What is a full term rewrite?

A full term rewrite involves discarding the original policy and its term in order to create a new policy with potentially different terms, conditions, or coverage options. This process is often used when significant changes are necessary, such as altering the structure of the policy, adjusting rates, or implementing new underwriting rules. By discarding the original policy, the insurer effectively resets the coverage for the customer, allowing for a comprehensive reassessment of their needs.

When a full term rewrite occurs, it generally means that the previous policy cannot simply be modified; instead, a new policy is issued. This is beneficial for both the insurer and the policyholder, as it allows the insurer to manage risk more effectively and allows the customer to have coverage that is more tailored to their current situation.

The other options focus on specific modifications to the existing policy rather than the comprehensive nature of a full term rewrite. Changing a payment schedule, adjusting coverage limits, or modifying the producer code would all typically involve adjustments within the existing policy framework rather than creating an entirely new policy. Thus, those actions do not align with the broader scope and implications of a full term rewrite.