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Insurance
Differences Between Single and Multi Root Policies

Differences Between Single and Multi Root Policies

Compare single-root and multi-root policies to understand the differences in structure, lifecycle, and product management.

The structural hierarchy distinguishes a multi-root policy from a single-root policy. A multi-root policy can contain one or many child policies.

Differences between single and multi root
Aspect single-root policy multi-root policy
Policy structure A single-root policy is a standalone policy and doesn’t have a parent policy. A multi-root policy includes a parent policy and one or more child policies.
Root products A single-root policy contains one root product. A multi-root policy contains one or more root products.
Lifecycle model A single-root policy follows the single-root lifecycle. A multi-root policy follows the multi-root lifecycle.
Issuance decision The policy follows the single-root lifecycle by default. The policy follows the multi-root lifecycle based on the decision made at issuance.
Adding products later Additional products require separate policies. Additional products are added as child policies under the same parent policy.
Endorsement Endorsement is performed on the policy. Endorsement is performed at the parent policy level.
Renewal Renewal is performed on the policy. Renewal is performed at the parent policy level.
Claims Claims are supported on the policy. Claims are supported only on child policies.
Conversion A single-root policy can’t be converted to a multi-root policy. A multi-root policy can’t be converted to a single-root policy.
 
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