# Mid-Term Adjustment (MTA)

Interactive content available
All ledger endpoints can be interacted with through interactive [API Registry](/apis/ledger/bundled)

## Introduction

Mid-Term Adjustment (MTA) is a structured process used to modify existing insurance policy details during its active period—without the need to cancel or reissue the policy. The MTA flow allows updates to specific data attributes such as customer contact details, insured item information, or premium-impacting elements (e.g., deductible or mileage), depending on the nature of the adjustment.

#### Key Concepts:

- **Non-Financial Changes**: These include updates like changing a customer's email address or phone number. Such changes do not impact the policy's premium and typically require no recalculation.
- **Financial Changes**: These involve modifications that affect the premium, such as changing insured item data or deductible levels. These require recalculation of the premium using the calculation endpoint.


#### Purpose of MTA

The MTA process ensures that modifications to an active policy:

- Are properly validated and traceable;
- Can be implemented without full policy cancellation;
- Comply with business and underwriting rules;
- Provide updated documentation and policy terms post-adjustment.


#### Technical Summary

To initiate an MTA:

1. A dedicated endpoint is used to start the adjustment process.
2. A new quote is created based on the existing policy.
3. Adjustments are applied to this new quote.
4. Depending on the type of changes, recalculation of premium may be necessary.
5. Once ready, the updated policy can be issued, replacing the original policy with the new terms from the MTA.


#### Restrictions & Validations

Certain critical fields **cannot be changed** during an MTA.Fields available for change are based on the product setup and business needs.

Such constraints ensure policy consistency and compliance with legal and underwriting requirements.

## Endpoint - Create MTA quote

#### Result of the API Call

A successful request will initiate the Mid-Term Adjustment (MTA) process, which creates a new quote related to the existing policy. This allows the user to make adjustments to the existing policy by creating a new version of the policy as the end-result.

#### Notes

**MTA Initiation**: This action creates a new quote based on the current policy, and the changes are applied to this new quote.

**Post-MTA Workflow**: After the MTA is initiated, further actions like recalculating premiums or binding the updated policy can be performed.

**No Policy Termination**: Unlike full cancellations, MTA allows the policy to continue without interrupting coverage.