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Billing 101
Terminology Review
| Question | Answer |
|---|---|
| Initial payment made by a customer for their policy to be initiated. | Down Payment |
| The amount of the DP paid to the Ins Co for the first days of coverage; usually 20-30 days | Automobile Insurance |
| The brokers service fee for finding the customer the correct policy | Broker Fee |
| A fee charged to process out customers documentation | Documentation Fee |
| A fee charged to split the DP in 2 if the customer can not pay it in full at once | Split Fee |
| Fee to divide the payment into monthly installments | Installment Fee |
| A fee to process a monthly payment either at a local office or via phone with a customer service representative | Processing Fee |
| A fee to process a payment after the “due date”, the amount can vary by company, some may not have a late fee. | Late Fee |
| A fee to process any changes to a policy, for example, add or remove a vehicle, add or remove a driver, change in coverage, etc. | Endorsement fee |
| Applies after a policy has been cancelled and the Ins Co allows you to reinstate the policy, a reinstatement is only valid for a certain amount of days after the cancellation date. | Reinstatement fee |
| Customer pays with a check or checking account and the payment is returned for Insufficient Funds, the Ins Co will charge the customer a returned or bounced check fee. This fee can range from $20 to $40 dollars. | Non-Sufficient Funds fee |
| A fee that is charged to a customer when they request to cancel their policy before the term expires. This is not a fixed amount and will vary from Ins Co to Ins Co. | Cancellation fee |
| When a credit card is left on file to process a payment at a later day. | Hold Credit Card (HCC) |
| When a check or checking account is left on file to process a payment at a later day. | Hold Check (HCK) |
| Customer pays cash and has a remaining balance that they would like to pay cash, they sign a PTP promising to provide the remaining balance. | Promise To Provide (PTP) |
| EFT is mainly used or seen when a customer leaves a CC on file for reoccurring payments “Automatic Payment” | Electronic Fund Transfer (EFT) |
| This is also another form of “Automatic Payment” and goes hand in hand with EFT. | Automated Clearing House (ACH |
| An amount of money a customer will have to pay in an insurance claim before the insurance coverage kicks in and begins to pay. | Deductible |
| Sometimes a customer’s policy expires or cancels, and they end up owing the Ins Co or the broker agency money, when this happens, the collections department will reach out to the customer to obtain this payment. | Collections |
| A return of an amount of money to a customer under certain circumstances, these circumstances will vary by company and situation. | Refund |
Created by:
OscarC
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