Free RPG - Calculate prorated amount of annual premium, account for leap years

roosterup
roosterup used Ask the Experts™
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I need to calculate a prorated amount of annual premium in free rpgle and account the number of days in leap years.

say a company's annual premium would be $1000 and they sign up on 11/01. I only need to charge them for 61 days of the yearly premium.

anyone have any date math examples for doing this?
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Gary PattersonVP Technology / Senior Consultant

Commented:
In what language?
Gary PattersonVP Technology / Senior Consultant

Commented:
IBM i DB2 SQL:

- Days from current date to end of current year.
values days(year(current_date) || '-12-31') - days (current_date);

- Days from DATE column
select days(year(current_date) || '-12-31') - days(PolicyEffectiveDate) as ProrateDays from sometable;

- Verify properly handles leap years, including special rules for years divisible by 100 and 400
values days('2016-03-01') - days ('2016-02-01')  --expect 29
values days('2017-01-01') - days ('2016-01-01')  -- normal leap year - expect 366
values days('1900-12-31') - days ('1899-12-31')  -- "100 rule" - expect 365
values days('2000-12-31') - days ('1999-12-31')  -- "400 rule" - expect 366

ILE RPG (didn't test, but hopefully you get the idea):

dcl-s endOfYear DATE(*ISO);
dcl-s effectiveDate DATE(*ISO) INZ('2017-03-17');
dcl-s proRateDays INT(5);

endOfYear = %date(%char(%subdt(%date() : *YEARS) :*ISO) || -12-31');
proRateDays = %diff( endOfYear : effectiveDate : *DAYS);
VP Technology / Senior Consultant
Commented:
Note that you need to know if it is a leap year or not to calculate that daily rate:

In a leap year, dailyRate = annualRate/366;
In a normal year, dailyRate = annualRate/365;

You can generalize:

dcl-s endOfThisYear DATE(*ISO);
dcl-s endOfLastYear DATE(*ISO);
dcl-s annualRate DEC(7 :2) INZ(1234.56)
dcl-s dailyRate DEC(9 : 4)

-- Get last day of this year
endOfThisYear = %date(%char(%subdt(%date() : *YEARS) :*ISO) || -12-31');
-- Get last day of last year
endOfLastYear = endOfThisYear - %years(1);
-- Divide by 365 in normal year, and 366 in leap year
dailyRate = annualRate / %diff(endOfThisYear : endOfLastYear : *DAYS);
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Do you want it to be "61 days of a 365-day year because 2017 isn't a leap year" or "61 days of a 365.25-day year because that's a reasonable average over many years"? That is, do you want proration to be different for actual leap years or the same for every year?
Gary PattersonVP Technology / Senior Consultant

Commented:
Since we're apparently dealing with some sort of insurance, it is possible that there is governing law that controls the calculation - and that could even vary by jurisdiction.  Might be tIme to email the legal team ...

Commented:
Hi Roosterup, I see have your solution, but I would add a leap year checker like so:

 d Dec31PolYear s d
 d PolStrDate s d
 d LeapDay s 10
 d MultiPlier s 7 6  (7.6)
 d DaysLeftInYear s 3 0
 d OneYearPrimium s 10 2
 // Base Primium $10,0000 per year
     OneYearPrimium = 10000;
 // use %DIFF(Dec31CurYear : PolStrDate : *Days)
     Dec31PolYear = %Date(%CHAR(%SubDT(PolStrDate:*YEARS)) +
                                    '-12-31' : *iso);
     DaysLeftInYear = %DIFF(Dec31PolYear : PolStrDate : *Days) + 1;

   LeapDay = %CHAR(%SubDT(PolStrDate:*YEARS)) + '-02-29' ;
    test(ed) LeapDay;
    if Not %Error ;
       // It's a leap year
       MultiPlier = DaysLeftInYear / 366;
    else;
       // no Leap year
       MultiPlier = DaysLeftInYear / 365;
    endif;

   OneYearPrimium = OneYearPrimium * MultiPler;

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