUNT ( D ) MOD CHECK STORE ( N )

STMT RETENTION IND ( 1 ) TOTAL # OF STMTS ( 12 ) # DETAIL STMTS ( 06 )

MULTISTREAM LTR ORG ( 000 )

PF1=ARMU PF2=ARMS PF3=ARML PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS
INS HISTORY Flag that indicates whether CMS maintains insurance history for
the last six billing cycles for accounts within this organization.
The values are:
0 = Do not maintain insurance history (Default)
1 = Maintain insurance history for six cycles.

Section 9–38
 Insurance Processing

ARML PAGE 36

ARML ( ) * USER DEFINED TITLE * PAGE 36 11/20/2001

LOGO RECORD 10:14:44
ORGANIZATION 100 LOGO 101
PAYMENT HOLD:
DAYS ( 007 ) MIN PMT ( 00000000000001000 ) PMT HOLD DEFAULT ( 1 )
PAYMENT HOLD TRANSACTION CODES:
( 030 ) ( 033 ) ( 036 ) ( 039 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )
( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )

INSURANCE SOURCE CODE DEFINITION

( ST ) ( STATEMENT INSERT ) ( MC ) ( MARKETING CALL )
( PS ) ( POINT OF SALE ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
( ) ( ) ( ) ( )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMS PF3=ARMO PF4=ARMG PF5=ARMC PF6=INQUIRY

RELATED FIELDS
INSURANCE User defined indentification numbers of the insurance source
SOURCE CODE code.

DESCRIPTION User defined description of the associated source code.

 When source codes are input on the Insurance Display screen

(ARDM), CMS defaults the associated description.

Section 9–39
CMS 8.0

ADDING INSURANCE PRODUCTS TO ACCOUNTS

Once the control records are defined and accounts are added, you may also add
insurance products to accounts. Each account can have up to insurance six
products. The Account Insurance Data screens (ARDA/ARDM) are used to add
and maintain insurance products.
Below is sample of the main Account Insurance Data screen. You will learn how
to add insurance products in the CMS Users Course.

ARDM PAGE 02

ARDM ( ) USER DEFINED TITLE PAGE 02 04/28/1999

CURRENT INSURANCE DATA 15:18:51

ORG 300 LOGO 304 ACCT 0004715153003040115

PRODUCT ( 06 ) CREDIT CARD PROTECTION
INS ACTIVE 1
STATUS/ CHNG DTE ( C ) 04/23/1999 EFFECTIVE DATE ( 03012000 )
CANCEL RSN/ DATE ( R ) 04/23/1999 REINSTATEMENT DATE 04/23/1999
ENROLLMENT ID ( FL ) INSURED CUST NBR ( )
INSURED MAIL STMT ( 0 ) INSURED PARTY/ DOB ( 0 ) 00/00/0000
INSURED MAIL LTR/ FEE ( 1 ) ( 0 ) INSURANCE TABLE NUMBER 001
PREMIUM RATE 000000000 0 23.05
FICHE NBR/DATE WARN/CAN ( ) 12/31/9999 12/31/9999
SOURCE CODE ( )
DATE LAST BILLED 03/14/2000

LST PREM BILLED 23.05 MTD PREM BILLED 46.10

CTD PREM BILLED .00
YTD PREM BILLED .00
LTD PREM BILLED .00 SUSPENDED AMT .00

PF1=ARMU PF2=AREM PF3=ARMB PF4=ARMA PF5=ARIQ PF6=ARSB

Section 9–40
 Insurance Processing

REFERENCE LIST

ONLINE

 ARDM – Account Insurance Data

 AREM – Account Insurance Claim screens
 ARMC - Credit Plan Master
 ARMI – Insurance table
 ARML - Logo record
 ARMO – Organization record
 ARMW – Statement Message record
 ARMY - Account Control Table

REPORTS

 D11 - Generated Transactions Journal

 D17 – Insurance by Enroll ID
 R11 - Rate Table Maintenance
 O31 – Insurance Premium by Product
 O32 – Insurance in Force by Product
 O33 – Insurance Status Change
 O58 – Insurance Accounts by Product

Section 9–41
CMS 8.0

REVIEW
Complete the IF – THEN charts below to review important insurance concepts
and terms.

If . . . Then . . .
1. Insurance should Set the _____________ field on the
automatically be canceled Insurance table to the appropriate value.
when the insured party
reaches a certain age
2. The insured party must be a Set the _____________ field on the
certain age to qualify for Insurance table to the appropriate value.
insurance
3. The insured party can be no Set the _____________ field on the
older than a certain age to Insurance table to the appropriate value.
enroll in a product
4. When the date of birth is CMS defaults it to the _____________ field
entered on the insured party’s on the _____________ .
Name and Address record
5. When the ENROLLMENT ID CMS __________ data entry in the
field on the Insurance table is ENROLLMENT ID field on the Account
set to a value of 1 Insurance Data screen (ARDM).
6. When the address change The enrollment ID defaults from the
effect field on the Logo residence ID on the _________________
record (ARML) page 13 is set and is updated _____________ when the
to a value of I customer moves from one state/province to
another.
7. If you offer insurance The ___________ must be defined on the
products to account holders Processing Control Table.

Section 9–42
 Insurance Processing

Set the delinquency warning and cancellation fields to achieve the desired results
for the four examples listed below.

Desired Results Warning and cancellation fields

1. Send a warning letter DEL CAN ( ) W: R: ( ) C ( )

when the account C: R: ( ) C ( ) ( )
becomes a CD of 4.

Cancel insurance when

the account becomes a CD
of 6.

Waive accrued premiums.

2. Send a warning letter DEL CAN ( ) W: R: ( ) C ( )

when the account C: R: ( ) C ( ) ( )
becomes a CD of 3.

Cancel insurance when

the account becomes a CD
of 5 or remains a CD of 4
for 4 months.

Refund billed premiums.

3. Insurance is not canceled DEL CAN ( ) W: R: ( ) C ( )

due to delinquency C: R: ( ) C ( ) ( )

4. Send a warning letter DEL CAN ( ) W: R: ( ) C ( )

when the account C: R: ( ) C ( ) ( )
becomes a CD of 5.

Cancel insurance when

the account becomes a CD
of 6.

Section 9–43
CMS 8.0

Notes

Section 9–44