@etherisc/gif-next 0.0.2-952752e-374 → 0.0.2-957bd35-589

package/contracts/product/IPolicyService.sol

@@ -5,7 +5,6 @@ import {IService} from "../shared/IService.sol";
 
 import {Amount} from "../type/Amount.sol";
 import {IInstance} from "../instance/IInstance.sol";
-import {InstanceReader} from "../instance/InstanceReader.sol";
 import {NftId} from "../type/NftId.sol";
 import {StateId} from "../type/StateId.sol";
 import {Timestamp} from "../type/Timestamp.sol";
@@ -16,17 +15,20 @@ interface IPolicyService is IService {
     event LogPolicyServicePolicyDeclined(NftId policyNftId);
     event LogPolicyServicePolicyPremiumCollected(NftId policyNftId, Amount premiumAmount);
     event LogPolicyServicePolicyActivated(NftId policyNftId, Timestamp activatedAt);
-    event LogPolicyServicePolicyExpirationUpdated(NftId policyNftId, Timestamp originalExpiredAt, Timestamp expiredAt);
+    event LogPolicyServicePolicyActivatedUpdated(NftId policyNftId, Timestamp activatedAt);
+    event LogPolicyServicePolicyExpirationUpdated(NftId policyNftId, Timestamp expiredAt);
     event LogPolicyServicePolicyClosed(NftId policyNftId);
 
+    error LogPolicyServiceMaxPremiumAmountExceeded(NftId policyNftId, Amount maxPremiumAmount, Amount premiumAmount);
     error ErrorPolicyServicePolicyProductMismatch(NftId applicationNftId, NftId expectedProductNftId, NftId actualProductNftId);
     error ErrorPolicyServicePolicyStateNotApplied(NftId applicationNftId);
     error ErrorPolicyServicePolicyStateNotCollateralized(NftId applicationNftId);
     error ErrorPolicyServicePolicyAlreadyActivated(NftId policyNftId);
 
-    error ErrorPolicyServiceBalanceInsufficient(address policyOwner, uint256 premiumAmount, uint256 balance);
-    error ErrorPolicyServiceAllowanceInsufficient(address policyOwner, address tokenHandler, uint256 premiumAmount, uint256 allowance);
-
+    error ErrorPolicyServicePolicyNotActivated(NftId policyNftId);
+    error ErrorPolicyServicePolicyActivationTooEarly(NftId policyNftId, Timestamp lowerLimit, Timestamp activatedAt);
+    error ErrorPolicyServicePolicyActivationTooLate(NftId policyNftId, Timestamp upperLimit, Timestamp activatedAt);
+    
     error ErrorPolicyServiceInsufficientAllowance(address customer, address tokenHandlerAddress, uint256 amount);
     error ErrorPolicyServicePremiumAlreadyPaid(NftId policyNftId);
 
@@ -43,14 +45,21 @@ interface IPolicyService is IService {
     error ErrorPolicyServiceTransferredPremiumMismatch(NftId policyNftId, Amount expectedPremiumAmount, Amount transferredPremiumAmount);
 
     /// @dev creates the policy from {applicationNftId}. 
+    /// @param applicationNftId the application NftId
+    /// @param activateAt the timestamp when the policy should be activated
+    /// @param maxPremiumAmount the maximum premium amount that the policy holder is willing to pay
+    /// During policy creation, the effective premium amount is calculated based on the provided parameters. If this
+    /// amount is higher than the maxPremiumAmount, the function will revert.
     /// After successful completion of the function the policy can be referenced using the application NftId.
     /// Locks the sum insured amount in the pool, but does not transfer tokens. Call collectPremium to transfer tokens. 
     /// Sets the policy state to collateralized.
     /// Optionally activates the policy if activateAt is a non-zero timestamp.
     /// only the related product may create a policy from an application
+    /// @return premiumAmount the effective premium amount
     function createPolicy(
         NftId applicationNftId,
-        Timestamp activateAt
+        Timestamp activateAt,
+        Amount maxPremiumAmount
     )
         external
         returns (Amount premiumAmount);
@@ -67,6 +76,11 @@ interface IPolicyService is IService {
     /// to activate a policy it needs to be in underwritten state
     function activate(NftId policyNftId, Timestamp activateAt) external;
 
+    /// @dev adjusts the activation date of the specified policy and sets the new activation date in the policy metadata
+    /// to adjust the activation date of a policy it needs to have an activation date set. 
+    /// the new activation date must not be before the current block timestamp or after the expiry date
+    function adjustActivation(NftId policyNftId, Timestamp newActivateAt) external;
+
     /// @dev Expires the specified policy and sets the expiry date in the policy metadata. 
     /// Function consumers are products.
     /// If expiry date is set to 0, then the earliest possible expiry date (current blocktime) is set
@@ -85,6 +99,4 @@ interface IPolicyService is IService {
     /// Function consumers is claim service.
     function expirePolicy(IInstance instance, NftId policyNftId, Timestamp expireAt) external returns (Timestamp expiredAt);
 
-    /// @dev Returns true iff policy is closeable
-    function policyIsCloseable(InstanceReader instanceReader, NftId policyNftId) external view returns (bool isCloseable);
 }

package/contracts/product/IPricingService.sol

@@ -14,6 +14,7 @@ interface IPricingService is IService
 {
 
     error ErrorPricingServiceTargetWalletAmountsMismatch();
+    error ErrorPricingServiceRiskProductMismatch(RiskId riskId, NftId riskProductNftId, NftId productNftId);
     error ErrorPricingServiceBundlePoolMismatch(NftId bundleNftId, NftId bundlePoolNftId, NftId poolNftId);
     error ErrorPricingServiceFeeCalculationMismatch(
         Amount distributionFeeFixAmount,

package/contracts/product/IRiskService.sol

@@ -1,23 +1,32 @@
 // SPDX-License-Identifier: Apache-2.0
 pragma solidity ^0.8.20;
 
-import {IRisk} from "../instance/module/IRisk.sol";
 import {IService} from "../shared/IService.sol";
 
 import {NftId} from "../type/NftId.sol";
-import {ReferralId} from "../type/Referral.sol";
 import {RiskId} from "../type/RiskId.sol";
 import {StateId} from "../type/StateId.sol";
-import {Timestamp} from "../type/Timestamp.sol";
-import {UFixed} from "../type/UFixed.sol";
-import {Fee} from "../type/Fee.sol";
 
 interface IRiskService is IService {
 
+    event LogRiskServiceRiskCreated(NftId productNftId, RiskId riskId);
+    event LogRiskServiceRiskUpdated(NftId productNftId, RiskId riskId);
+    event LogRiskServiceRiskLocked(NftId productNftId, RiskId riskId);
+    event LogRiskServiceRiskUnlocked(NftId productNftId, RiskId riskId);
+    event LogRiskServiceRiskClosed(NftId productNftId, RiskId riskId);
+    
+    error ErrorRiskServiceRiskProductMismatch(RiskId riskId, NftId riskProductNftId, NftId productNftId);
+    error ErrorRiskServiceRiskNotActive(NftId productNftId, RiskId riskId);
+    error ErrorRiskServiceUnknownRisk(NftId productNftId, RiskId riskId);
+    error ErrorRiskServiceRiskNotLocked(NftId productNftId, RiskId riskId);
+
+    /// @dev Create a new risk with the given id and provided data. 
+    /// The key of the risk derived from the risk id in comination with the product NftId. 
+    /// Risk data is stored in the instance store. 
     function createRisk(
-        RiskId riskId,
+        bytes32 id,
         bytes memory data
-    ) external;
+    ) external returns (RiskId riskId);
 
 
     function updateRisk(
@@ -25,9 +34,15 @@ interface IRiskService is IService {
         bytes memory data
     ) external;
 
-
-    function updateRiskState(
+    /// @dev Locks/unlocks the risk with the given id.
+    /// No new policies can be underwritten for a locked risk.
+    function setRiskLocked(
         RiskId riskId,
-        StateId newState
+        bool locked
+    ) external;
+
+    /// @dev Close the risk with the given id.
+    function closeRisk(
+        RiskId riskId
     ) external;
 }

package/contracts/product/PolicyService.sol

@@ -1,8 +1,6 @@
 // SPDX-License-Identifier: Apache-2.0
 pragma solidity ^0.8.20;
 
-import {IERC20Metadata} from "@openzeppelin/contracts/token/ERC20/extensions/IERC20Metadata.sol";
-
 import {IAccountingService} from "../accounting/IAccountingService.sol";
 import {IComponentService} from "../shared/IComponentService.sol";
 import {IComponents} from "../instance/module/IComponents.sol";
@@ -22,10 +20,10 @@ import {APPLIED, COLLATERALIZED, KEEP_STATE, CLOSED, DECLINED, PAID} from "../ty
 import {ContractLib} from "../shared/ContractLib.sol";
 import {NftId} from "../type/NftId.sol";
 import {ObjectType, ACCOUNTING, COMPONENT, DISTRIBUTION, PRODUCT, POOL, POLICY, PRICE} from "../type/ObjectType.sol";
+import {PolicyServiceLib} from "./PolicyServiceLib.sol";
 import {ReferralId} from "../type/Referral.sol";
 import {RiskId} from "../type/RiskId.sol";
 import {Service} from "../shared/Service.sol";
-import {StateId} from "../type/StateId.sol";
 import {Timestamp, TimestampLib} from "../type/Timestamp.sol";
 import {TokenHandler} from "../shared/TokenHandler.sol";
 import {VersionPart} from "../type/Version.sol";
@@ -72,6 +70,7 @@ contract PolicyService is
     )
         external
         virtual
+        restricted()
         nonReentrant()
     {
         // checks
@@ -84,7 +83,7 @@ contract PolicyService is
 
         // effects
         // store updated policy info
-        instance.getInstanceStore().updatePolicyState(
+        instance.getProductStore().updatePolicyState(
             applicationNftId, 
             DECLINED());
 
@@ -95,10 +94,12 @@ contract PolicyService is
     /// @inheritdoc IPolicyService
     function createPolicy(
         NftId applicationNftId, // = policyNftId
-        Timestamp activateAt
+        Timestamp activateAt,
+        Amount maxPremiumAmount
     )
         external 
         virtual
+        restricted()
         nonReentrant()
         returns (Amount premiumAmount)
     {
@@ -119,19 +120,19 @@ contract PolicyService is
         // actual collateralizaion
         _poolService.lockCollateral(
             instance,
-            address(instanceReader.getComponentInfo(productNftId).token),
+            address(instanceReader.getToken(productNftId)),
             productNftId,
             applicationNftId,
             applicationInfo.bundleNftId,
             applicationInfo.sumInsuredAmount);
 
         // optional activation of policy
-        if(activateAt > TimestampLib.zero()) {
-            applicationInfo = _activate(applicationNftId, applicationInfo, activateAt);
+        if(activateAt.gtz()) {
+            applicationInfo = PolicyServiceLib.activate(applicationNftId, applicationInfo, activateAt);
         }
 
         // update policy and set state to collateralized
-        instance.getInstanceStore().updatePolicy(
+        instance.getProductStore().updatePolicy(
             applicationNftId, 
             applicationInfo, 
             COLLATERALIZED());
@@ -149,8 +150,15 @@ contract PolicyService is
             bundleNftId,
             applicationInfo.referralId);
 
-        premiumAmount = premium.fullPremiumAmount;
-        instance.getInstanceStore().createPremium(
+        if (premium.premiumAmount > maxPremiumAmount) {
+            revert LogPolicyServiceMaxPremiumAmountExceeded(
+                applicationNftId, 
+                maxPremiumAmount, 
+                premium.premiumAmount);
+        }
+
+        premiumAmount = premium.premiumAmount;
+        instance.getProductStore().createPremium(
             applicationNftId,
             premium);
 
@@ -165,7 +173,7 @@ contract PolicyService is
         }
 
         // link policy to risk and bundle
-        NftId poolNftId = getRegistry().getObjectInfo(bundleNftId).parentNftId;
+        NftId poolNftId = getRegistry().getParentNftId(bundleNftId);
         instance.getRiskSet().linkPolicy(productNftId, riskId, applicationNftId);
         instance.getBundleSet().linkPolicy(poolNftId, bundleNftId, applicationNftId);
 
@@ -185,6 +193,7 @@ contract PolicyService is
     )
         external 
         virtual
+        restricted()
         nonReentrant()
     {
         // checks
@@ -201,18 +210,24 @@ contract PolicyService is
         }
 
         // check if premium has already been collected
-        if (instanceReader.getPremiumInfoState(policyNftId) == PAID()) {
+        if (instanceReader.getPremiumState(policyNftId) == PAID()) {
             revert ErrorPolicyServicePremiumAlreadyPaid(policyNftId);
         }
 
         // check funds and allowance of policy holder
         IPolicy.PremiumInfo memory premium = instanceReader.getPremiumInfo(policyNftId);
-        TokenHandler tokenHandler = _getTokenHandler(instanceReader, policyInfo.productNftId);        
-        _checkPremiumBalanceAndAllowance(
-            tokenHandler.TOKEN(), 
-            address(tokenHandler),
-            getRegistry().ownerOf(policyNftId), 
-            premium.premiumAmount);
+        instanceReader.getTokenHandler(
+            productNftId).checkBalanceAndAllowance(
+                getRegistry().ownerOf(policyNftId), 
+                premium.premiumAmount, 
+                false);
+
+        // )
+        // _checkPremiumBalanceAndAllowance(
+        //     tokenHandler.TOKEN(), 
+        //     address(tokenHandler),
+        //     getRegistry().ownerOf(policyNftId), 
+        //     premium.premiumAmount);
 
         // effects
         _processSale(
@@ -225,17 +240,17 @@ contract PolicyService is
 
         // optionally activate policy
         if(activateAt.gtz()) {
-            policyInfo = _activate(policyNftId, policyInfo, activateAt);
+            policyInfo = PolicyServiceLib.activate(policyNftId, policyInfo, activateAt);
         }
 
-        instance.getInstanceStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
-        instance.getInstanceStore().updatePremiumState(policyNftId, PAID());
+        instance.getProductStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
+        instance.getProductStore().updatePremiumState(policyNftId, PAID());
 
         // log premium collection before interactions with token
         emit LogPolicyServicePolicyPremiumCollected(policyNftId, premium.premiumAmount);
 
         // interactions
-        _transferFunds(instanceReader, policyNftId, policyInfo.productNftId, premium);
+        _transferPremiumAmounts(instanceReader, policyNftId, policyInfo.productNftId, premium);
     }
 
 
@@ -243,6 +258,7 @@ contract PolicyService is
     function activate(NftId policyNftId, Timestamp activateAt)
         external
         virtual
+        restricted()
         nonReentrant()
     {
         // checks
@@ -252,8 +268,8 @@ contract PolicyService is
         ) = _getAndVerifyCallerForPolicy(policyNftId);
 
         // effects
-        policyInfo = _activate(policyNftId, policyInfo, activateAt);
-        instance.getInstanceStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
+        policyInfo = PolicyServiceLib.activate(policyNftId, policyInfo, activateAt);
+        instance.getProductStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
 
         // log policy activation before interactions with policy holder
         emit LogPolicyServicePolicyActivated(policyNftId, activateAt);
@@ -263,6 +279,46 @@ contract PolicyService is
         _policyHolderPolicyActivated(policyNftId, activateAt);
     }
 
+    /// @inheritdoc IPolicyService
+    function adjustActivation(
+        NftId policyNftId,
+        Timestamp newActivateAt
+    )
+        external
+        virtual
+        restricted()
+        nonReentrant()
+    {
+        // checks
+        (
+            IInstance instance,,
+            IPolicy.PolicyInfo memory policyInfo
+        ) = _getAndVerifyCallerForPolicy(policyNftId);
+
+        if (policyInfo.activatedAt.eqz()) {
+            revert ErrorPolicyServicePolicyNotActivated(policyNftId);
+        }
+
+        if (newActivateAt < TimestampLib.current()) {
+            revert ErrorPolicyServicePolicyActivationTooEarly(policyNftId, TimestampLib.current(), newActivateAt);
+        }
+
+        if (newActivateAt > policyInfo.expiredAt) {
+            revert ErrorPolicyServicePolicyActivationTooLate(policyNftId, policyInfo.expiredAt, newActivateAt);
+        }
+
+        // effects
+        policyInfo.activatedAt = newActivateAt;
+        instance.getProductStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
+
+        // log policy activation before interactions with policy holder
+        emit LogPolicyServicePolicyActivatedUpdated(policyNftId, newActivateAt);
+
+        // interactions
+        // callback to policy holder if applicable
+        _policyHolderPolicyActivated(policyNftId, newActivateAt);
+    }
+
 
     /// @inheritdoc IPolicyService
     function expire(
@@ -271,6 +327,7 @@ contract PolicyService is
     )
         external
         virtual
+        restricted()
         nonReentrant()
         returns (Timestamp expiredAt)
     {
@@ -298,6 +355,7 @@ contract PolicyService is
     )
         external
         virtual
+        restricted()
         nonReentrant()
         returns (Timestamp expiredAt)
     {
@@ -322,6 +380,7 @@ contract PolicyService is
     )
         external 
         virtual
+        restricted()
         nonReentrant()
     {
         // checks
@@ -333,7 +392,7 @@ contract PolicyService is
         InstanceReader instanceReader = instance.getInstanceReader();
 
         // check policy is in a closeable state
-        if (!policyIsCloseable(instanceReader, policyNftId)) {
+        if (!PolicyServiceLib.policyIsCloseable(instanceReader, policyNftId)) {
             revert ErrorPolicyServicePolicyNotCloseable(policyNftId);
         }
 
@@ -341,7 +400,7 @@ contract PolicyService is
         RiskId riskId = policyInfo.riskId;
         NftId bundleNftId = policyInfo.bundleNftId;
 
-        if (instanceReader.getPremiumInfoState(policyNftId) != PAID()) {
+        if (instanceReader.getPremiumState(policyNftId) != PAID()) {
             revert ErrorPolicyServicePremiumNotPaid(policyNftId, policyInfo.premiumAmount);
         }
 
@@ -349,18 +408,17 @@ contract PolicyService is
         // release (remaining) collateral that was blocked by policy
         _poolService.releaseCollateral(
             instance, 
-            address(instanceReader.getComponentInfo(productNftId).token),
             policyNftId, 
             policyInfo);
 
         // TODO consider to also set expiredAt to current block timestamp if that timestamp is still in the futue
 
         // update policy state to closed
-        policyInfo.closedAt = TimestampLib.blockTimestamp();
-        instance.getInstanceStore().updatePolicy(policyNftId, policyInfo, CLOSED());
+        policyInfo.closedAt = TimestampLib.current();
+        instance.getProductStore().updatePolicy(policyNftId, policyInfo, CLOSED());
 
         // unlink policy from risk and bundle
-        NftId poolNftId = getRegistry().getObjectInfo(bundleNftId).parentNftId;
+        NftId poolNftId = getRegistry().getParentNftId(bundleNftId);
         instance.getRiskSet().unlinkPolicy(productNftId, riskId, policyNftId);
         instance.getBundleSet().unlinkPolicy(poolNftId, bundleNftId, policyNftId);
 
@@ -368,32 +426,6 @@ contract PolicyService is
     }
 
 
-    function policyIsCloseable(InstanceReader instanceReader, NftId policyNftId)
-        public
-        view
-        returns (bool isCloseable)
-    {
-        // policy already closed
-        if (instanceReader.getPolicyState(policyNftId) == CLOSED()) {
-            return false;
-        }
-
-        IPolicy.PolicyInfo memory info = instanceReader.getPolicyInfo(policyNftId);
-        
-        if (info.productNftId.eqz()) { return false; } // not closeable: policy does not exist (or does not belong to this instance)
-        if (info.activatedAt.eqz()) { return false; } // not closeable: not yet activated
-        if (info.openClaimsCount > 0) { return false; } // not closeable: has open claims
-
-        // closeable: if sum of claims matches sum insured a policy may be closed prior to the expiry date
-        if (info.claimAmount == info.sumInsuredAmount) { return true; }
-
-        // not closeable: not yet expired
-        if (TimestampLib.blockTimestamp() < info.expiredAt) { return false; }
-
-        // all conditions to close the policy are met
-        return true; 
-    }
-
     /// @dev shared functionality for expire() and policyExpire().
     function _expire(
         IInstance instance,
@@ -402,93 +434,24 @@ contract PolicyService is
         Timestamp expireAt
     )
         internal
-        returns (Timestamp expiredAt)
+        returns (Timestamp)
     {
-        // checks
-        // check policy is active
-        StateId policyState = instance.getInstanceReader().getPolicyState(policyNftId);
-        if (!_policyHasBeenActivated(policyState, policyInfo)) {
-            revert ErrorPolicyServicePolicyNotActive(policyNftId, policyState);
-        }
-
-        // set return value to provided timestamp
-        expiredAt = expireAt;
-
-        // update expiredAt to current block timestamp if not set
-        if (expiredAt.eqz()) {
-            expiredAt = TimestampLib.blockTimestamp();
-        }
-
-        // check expiredAt represents a valid expiry time
-        if (expiredAt >= policyInfo.expiredAt) {
-            revert ErrorPolicyServicePolicyExpirationTooLate(policyNftId, policyInfo.expiredAt, expireAt);
-        }
-
-        if (expiredAt < TimestampLib.blockTimestamp()) {
-            revert ErrorPolicyServicePolicyExpirationTooEarly(policyNftId, TimestampLib.blockTimestamp(), expireAt);
-        }
+        policyInfo = PolicyServiceLib.expire(
+            instance.getInstanceReader(),
+            policyNftId,
+            policyInfo,
+            expireAt);
 
-        // effects
-        // update policyInfo with new expiredAt timestamp
-        Timestamp originalExpiredAt = policyInfo.expiredAt;
-        policyInfo.expiredAt = expiredAt;
-        instance.getInstanceStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
+        instance.getProductStore().updatePolicy(policyNftId, policyInfo, KEEP_STATE());
 
-        emit LogPolicyServicePolicyExpirationUpdated(policyNftId, originalExpiredAt, expiredAt);
+        emit LogPolicyServicePolicyExpirationUpdated(policyNftId, policyInfo.expiredAt);
 
         // interactions
         // callback to policy holder if applicable
-        _policyHolderPolicyExpired(policyNftId, expiredAt);
+        _policyHolderPolicyExpired(policyNftId, policyInfo.expiredAt);
+        return policyInfo.expiredAt;
     }
 
-    // TODO cleanup
-    // /// @dev Calculates the premium and updates all counters in the other services.
-    // /// Only book keeping, no token transfers.
-    // function _processPremium(
-    //     IInstance instance,
-    //     NftId applicationNftId,
-    //     IPolicy.PolicyInfo memory applicationInfo,
-    //     IPolicy.PremiumInfo memory premium
-    // )
-    //     internal
-    //     virtual
-    // {
-    //     // update the counters
-    //     _processSale(
-    //         instanceReader, 
-    //         instance.getInstanceStore(), 
-    //         productNftId, 
-    //         applicationInfo.bundleNftId, 
-    //         applicationInfo.referralId, 
-    //         premium);
-    // }
-
-
-    function _activate(
-        NftId policyNftId, 
-        IPolicy.PolicyInfo memory policyInfo,
-        Timestamp activateAt
-    )
-        internal
-        virtual
-        view 
-        returns (IPolicy.PolicyInfo memory)
-    {
-        // fail if policy has already been activated and activateAt is different
-        if(! policyInfo.activatedAt.eqz() && activateAt != policyInfo.activatedAt) {
-            revert ErrorPolicyServicePolicyAlreadyActivated(policyNftId);
-        }
-
-        // ignore if policy has already been activated and activateAt is the same
-        if (policyInfo.activatedAt == activateAt) {
-            return policyInfo;
-        }
-
-        policyInfo.activatedAt = activateAt;
-        policyInfo.expiredAt = activateAt.addSeconds(policyInfo.lifetime);
-
-        return policyInfo;
-    }
 
     /// @dev update counters by calling the involved services
     function _processSale(
@@ -528,7 +491,7 @@ contract PolicyService is
 
 
     /// @dev transfer the premium to the wallets the premium is distributed to
-    function _transferFunds(
+    function _transferPremiumAmounts(
         InstanceReader instanceReader,
         NftId policyNftId,
         NftId productNftId,
@@ -537,7 +500,6 @@ contract PolicyService is
         internal
         virtual
     {
-        TokenHandler tokenHandler = _getTokenHandler(instanceReader, productNftId);
         address policyHolder = getRegistry().ownerOf(policyNftId);
 
         (
@@ -549,58 +511,20 @@ contract PolicyService is
             instanceReader, 
             productNftId);
 
-        tokenHandler.collectTokensToThreeRecipients(
-            policyHolder,
-            productWallet,
-            premium.productFeeAmount,
-            distributionWallet,
-            premium.distributionFeeAndCommissionAmount,
-            poolWallet,
-            premium.poolPremiumAndFeeAmount);
-    }
-
-
-    /// @dev checks that policy has been collateralized and has been activated.
-    /// does not check if policy has been expired or closed.
-    function _policyHasBeenActivated(
-        StateId policyState,
-        IPolicy.PolicyInfo memory policyInfo
-    )
-        internal
-        view
-        returns (bool)
-    {
-        if (policyState != COLLATERALIZED()) { return false; } 
-        if (TimestampLib.blockTimestamp() < policyInfo.activatedAt) { return false; } 
-        return true;
-    }
-
+        // step 1: collect premium amount from policy holder
+        TokenHandler tokenHandler = instanceReader.getTokenHandler(productNftId);
+        tokenHandler.pullToken(policyHolder, premium.premiumAmount);
 
-    /// @dev checks the balance and allowance of the policy holder
-    function _checkPremiumBalanceAndAllowance(
-        IERC20Metadata token,
-        address tokenHandlerAddress, 
-        address policyHolder, 
-        Amount premiumAmount
-    )
-        internal
-        virtual
-        view
-    {
-        uint256 premium = premiumAmount.toInt();
-        uint256 balance = token.balanceOf(policyHolder);
-        uint256 allowance = token.allowance(policyHolder, tokenHandlerAddress);
-    
-        if (balance < premium) {
-            revert ErrorPolicyServiceBalanceInsufficient(policyHolder, premium, balance);
+        // step 2: push distribution fee to distribution wallet
+        if (premium.distributionFeeAndCommissionAmount.gtz()) {
+            tokenHandler.pushToken(distributionWallet, premium.distributionFeeAndCommissionAmount);
         }
 
-        if (allowance < premium) {
-            revert ErrorPolicyServiceAllowanceInsufficient(policyHolder, tokenHandlerAddress, premium, allowance);
+        // step 3: push pool fee, bundle fee and pool premium to pool wallet
+        if (premium.poolPremiumAndFeeAmount.gtz()) {
+            tokenHandler.pushToken(poolWallet, premium.poolPremiumAndFeeAmount);
         }
     }
-
-
     function _policyHolderPolicyActivated(
         NftId policyNftId,
         Timestamp activateAt
@@ -659,21 +583,6 @@ contract PolicyService is
     }
 
 
-    function _getTokenHandler(
-        InstanceReader instanceReader,
-        NftId productNftId
-    )
-        internal 
-        virtual
-        view 
-        returns (
-            TokenHandler tokenHandler
-        )
-    {
-        tokenHandler = instanceReader.getComponentInfo(productNftId).tokenHandler;
-    }
-
-
     function _getDistributionNftAndWallets(
         InstanceReader instanceReader,
         NftId productNftId
@@ -717,7 +626,7 @@ contract PolicyService is
             PRODUCT(), // caller must be product
             true); // only active caller
 
-        productNftId = productInfo.nftId;
+        productNftId = productInfo.nftId; // calling product nft id
         instance = IInstance(instanceAddress);
         policyInfo = instance.getInstanceReader().getPolicyInfo(policyNftId);