ClariNet Release Notes - July 2014

ClariNet Release Notes - July 2014

© ClearLife Limited 2008-2014 1 Version 2 dated 16 July 2014

New Features and Improvements 1. CL-4250 - Price a Case with loan or withdrawal 2. CL-4365, 4366, 4389 - Single Case Valuation: add new Metrics for Maturity Risk, Real Tail, Ins Age at

Extension, Extension LE and Above pricing LE in % and Years, Elasticity, breakeven age, etc. 3. CL-4274, 4362, 4374, 4386 - SmartSearch improvements: Event dates, Policy Number, multiple Case

References, Insured first name and/or last name 4. CL-4388 - Portfolio Valuation - add option to floor values at zero 5. CL-4367 - Portfolio Summary: add more summary stats to web and PDF (Policies, Face Amounts and

Insureds by Case Status) 6. CL-4370 - New PDF report: Maturities 7. CL-4359 - New Portfolios CSV export for multiple probabilistic values 8. CL-4352 - Case to PDF Report: make document and LE Report table use full width 9. CL-4246 - Single Case Valuations list: add "Excel Template" export button 10. CL-4375 - New fields on Cost/Maturity tab: "Carrier Name" and "Carrier Rating (as at payment date)" 11. CL-4357 - VOC: allow "Account Information Date" in the future/after "Verification Date" 12. CL-4382 - Add Categories to Help page 13. CL-4351 - Add separators to the menus to improve clarity 14. CL-4396 - Add weekly run and name to Auto Import Tasks

Bugs 15. CL-4348 - Add ability to import and export VTs and PCc as XML 16. CL-4353 - VT parameters overflow column width and length in Excel exporter 17. CL-4394 - Case Setup Form: cannot add a document of type "Uncategorized Document" 18. CL-4398 - Use Impvt checkbox is enabled when it shouldn't be 19. CL-4399 - Contract Package Building Blocks: Remove redundant part "Premium Finance Loan" 20. CL-4402 - Valuation created when an insured is dead but has a very low LE report fails to save 21. CL-4403 - When Valuation is exported, code generates new Premium Schedules and errors with "All

Cases must have the same Premium Schedule Start Date"



1. CL-4250 Price a Case with Loan or Withdrawal ClariNet now supports the repayment of Policy Loans and the withdrawal of cash from the Policy’s cash account. There are two places where these values can be entered:

As part of an Illustration; and

As part of a Premium Calculation.

Illustration

A Carrier may supply an Illustration that includes a repayment of the Policy Loan or a cash withdrawal. This can be entered into the Illustration page. The example below shows a Loan Repayment Date and Loan Repayment Amount:

If this Illustration is used to calculate a Premium Schedule in ClariNet, the loan repayment can be seen in the cashflows:

In this example, the Illustration includes a partial loan repayment. Note that it has an Account Value that is set to “Gross of Loan”. For both loan repayments and withdrawals, the cash flow is assumed to occur at the start of the Policy month that contains the date entered. For example, the repayment is here entered on July 8, 2014 and is reflected on the July 2, 2014 Policy monthiversary.



In addition to impacting the COI calculation, the loan repayment will affect the calculated Premium Schedule. This can be seen in the Minimum Premium Account Value tab:

Premium Calculator

There may be situations in which you want to include a loan repayment or cash withdrawal as part of a Premium Schedule, but no repayment/withdrawal information is shown in an Illustration or VOC. The Premium Calculator page now includes fields to accommodate these assumptions:

If you enter a date and amount for a loan repayment and/or cash withdrawal into the Premium Schedule calculation page, the cashflows will not be reflected in the COI calculation but will feature in the Premium Schedule.

Premium Calculation/Valuation

Including a Policy loan repayment or cash withdrawal in the used Premium Schedule for a Case will impact the valuation of that Case. Both will alter the minimum premiums calculated by ClariNet. A loan repayment will alter the Net Death Benefit on all Policy Types; a cash withdrawal will reduce the Face Amount on a level pay policy. The date of the loan repayment or cash withdrawal must be on or before Value Date since this cash transaction is not directly added to or subtracted from the cashflows that make up the Policy valuations. The amounts are shown in the Assumptions tab on the Single Policy Pricing page:



We expect to improve the options associated with loans and withdrawals in future releases. In the meantime, please note the following:

- No surrender charge is calculated as part of the withdrawal. If your policy is within the surrender charge period, you may need to adjust the account value and the Face Amount to reflect the imposition of the surrender charge. Most universal life policies include a pro-rata surrender charge if a withdrawal is made during the surrender period.

- Typically, policies have restrictions on the number of withdrawals in any period, the amount of each withdrawal (as a cash amount or as a percentage of the remaining account value) and the minimum Face Amount/Specified Amount which remains after a withdrawal. None of these fields are tracked in ClariNet at this time and so you will need to check that your proposed withdrawal complies with these requirements by reviewing the policy form.



2. CL-4365, 4366, 4389 - Single Case Valuation: add new Metrics for Maturity Risk, Real Tail, Ins Age at Extension, Extension LE and Above pricing LE in % and Years, Elasticity, breakeven age, etc.

We have added new risk metrics to the single policy valuation model. There are now two separate tabs with extension risk graphs. The first is labelled “Probabilistic Valuation”:

Entering an Assumed Purchase Cost and Assumed Purchase Date on this tab and then clicking Calculate will display the modeled IRR using that combination and will also show the slope of the IRR versus Purchase Cost.



The Deterministic Valuation tab includes the table of realized IRRs versus maturity years (after Assumed Purchase Date) and also adds the new risk metrics:

In addition to the Assumed Purchase Cost and Assumed Purchase Date fields at the top of the tab, there is now a field labelled “LE Bump Percentage” which affects the results shown in the first line of the table below the graph. This table displays a series of data points associated with maturities occurring at three dates:

LE Plus Bump X%: This is the date which is X% longer than the used LE50 (i.e., after ageing and blending the various LE Reports as specified in the Insured Lives table further up the page). The value for X is taken from that specified as the LE Bump Percentage;

Break Even: This is the date at which ownership of the Policy would break even, i.e., cash in (Assumed Purchase Cost plus premium payments to that date) equals cash out (i.e., Net Death Benefit); and

Policy Maturity: This is the Policy Maturity Date, i.e., Policy Date plus the greater of Maturity Age and Extended DB Rider Age minus the Issue Age (determined using the Age Basis for the Policy).



The data points are:

Date;

IRR: Realized IRR as at this date;

Insured Age: attained age of each Insured;

PD + Xm: Number of months after the Assumed Purchase Date;

Aged LE + Xm: Number of months after the (blended and aged) LE50;

% Ext to Aged LE: Percentage extension to the (blended and aged) LE50 required to get to this date (note that with respect to the first row in the table, this will always match the value selected in LE Bump Percentage);

SP: survival probability remaining after this date, based on the calculated survival curve from which the blended and aged LE50 is generated;

Total Premiums: Total Premiums between Assumed Purchase Date and this date (based on the Premium Schedule selected at the top of the Valuation page); and

Cost Basis: Net Death Benefit received minus the sum of Assumed Purchase Cost and Total Premiums.

3. CL-4274, 4362, 4374, 4386 - SmartSearch improvements: Event dates, Policy Number, multiple Case References, Insured first name and/or last name

We have implemented several improvements to SmartSearch in this release. When you first click on the SmartSearch box, it expands into the Quick Search view.

The Quick Search view now includes Policy Number as a search field and we have reordered the Quick Search window to show Case Reference, Insured Name and Policy Number at the top. We have adapted the Case Reference, Insured Name and Policy Number fields to accept comma separated lists of values and return all Cases which match any one of the values in the list. The Insured Name field now accommodates searches on Insured first name/middle name in conjunction with last name. This requires that you enter the name with a space separating the words. Examples of search values in each of these fields are set out in the table below.



Field Enter Example Matches Description

Case Reference Policy Number

BC BC ABC BCD ABCD

Contains this value anywhere in the text

Case Reference Policy Number

BC, BG, 34 BC ABC BCD ABCD BG BCBG ABGA 34 R34 123456

Contains any of these values anywhere in the text

Insured Name Smith, Adam, Tucker Bob Smith George Smithson Gomez Adams Andy Tucker Mark Adam Baker

Firstname or middlename or lastname contain any of these values anywhere in the text

Insured Name Bob Smith Bob Alan Smith George Bob Smith

(Firstname is exactly Bob or Middlename is exactly Bob) and Lastname is exactly Smith

Insured Name Bob Alan Smith none Invalid

Insured Name Bob Smith, Andy Tucker none Invalid

In the Advanced Search options, we have added a date range to the Received Transaction Event and Sent Transaction Event options. This allows you to search for Cases with a specific Event linked to either a Sent Transaction or a Received Transaction in a given timeframe. For example, if you want to search for all Cases which you received during 2013, you would check the box marked “Case Submitted” and enter “01/01/2013” and “31/12/2013” in the “From” and “To” box respectively. Note that the Events shown include all of your Closing Transaction Events. If you select the Received Transaction Event option and then check the box next to one of the Closing Transaction Events, the search will return all Cases which have that Closing Transaction Event as completed where the Closing Transaction is linked to a Received Transaction – similarly for a Sent Transaction Event search.



4. CL-4388 Portfolio Valuation – Add option to floor values at zero We have added a checkbox to the Valuation Parameters labelled “Floor Policy NPV at Zero”. If checked, this floors all NPVs at zero, so that Cases which would otherwise show as having a negative NPV will show as having a zero NPV. This parameter is available on the Portfolio Valuation page, Monte Carlo, Risk Analysis and Portfolio Summary Report.



5. CL-4367 Portfolio Summary: add more summary statistics to web and PDF (Policies, Face Amounts and Insureds by Case Status)

We have added a new table to the Summary tab on the Portfolio page, which lists Cases in the Portfolio by Case Status – broken out by Number of Insured Lives, Total Face Amount and Number of Policies:

6. CL-4370 New PDF report: Maturities We have added a new report to those available within Portfolio Management which reports information for all Cases in a Portfolio with Case Status of “Maturity Claim Pending” or “Maturity Claim Paid”.

The first table summarizes the Portfolio by Case Status: number of Insured Lives, Total Face Amount, number of Policies and (for Cases in Maturity Claim Paid or Maturity Claim Pending) Average LE at Maturity and Average Age at Death.

The Maturity Claim Pending table displays further Insured information for each Case in that Case Status.

The Maturity Claim Paid table lists all amounts paid and received for each Case in that Case Status: the Maturity Total Amount, Purchase Cost and Other Costs are taken from the Cost/Maturity tab and the Premiums Paid are taken from the Premium History on the Premiums tab. The Profit is calculated as Maturity Total Amount minus (Purchase Cost + Premiums Paid + Other Costs). The Realized IRR is calculated by reference to these cashflows. The Face Amount appears for information only and is drawn from the Policy tab; it is not used in determining the Profit or the Realized IRR.

The Maturity Proceeds table lists the Face Amount for each Case in Case Status “Maturity Claim Paid” together with the amounts that go to make up the Maturity Total Amount on the Cost/Maturity tab – NDB Payment, Interest, Return of Premium and Other Amounts.



7. CL-4359 New Portfolios CSV export for multiple probabilistic values When valuing a Portfolio, there is now an option to calculate the NPV of the Portfolio and its underlying Cases at several different IRRs other than the three Scenarios in the selected Valuation Template. The IRRs used for valuation are set in the Portfolio Valuation IRR CSV section of the IRR tab on the Pricing and Risk page:



In the Portfolio Valuation IRR CSV section:

Base IRR: This is the lowest IRR at which you want to value the Cases in the Portfolio;

Increment: This is the increment between successive IRRs; and

Number Of Values: The total number of different IRRs at which you wish to calculate the NPV of the Cases in the Portfolio.

With values assigned as per the screenshot above, the Portfolio Valuation model will ignore the Scenarios specified in the Valuation Template and will calculated NPVs for each Case in the Portfolio at 0.5% increments from 12.0% to 16.5%. Calculating NPVs for all Cases in the Portfolio at a large number of different IRRs will take longer than calculating three values so to calculate multiple NPVs you should check the box under Valuation Parameters marked “Calculate IRR Export Scenarios”. When you click the Generate button, this adds an additional CSV export option called “IRR Export Scenarios” to the Detailed Results list:

This CSV contains a series of columns, one for each of the different IRRs, with each Case in the Portfolio in its own row.

8. CL-4352 Case to PDF Report: make document and LE Report table use full width

Any PDF report containing Documents or LE Reports tables has been adjusted to use the full width of the page therefore reducing the total number of pages of the report.

9. CL-4246 Single Case Valuations list: add “Excel Template” export button

For ease of access, we have added the button to export a Case to the Excel template at the end of each row in the Valuations table. This functions exactly as it does from a Cases list.



10. CL-4375 New fields on Cost/Maturity tab: Carrier Name and Carrier Rating (as at Maturity Payment Date)

We have added several new fields to the Cost/Maturity tab: Under the Cost Basis section, we have added a field labelled “Other Costs”. This is added to the Purchase Cost in determining Profit. In the Maturity Claim section we have added two free text fields, “Carrier Name” and “Carrier Rating”. These are intended to offer a record of the Carrier name and any relevant ratings as of the Payment Date of the Maturity Total Amount (as both the Carrier name and its rating can change post maturity). We have also added a currency field labelled “Other Amounts” which, if populated, is included in the calculation of Maturity Total Amount. The field labelled “Premium Payments” sums all amount shown in the Premium History table on the Premiums tab and the field labelled “Profit” is calculated as Maturity Total Amount minus (Purchase Cost + Other Costs + Premium Payments).

11. CL-4357 VOC: allow Account Information Date in the future/after Verification Date

When recording a VOC, it is now possible to set the Account Information Date to be later than the Verification Date. This accommodates a recent development where customer service representatives at some Carriers are offering account value information as of the next Policy monthiversary, rather than the previous monthiversary.

12. CL-4382 Add Categories to Help page The FAQ page under the Help menu is now categorized to assist you with finding documents relevant to your needs.



13. CL-4351 Add separators to the menus to improve clarity The Case Management and Administration menu lists now have separators to group functions together. The Case Management menu is grouped as Cases, Upload then Insureds:

The Administration menu is grouped as Cases (including pricing and servicing), Transactions (including Closing, Received and Sent), Subscriber and Users, and miscellaneous:

14. CL-4396 Add weekly run and name to Auto Import Tasks Each Auto Import now has the name. The name makes it easier to differentiate file downloads and email notifications. Auto Import can now be run on any frequency such as daily or weekly.



15. CL-4348 Add ability to import and export Valuation Templates and Premium Calculators as XML

We have added the ability to export Valuation Templates and Premium Calculators as XML to improve our ability to replicate and fix valuation issues.

16. CL-4353 Valuation Template parameters overflow column width and length in Excel exporter

We fixed a formatting problem with the Excel Case export template which was causing Valuation Template parameters to overflow the assigned cells.

17. CL-4394 Case Setup Form: cannot add a document of Document Type “Uncategorized Document”

We fixed a problem with the Case Setup form where it was not possible to add a Document to the Case with Document Type set to “Uncategorized Document”.

18. CL-4398 Use Impvt checkbox is enabled when it shouldn’t be We fixed a display problem on the single Case Valuation page where the “Use Impvt” checkbox was checked against a LE Report in the table even when the parameter itself was not being used.

19. CL-4399 Contract Package Building Blocks: Remove redundant part “Premium Finance Loan”

We removed a redundant Building Block from the Word template.

20. CL-4402 Valuation created when an Insured is dead but has a very low LE report fails to save

We fixed a bug with valuation where a Case involving a deceased Insured with a very low LE report prevented a Portfolio valuation from being saved.

21. CL-4403 When Valuation is exported, code generates new premium schedules and errors with “All Cases must have the same Premium Schedule Start Date”

We fixed a bug with exporting Portfolio valuations, where a forced recalculation of Premium Schedules would cause the export to fail.