Void a bound Policy from the Administration tab
- Producers [/ Underwriters]
Last Updated: September 2020
This article explains how to void a Policy from the Administration tab
Voiding a Bound Policy
Void a policy that was bound in error or that has an invoice that needs to be reversed.
- Navigate to a bound policy and select the Administration tab.
- On the left, click Backout.
- Click Backout Policy to void the policy and reverse any associated invoices. The policy number is also returned to the pool if it was auto-generated.
The Policy Backout confirmation pop-up opens.
- Click I understand, backout the policy.
- The policy is voided.
What is the impact of voiding a policy or backing out an endorsement:
Generally, when policies/endorsements are backed-out/invalidated then BindHQ tries to offset the transactions created as part of the invalidation against the original transactions - the result of this is a net zero effect, with all transactions closed, nothing more needs to be done.
This can only happen though if the original transactions are still fully open, ie. they have not had any funds applied to them, or have not been applied to other transactions. If this is the case then the backout transactions are created, but they are not offset against anything, so will remain open. It's then down to an accounting user to manually deal with these transactions however best fits that particular situation.
Voided policies will post using the same methodology as other transactions. They will post to the general ledger on later of the effective date or transaction date.