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Please call (888) 825-2242 with specific questions regarding your
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INTRODUCTION
Direct Bill lets you concentrate
on taking care of your clients and building your business. CBIC's
Direct Bill System offers a variety of flexible billing and payment
options. We've made our statements easy to read and understand so
you'll get fewer questions from clients.
This web page details many important features of
our Direct Bill system and is intended to address the more common
issues. Also included are sample statements, notices, and invoices
that you and your client should become familiar with. Remember, in
most instances, when we use the word policy in this web site, we mean
bonds also. The exception is when we discuss which bonds and policies
qualify for the Direct Bill System.
YOUR
ELECTION
Client billing generates enormous paperwork. Our goal is to assume
much of the burden so you can concentrate on building your business.
If you elect to participate in CBIC's Direct Bill Program, all bonds
and policies that qualify will be direct billed and will not appear
on your account current statement. CBIC may allow limited exceptions
to that rule for specific accounts, but you will need to contact CBIC
to make arrangements.
The following bonds and insurance policies qualify for direct bill under the CBIC Direct Bill Program:
- Contrac Pac Plus™ (includes both the bond and insurance policy) - Single pay or multi-pay
- Cancellable bonds - Single pay only
- Insurance Policies - Single pay or multi-pay
It is your responsibility to collect and forward the down payment to CBIC. All checks should be payable to CBIC. We will send you a down payment overdue reminder notice for any uncollected amounts. If the down payments are not collected and forwarded in a timely manner, then CBIC will deduct the uncollected amount from future commission payments. If no commissions are due, the amount owed will appear on your Direct Bill Agency Statement.
Payment with Application
If you have collected a payment when you obtained an application, simply send the application with a check made payable to CBIC to your local CBIC Branch Office.
Other Payments from Insureds
If you have collected other funds from insureds, send those payments to: CBIC Direct Bill Department, P. O. Box 9271, Seattle, WA 98109-0271.
Remittance
Always remit gross premium amounts (including commission). If only the net premium (commission deducted) is paid, the policy may be canceled because of an underpayment. Include the following information to assure proper credit: Account Number(if available), Policy Number and Insured's Name. ENDORSEMENTS
An endorsement will show as a separate item on your client's billing statement the first time the endorsement is billed. Endorsement charges are prorated over the term of the policy. However, if an endorsement is made on a multi-year policy, the endorsement charges are prorated over the first year of the term. The prorated amount for the period from the effective date of the policy to the next billing date will be included on the next bill. The remaining endorsement amount will be spread over future installments.
If the endorsement was issued for the prior policy period, the amount will be billed in full. If the endorsement generates a return premium, and there is no remaining balance, we will issue a check to your client as soon as the endorsement is processed by our system. AUDITS
Once entered in the system, Interim and Final Audits are billed for the full amount. The billing statement will show a separate transaction with an explanation of the item. If there is no outstanding balance due on the entire account, and the audit results in return premium, we will issue your client a check. If there is an outstanding balance, then the return premium is credited to the account. CANCELLATION & REINSTATEMENT
Notice of Cancellation will be issued to you and your insured for each delinquent policy on the account. During the cancellation process, billing is suspended pending receipt of payment. If we have had to issue two notices of cancellation on the same policy within one policy period, then the full payment of the entire unpaid balance for the policy period will be due. When the payment of the amount due is received before the effective date of cancellation, we will issue reinstatement notices to you and your client, and no lapse of coverage will occur. Payment of less than the amount due will not stop the cancellation process. If payment is received after the effective date of cancellation, policies may be reinstated only with the approval of your local CBIC branch office. After reinstatement, billing will resume. A catch-up bill will be sent if any installments were missed because of the billing suspension.
Insufficient Payment on Cancellation Notice
If your client pays less than the amount due, CBIC reserves the right to cancel the policy with no additional notice. OVERPAYMENTS
Overpayments are credited against future installments on the account. If no future installments remain, a refund will be issued. If the account has multiple policies, and the application of the overpayment is not specifically identified to a given policy, the overpayment will show as a credit on the next bill. COMMISSIONS
At the end of each month we will pay you all unpaid commissions for any: (1) policy having both an effective and entry date on or before the end of the month; and (2) endorsement that was processed during the month. Your commission will appear on your monthly Direct Bill Commission Check/Statement, itemized by name and policy number. Any return commission due CBIC because of a midterm return premium transaction will be deducted from your regular Direct Bill Commission Check. If return commission exceeds commission owed to CBIC, a Direct Bill Agency Statement will be sent to you. BILLING
There can be an unlimited number of policies on a single statement. And we can add policies at any time. Simply tell us the account number and we'll do the rest. Short term policies can be direct billed separately or added to an existing account. The minimum amount we will bill on a statement is the lesser of $25. or the account balance. Payment is due within 20 days of the bill date. If payment is not received with a five day grace period beyond the bill due date, a cancellation notice is mailed to you and your client. HELPFUL ADVICE TO YOUR CLIENT
There are a couple of important items to share with your insureds. First, let your insured know that depending on the timing of issuance and the billing plan chosen, their first bill could include more than one installment. As long as they are notified of this in advance, the element of surprise is minimized.
Second, tell you insured to pay at least the minimum due on their bill with one check and to ALWAYS include the remittance stub with their payment. Otherwise, processing could be delayed. The minimum amount due for each policy on the insured's bill is rounded up to the nearest whole dollar until the final installment. The final installment is adjusted downward to compensate for the rounding in prior installments.
PAYMENT
PLANS
The following are current payment plans available:
Pay Plan 1 - Single Payment
No down payment required. 100% of the premium is billed to the insured.
The entire premium us billed to the insured within 10 days of system
entry date. Payment due date is 20 days from the billing date. Renewal
premium is billed approximately 40 days prior to the effective date
of the policy.
Single Pay Plan Example:
|
Total Premium:
|
$1,200.00
|
|
Amount of
Bill:
|
$1,200.00
|
|
Down Payment:
|
$0
|
| Effective Date of Policy: |
7-1-99 |
| System Entry Date: | 6-20-99 |
| Billing Date: | 6-30-99 |
| Due Date: | 7-20-99 |
| Renewal Billing Date: | 5-20-00 |
| Down Payment: | $0 |
Pay Plan 2 - Nine (9) Payments, Renews to Twelve (12) Payments
A 25% down payment is required which the agent is responsible for
collecting. The remaining balance is spread equally over 9 months.
A $5.00 service fee applies to each bill. Depending on the account's
billing day, the insured is billed approximately 30 days after the
effective date of the policy. Payment is due 20 days from the billing
date. Renewal premium begins billing monthly following the final installment
of the prior policy term. Twelve equal installments are billed continuously
thereafter.
Nine (9) Pay Plan Example:
|
Amount of
Bill:
|
$1,200.00
|
|
Down Payment:
|
$300.00
|
|
Balance:
|
$900
|
| Installment Amount: |
$100.00 |
| Effective Date of Policy: | 7-1-99 |
| System Entry Date: | 7-5-99 |
| First Installment Billing Date: | 8-1-99 |
| Due Date: | 8-20-99 |
| Remaining Billing Dates: | 1st of each month |
If the renewal premium is the same, the installment amounts are the
same and monthly installments begin billing on 5/1/2000.
Please call (888) 825-2242 with specific questions
regarding your account.
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