Interest Calculation Error in PITV On Rate Change Date
(Doc ID 2465895.1)
Last updated on NOVEMBER 02, 2018
Applies to:Oracle Insurance Policy Administration J2EE - Version 10.2.0.30 and later
Information in this document applies to any platform.
On : 10.2.0.30 version, General
When a Fixed Fund Point In Time valuation is being performed on the same date as the most recent Date Criteria for a given Rate in AsRate where there at least one other row in AsRate for the given Rate having a different Date Criteria and a different Rate value, the interest from the prior valuation date to the current valuation date is incorrectly calculated using the latest rate, not the prior one.
For example, if the last PIT Valuation Date was 12/1/2017 and the current Valuation Date is 1/1/2018 and a Rate change is effective 1/1/2018 from 4% to 5%, the system is calculating interest from 12/1/2017 to 1/1/2018 at 5% rather than 4%.
In the above example, interest should be computed using the 4% rate in effect from 12/1/2017 to 1/1/2018.
The issue has the following business impact:
Due to this issue, Results in incorrect interest being calculated on Fixed Funds in the circumstances noted.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document