Bu, if you being paid on submission, which is usually the case if you get paid within two days of submitting the app, then you are going to have a charge back if they do not issue the policy..
Advance on Issue or Draft???
- Thread starter 4theloveoffe
- Start date
Bu, if you being paid on submission, which is usually the case if you get paid within two days of submitting the app, then you are going to have a charge back if they do not issue the policy..
Apparently RNA does. I did my first voice app a few days ago. Already been paid and the first draft isn't until January 4th.
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- #14
4theloveoffe
Expert
- 69
I wasn't asking IF you get chargebacks I'm asking do you notice more NSF's when they don't have the money in the bank the day you write the app so you're getting advanced on a policy that isn't drafting anytime soon?
I've noticed the farther out the client has to "postpone" the initial draft the likelihood of the first draft coming back NSF is higher
I don't know but if you are submitting the app on day and getting the commission in your account two days later, it does not sound as if that is paying on issue.. Most companies take longer than that to issue a policy.. It appearss some companies issue the policy with an issue date to coincide with the draft date... Therefore, if you request a draft date 30 days out, then the policy is dated for that date.... That way the company is not on the hook for a death claim until the first draft is submitted. But as far as paying on issue or draft it doesn't make any difference since they are the same date.
- 6,994
I beleive they pay on issue. They just issue quickly.
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- #17
4theloveoffe
Expert
- 69
That all depends on the contract your IMO has with the carriers. LBL, Foresters, GPM, and many others do but only for certain IMO's from what I've heard.
- 6,142
Trinity..................
- 19,032
They don't pay on submission, they pay on approval. As does RNA. LH pays on submission but only if a check is included with the app. If it's a draft for first payment they don't pay until 4 days after the draft.
- 6,142
Trinity can be setup to pay 37% (might be 38%) of the 75% advance on submission of the app....
Not sure why it's like this but it is.
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I've wrote app, got phone interview done, got declined, faxed in, paid the next morning lol. I don't like it but they do it.
