| This is a value used by the actuaries for calculation or premium rates. Issue Basis is kind
of a unique identifier for particular products pricing/premium rates used for contract
calculations when requested for calculation. Issue basis decides which premium rates to be
used by an admin system for a particular insurance case. The same insurance policy may be sold
at different rates based on the market fluctuations. This is termed as repricing. Under these
circumstances, the new rates are defined in the admin system with a New issue basis. The New
business process decides the issue basis for a policy based on the transition dates. If the
transition dates are met, the New issue basis is passed and the calcs in admin systems are
calculated based on the New rates. If not, the old issue basis and old rates are applied.
Other factors that may be used by Issue basis are 1. Product, 2. Date, 3. State, 4. Rate Basis
selected chosen by the customer. |