Considerations for Hierarchical Limit Processing

Review these considerations before you configure and use hierarchical limit processing for an insurance root product.

Hierarchical limit processing affects only currency and count limits. Deductibles, Copay, Coinsurance, and OOPM (Out-of-Pocket Maximum) remain coverage-local and don't roll up for hierarchical limit consumption.
Hierarchical limit processing affects a single coverage hierarchy from the child coverage to the root. It doesn't affect limits in an unrelated coverage tree in the same policy.
Consumption of parent and higher-level limits occurs only if their item type is Any or matches the claim item’s category. For example, a claim payment (claim coverage payment detail record) for an injury doesn't affect a parent limit that applies to property damage.
A cancel or delete action for a claim payment reverses the related Insurance Policy Limit Tracking records, including records for parent and higher-level coverage limits.

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