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Set Up Insurance Surcharges
Surcharges are taxes and fees that apply to insurance quotes and policies. Configure surcharges to calculate tax amounts and operational fees, control calculation order with sequencing, and roll up totals to quote line items and quotes.
Required Editions
| Available in: Lightning Experience |
| Available in: Enterprise, Unlimited, and Developer Editions with Digital Insurance. |
In Digital Insurance, you define surcharges by creating surcharge records and assigning them to products. Each surcharge record has a Surcharge Type field that can set to either Tax or Fee:
- Tax: Regulatory charges, such as state tax or municipal tax.
- Fee: Operational or administrative charges, such as registration fees or service fees.
Both types share the configuration workflow and calculation logic. The surcharge type controls how the system stores and reports calculated amounts.
Calculation Types
When you create a surcharge, you select a calculation type that decides how the system computes the surcharge amount.
- Amount
- A flat dollar value applied regardless of the base premium. For example, a $10 registration fee applied to every policy.
- Percentage
- A rate applied to the net unit price. For example, a 10% state tax on a $500 premium results in a $50 tax.
- expression set
- Complex, multi-input logic defined in an expression set that's part of a pricing procedure. Use this type when one surcharge depends on another surcharge's calculated value. The expression set must have DefaultPricing as the usage type.
Sequencing and Calculation Order
The sequence number on a product surcharge record controls the order in which surcharges are calculated for a product. Surcharges with lower sequence numbers are calculated first.
After each product surcharge is calculated, the system stores the result in the pricing procedure context in a variable. The name of the variable is a system-generated, read-only value that combines the product path and surcharge name. The name is stored in the Pricing Procedure Variable field on the product surcharge record. Downstream expression sets reference this variable to use calculated values dynamically.
For example, you can configure a tax that's calculated on a fee amount.
| Sequence | Surcharge | Type | Result |
|---|---|---|---|
| 1 | Service Fee (Amount: $5) | Fee | $5.00 |
| 2 | Service Tax (Percentage: 20% of fee) | Tax | $1.00 |
In this example, the fee at sequence 1 is calculated first. The tax at sequence 2 references the fee through the context variable and applies a 20% rate to produce a $1 tax.
Surcharge Storage and Rollup
The system creates an individual record for each surcharge applied to a quote line item. Tax amounts are stored in Quote Item Tax Item records, and fee amounts are stored in Quote Line Price Adjustment records. Each record holds the calculated amount for one surcharge on one quote line item.
Each Quote Item Tax Item record includes these fields.
| Field | Description |
|---|---|
| Quote Line Item | The quote line item that the tax applies to. |
| Product Surcharge | The product surcharge that produced this tax. |
| Amount | The calculated tax amount applied to the quote line item. |
| Rate | The percentage rate used when the surcharge calculation type is Percentage. Empty for flat-amount taxes. |
| Prorated Surcharge Amount | The prorated portion of the tax amount based on the quote line item's effective dates. |
| Type | The classification of the tax record, such as Actual or Estimated. |
| Tax Effective Date | The date used to determine the effective tax rate for this quote line item. |
| Description | A description of the tax that was applied. |
Each Quote Line Price Adjustment record includes these fields.
| Field | Description |
|---|---|
| Quote Line Item | The quote line item that the fee applies to. |
| Price Adjustment Cause | The product surcharge that produced this fee. |
| Adjustment Source | The source of the price adjustment, such as Surcharge. |
| Adjustment Type | Whether the fee is a flat Amount or a Percentage. |
| Adjustment Value | The numeric value of the fee, as defined by the surcharge configuration. |
| Total Amount | The total fee amount applied to the quote line item. |
| Prorated Amount | The prorated portion of the fee amount based on the quote line item's effective dates. |
| Priority | The sequence in which the fee is applied relative to other adjustments on the same quote line item. |
| Description | A description of the fee that was applied. |
The individual amounts roll up to the Quote Line Item level.
| Quote Line Item Field | Description |
|---|---|
| Standard Tax Amount | Sum of all Quote Item Tax Item amounts for the line item |
| Standard Fee Amount | Sum of all Quote Line Price Adjustment amounts for the line item |
| Prorated Tax Amount | Prorated tax total for the line item's effective dates |
| Prorated Fee Amount | Prorated fee total for the line item's effective dates |
| Net Total Price | Sum of the unit price, prorated tax amount, and prorated fees amount |
| Total Line Amount | Sum of the unit price, standard tax amount, and standard fees amount |
Quote Line Item totals then roll up to the Quote level.
| Quote Field | Description |
|---|---|
| Standard Tax Amount | Sum of the standard tax amounts for all the quote line items |
| Standard Fee Amount | Sum of the standard fees amounts for all the quote line items |
| Prorated Tax Amount | Sum of the prorated tax amounts for all the quote line items |
| Prorated Fee Amount | Sum of the prorated fees amounts for all the quote line items |
| Total Standard Amount | Sum of the standard amount, standard tax amount, and standard fee amount |
| Total Prorated Amount | Sum of the prorated amount, prorated tax amount, and prorated fee amount |
Surcharges in the Policy Lifecycle
When a quote is issued as a policy, each tax and fee persists as an InsurancePolicySurcharge record. During endorsements, renewals, cancellations, and reinstatements, the system applies proration and refund logic based on each surcharge's Is Refundable and Is Proration Allowed fields.
- Add the Product Surcharges Component to the Product Record Page
Use Lightning App Builder to add the Product Surcharges Lightning Web Component to the product record page. - Add Fee Fields to Quote and Quote Line Item Page Layouts
Add the Standard Fee Amount and Prorated Fee Amount fields to your Quote and Quote Line Item page layouts for users to view calculated fees. - Considerations and Limits for Insurance Surcharges
Review system limits, sequencing considerations, and behavioral constraints before you configure surcharges for your insurance products. - Create an Insurance Surcharge
Create a surcharge record to define a tax or fee that you can apply to insurance products. Specify the surcharge type, calculation method, refundability, and proration settings. - Assign and Configure a Surcharge for a Product
Associate a surcharge with an insurance product and control when and how it's calculated. Set the sequence number to define calculation order, configure effective dates, and add rules that decide which quote line items the surcharge applies to.
