@ensuro/core 2.7.0 → 2.8.0-beta2

package/contracts/PolicyPool.sol

@@ -125,25 +125,6 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    */
   string internal _nftBaseURI;
 
-  /**
-   * @dev Event emitted every time a new policy is added to the pool. Contains all the data about the policy that is
-   * later required for doing operations with the policy like resolution or expiration.
-   *
-   * @param riskModule The risk module that created the policy
-   * @param policy The {Policy-PolicyData} struct with all the immutable fields of the policy.
-   */
-  event NewPolicy(IRiskModule indexed riskModule, Policy.PolicyData policy);
-
-  /**
-   * @dev Event emitted every time a policy is removed from the pool. If the policy expired, the `payout` is 0,
-   * otherwise is the amount transferred to the policyholder.
-   *
-   * @param riskModule The risk module where that created the policy initially.
-   * @param policyId The unique id of the policy
-   * @param payout The payout that has been paid to the policy holder. 0 when the policy expired.
-   */
-  event PolicyResolved(IRiskModule indexed riskModule, uint256 indexed policyId, uint256 payout);
-
   /**
    * @dev Event emitted when the treasury changes
    *
@@ -159,11 +140,7 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * @param kind Value indicating the kind of component. See {ComponentKind}
    * @param newStatus The status of the component after the operation. See {ComponentStatus}
    */
-  event ComponentStatusChanged(
-    IPolicyPoolComponent indexed component,
-    ComponentKind kind,
-    ComponentStatus newStatus
-  );
+  event ComponentStatusChanged(IPolicyPoolComponent indexed component, ComponentKind kind, ComponentStatus newStatus);
 
   /**
    * @dev Modifier that checks the caller has a given role
@@ -204,11 +181,7 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * @param symbol_ The symbol of the ERC721 token.
    * @param treasury_ The address of the treasury that will receive the protocol fees.
    */
-  function initialize(
-    string memory name_,
-    string memory symbol_,
-    address treasury_
-  ) public initializer {
+  function initialize(string memory name_, string memory symbol_, address treasury_) public initializer {
     require(bytes(name_).length > 0, "PolicyPool: name cannot be empty");
     require(bytes(symbol_).length > 0, "PolicyPool: symbol cannot be empty");
     __UUPSUpgradeable_init();
@@ -229,12 +202,7 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     _setTreasury(treasury_);
   }
 
-  function _authorizeUpgrade(address newImpl)
-    internal
-    view
-    override
-    onlyRole2(GUARDIAN_ROLE, LEVEL1_ROLE)
-  {
+  function _authorizeUpgrade(address newImpl) internal view override onlyRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {
     IPolicyPool newPool = IPolicyPool(newImpl);
     require(newPool.access() == _access, "Can't upgrade changing the access manager");
     require(newPool.currency() == _currency, "Can't upgrade changing the currency");
@@ -310,20 +278,15 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * to this specific {PolicyPool} and matching the `kind` specified in the next paramter.
    * @param kind The type of component to be added.
    */
-  function addComponent(IPolicyPoolComponent component, ComponentKind kind)
-    external
-    onlyRole(LEVEL1_ROLE)
-  {
+  function addComponent(IPolicyPoolComponent component, ComponentKind kind) external onlyRole(LEVEL1_ROLE) {
     Component storage comp = _components[component];
     require(comp.status == ComponentStatus.inactive, "Component already in the pool");
     require(component.policyPool() == this, "Component not linked to this pool");
 
     require(
       (kind == ComponentKind.eToken && component.supportsInterface(type(IEToken).interfaceId)) ||
-        (kind == ComponentKind.premiumsAccount &&
-          component.supportsInterface(type(IPremiumsAccount).interfaceId)) ||
-        (kind == ComponentKind.riskModule &&
-          component.supportsInterface(type(IRiskModule).interfaceId)),
+        (kind == ComponentKind.premiumsAccount && component.supportsInterface(type(IPremiumsAccount).interfaceId)) ||
+        (kind == ComponentKind.riskModule && component.supportsInterface(type(IRiskModule).interfaceId)),
       "PolicyPool: Not the right kind"
     );
 
@@ -360,15 +323,9 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     Component storage comp = _components[component];
     require(comp.status == ComponentStatus.deprecated, "Component not deprecated");
     if (comp.kind == ComponentKind.eToken) {
-      require(
-        IEToken(address(component)).totalSupply() == 0,
-        "EToken has liquidity, can't be removed"
-      );
+      require(IEToken(address(component)).totalSupply() == 0, "EToken has liquidity, can't be removed");
     } else if (comp.kind == ComponentKind.riskModule) {
-      require(
-        IRiskModule(address(component)).activeExposure() == 0,
-        "Can't remove a module with active policies"
-      );
+      require(IRiskModule(address(component)).activeExposure() == 0, "Can't remove a module with active policies");
     } else if (comp.kind == ComponentKind.premiumsAccount) {
       IPremiumsAccount pa = IPremiumsAccount(address(component));
       require(pa.purePremiums() == 0, "Can't remove a PremiumsAccount with premiums");
@@ -398,10 +355,10 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * @param component The address of component contract. Must be a component added before.
    * @param newStatus The new status, must be either `active`, `deprecated` or `suspended`.
    */
-  function changeComponentStatus(IPolicyPoolComponent component, ComponentStatus newStatus)
-    external
-    onlyRole2(GUARDIAN_ROLE, LEVEL1_ROLE)
-  {
+  function changeComponentStatus(
+    IPolicyPoolComponent component,
+    ComponentStatus newStatus
+  ) external onlyRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {
     Component storage comp = _components[component];
     require(comp.status != ComponentStatus.inactive, "Component not found");
     require(
@@ -420,52 +377,38 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * @param component The address of the component
    * @return The status of the component. See {ComponentStatus}
    */
-  function getComponentStatus(IPolicyPoolComponent component)
-    external
-    view
-    returns (ComponentStatus)
-  {
+  function getComponentStatus(IPolicyPoolComponent component) external view returns (ComponentStatus) {
     return _components[component].status;
   }
 
-  function _etkStatus(IEToken eToken) internal view returns (ComponentStatus) {
-    Component storage comp = _components[IPolicyPoolComponent(address(eToken))];
-    require(comp.kind == ComponentKind.eToken, "Component is not an eToken");
+  function _componentStatus(address component, ComponentKind kind) internal view returns (ComponentStatus) {
+    Component storage comp = _components[IPolicyPoolComponent(component)];
+    require(comp.kind == kind, "Component is not of the right kind");
     return comp.status;
   }
 
-  function _rmStatus(IRiskModule riskModule) internal view returns (ComponentStatus) {
-    Component storage comp = _components[IPolicyPoolComponent(address(riskModule))];
-    require(comp.kind == ComponentKind.riskModule, "Component is not a RiskModule");
-    return comp.status;
+  function _requireCompActive(address component, ComponentKind kind) internal view {
+    require(_componentStatus(component, kind) == ComponentStatus.active, "Component not found or not active");
   }
 
-  function _paStatus(IPremiumsAccount premiumsAccount) internal view returns (ComponentStatus) {
-    Component storage comp = _components[IPolicyPoolComponent(address(premiumsAccount))];
-    require(comp.kind == ComponentKind.premiumsAccount, "Component is not a PremiumsAccount");
-    return comp.status;
+  function _requireCompActiveOrDeprecated(address component, ComponentKind kind) internal view {
+    ComponentStatus status = _componentStatus(component, kind);
+    require(
+      status == ComponentStatus.active || status == ComponentStatus.deprecated,
+      "Component must be active or deprecated"
+    );
   }
 
   function deposit(IEToken eToken, uint256 amount) external override whenNotPaused {
-    require(_etkStatus(eToken) == ComponentStatus.active, "eToken is not active");
+    _requireCompActive(address(eToken), ComponentKind.eToken);
     uint256 balanceBefore = _currency.balanceOf(address(eToken));
     _currency.safeTransferFrom(_msgSender(), address(eToken), amount);
     eToken.deposit(_msgSender(), _currency.balanceOf(address(eToken)) - balanceBefore);
   }
 
-  function withdraw(IEToken eToken, uint256 amount)
-    external
-    override
-    whenNotPaused
-    returns (uint256)
-  {
-    ComponentStatus etkStatus = _etkStatus(eToken);
-    require(
-      etkStatus == ComponentStatus.active || etkStatus == ComponentStatus.deprecated,
-      "eToken not found or withdraws not allowed"
-    );
-    address provider = _msgSender();
-    return eToken.withdraw(provider, amount);
+  function withdraw(IEToken eToken, uint256 amount) external override whenNotPaused returns (uint256) {
+    _requireCompActiveOrDeprecated(address(eToken), ComponentKind.eToken);
+    return eToken.withdraw(_msgSender(), amount);
   }
 
   function newPolicy(
@@ -477,14 +420,15 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     // Checks
     IRiskModule rm = policy.riskModule;
     require(address(rm) == _msgSender(), "Only the RM can create new policies");
-    require(_rmStatus(rm) == ComponentStatus.active, "RM module not found or not active");
+    _requireCompActive(address(rm), ComponentKind.riskModule);
     IPremiumsAccount pa = rm.premiumsAccount();
-    require(_paStatus(pa) == ComponentStatus.active, "PremiumsAccount not found or not active");
+    _requireCompActive(address(pa), ComponentKind.premiumsAccount);
 
     // Effects
-    policy.id = (uint256(uint160(address(rm))) << 96) + internalId;
+    policy.id = makePolicyId(rm, internalId);
     require(_policies[policy.id] == bytes32(0), "Policy already exists");
     _policies[policy.id] = policy.hash();
+    _safeMint(policyHolder, policy.id, "");
 
     // Interactions
     pa.policyCreated(policy);
@@ -501,16 +445,81 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
      * transfers. This might be considered in the future, but to avoid increasing the complexity and since so far we
      * operate on low gas-cost blockchains, we keep it as it is.
      */
-    _safeMint(policyHolder, policy.id, "");
 
     emit NewPolicy(rm, policy);
     return policy.id;
   }
 
+  function replacePolicy(
+    Policy.PolicyData memory oldPolicy,
+    Policy.PolicyData memory newPolicy_,
+    address payer,
+    uint96 internalId
+  ) external override whenNotPaused returns (uint256) {
+    // Checks
+    _validatePolicy(oldPolicy);
+    IRiskModule rm = oldPolicy.riskModule;
+    require(address(rm) == _msgSender(), "Only the RM can create new policies");
+    _requireCompActive(address(rm), ComponentKind.riskModule);
+    IPremiumsAccount pa = rm.premiumsAccount();
+    _requireCompActive(address(pa), ComponentKind.premiumsAccount);
+    require(oldPolicy.expiration > uint40(block.timestamp), "Old policy is expired");
+    require(oldPolicy.start == newPolicy_.start, "Both policies must have the same starting date");
+    require(
+      oldPolicy.payout <= newPolicy_.payout &&
+        oldPolicy.purePremium <= newPolicy_.purePremium &&
+        oldPolicy.ensuroCommission <= newPolicy_.ensuroCommission &&
+        oldPolicy.jrCoc <= newPolicy_.jrCoc &&
+        oldPolicy.srCoc <= newPolicy_.srCoc &&
+        oldPolicy.jrScr <= newPolicy_.jrScr &&
+        oldPolicy.srScr <= newPolicy_.srScr &&
+        oldPolicy.partnerCommission <= newPolicy_.partnerCommission &&
+        oldPolicy.expiration <= newPolicy_.expiration &&
+        rm == newPolicy_.riskModule,
+      "New policy must be greater or equal than old policy"
+    );
+
+    // Effects
+    newPolicy_.id = makePolicyId(rm, internalId);
+    require(_policies[newPolicy_.id] == bytes32(0), "Policy already exists");
+    _policies[newPolicy_.id] = newPolicy_.hash();
+    address policyHolder = ownerOf(oldPolicy.id);
+    _safeMint(policyHolder, newPolicy_.id, "");
+    delete _policies[oldPolicy.id];
+
+    // Interactions
+    pa.policyReplaced(oldPolicy, newPolicy_);
+
+    // Distribute the premium
+    uint256 aux = newPolicy_.purePremium - oldPolicy.purePremium;
+    if (aux > 0) _currency.safeTransferFrom(payer, address(pa), aux);
+    aux = newPolicy_.srCoc - oldPolicy.srCoc;
+    if (aux > 0) _currency.safeTransferFrom(payer, address(pa.seniorEtk()), aux);
+    aux = newPolicy_.jrCoc - oldPolicy.jrCoc;
+    if (aux > 0) _currency.safeTransferFrom(payer, address(pa.juniorEtk()), aux);
+    aux = newPolicy_.ensuroCommission - oldPolicy.ensuroCommission;
+    if (aux > 0) _currency.safeTransferFrom(payer, _treasury, aux);
+    aux = newPolicy_.partnerCommission - oldPolicy.partnerCommission;
+    if (aux > 0 && payer != rm.wallet()) _currency.safeTransferFrom(payer, rm.wallet(), aux);
+    /**
+     * This code does up to 5 ERC20 transfers. This can be avoided to reduce the gas cost, by implementing delayed
+     * transfers. This might be considered in the future, but to avoid increasing the complexity and since so far we
+     * operate on low gas-cost blockchains, we keep it as it is.
+     */
+
+    emit NewPolicy(rm, newPolicy_);
+    emit PolicyReplaced(rm, oldPolicy.id, newPolicy_.id);
+    return newPolicy_.id;
+  }
+
   function _validatePolicy(Policy.PolicyData memory policy) internal view {
     require(policy.id != 0 && policy.hash() == _policies[policy.id], "Policy not found");
   }
 
+  function makePolicyId(IRiskModule rm, uint96 internalId) public pure returns (uint256) {
+    return (uint256(uint160(address(rm))) << 96) + internalId;
+  }
+
   function expirePolicy(Policy.PolicyData calldata policy) external override whenNotPaused {
     require(policy.expiration <= block.timestamp, "Policy not expired yet");
     return _resolvePolicy(policy, 0, true);
@@ -523,19 +532,14 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     }
   }
 
-  function resolvePolicy(Policy.PolicyData calldata policy, uint256 payout)
-    external
-    override
-    whenNotPaused
-  {
+  function resolvePolicy(Policy.PolicyData calldata policy, uint256 payout) external override whenNotPaused {
     return _resolvePolicy(policy, payout, false);
   }
 
-  function resolvePolicyFullPayout(Policy.PolicyData calldata policy, bool customerWon)
-    external
-    override
-    whenNotPaused
-  {
+  function resolvePolicyFullPayout(
+    Policy.PolicyData calldata policy,
+    bool customerWon
+  ) external override whenNotPaused {
     return _resolvePolicy(policy, customerWon ? policy.payout : 0, false);
   }
 
@@ -558,31 +562,20 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
    * @param payout The amount to paid to the policyholder
    * @param expired True for expiration resolution (`payout` must be 0)
    */
-  function _resolvePolicy(
-    Policy.PolicyData memory policy,
-    uint256 payout,
-    bool expired
-  ) internal {
+  function _resolvePolicy(Policy.PolicyData memory policy, uint256 payout, bool expired) internal {
     // Checks
     _validatePolicy(policy);
     IRiskModule rm = policy.riskModule;
     require(expired || address(rm) == _msgSender(), "Only the RM can resolve policies");
     require(payout == 0 || policy.expiration > block.timestamp, "Can't pay expired policy");
-    ComponentStatus compStatus = _rmStatus(rm);
-    require(
-      compStatus == ComponentStatus.active || compStatus == ComponentStatus.deprecated,
-      "Module must be active or deprecated to process resolutions"
-    );
+    _requireCompActiveOrDeprecated(address(rm), ComponentKind.riskModule);
+
     require(payout <= policy.payout, "payout > policy.payout");
 
     bool customerWon = payout > 0;
 
     IPremiumsAccount pa = rm.premiumsAccount();
-    compStatus = _paStatus(pa);
-    require(
-      compStatus == ComponentStatus.active || compStatus == ComponentStatus.deprecated,
-      "PremiumsAccount must be active or deprecated to process resolutions"
-    );
+    _requireCompActiveOrDeprecated(address(pa), ComponentKind.premiumsAccount);
     // Effects
     delete _policies[policy.id];
     // Interactions
@@ -612,16 +605,8 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     if (!AddressUpgradeable.isContract(customer)) return;
     if (!ERC165Checker.supportsInterface(customer, type(IPolicyHolder).interfaceId)) return;
 
-    bytes4 retval = IPolicyHolder(customer).onPayoutReceived(
-      _msgSender(),
-      address(this),
-      policyId,
-      payout
-    );
-    require(
-      retval == IPolicyHolder.onPayoutReceived.selector,
-      "PolicyPool: Invalid return value from IPolicyHolder"
-    );
+    bytes4 retval = IPolicyHolder(customer).onPayoutReceived(_msgSender(), address(this), policyId, payout);
+    require(retval == IPolicyHolder.onPayoutReceived.selector, "PolicyPool: Invalid return value from IPolicyHolder");
   }
 
   /**
@@ -632,9 +617,7 @@ contract PolicyPool is IPolicyPool, PausableUpgradeable, UUPSUpgradeable, ERC721
     if (!AddressUpgradeable.isContract(customer)) return;
     if (!ERC165Checker.supportsInterface(customer, type(IPolicyHolder).interfaceId)) return;
 
-    try IPolicyHolder(customer).onPolicyExpired(_msgSender(), address(this), policyId) returns (
-      bytes4
-    ) {
+    try IPolicyHolder(customer).onPolicyExpired(_msgSender(), address(this), policyId) returns (bytes4) {
       return;
     } catch {
       return;

package/contracts/PolicyPoolComponent.sol

@@ -24,11 +24,7 @@ import {WadRayMath} from "./dependencies/WadRayMath.sol";
  * @custom:security-contact security@ensuro.co
  * @author Ensuro
  */
-abstract contract PolicyPoolComponent is
-  UUPSUpgradeable,
-  PausableUpgradeable,
-  IPolicyPoolComponent
-{
+abstract contract PolicyPoolComponent is UUPSUpgradeable, PausableUpgradeable, IPolicyPoolComponent {
   using WadRayMath for uint256;
 
   bytes32 public constant GUARDIAN_ROLE = keccak256("GUARDIAN_ROLE");
@@ -80,10 +76,7 @@ abstract contract PolicyPoolComponent is
 
   /// @custom:oz-upgrades-unsafe-allow constructor
   constructor(IPolicyPool policyPool_) {
-    require(
-      address(policyPool_) != address(0),
-      "PolicyPoolComponent: policyPool cannot be zero address"
-    );
+    require(address(policyPool_) != address(0), "PolicyPoolComponent: policyPool cannot be zero address");
     _disableInitializers();
     _policyPool = policyPool_;
   }
@@ -94,29 +87,21 @@ abstract contract PolicyPoolComponent is
     __Pausable_init();
   }
 
-  function _authorizeUpgrade(address newImpl)
-    internal
-    view
-    override
-    onlyGlobalOrComponentRole2(GUARDIAN_ROLE, LEVEL1_ROLE)
-  {
+  function _authorizeUpgrade(
+    address newImpl
+  ) internal view override onlyGlobalOrComponentRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {
     _upgradeValidations(newImpl);
   }
 
   function _upgradeValidations(address newImpl) internal view virtual {
-    require(
-      IPolicyPoolComponent(newImpl).policyPool() == _policyPool,
-      "Can't upgrade changing the PolicyPool!"
-    );
+    require(IPolicyPoolComponent(newImpl).policyPool() == _policyPool, "Can't upgrade changing the PolicyPool!");
   }
 
   /**
    * @dev See {IERC165-supportsInterface}.
    */
   function supportsInterface(bytes4 interfaceId) public view virtual override returns (bool) {
-    return
-      interfaceId == type(IERC165).interfaceId ||
-      interfaceId == type(IPolicyPoolComponent).interfaceId;
+    return interfaceId == type(IERC165).interfaceId || interfaceId == type(IPolicyPoolComponent).interfaceId;
   }
 
   function pause() public onlyGlobalOrComponentRole(GUARDIAN_ROLE) {
@@ -139,11 +124,7 @@ abstract contract PolicyPoolComponent is
     return _policyPool.access().hasComponentRole(address(this), role, _msgSender(), true);
   }
 
-  function _isTweakWad(
-    uint256 oldValue,
-    uint256 newValue,
-    uint256 maxTweak
-  ) internal pure returns (bool) {
+  function _isTweakWad(uint256 oldValue, uint256 newValue, uint256 maxTweak) internal pure returns (bool) {
     if (oldValue == newValue) return true;
     if (oldValue == 0) return maxTweak >= WadRayMath.WAD;
     if (newValue == 0) return false;
@@ -157,11 +138,7 @@ abstract contract PolicyPoolComponent is
   // solhint-disable-next-line no-empty-blocks
   function _validateParameters() internal view virtual {} // Must be reimplemented with specific validations
 
-  function _parameterChanged(
-    IAccessManager.GovernanceActions action,
-    uint256 value,
-    bool tweak
-  ) internal {
+  function _parameterChanged(IAccessManager.GovernanceActions action, uint256 value, bool tweak) internal {
     _validateParameters();
     if (tweak) _registerTweak(action);
     emit GovernanceAction(action, value);

package/contracts/PremiumsAccount.sol

@@ -2,6 +2,7 @@
 pragma solidity ^0.8.0;
 
 import {Math} from "@openzeppelin/contracts/utils/math/Math.sol";
+import {SignedMath} from "@openzeppelin/contracts/utils/math/SignedMath.sol";
 import {IERC20Metadata} from "@openzeppelin/contracts/token/ERC20/extensions/IERC20Metadata.sol";
 import {SafeERC20} from "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
 import {SafeCast} from "@openzeppelin/contracts/utils/math/SafeCast.sol";
@@ -113,11 +114,7 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    * @param seniorEtk_ Address of the Senior EToken (2nd loss lender). `address(0)` if not present.
    */
   /// @custom:oz-upgrades-unsafe-allow constructor
-  constructor(
-    IPolicyPool policyPool_,
-    IEToken juniorEtk_,
-    IEToken seniorEtk_
-  ) Reserve(policyPool_) {
+  constructor(IPolicyPool policyPool_, IEToken juniorEtk_, IEToken seniorEtk_) Reserve(policyPool_) {
     _juniorEtk = juniorEtk_;
     _seniorEtk = seniorEtk_;
   }
@@ -169,8 +166,7 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    * @dev See {IERC165-supportsInterface}.
    */
   function supportsInterface(bytes4 interfaceId) public view virtual override returns (bool) {
-    return
-      super.supportsInterface(interfaceId) || interfaceId == type(IPremiumsAccount).interfaceId;
+    return super.supportsInterface(interfaceId) || interfaceId == type(IPremiumsAccount).interfaceId;
   }
 
   function assetManager() public view override returns (IAssetManager) {
@@ -274,12 +270,12 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
 
   function _toAmount(uint32 value) internal view returns (uint256) {
     // 0 decimals to amount decimals
-    return uint256(value) * 10**currency().decimals();
+    return uint256(value) * 10 ** currency().decimals();
   }
 
   function _toZeroDecimals(uint256 amount) internal view returns (uint32) {
     // Removes the decimals from the amount
-    return (amount / 10**currency().decimals()).toUint32();
+    return (amount / 10 ** currency().decimals()).toUint32();
   }
 
   /**
@@ -316,15 +312,9 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    *                   `_maxDeficit()` and borrows the difference from the eTokens.
    *                   If false and the new ratio leaves `_surplus < -_maxDeficit()`, the operation is reverted.
    */
-  function setDeficitRatio(uint256 newRatio, bool adjustment)
-    external
-    onlyGlobalOrComponentRole(LEVEL2_ROLE)
-  {
+  function setDeficitRatio(uint256 newRatio, bool adjustment) external onlyGlobalOrComponentRole(LEVEL2_ROLE) {
     uint16 truncatedRatio = (newRatio / FOUR_DECIMAL_TO_WAD).toUint16();
-    require(
-      uint256(truncatedRatio) * FOUR_DECIMAL_TO_WAD == newRatio,
-      "Validation: only up to 4 decimals allowed"
-    );
+    require(uint256(truncatedRatio) * FOUR_DECIMAL_TO_WAD == newRatio, "Validation: only up to 4 decimals allowed");
 
     int256 maxDeficit = _maxDeficit(newRatio);
     require(adjustment || _surplus >= maxDeficit, "Validation: surplus must be >= maxDeficit");
@@ -356,10 +346,7 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    * @param newLimitSr     The new limit to be set for the loans taken from the Senior eToken.
                            If newLimitSr == MAX_UINT, it's ignored. If == 0, means the loans are unbounded.
    */
-  function setLoanLimits(uint256 newLimitJr, uint256 newLimitSr)
-    external
-    onlyGlobalOrComponentRole(LEVEL2_ROLE)
-  {
+  function setLoanLimits(uint256 newLimitJr, uint256 newLimitSr) external onlyGlobalOrComponentRole(LEVEL2_ROLE) {
     if (newLimitJr != type(uint256).max) {
       _params.jrLoanLimit = _toZeroDecimals(newLimitJr);
       require(_toAmount(_params.jrLoanLimit) == newLimitJr, "Validation: no decimals allowed");
@@ -381,11 +368,7 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    *                 in the context of a policy payout.
    * @param jrEtk If true it indicates that the loan is asked first from the junior eToken.
    */
-  function _borrowFromEtk(
-    uint256 borrow,
-    address receiver,
-    bool jrEtk
-  ) internal {
+  function _borrowFromEtk(uint256 borrow, address receiver, bool jrEtk) internal {
     uint256 left = borrow;
     if (jrEtk) {
       if (_juniorEtk.getLoan(address(this)) + borrow <= jrLoanLimit()) {
@@ -471,11 +454,10 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
    * @param destination The address that will receive the transferred funds.
    * @return Returns the actual amount withdrawn.
    */
-  function withdrawWonPremiums(uint256 amount, address destination)
-    external
-    onlyGlobalOrComponentRole(WITHDRAW_WON_PREMIUMS_ROLE)
-    returns (uint256)
-  {
+  function withdrawWonPremiums(
+    uint256 amount,
+    address destination
+  ) external onlyGlobalOrComponentRole(WITHDRAW_WON_PREMIUMS_ROLE) returns (uint256) {
     require(destination != address(0), "PremiumsAccount: destination cannot be the zero address");
     if (_surplus <= 0) {
       amount = 0;
@@ -489,17 +471,36 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
     return amount;
   }
 
-  function policyCreated(Policy.PolicyData memory policy)
-    external
-    override
-    onlyPolicyPool
-    whenNotPaused
-  {
+  function policyCreated(Policy.PolicyData memory policy) external override onlyPolicyPool whenNotPaused {
     _activePurePremiums += policy.purePremium;
     if (policy.jrScr > 0) _juniorEtk.lockScr(policy.jrScr, policy.jrInterestRate());
     if (policy.srScr > 0) _seniorEtk.lockScr(policy.srScr, policy.srInterestRate());
   }
 
+  function policyReplaced(
+    Policy.PolicyData memory oldPolicy,
+    Policy.PolicyData memory newPolicy
+  ) external override onlyPolicyPool whenNotPaused {
+    if (oldPolicy.srScr > 0 && newPolicy.srScr > 0) {
+      int256 diff = int256(oldPolicy.srInterestRate()) - int256(newPolicy.srInterestRate());
+      require(SignedMath.abs(diff) < 1e14, "Interest rate can't change");
+    }
+    if (oldPolicy.jrScr > 0 && newPolicy.jrScr > 0) {
+      int256 diff = int256(oldPolicy.jrInterestRate()) - int256(newPolicy.jrInterestRate());
+      require(SignedMath.abs(diff) < 1e14, "Interest rate can't change");
+    }
+    /*
+     * Supporting interest rate change is possible, but it would require complex computations.
+     * If new IR > old IR, then we must adjust positivelly to accrue the interests not accrued
+     * If new IR < old IR, then we must adjust negativelly to substract the interests accrued in excess
+     */
+    _activePurePremiums += newPolicy.purePremium - oldPolicy.purePremium;
+    if (oldPolicy.jrScr > 0) _juniorEtk.unlockScr(oldPolicy.jrScr, oldPolicy.jrInterestRate(), 0);
+    if (oldPolicy.srScr > 0) _seniorEtk.unlockScr(oldPolicy.srScr, oldPolicy.srInterestRate(), 0);
+    if (newPolicy.jrScr > 0) _juniorEtk.lockScr(newPolicy.jrScr, newPolicy.jrInterestRate());
+    if (newPolicy.srScr > 0) _seniorEtk.lockScr(newPolicy.srScr, newPolicy.srInterestRate());
+  }
+
   function policyResolvedWithPayout(
     address policyHolder,
     Policy.PolicyData memory policy,
@@ -550,10 +551,8 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
     returns (uint256 available)
   {
     available = fundsAvailable();
-    if (available != 0 && address(_seniorEtk) != address(0))
-      available = _repayLoan(available, _seniorEtk);
-    if (available != 0 && address(_juniorEtk) != address(0))
-      available = _repayLoan(available, _juniorEtk);
+    if (available != 0 && address(_seniorEtk) != address(0)) available = _repayLoan(available, _seniorEtk);
+    if (available != 0 && address(_juniorEtk) != address(0)) available = _repayLoan(available, _juniorEtk);
     return available;
   }
 
@@ -589,12 +588,7 @@ contract PremiumsAccount is IPremiumsAccount, Reserve {
     return fundsAvailable_ - repayAmount;
   }
 
-  function policyExpired(Policy.PolicyData memory policy)
-    external
-    override
-    onlyPolicyPool
-    whenNotPaused
-  {
+  function policyExpired(Policy.PolicyData memory policy) external override onlyPolicyPool whenNotPaused {
     _activePurePremiums -= policy.purePremium;
     _storePurePremiumWon(policy.purePremium);
     _unlockScr(policy);