If you have policies in the platform that are on monthly pay, and you are switching the premium finance to Valet Finance OR there is another change like the interest % is increased, the customer will need to accept a new premium finance agreement (PFA) when the renewal comes through.

 

This is the process for this:

 

 

At the same time as the renewal is received in the platform, a PFA Activity is created, requesting the customer reviews and accepts, to allow monthly payments to continue.

The PFA activity will be Open, under Customer Care column, Unassigned and it reads as follows:

 

 

 

The Payments section will show monthly payments.

The Method will display as Manual payments, until the PFA is accepted by the customer.

Whatever the Active payment method is will be one that the payments are collected from, once terms are accepted.

Like here:

 

The customer will also receive an email to request the premium finance agreement (PFA) is signed. 

Here is example of that email:

 

 

• You can see above that the customer has a link to click which will open the PFA. (Open Terms).
• This link is valid for 7 days.  After that point the link will need to be resent, for the customer to be able to accept it. 
• When the customer clicks on the link within the email, the PFA document opens, allowing the customer to review and sign/accept.
• Once accepted, this will be reflected in bond by updating the PFA activity.
• The open PFA activity will close (the activity note updates with confirmation of the time and date the customer did it). That activity holds the signed PFA as an attachment.

 

The payments in the Payments screen of bond will also display as Manual Payment UNTIL the PFA is accepted by the customer. 

Whatever payment method is the Active one on file, is the one that payments will continue from if the customer accepts.

 

 

 

• Go to the open activity that is waiting for the PFA.
• Use the ellipsis (3 dots icon) to open the actions.
• Resend PFA Email, shown here:

 

 

Because the Resend PFA email action has been selected,  the link within that email is valid for another 7 days.

 

 

 

• The customer would open the email link or view the link in pocket.
• At the bottom of the PFA is Accept or Decline.
• If they select Decline, they are stating that they do not accept the terms of the PFA.
• They will immediately see a screen message to confirm the following:

 

 

A PFA activity in bond will update to include the below wording that the customer did decline it, and advise the need to contact the customer for their payment method, shown here:

 

 

The activity will be open so that it is visible to the broker.

In the Payments section, the payments remain as monthly BUT method will revert to Manual Payments. (No payments will auto process).

An additional, informational, activity will be created to remind the broker to contact the insured to confirm if they declined the PFA in error or if it was intended and they would like to pay annually.

 

This is the point that you can discuss with your customer what payment method they would like to use and if they wish to annually pay.

• Switch the Payment Frequency to Annual pay, if required.
• Please change the payment date at this point, if required.
• You can continue to change the payment method too, if required.

 

 

 

If the customer did NOT intend to decline the PFA (or changed their mind) you can use a link in the PFA activity to resend this to your customer, like here:

 

 

The customer will get a new email with a link to, again, accept the terms and this will enable the PFA to be reviewed and, when accepted, allow monthly payments.

The link is valid for 7 days each time it is sent.

 

Here is the verbiage:

 

 

Once the resent PFA is accepted:

 

• The Payments screen will update to show the Active payment method, instead of Manual Payments.
• The PFA activity notes will update with the date and time it was accepted and the PFA is attached for the broker. 
• An email is sent to the customer confirming the date and amount of the payments and the PFA is attached for the customer to keep.

 

 

 

• You can, repeatedly, resend the PFA email to the customer.
• Each time the email is sent the link in that email is valid for 7 days.
• If the renewal date arrives and it is not accepted, the premium will stay on monthly pay.
• The payment method shows as Manual Payment. (this is so that the policy will renew, but the processor will not try and collect monthly payments where the PFA isnt accepted nor will it collect the amount in full and possibly decline).
• The PFA activity remains open.
• You will need to contact the customer to collect a payment or cancel if required. 

 

 

 

• Use the actions icon to Select Change Frequency.
• Select the payment term that you need to switch to yearly. An example is here:

 

 

• The frequency of Monthly or Yearly will appear.
• Select Yearly (the new yearly payment amount will show as calculated).
• Select Submit. 
• The payment processor shows as one payment for the yearly premium.
• This action will close the open activity that is waiting for the PFA.

 

Remember:

With the 2022 payment changes in the platform, once a payment frequency has been switched, this fixes the payment frequency and no further changes can be made until the next term is due OR if the policy is cancelled and replaced.