A lot of great things are happening, and they’re paving the way for a successful year end and 2026!
We recently communicated that Automatic Bank Payments for all modes (monthly, quarterly, semi-annually and annually) will now be available for selection at time of application, as well as after policies are issued.
When a new policy is issued and the client has chosen Automatic Bill Payment, the process has changed, and it will depend on whether delivery requirements are needed.
New Process
- If no delivery requirements are outstanding, the initial premium drafts immediately upon issue.
- The client’s selected draft date applies only to recurring drafts, which begin in the next billing cycle.
How Drafting Works Under the New Process
When Delivery Requirements Are Needed
- The policy is issued with delivery requirements pending.
- The initial draft occurs as soon as all delivery requirements are received, effective immediately for the coverage period from the policy’s issue date to the next billing date.
- Recurring drafts then follow the client’s selected draft day.
Example
- Issue Date: Nov 1 (coverage effective 11/1)
- Delivery requirements received: Dec 1
- Client-selected draft day: 15th monthly mode
- Initial draft: Dec 1 (covers 11/1-12/1)
- Recurring drafts: Begin Dec 15 (covers 12/1-1/1, then monthly thereafter)
When No Delivery Requirements Are Needed
- The initial premium drafts immediately upon issue.
- Coverage is placed in force right away, and recurring drafts begin on the client’s selected draft date the following month.
Example
- Issue Date: Nov 1 (coverage effective 11/1)
- Client-selected draft day: 15th
- Initial draft: Nov 1 (covers 11/1-12/1)
- Recurring drafts: Begin Dec 15 (covers 12/1-1/1, then monthly thereafter)
Our Product Guide has been updated accordingly for your reference.
Happy Selling!
#GoldenCareAgent