Direct Billing Basics
In this billing method, the insured pays the insurance company directly and the brokerage receives commission.
Question: What is Direct Billing?
This dishonored payment occurs when there is not enough money in the insured's account.
What is Non-Sufficient Funds (NSF)?
Aviva monthly payments can only be withdrawn using this type of account.
What is a pre-authorized bank account?
If billing information appears incorrect after multiple policy changes, these documents should be considered the source of truth.
What are invoice documents?
Monthly direct-bill plans must generally use this type of payment arrangement.
What is automatic withdrawal?
This is the preferred billing method because it requires less involvement from the broker.
What is Direct Billing?
This dishonored payment means funds were deposited but not yet available.
What is Funds Not Cleared?
Aviva phased out regular acceptance of this payment method in 2022.
What are cheques?
On a 3-pay plan, this percentage of premium is due on the effective date.
What is 40%?
Aviva allows policyholders to choose any of these within a month.
What is a withdrawal date?
Refunds are generally generated approximately this many days after the transaction or entry date.
What is 10 days?
This dishonored payment means the account holder requested the payment not be processed.
What is Stop Payment?
Aviva charges this fee for most NSF payments.
What is $50?
Definity allows monthly payments through these two payment methods.
What are credit card and pre-authorized bank account?
Definity bills recurring monthly payments this many days before the withdrawal date.
What is 14 days?
Missing this number of payments within a policy term typically eliminates the option for reinstatement.
What is 3 payments?
This dishonored payment occurs when an account no longer exists.
What is Account Closed?
Aviva monthly billing requires payments to begin this far before the policy effective date.
What is one month in advance?
Occasionally, Definity requires this upfront payment equal to two months of premium.
What is a down payment?
Definity allows a withdrawal-date change this many times per term.
What is a withdrawal date change?
When a scheduled withdrawal falls on a weekend or holiday, it occurs on this day.
What is the next business day?
This dishonored payment can occur when incorrect banking information is supplied.
What is Cannot Trace?
This fee is charged when an eligible Aviva policy is reinstated after cancellation for non-payment.
What is $60?
Definity's system glitch requires changing annual pay to monthly using this payment type before switching to a credit card.
What is a bank account?
A new Aviva policy becomes effective March 15, the insured wants withdrawals on the 15th, and the account could not be billed one month in advance. The insured should expect this type of first payment.
What is a double payment (and possibly a triple payment depending on timing requirements)?