You are receiving this email because your credit union was recently contacted and asked to update your Monthly Renewable Credit Disability Premium Calculation via Tool #465. The reason for the update to that configuration is due to Project #60479: Modification to Monthly Renewable Credit Disability Premium Calculation, which will be deployed on Tuesday, April 23rd, 2024.
This project corrects the way the system calculates premiums, by making use of the Disability term field in the insurance code configuration. Typically, this value was set to 999, since the system did not use the value in the calculation. The problem we ran into was in rare situations where the loan term was longer than the number of months configured in your premium table. For example, if the premium table had rates for 120 months, once the loan term went beyond 120 months, the system was not able to calculate the premium and therefore no premium was charged.
To fix this, we requested that you update the Disability term in your config to match the number of months in your rate table. When we implement Project #60479, the system will begin using that value when calculating premiums. What this will mean is that some members will see a slight change in their premium amount. Based on our evaluation, the effect on the majority of members will be only a few pennies, although some members might see a change of up to one or two dollars, based on the typical premium amount.
Lender*VP recommends reviewing your TCUNA Reports in CU*SPY after your next posting takes place. Please let us know if you have any questions – we can be reached at lendervp@cuanswers.com.
