Servicing
Once a life insurance policy has been acquired through a life settlement, the new
owner must have regard to its "care and feeding". The Servicing module
in ClariNet provides the tools to support the ongoing maintenance of a portfolio
of policies - whether maintained by the portfolio manager or by an external service
provider.
Upon completion of a Case, the new owner will have set up an initial premium schedule
in ClariNet™. This premium schedule integrates with the reporting engine in ClariNet™
to produce a list of premiums payable during any given period, across all policies
in a given portfolio. It also reminds the servicer to confirm with the relevant
carriers the receipt and application of premium payments. Information received through
this confirmation process (such as updated account values, cash surrender values
and cost of insurance figures) can be fed back into ClariNet™ by the servicer. Premium
schedules can then be recalculated periodically to take account of this updated
information.
The collection and management of correspondence on a large portfolio is a full-time
job. Owners of policies have historically received this correspondence in bulk from
their custodians, requiring that the correspondence be sorted and filed after receipt.
The third party access engine built into ClariNet™ allows the owner to grant to
its custodian access to its portfolio, with rights to add documents to the Cases
in that portfolio over time. Information transfer can be conducted entirely within
ClariNet™, allowing for greater security and no duplication of effort at the custodian
and the owner.
Careful and compliant health status tracking is critical to the success of any investment
in life insurance policies. An external tracking company can be granted access to
a portfolio in order to maintain information gathered on each insured. If appropriately
configured, the resulting database can be used to drive an analysis of morbidity
as well as mortality within a portfolio, providing valuable feedback to an investor
as it continues to build its portfolio through acquisition. The tracking process
will also reveal changes in information on the insured and his or her contacts,
which can then be updated within ClariNet™.
Reminders can be set within the Servicing module to trigger the ordering of new
HIPAA releases, new medical records or new life expectancy reports. Finally, upon
the maturity of a policy, the claims process can be monitored within ClariNet™.