A. Both Direct Bill and Agency Bill can be set up on installments, with monthly billings being sent directly to the insured.
Q. How are commissions handled?
A. Commission is posted up front on your statement after the down payment is received. If we do not have the down payment, the record cannot be updated.
Q. Can the insured pay off their installment account early without incurring additional installment fees?
A. Yes, if the insured’s premium is on the installment plan, they can pay off the account at any time without penalty. No additional installment fee
will be added once the premium balance is received.
Q. When is the first installment payment due?
A. The first installment is due one month after policy inception.
Q. Are there alternative payment methods such as ACH, Credit Card, Pay by Phone, etc?
A. Currently we are not set up to accept electronic payments. We are analyzing our options and hope to have some good news for you in the near future.
Q. When would the company require early payoff on the installment program?
A. If we send a third Notice of Cancellation for non-payment of an installment during the policy term, the balance of the premium is required by the
effective cancellation date in order to reinstate. This is noted on the reverse side of each of the monthly billings.
Q. How are endorsements handled?
A. Additional and return premium endorsements will be reflected on the next billing generated. Please note that we do not send out revised billings
for endorsement transactions. If a bill was generated prior to processing the endorsement, the next bill will reflect the endorsement transaction.
Q. When will the installment credit/debit appear on my statement for the endorsement?
A. We will post a credit/debit for the endorsement transaction to your statement when we bill the insured for the transaction.
Q. When is the down payment due on new business?
A. 20% down payment is due on new business within 10 days of the effective date of the policy.
Q. What if the insured’s down payment is returned by the bank?
A. On new business, if the down payment is returned by the bank as unpaid and replacement is not received, your agency statement will be charged the
earned premium if the policy cancels.
Q. What happens if the insured requests renewal without submitting payment?
A. If the insured does not submit the appropriate down payment with their renewal request, a “No Coverage Bound” letter will be sent to the
insured, and a copy to your agency, informing you that we need the down payment by the renewal date.
Q. Can we have outside finance policies on Direct Bill?
A. No, outside financing is not allowed on Direct Bill policies.
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