OREGON MUTUAL GROUP BILLING GUIDE

Transcription

1 The Oregon Mutual Group offers two Direct Bill payment options for customers: The Account Bill option is a revolving bill plan. Policies are direct billed on an account basis. The Full Payment option is also available, however, the full premium is due with application submission and is limited to single policy accounts. This guide serves as an outline for the use of both billing options. DIRECT BILL PAYMENT PROGRAM Account Bill is a revolving bill plan. Policies are direct billed on an account basis. An Insured has the option to pay as many months' worth of installments as desired. When future installments are paid in advance, no bill is issued and no installment fee is assessed. The effective date of the first policy added to the account determines the due date for the entire account. The billing system uses that day as the monthly due date unless otherwise specified. All new business, unless added to an existing account, is automatically given a new account number. 1. Account Billing A. Eligible Policy Types (1) Personal Lines Automobile, Homeowner, Tenant Homeowner, Condominium Owner, Manufactured Home, Dwelling Fire. (2) Commercial Lines Businessowner, ISO Simplified Policies, and Countryman. Monthly reporting form and deposit premium policies are not eligible. Use the Full Payment option. (3) Umbrella policies will continue to be submitted non-bound with no down payment and are added to the existing billing account. B. Payment Options (1) Insured pay Down payment required New Business 33% for 6-month auto policies; 17% for 12-month auto policies and all other Personal Lines annual policies; 25% for all Commercial Lines policies. Installments begin 30 days after inception. (2) Mortgagee pay Full pay billed directly to mortgagee. No down payment required. (Available for Personal Lines and Businessowners) (3) Electronic Funds Transfer (EFT) Premium payments are withdrawn from a designated bank account. Personal Lines 6-month auto policies will have up to six (6) installments. The 12-month auto policies and all other Personal Lines annual policies will have up to 12 installments. Commercial Lines policies will have up to 10 installments. (a) New Business 1) Down payment (Personal Lines 6 month term 33%, annual term 17%; Commercial Lines 25%) with current effective date and completed EFT authorization form (G6026). 2) The customer selects the EFT installment due date. (b) Inforce Business 1) The Insured may request EFT by completing an EFT authorization form and attaching a voided check or by submitting an EFT authorization form with the installment stub and payment. 2) The Insured may also contact the Billing Department. (c) To Discontinue EFT The Insured may request to discontinue EFT at any time, with reasonable notice, by forwarding a written request or by calling the Billing Department with written request to follow. (d) An installment billing statement is sent to the Insured indicating the deduction amount and when modifications to policies change the amount to be withdrawn by more than $1.00. Statements will not be sent when the deduction amount remains the same. October 2007 Page 1

2 DIRECT BILL PAYMENT PROGRAM (Cont.) C. Due Dates (1) The due date is the effective date of the first policy placed on the account. (2) The due date may be changed after payment of the minimum due on the current invoice and prior to the Company mailing the next invoice. This may be requested by the Insured or agent, in written form or by calling the Billing Center. (3) Calendar days 1 through 28 are the only eligible due dates. D. Fees (1) Installment Fees (a) Personal Lines 1) The installment fee is $5.00 for Oregon Mutual and Western Protectors Preferred (automobile and property). 2) The installment fee is $7.00 for Western Protectors Special Automobile (nonstandard program). (b) Electronic Funds Transfer (EFT) No installment fees are assessed. (c) Commercial Lines The installment fee is $5.00. (d) Combination Accounts 1) The fee on accounts containing both personal and commercial policies is based on the commercial fee guidelines. 2) The fee on accounts containing both Oregon Mutual and Western Protectors Preferred and Western Protectors Special Automobile policies is based on the preferred fee guidelines. (2) Late Fees A late fee of $7.25 is charged to the next installment for payments not received by the due date. 2. New Business Down Payment A. Personal Lines A down payment is required when application submitted; 33% for 6 month policy term, 17% for 12 month policy term. B. Commercial Lines A 25% down payment is required with request to issue. If the required down payment is not received with the request to issue, it will be billed directly to the Insured. C. Umbrella Policies (1) No down payment is required with umbrella applications. (2) The down payment for an umbrella policy will be billed to the Insured when the policy is issued. Page 2 September 2004

3 DIRECT BILL PAYMENT PROGRAM (Cont.) 3. Payments A. Minimum Due (1) This is the smallest payment needed to keep the account current. (2) The minimum due must be paid in all cases to keep coverage in force. (3) Premium changes processed after the statement cut-off date are applied toward future installments. B. Overpayments Payments in excess of the minimum due are applied to future installments. When future installments are paid in advance, no invoice is sent and no installment fee assessed. C. Partial Payments (1) If the account has an outstanding invoice or is in the grace period (Status B or C), payments which are short more than $15 are accepted and applied to the account. If the required minimum payment is not received by the end of the grace period, a provisional cancellation notice is mailed to the payor indicating the minimum due to keep coverage in force. (2) If the payment is less than $9 to $15 short of the minimum due, the money is accepted and the difference is billed on a future invoice. D. Late Payments (1) If the minimum amount due is not received by the end of the grace period (Status C), a provisional notice of cancellation is sent to the payor. (2) If payment is not received by the date noted on the provisional notice of cancellation, all policies on the account are cancelled. (3) Payments received after the cancellation effective date (end of Status D) are applied to the balance owing. E. Non-Sufficient Funds (NSF) Checks (1) A provisional cancellation notice is sent immediately upon receipt of an NSF check. (2) A $15.00 NSF fee is charged. (3) Replacement payment must be in the form of a money order or cashier's check. F. Credit Card Payments (1) Payments can be made for active accounts using a major credit card on our automated billing inquiry phone system by calling or at our web-site (2) Payments can be made for cancelled or inactive accounts using a major credit card by calling the billing department at Account Billing Changes A. Adding a new policy (1) When adding a new policy to an existing account, include the account number or supporting policy number on the new application or request to issue. Down payment is required. (2) If the payor is other than the named Insured (not mortgagee), also include the payor's name. (3) For mortgagee pay, only 1 policy per account is allowed. September 2004 Page 3

4 4. B. Combining existing accounts (1) Existing accounts may be combined when the account to be added is in Status A (Exception: 4.A. (3) above). (2) Contact the Billing Department to combine billing accounts. C. Changing Due Dates Contact the Billing Department to change due dates. D. Changing Bill Plans (1) May only be done when the account has no outstanding invoices. (2) Contact the Billing Department to change billing plans from: (a) Insured pay to mortgagee pay; (b) Mortgagee pay to insured pay; (c) Insured pay to EFT; (d) Deletion of mortgagee when mortgagee pay, (Regional Office will delete mortgagee on policy system and forward to Billing Department); and (e) Change of mortgagee when mortgagee pay. 5. Policy Premium Changes (Policies can be endorsed at any time except when the account is overdue.) A. Single Term Endorsements (1) Additional premiums are distributed over the balance of the policy term. (2) Return premiums are distributed over the balance of the policy term reducing future installments. If as a result of the return premium, all account balances are paid, a return premium check is sent to the Insured. B. Old Term, New Term Old term premium changes are billed or credited in full on the next installment. The new term premium changes are spread over the balance of the policy term. C. Audits Billing of audits is determined by the bill plan selected by the insured. 6. Renewals A. When the premium is paid utilizing the installment plan for Personal Lines policies, the final payment for the current policy term is billed with a due date approximately one month before the term's expiration date. For Commercial Lines policies, the final payment for the current policy term is billed with a due date approximately three months before the term's expiration date. B. The first installment of the renewal term is included on the first invoice falling on or after the renewal term effective date. A down payment is billed for renewals; Personal Lines: 30% for 6-month policies, 15% for 12-month policies; Commercial Lines: 25%. C. Mortgagee pay policies are renewed and billed to the payor 28 days prior to the expiration date of the old term. Payment is due by the new term effective date. Page 4 September 2004

5 DIRECT BILL PAYMENT PROGRAM (Cont.) Full Payment is required if a customer is ineligible for the Account Bill option based on past payment trends or payment history. The Full payment option may also be used in cases where the insured no longer meets renewal eligibility requirements however renewal is mandated by state statute. 1. Full Payment Option A. All Personal Lines and Commercial Lines policies are eligible for this pay plan option. B. Monthly reporting form and deposit premium policies will be billed using the Full Payment option. 2. New Business Down Payment Full payment is required with submission of the application. When full payment is not submitted with the application, the insured will be billed for the remaining balance immediately after policy issuance. 3. Due Dates The due date is the effective date of the policy, however, calendar days 1 through 28 are the only eligible due dates. 4. Installment, Late and NSF Fees Installment, Late and NSF fees are not applicable when the Full Payment option is used. 5. Non-Sufficient Funds A. A provisional cancellation notice is sent immediately upon receipt of a NSF check. B. Replacement payment must be in the form of a money order or cashier s check. 6. Renewals The insured will be billed for the full policy premium with full payment due by the new term effective date. 7. Endorsements A. The insured will be billed for the full amount of any additional premium as a result of a policy change. B. When a reduction in premium results, a return premium check is sent to the insured. General Direct Bill Information 1. Duplicate Bill A. A duplicate bill may be generated for the Insured upon request. B. The duplicate bill is a copy of the last open outstanding invoice. C. Policy activity occurring between the previous installment and the next billing date is not reflected on the duplicate bill. D. Contact the Billing Department to request a duplicate bill. 2. Direct Bill Information Direct Bill customer billing information is available to agents and insureds by calling the Billing Department at or, for the hearing impaired, TDD Detailed information is available by account or individual policy. September 2004 Page 5

6 DIRECT BILL INFORMATION (Cont.) 3. Billing Cycle Status A Policy active, no outstanding invoices. Day 0 Status B Policy active, invoice issued and outstanding. Day 1 to 16 Status C Grace period - invoice unpaid by due date. Day 17 to 21 Status D Cancel notice sent - account in "lapse". Day 22 to 36 DAY 1 Invoice Issued DAY 16 Payment Due Date DAY 21 Lapse Date DAY 36 Cancellation Effective Date STATUS A STATUS B STATUS C STATUS D No Outstanding Invoices Outstanding Invoice Grace Period Account Overdue Day 1 Day 16 Day 21 Day 36 Note: Invoice Issued. Payment Due Date. "Lapse Date" - provisional cancel notice sent - no further AP/RP endorsements allowed. Late fee assessed. Cancellation effective date if payment is not received. Example for account in current status. Due date remains the same each month. Accounts paid late will receive a shorter time between invoice date and due date. 4. Cancellations Other Than Non-Payment A. In the event the Insured or the Company elects to terminate a single policy on an account, cancellation is computed on a pro-rata basis. B. Any return premium is distributed over the balance of the account. (Exception: return premium for full pay accounts is sent by check to the Insured.) 5. Reinstatements To request reinstatement, contact your underwriter to determine eligibility and amount of money required. 6. Declined Policies Personal lines and BOP policies are issued, then cancelled. A. The Billing System generates a return premium equal to the down payment less any earned premium. A check is mailed to the Insured within 5 business days. B. If the down payment is not adequate to cover the earned premium on the cancelled policy, the Billing System generates an invoice for the earned premium due. Page 6 September 2004

7 Exhibit A BILLING STATEMENT Account information appearing on monthly account statements is identified by bold headings, i.e. Due Date, Minimum Due, etc. All account activity including renewals, policy changes, applicable fees and payments made is explained in the Account Activity section. September 2004 Page 7

8 Exhibit B PROVISIONAL NOTICE OF CANCELLATION The provisional notice of cancellation lists all policies currently billed on the account and identifies the effective date and time of cancellation if payment is not received. The due date and minimum due necessary to keep coverage in force is clearly indicated on the statement. If the minimum due is not received at the Company by the due date, all policies are cancelled effective the date indicated on the notice. Page 8 September 2004

9 Exhibit C FINAL STATEMENT Account information appearing on monthly account statements is identified by bold headings, i.e. Due Date, Amount Due, etc. All account activity is explained in the Account Activity section. Payments by credit card can be accepted for balances due after cancellation. Complete information and return for processing. Unpaid balances are subject to referral to a collection service. September 2004 Page 9

10 Exhibit D REFUND STATEMENT All account activity including renewals, policy changes, applicable fees and payments made is explained in the Account Activity section. A refund check is issued to the insured for the current balance. Page 10 September 2004

11 Exhibit E AUTHORIZATION FOR AUTOMATIC DEBIT Checkless Payment Plan Authorization 1. Complete customer's name, phone number, and current policy or account number. If new business, under policy number indicate new application. Include your agency name and number. 2. Check all boxes that apply. 3. Check one box. 4. Select day of month payments are to be deducted. (1st through the 28th) 5. Complete financial institution information when new or if a change. 6. Insured's signature and current date required. * Forward completed form and customer check indicated in Step #3 to OMI Billing Department or include with application if new business. September 2004 Page 11

12 Exhibit F ELECTRONIC FUNDS TRANSFER Account information appearing on monthly account statements is identified by bold headings, i.e. Deduction Date, Deduction Amount, etc. All account activity including renewals, policy changes, applicable fees and payments made is explained in the Account Activity section. Page 12 September 2004