When accessed from the Billing Link (My Navigator Tree View) on a policy, the Pay Plan Detail screen is a display only screen that provides detailed information on the Pay Plan selected for the policy.
Use the following instructions to view the Pay Plan Detail screen:
Access the insured's policy.
Choose the Billing link (Quick Links Tree View).
From the Account Information screen, select the Pay Plan link under the Pay Plan heading. This opens the Pay Plan Detail screen.
Return: Exits the screen; goes back to the Account Information screen.
Description: Description of the Pay Plan (e.g., Annual Pay, Semi-Annual, Quarterly, Monthly EFT, etc.).
Billing Pay Plan Type: Determined by the type of Pay Plan selected (e.g., Installment Bill, etc.) Options include:
0 = Installment Bill
1 = EFT / Credit Card
3 = Payroll Deduction
Payment Type: Shown only if "Billing Pay Plan Type" is 1 + EFT / Credit Card; indicates this is an "EFT" or "Credit Card."
Pay Plan Usage Type: Used to determine if the Pay Plan is available for selection on New Business and Renewal. Options include:
1 = New Business and Renewal
2 = New Business
3 = Renewal
Internal Description: User defined description for internal purposes and identification.
Pay Plan Abbreviation: User defined abbreviated Pay Plan Name.
Endorsement Option: Type of endorsement billing option used for a Pay Plan. Used to determine if the amount due now on an endorsement is billed immediately or spread out among the remaining installments. Options are:
1 = Bill endorsement. Due now immediately.
2 = Spread endorsement. If an endorsement transaction causes any additional or return premium to be generated, these amounts are spread out over the remaining installments. Charges and credits are never billed immediately unless a policy does not have any future installments. (Note: For Endorsement Option 2 Pay Plans Only! There is a system setting, "Suppress Printing on No Bill Endt," in the Billing folder in the DiamUI System Editor which can be set so that invoices are suppressed from printing when an endorsement occurs on a policy having an Endorsement Option 2 Pay Plan. For example, when nothing is charged on endorsements - endorsement to bill in the future lines are generated - then invoice print events are suppressed, even when an amount is outstanding. Without this set to "1," if an amount was outstanding prior to the endorsement, then the invoice would be triggered / printed.)
3 = Bill Endorsement "Due Now" immediately for all Pay Plans. If an Endorsement transaction causes any additional or Return Premium to be generated, these amounts will billed immediately as due now for all Pay Plans, including automated Pay Plans. The difference between Endorsement Option 3 and Endorsement Option 1 is that any changes in premium resulting from a midterm transaction are spread to a special installments for automated Pay Plans with Endorsement Option 1. Endorsement Option 3 will bill these immediately.
5 = Additional Premium endorsements are spread to future installments (similar to Endorsement Option 2) and return premium endorsements are added to the Billing Statement Display screen immediately (similar to Endorsement Option1).
6 = When down payment is received at the time of Endorsement, payment credit will first apply to the "Due Now" portion and the remaining outstanding premium will be spread evenly among future installments.
Billing Basis: The method / type of premium being billed on the policy.
1 = Written premium bill. Installment amounts are generated from written premium. For example, a 12 pay (12 months) policy will have installment amounts that are equal to WP / 12. If an endorsement occurs halfway through the term, the installments will be recreated based on the “WP / 12” rule, and the endorsement premium is the difference between what should have been billed on installments (already rolled) minus what has already been billed on those installments. This usually results in a higher endorsement premium.
2 = FTP Bill. Installment amounts are generated based on full term premium. On new business policies, since FTP = WP, this is inconsequential. However, in the example above, if an endorsement is processed halfway through the term, the remaining installments are based on “FTP / 12.” The endorsement premium will be equal to what should have been billed on installments that have already rolled (FTP / 12 for each) – (FTP-WP) – what has already been billed. This results in a lower premium than when using Billing Basis is 1 but higher, future installments.
3 = Annual basis. The installment amounts are calculated using the annual premium. It is very similar to FTP Bill, except for short - term policies where the premium annual field is the true annual premium amount.
Endorsement Due Days: Endorsement due days; used to determine the number of days to allow when billing for endorsements.
Spread Additional Within Days: Specific to Endorsement Option 5. Endorsement Option 5 allows additional premium to be spread (like Endorsement Option 2) but to put any return premium on the Billing Statement Display screen (similar to Endorsement Option 1). This is the number of days.
Renewal Billing Option: Type of Renewal Billing Option. Options include:
N / A
1 = Flat Expiration Renewal. This option cancels the policy back on the renewal effective date when the renewal invoice has not been paid. It ONLY occurs if the policy’s carry date is the renewal effective date. If any other amount from the prior policy term is outstanding, the policy then goes into a normal cancellation for non-payment. Otherwise, a "Renewal Reminder Notice" and a "Renewal Expiration Notice" are generated and show on the Futures Tab. The Renewal Reminder Notice goes out according to the number of days set in the "Reminder Notice Days" field in Pay Plan Set Up. The Renewal Expiration Notice goes out (if the renewal installment has not been paid) on the renewal effective date and the policy cancels effective on the renewal date as well. The cancel reason shows as "Policy Expired" on the History screen.
2= Flat Cancellation Renewal. This option cancels the policy back in time to the renewal effective date when the renewal invoice has not been paid. It ONLY occurs if the renewal invoice amount is the only amount outstanding. If any other amount from the prior policy term is outstanding, the policy then goes into a normal cancellation for non-payment. Otherwise, a ""Renewal Reminder Notice"" is created in the Futures Tab in addition to the legal notice, and a final flat cancellation notice. When the policy reaches the final cancel date, the policy cancels ""back"" to the renewal effective date. The cancel reason shows as ""Non Taken Renewal"" on the History screen.
3 = This is used for all Pay Plan configurations. This option cancels the policy back in time to the renewal effective date when the Renewal Invoice has not been paid. It will cancel back flat if a policy has a renewal bill sent, even if there is prior term premium. If a renewal bill has not been sent, the policy will follow non-pay cancellation rules.
Renewal Reminder Notice Option: Type of Reminder Notice Option. This is used only when the Renewal Billing Option is set to: “1 - Flat Expiration Renewal” or “2 - Flat Cancel Renewal.” This determines if a Renewal Reminder Notice is sent. The notice is sent when a renewal is issued on a policy having no balance on the current term. Options include:
0 = Do not send Reminder Notice
1 = Send Reminder Notice. If sent, it is displayed in the Futures Tab in Billing.
If using the Flat Expiration Renewal Option and a Reminder Notice is sent, a Legal Notice is not sent. The Reminder Notice is sent in its place.
Renewal Expiration Notice: Determines if a Renewal Expiration Notice is sent. Used only when the Renewal Billing Option is set to: “2 - Flat Cancel Renewal.” Determines if a Renewal Expiration Notice is sent. The notice is sent when a renewal is issued on a policy having no balance on the current term. Options include:
0 = Do not send Renewal Expiration Notice.
1 = Send Renewal Expiration Notice. When this option is set, the notice generates on the Renewal Effective Date. If sent, it is displayed in the Futures Tab in Billing. If this is not set to "1" when Renewal Billing Option equals "1" (Flat Expiration Renewal), a policy will never expire or cancel. The Reminder Notice will not roll from the Future tab (Billing Statement Display screen).
Note: If using the Flat Cancel Renewal Option and a Reminder Renewal Expiration Notice is being sent, a Final Cancellation Notice is not sent. The Reminder Renewal Expiration Notice is sent in its place.
Renewal Reminder Notice Days: Used with the Renewal Reminder Notice Option; notice generates on the Reminder Notice Day PRIOR to the Renewal Effective Date.
New Bus Renewal Lead Days: Additional number of days added to the number of Invoice Due Days for the first installment on New Business or Renewals only.
Pay Dividends: This is used to determine if your company will pay a dividend to a policyholder at the end of a policy term. When the field contains a check mark, a dividend is applied to the first installment of the next renewal term OR is refunded to the policyholder upon cancellation of the policyholder. If an endorsement occurs, the system will recalculate the dividend amount and, if needed, a debit "Dividend Adjustment" will occur.
Use Due Days On Late Renewal Entry: With Renewal Option 2 policies, if a renewal is issued later, then it uses the Invoice Days to calculate the Due Date rather than the renewal effective date.
Renewal Threshold %: Only available for those Pay Plans with Renewal Options 2 and 3. A field to maintain the amount to renew and a flag to indicate renewal cancellations is in the Accounts Receivable. Here's how this works:
When the Renewal Cancellation flag is set to "True," and a partial payment is made that is> or = the percentage of the amount to renew, the system will not set the Cancellation Effective Date to the Effective Date of the policy and the policy will not cancel flat for lack of renewal payment. Diamond will set the Cancellation Effective Date based on the Cancellation Option logic.
The Renewal Cancellation flag will be set to "False" when the amount paid matches the saved amount to renew, then the system will use the Cancel option criteria to determine the Cancellation Date.
A script will be run for Renewal Option 2 and 3 policies to set the Amount to Renew and Renewal Cancellation fields for the Accounts Receivable. For policies where the option is no longer valid, the amount will be set to $1.00 so that the option will no longer be considered. New Renewals will set the correct amount in the field.
The Amount to Renew is also added to the Print XML for policies using Renewal Options 2 and 3.
Cancel Option: Used to determine if the Pay Plan generates cancellations for non-payment of premiums or not. Options include:
0 = Do not generate cancellation for non-payment
1 = Generate cancellation for non-payment of premium using the settings in the CANCELDAYS field. The cancel date will be the greater of the Due Date + CANCELDAYS or the CARRYDATE
2 = Generate cancellation for non-payment of premium using the settings in the CANCELDAYS field. The cancel date will be the invoice Due Date + CANCELDAYS. The CARRYDATE id is not considered.
3 = Generate cancellation for non-payment of premium using the settings in the CANCELDAYS field. The cancel date will be the greater of TDATE + LNOTDAYS or the CARRYDATE. This option also changes the way DUEDATE is calculated to be the lesser of DUEDATE + CANCELDAYS or the CARRYDATE
4 = Generate cancellation based on saved Due Days. Diamond will need to capture all due dates and Legal Cancellation Dates generated from transactions so the insured must pay each invoice before pushing the invoice date forward. This keeps the policy in equity. (See Appendix B: Legal Cancellations.)
5 = The calculation of
the Due Dates and Cancel Dates with this Cancel Option are:
A). Calculated Due Date = Policy Eff Date + Due Days for each installment,
and B). Cancel Date = Due Date + Cancel Days. A new field, "due
date variance days," was added with this option. This field is
used to indicate how much time that the system slides the Due Date
based on how late the policy is issued, to legally comply with the
amount of time required between the Invoice and the Legal Notice of
Cancellation.
If Calculated Due Date (noted above) minus the system date is less
than 5, then the Due Date for the installment (s) in question only
will be the system date of plus "5." The Cancel Date will
still be Due Date + Cancel Days.
Cancel Days: Non-payment cancellation days. Number of days between Invoice Due Date and the Non-Payment Cancellation Date.
Cancel Delay: Determines the number of days to delay a policy's cancellation during End of Day Processing. This is used mainly to allow for lead - time.
Minimum Cancel Balance: Amount equal to or less than when a policy is canceled.
Legal Notice Option: Determines if a Pay Plan sends Legal Notice of Cancellations for non-payment of premium. Options include:
0 = Do not send Legal Notice of Cancellation
1 = Send Legal Notice of Cancellation
2 =Send Filing Based Legal
Notice of Cancellation (For SR22 and SR-26).In the "Other Options"
section of the Pay Plan screen, there are three (3) combo boxes.
Filing Type: 0 = No State Filing
Option, 1 = Calculate Notice Dates based on SR22/26 Filings or 2 =
Calculate Notice Dates Based on State Filings.
Filing Cancel Days: Numeric
value; work same as regular Cancel except these are applied when a
state or federal filing is applied to a driver.
Filing Notice Days: Numeric
Value; works same as regular Legal notice Days except these are applied
when a state or federal filing is applied to a driver.
Legal Notice Days: Number of days prior to the Cancel Date a Legal Notice of Cancellation prints.
Rescission Option: Determines whether or not the Pay Plan sends a Rescission Notice. Options include:
0 = Do not send Rescission Notice
1 = Send Rescission Notice
2 = Only send Rescission Notices when the carry date after the payment / policy transaction is greater than or equal to the next installment roll date.
3 = Send Rescission Notices Based on Notice Amount.
Rescission Days: Number of days used to determine when a Rescission Notice should generate.
Generate Legal on
NSF: Options include:
0 = N/A No Legal Notice Option is enabled for NSF Adjustments.
1: Generate Legal on NSF, Disregard Carry Date – When a NSF occurs, a Legal Notice of Cancellation will be generated that day regardless of the Carry Date. The Final Cancel Date will be calculated by adding Legal Days to the System Date. This is the same option as before when the Generate Legal Notice on NSF check box was checked.
2: Generate Legal on NSF, Consider Carry Date – When a NSF occurs, the Carry Date will be considered against the Final Cancel Date calculated from adding Legal Days to the System Date. If the Carry Date is greater, then that will become the Final Cancel Date and the Legal will be calculated accordingly. If it is not, then the Legal Notice will be generated that day, and the Final will be calculated by adding Legal Days to the System Date.
Invoice Due Days: Number of days when an invoice is due.
Minimum Invoice Amount: Amount equal to or less than when an invoice is not generated.
Lead Days: Additional number of days to add to due days for the first installment only on New Business or Renewals. This field is designed for use with New Business or Renewals that are being issued well in advance of their effective dates.
Invoice No Print Days: Numeric; user entry. When set to a numeric value other than “0,” this option prevents an Installment Notice from being printed. When an installment rolls, if a Legal Notice is ready to be sent within the Invoice No Print Days, End of Day prevents the Installment Billing Notice from printing. Otherwise, the insured would see an Installment Notice immediately followed by a Legal Notice of Cancellation, which would be quite confusing. This option should be used with a Pay Plan having a high number of installments.
Generate Legal Notice On NSF: Determines if a Legal Notice of Cancellation is generated on an NSF; checked = Yes and unchecked = No. Important Note: This option can only be used with Cancel Option 1.
Print Refund Checks: Used with EFT Pay Plans. If a company wishes to print their refund checks rather than have the refund processed through EFT by default, this option should contain a check mark.
Invoice Reminder Notice: For installment billed Pay Plans, this is used to configure a Reminder Notice.
0 = Do not sent a Reminder Notice
1 = Send reminder Notice
Invoice Reminder Notice Days: If the Invoice Reminder Notice field is set to "1," the number entered here sets the number of days between the due date and the final notice of cancellation / equity that would then send out the Reminder Notice. (Example: If the final date of cancellation / equity date is greater than the configured number of days from the due date, a Reminder Notice is generated.)
Spread Pay Plan Changes: For Pay Plans using Endorsement Options 1 and 2. When making a Pay Plan Change, this is used to determine how to spread the billed amount from the Pay Plan Change and leave the outstanding amount open.
Endorsement Option 1: It will be put on the next installment.
Endorsement Option 2: It will be spread equally.
Suppress Invoice on Cancels: Placing a check mark in this field determines if invoices will be suppressed on cancelled policies.
Suppress if Cancel Is After This # of Days: If the Suppress Invoice on Cancels field contains a check mark, the number entered here represents the number of days AFTER the cancel date that invoices will start being suppressed. If this is zero (0), the invoices will be suppressed with the cancellation.
Billing Installment Interval: Period of time from the time an invoice is generated until it is due.
Rounding Option: Numeric indicator identifying rounding options for installments:
0 = No Rounding
1 = Round Installments Down
2 = Round Installments Up
Number of Installments: Number of installments billed for the policy.
Calculate Installment Due Dates From Eff Date: If checked, installment due dates are calculated based on a policy's effective date.
Calculate Installment Due Dates From Exp Date: If checked, installment due dates are calculated based on a policy's expiration date.
Keep First Installment within Term: When checked, if the deduction date is changed on a policy, this setting will set the first installment to be due after the policy effective date if the deduction date is less than the effective date of the policy.
Variable Down Payment: This indicates whether a Pay Plan is a variable down payment Pay Plan. If it is, down payment and installments will be calculated based on equity depending on the user selected due date. The user will provide a desirable due date and based on the due date, the system will calculate the necessary down payment.
Variable Equity Days: Number of extra equity days from the equity date to calculated cancellation date.
Variable # Days for Installment 2: Minimum number of days from the effective date that installment 2 can be due.
Collection Notice Option: Combo box; user select. Determines if the Pay Plan uses premium collections (i.e., collections on outstanding balances for cancelled policies will be pursued.)
0 = Do Not Send a Collection Notice
1 = Send a Collection Notice
Collection Notice Days: This is a user defined number of days between when the policy cancels and the Collection Notice generates during End of Day Processing.
Collection Waive Days: This is a user defined number of days when a Collection Notice generates and when an outstanding balance on a cancelled policy is waived.
Minimum Collection Amount: User defined; full minimum dollar amount to generate Collection Notices.
Automatically Waive Balances on Policies in Collection: Select to place a check mark in this field. This is used with the Collection Waive Days option. This indicates whether the company wants to automatically waive balances at End of Day after the number of days indicated in the collection waive days has passed.
Initial Service Charge: Indicates the type of policies receiving an initial service charge (e.g., New Business, Renewals, etc.) Options include:
0 = No initial service charge
1 = New Business and Renewals
2 = New Business only
3 = Renewals only
Late Fee: A miscellaneous charge. When a Legal Notice rolls, this charges a fee. This fee automatically generates, based on configurable Pay Plan settings, when a Legal Notice rolls. The amount of the fee, and whether or not to apply it, must be configured at the Company / State / Line of Business / Pay Plan level. When applicable, the fee then displays on the Legal Notice, included as part of the amount due.
NSF Fee: Dollar amount to charge for Non-Sufficient Funds.
Roll Only One Schg: Determines if the Pay Plan only rolls one (1) service charge.
Suppress Initial Schg If Balance Less Than Minimum Invoice Amount (For: New Business, Renewal, Cancel / Rewrite, Rewrite and ABT Rewrite Policies): This determines if a company does not want to charge an initial service charge on any types of the policies listed above when the policy has a balance less than minimum invoice amount.
Roll Only One Mchg: Determines if the Pay Plan only rolls one (1) miscellaneous charge.
Spread Mchgs By Installment Percentages: Charge a portion of the miscellaneous charge on each installment.
Credit Schgs When Canceling Future Renewals: If checked, this indicates that service charges are to be credited when canceling a "Future" renewal on a policy.
Credit Mchgs When Canceling Future Renewals: If checked, this indicates that miscellaneous charges are to be credited when canceling a "Future" renewal on a policy.
Credit Card Decline
Notice Option: This is only
displayed if the "Payment Type" = "2 - Credit Card.
Used to determine if a Credit Card Decline Notice is sent or not:
0 = Do not send Credit Card Decline Notices
1 = Send
Credit Card Decline Notices
Credit Card Decline
Notice Days: If the Credit
Card Decline Notice option is set to "1" (Send Credit
Card Decline Notice), the numeric value entered here defines the
number of days a Credit Card Decline Notice is sent.
Special Note on the Credit Card Decline Function: For the Credit Card Decline function to process correctly, the Credit Card Decline Notice Option must be set to “1.” A Credit Card Notice will then be sent prior to a Legal / Final Cancellation Notice. Once this option is set to “1,” the number of days must then be set in the Credit Card Decline Notice Days field. When entering a numeric value here, this must be set to a value that is greater than the Legal Notice Option Days when the Send Legal Notice of Cancellation option value is set to “1.” Finally, to prevent a policy from drafting on a Credit Card that has been declined, the Cancel Option should also be set to any one of the cancel options.
Lead Days: This is the additional number of days to add to due days for the first installment only on New Business or Renewals. This field is designed for use with New Business or Renewals that are being issued well in advance of their effective dates.
Print Refund Checks: Used with EFT Pay Plans. If a company wishes to print their refund checks rather than have the refund processed through EFT by default, this option should contain a check mark.
Create Special Installment on EFT Spreads: Used with EFT Pay Plans When selected, a special installment is created for policy transactions that occur sufficiently far from the next open EFT installment.
EFT Special Installment Days: This is used to indicate the number of days the date of a transaction must be before the next open EFT Installment to allow for special installment creation; used when "Create Special Installment on EFT Spreads" is enabled.
Options included here allow new thresholds for Legal and Cancel Days in the Pay Plans for the "initial" days of the policy's term. This will let your company cancel a new business policy as soon as it is legally possible when underwriting conditions indicate that this is no longer a viable contract for insurance.
0 = No State Filing Option
1 = Calculate Notice Dates based on SR22 / SR26 Filings
2 = Calculate Notice Dates based on State Filings.