| they are about a 60 milion dollar Managing General Agent. They
require, Policy Administration, Billing, Claims, Premium Accounting
They do Collateral force-placed policies on Mortgages mainly
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| Financial Consumer Insurance Corporation
Insurance System Requirements
FCIC acts as a Managing General Agent (MGA) for Collateral
Protection Insurance and Blanket Mortgage Insurance for
approximately 12 insurers. They work with financial
institutions reduce the insurance risk and administer their
portfolios by providing tracking services to ensure the
properties are properly covered. They issue force placed
"policies" or endorsements to a master policy previously
negotiated and set up with the financial institution and the
carrier. They issue "policy" notices in two ways:
o Direct Report - the Financial institution calls them and
they enter that into their policy system
o The tracking software they have developed alerts FCIC
after a series of actions i.e. letters of warning etc. and
a "policy" or what they call Item Certificate is placed.
Premium
Mostly they receive the whole premium up front or bill the
institution monthly. However, they do feel they need
flexibility in this area. They do payable reporting to
carriers monthly as well.
They do rating today within on-line algorithems are used for
the blanket mortgage rating which are fairly simple.
Installment type loans or not done on-line currently as they
are more complex but they would like this capability as well
as the flexilibity to do more different kinds of coverage.
The rating is often set up at the time the master policy is
set up but in some cases they set the rates themselves.
They would like a module that anyone can call in that
integrates with their tracking and administation system
Billing
FCIC bills the client banks or financial institutions
monthly through a list bill process and the banks in turn
bill to the individuals via reschedule of payments or added
as balloons during the term of the loan.
This would interface with the in-force maintenance module to
do billing and reporting on open item receivables.
Claims
They notify the carrier and also send out the adjuster in
most cases. In some cases they have draft authority. Today
the claims system is just a filing system for claim status.
They would like this ot be integrated with an in-force
maintenance system and to have the ability to do loss ratios
and other kinds of reporting. They would also like the
in-force systems to dovetail into the billing system and
track multiple types of collateral.
MCTS - Multiple Collateral Tracking System
This is the tracking and administrative system mentioned
above. They feel this is the competitive advantage they
have as they offer this as a service to customers at various
levels such as "fully automated" which mean all mail
concerning that portfolio is is entered by FCIC, letter
production, policy placement and refunds are controlled by
FCIC to "tape to tape" Financial istitutions are responsible
for the database. MCTS places refunds based on their
exposed loans. "order entry" Financial institution enters
directly into MCTS the loans which require coverage and
cancels coverages no longer required. (They also do "direct
reporting business which bypasses MCTS and goes directly
into the Inforce file.)
Current Environment
They currently run strictly on PRIME equipment and are
considering a new platform on either DEC or IBM. This would
be a major PSS project as they would be rewriting their MCTS
system using a database and transaction processing tools.
They have written all their current systems in-house using a
4th GL called Structure IV which also runs on VAXes. We are
proposing that they port their current applications to Vaxes
in the short term as they are running out of room on the
PRIME equipment. Then redesign and rewrite into a more
efficient language. We have a unique ability to provide a
graduated migration path that will help them short term that
IBM cannot offer as well as the benefit of incremental
growth thru clustering.
They would like to use packaged software where they can, for
the "traditional" aspects of their business and interface it
to the MCTS and Corporate account systems.
The above document is an attempt to describe their
requirements in order to find a match of existing software
available or something that could be modified to fit their
environment i.e.from the accounting side, or through one of
the projects we have going internally or with an outside
vendor.
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