Loans > Loan Screens > Insurance Screen Group > Adjustments Screen > Processing transactions > Cancel Other Insurance Ck transaction (tran code 2910-02)

The Cancel Other Insurance by Check transaction is used to cancel credit insurance policies other than VSI, fire, and flood policies (types 90-99). For example, this transaction would be used if a new loan was originated with life and/or accident and health insurance, and the borrower did not want the insurance. You would use this transaction to cancel the policies. In addition, if during the term of the loan the borrower wants to cancel a policy, you would use this transaction to do so.

The transaction requires you to enter the Account Number, Cancellation Code, Effective Date, Policy Number, and an Insurance Type (types other than 90-99), or check the Cancel All checkbox, fill in the Check Out Number, and fill in the Check Out Amount.

See the Cancel Insurance Policies topic for step-by-step instructions on how to process this transaction.

Institution Option DRLP will allow the transaction to be run without the policy number. Note: If the Cancel All checkbox is checked and no policy number is entered, then all policies with no policy number will be canceled (with the exception of policy types 90-99).

The Cancel Other Insurance Ck transaction box displays the following fields:

Account Number

Insurance Type (cannot be 90-99)

Code (valid cancellation codes are 2-Flat Cancel and 4-Insured Request)

Policy Number

Effective Date

Cancel All

Check Out

Check Out Amount

•	When the transaction is run, the program places the transaction effective date in the Cancellation Date field on the Loans > Insurance > Policy Detail screen.

•	The transaction amount is calculated based on the cancellation date and the cancellation code, and will be placed in the Refund Amount field on the Insurance Policy Detail screen.

•	The cancellation code (valid codes are 2-Flat Cancel and 4-Insured Request) is placed in the Cancellation Code field on the Policy Detail screen.

•	The Check Out amount must match the Calculated Refund Amount, otherwise, an error will display indicating what the refund amount should be.

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You must have an insurance record with an insurance policy type other than types 90-99 (VSI, fire, flood insurance) established before the Cancel All insurance checkbox will work. If the Cancel All checkbox is not checked, then you must have at least one insurance record that matches the insurance policy type passed in the transaction, and it will drop all insurance records that match that type (any insurance policy type of 90-99 will be rejected).

•	The remaining costs and commissions are amortized (or unamortized) to reflect the cancellation with tran codes 461, 462, 761, and 762, then the costs and commissions are rebated with tran codes 100 and 110.

On flat cancels (Cancellation Code = 2), if the Effective Date on the transaction is not the same as the Policy Effective Date on the Insurance Policy Detail screen, that policy will be skipped.

On an insured request (Cancellation Code = 4), only today’s date will be accepted in the Effective Date transaction field.

If the policy is flat cancelled, payments are not backed out like the Cancel Other Insurance transaction (tran code 2910-00) does.

This transaction will change the insurance premium amount, but instead of adjusting the principal to balance with the premium changes, a check will be created to reflect what the principal change would have been.

This transaction will never reverse history and reapply payments because the principal balance will not change.

This transaction will not adjust the P/I constant.

In General Ledger, rather than reducing the principal balance, a G/L tran code 1812 is created in the place where the principal reduction would normally be (tran code 920).

At the end of the transaction, a General Ledger debit (tran code 1800) by check out will be run for the amount of premium adjustment (and finance charge, if applicable). The G/L account number used for this transaction will be the Teller Journal Clearing account field found on the GOLD Services > General Ledger > G/L Account By Loan Type screen in CIM GOLD.

	Note: You must have teller 8940 set up before you can run this transaction.