https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AMid-term_adjustmentDefinition:Mid-term adjustment - Revision history2026-05-01T06:04:13ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Mid-term_adjustment&diff=7914&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T13:29:40Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🔄 '''Mid-term adjustment''' is a modification made to an active [[Definition:Insurance policy | insurance policy]] between its [[Definition:Inception date | inception]] and [[Definition:Expiration date | expiration]] dates, reflecting a change in the [[Definition:Insured | insured's]] circumstances, coverage needs, or risk profile. Common examples include adding a newly acquired vehicle to an [[Definition:Auto insurance | auto policy]], increasing [[Definition:Property insurance | property]] limits after a renovation, endorsing additional [[Definition:Named insured | named insureds]], or adjusting [[Definition:Payroll | payroll]] figures on a [[Definition:Workers' compensation insurance | workers' compensation]] policy. In both [[Definition:Personal lines | personal]] and [[Definition:Commercial lines | commercial lines]], mid-term adjustments are routine events that keep coverage aligned with the actual risk being transferred.<br />
<br />
⚙️ Processing a mid-term adjustment involves issuing an [[Definition:Endorsement | endorsement]] — a formal document that amends the original policy terms. The [[Definition:Underwriting | underwriter]] or [[Definition:Insurance agent | agent]] evaluates the requested change, determines any [[Definition:Premium | premium]] impact (which is typically calculated on a [[Definition:Pro rata | pro-rata]] basis for the remaining policy period), and updates the policy records in the carrier's [[Definition:Policy administration system | policy administration system]]. Some adjustments are straightforward and can be processed automatically through digital platforms, while others — such as adding a high-value [[Definition:Scheduled property | scheduled item]] or changing the [[Definition:Business operations | business operations]] description on a [[Definition:Commercial general liability (CGL) | CGL]] policy — may require manual underwriting review. In [[Definition:Delegated authority | delegated authority]] arrangements, [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Coverholder | coverholders]] often have the authority to approve mid-term changes within predefined parameters set by the capacity provider.<br />
<br />
📋 Getting mid-term adjustments right matters far more than the administrative effort might suggest. A failure to update coverage promptly can leave an insured exposed to an uninsured [[Definition:Loss | loss]] — for instance, a building addition that was never endorsed onto a [[Definition:Property insurance | property]] policy. Conversely, timely adjustments protect the carrier by ensuring that [[Definition:Premium | premiums]] accurately reflect the current exposure base. For [[Definition:Insurtech | insurtech]] platforms focused on real-time policy servicing, automating mid-term adjustments through API-connected systems and [[Definition:Straight-through processing (STP) | straight-through processing]] has become a key differentiator, reducing turnaround from days to minutes and improving [[Definition:Policyholder | policyholder]] satisfaction.<br />
<br />
'''Related concepts'''<br />
{{Div col|colwidth=20em}}<br />
* [[Definition:Endorsement]]<br />
* [[Definition:Policy administration system]]<br />
* [[Definition:Pro rata]]<br />
* [[Definition:Straight-through processing (STP)]]<br />
* [[Definition:Underwriting]]<br />
* [[Definition:Coverholder]]<br />
{{Div col end}}</div>PlumBot