How to Reinstate a Policy

How to Reinstate a Policy
Reinstating a policy in Momentum AMS restores coverage after it has been canceled. This process ensures that the insured’s policy is active again in the system and that premium and commission records are updated.

The exact steps vary depending on whether the policy was canceled in error, reinstated by the carrier without a lapse, or reinstated after a lapse with additional premium due.

1️⃣ Locate the Policy

Use Dynamic Search to find the insured.
Open the Insured’s Profile and scroll to the Policies section.
Click the Policy Number for the canceled policy you need to reinstate.

2️⃣ Reinstate the Policy in AMS

In the policy details screen, click Actions (upper-right).
Select Reinstate Policy from the dropdown.
Enter:
- Reinstatement Effective Date (must be on or after the cancellation date).
- Reason for Reinstatement (e.g., payment received, carrier approval).
Click Save Changes to mark the policy as active in Momentum AMS.

3️⃣ Process the Premium Endorsement

When a reinstatement affects the premium:

Go to the Billing tab in the policy.
If the reinstatement generates a $0 endorsement, click on Endorsements / Fees & Taxes.
In the existing reinstatement transaction, click Actions → Edit Endorsement Fee.
Enter the additional premium (if any) in the Base Premium field.
Adjust taxes or fees if applicable.
Click Generate Transaction and ensure the Checksum is zero.
Save the endorsement.

Note: If there’s no additional premium (e.g., reinstated with no lapse), you can skip the billing changes.

4️⃣ Document the Reinstatement in Notes

Go to the Activity History → Notes tab for the insured.
Add a new note summarizing:
- Reason for reinstatement.
- Carrier confirmation details (including reference number if provided).
- Any premium changes or special conditions.
Attach any carrier reinstatement notices or email confirmations to the note or to the Documents → Files section.

5️⃣ Notify the Carrier and/or Insured

For Agency Bill policies, send a copy of the updated invoice and reinstatement confirmation to the insured.
For Direct Bill policies, ensure the carrier has already processed the reinstatement in their system and send confirmation to the insured.

✅ Best Practice: Always confirm reinstatement with the carrier before making changes in AMS. If the reinstatement includes a lapse in coverage, document the lapse dates clearly and update any certificates of insurance if needed.