Best practice in regards to service contracts transferring from one party to another after an IB own

Currently in my company's Oracle instance, the service contract coverages are setup for Transfer.  This is setup for both Warranty and all other non-Warranty coverages.  So when an IB ownership change occurs, any active contract terminates the covered product line for that serial number, and will create a new contract, under the new owner, for the serial number.  The profile, OKS: Raise Credit Memo for Install Base Transactions is set to No.  After discussing with my business users, we are looking to change the Transfer flag to 'Terminate' for all coverages except for Warranty.  Warranty we would leave as Transfer.