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Accounts Receivable Transaction Codes

ABS Additional Billing Service Fee

Fee assessed when installment premium is billed.

ADC Add Coverage

Additional premium due for adding coverage(s) to a property.

ADP Add Property

Additional premium due for adding property(s).

ASR Assessment Recoupment

Surcharge applicable to a North Carolina rated policy only.

ATB Applied to Bill

Overpayment of premium applied to the next open bill ID.

ATI Applied to Installment

Overpayment of premium applied to an unbilled installment.

BFR Billing Fee Reversal

Credit applied to the policy equal to the amount of the billing service fee.

BIL Immediate Rebilling

Billing record created when a payment received is less than the bill.

BSF Billing Service Fee

Service charge for using the installment plan(s).

C01 Misrepresent Conviction

Policy cancellation for misrepresenting convictions on the insurance application.

C02 Misrepresent Accident

Policy cancellation for misrepresenting accidents on the insurance application.

C03 Investigation Report

Policy cancellation resulting from the information on the DMV report, which indicates that the insured falsified information.

C04 Company Request

Policy cancellation resulting from customer's loss of license.

C05 Deceased

Policy cancellation due to death of the insured.

C06 Insured Another Company

Policy cancellation at customer's request. Insurance placed with another company.

C07 Sold All Vehicles

Policy cancellation (for automobile and motorcycle) at customer's request. All vehicles owned by customer were sold.

C08 Move Plan Not Available

Policy cancellation because customer moved to a state where  the company is not licensed to provide insurance.

C09 Policyholder's Request

Policy cancellation at policyholder's request when no reason for cancellation is given.

C10 Insufficient Funds Check

Policy cancellation due to insufficient funds check that was not replaced by customer.

C11 Nonrenewal Request

Policy cancellation that cancels the policy at the next  renewal. Used by underwriting and set up before customer's next renewal.

C12 Cancel for Rewrite

Used when a policy is moved from NGAC to NGIC and vice versa

C14 Nonpayment of Premium - Company

Policy cancellation for nonpayment of premium to company.

C16 Earned Premium Date

Policy cancellation because earned premium date is reached.

C17 Nonpayment of Premium - Finance Company

Policy cancellation for nonpayment of premium to the finance company.

C18 Cancel for Rewrite

Policy cancellation because policy is being rewritten with new terms and dates for the same home.

C20 Total Loss

Policy cancellation due to total loss of the insured property.

C22 Increased Hazard

Policy cancellation due to increase in exposure to a hazard.

C23 Occ Change - Vacant

Policy cancellation because insured property is vacant or unoccupied.

C24 Occ Change - Rented

Policy cancellation because insured property is rented to others.

C26 Lapse

Flat cancellation of property at renewal if no payment for the renewal term is received.

C30 No Response U/W Info

Policy cancellation because customer does not supply additional underwriting information requested.

C31 Noncompliance with Loss Cntl

Policy cancellation because of number of claims on the policy.

C32 Condition of Property

Policy cancellation because of the condition of the insured property.

C33 Business Activity

Policy cancellation because of type of business being conducted on the insured premises.

C34 Farm

Policy cancellation because insured premises is a farm.

C35 Sold Property

Policy cancellation because insured property is sold.

C36 Material Misrepresentation

Policy cancellation because of misrepresentation on policy application.

C37 Rewritten This Company

Policy is being rewritten because insured sold home and bought a new home.

C38 Rented to 4+ Families

Policy cancellation because property is rented to more than four families.

C39 Primary Not MICG/NGIC

Policy cancellation because the primary resident is not insured by MICG or NGIC.

C50 Non Pay

Cancel notice issued. Policy status, not transaction.

C88 Other - Company Request

Policy cancellation at the company's request.

C99 Association Nonrenewal

Policy cancellation when an association discontinues group insurance with the company.

CAT California Surcharge

Surcharge applicable to a California rated policy only.

CFR Charge Off Return Premium

The corresponding RET (Return Premiums) transaction is decreased.

CFS Charge Off Suspense

The corresponding SUS (Suspense Item) transaction is decreased.

CIF California IGA Assessment

Surcharge applicable to a California rated policy only.

COB Charge On Bill

Additional premium added to the policy.

COF Charge Off Bill

Premium credited to the policy.

CRR Clean Risk Recoupment

Surcharge applicable to a North Carolina rated policy only.

CSH Cash

Premium paid that was not considered to be surcharges.

DCL Decrease Limit

Coverage limit(s) were decreased on one or more properties.

DFB Deferred Billing

An installment billing now due.

DLC Delete Coverage

A coverage was deleted from the policy.

DLP Delete Property

A property was deleted from the policy.

DSA Discount/Surcharge Add

Discount or surcharge was added to one or more properties.

DSD Discount/Surcharge Delete

Discount or surcharge was deleted from one or more properties.

FOI Forced on Installment

The full or partial billing remaining was placed on an installment plan.

ICL Increase Limit

Coverage limit(s) were increased on one or more properties.

KCF Kentucky Collection Fee

Surcharge applicable to a Kentucky rated policy only.

KCTKentucky CountyTax

Surcharge applicable to a Kentucky rated policy only.

KPF Kentucky Fairplan Surcharge

Surcharge applicable to a Kentucky rated policy only.

KTXKentucky CityTax

Surcharge applicable to a Kentucky rated policy only.

KYTKentucky StateTax

Surcharge applicable to a Kentucky rated policy only.

LAP Lapse

Policy was cancelled automatically at renewal by the system because of nonpayment of premium.

LAR Loss Assessment Recoup

Surcharge applicable to a North Carolina rated policy only.

MCC Michigan Catastrophic Claims

Surcharge applicable to a Michigan rated policy only.

MIF Maryland Insurance Fund

Surcharge applicable to a Maryland rated policy only.

MIG Minnesota Recoupment

Surcharge applicable to a Minnesota rated policy only.

MVI Move In

Calculated premium for the properties from the effective date of the move to the end of the policy term.

MVO Move Out

Amount credited to the policy from a move endorsement.

NBS New Business

Premium due on a new policy.

NHD New Hampshire Discount

Credit applicable to a New Hampshire rated policy only.

NHS New Hampshire Surcharge

Surcharge applicable to a New Hampshire rated policy only.

NJTNew Jersey StateTax

Surcharge applicable to a New Jersey rated policy only.

NSA Nonsufficient Fund (ACH)

Payment credit to the olicy via ACH returned by the Bank for insufficient funds.

NSB Nonsufficient Fund Bill

Premium due generated from an NSF (Nonsufficient Fund-Online Payment) or NSL (Nonsufficient Fund-Lockbox) transaction.

NSD Nonsufficient Fund (PLB/ECD)

Payment credited to the policy via Credit Card Direct returned for insufficient funds.

NSF Nonsufficient Fund (PMT)

Payment entered online returned by the bank for insufficient funds.

NSL Nonsufficient Fund (PLB)

Payment credited to the policy via lockbox returned by the bank for insufficient funds.

NST Nonsufficient Fund (PLB/EFT)

Payment credited to the policy via Electronic Funds Transfer returned for insufficient funds.

N10 Notice of Cancellation for Insufficient Funds

Created when a policy goes into earnout for an insufficient funds check. Created in the bill pull process.

N14 Notice of Cancellation for Nopayment of Premium

Created when a policy goes into earnout for non-pay. Created in the bill pull process.

OAB Overpay Applied to Bill

Total overpayment amount that is applied to one or several open bill IDs.

OAI Overpay Applied to Installment

Total overpayment amount that is applied to one or several open installment amounts.

OCC Off-Computer Check

Check to the customer, manually entered. Does not affect the policy balance.

PLB Payment - Lockbox

Premium payment received via lockbox.

PMT Payment Online

Premium payment entered online.

PRM Premium

The amount that reflects the written premium for coverage in force.

RAB Return Applied

Credit from a transaction that is applied to an outstanding bill.

RBL Renewal Rebilling

Billing generated when an endorsement occurred for the renewal term before payment was received for the renewal.

RDC Rate Data Change

Nonidentifiable change(s) that could result in a credit or amount due. Used when the system cannot identify the specific type of change to the policy.

REN Renewal

Premium due for the next policy term.

REP Return Excess Payment

Credit due the customer as a result of excess payment.

RES Rescind Notice

Created when a rescind notice is generated for coming out of earnout. Created in the take-out-of-earnout process.

RET Return Premium

Credit due the customer as a result of a negative endorsement.

RIS Reissuance of Policy

Policy has been reissued.

RPD Return Premium Draft

Draft generated to be sent to the customer for overpayment of premium.

RSC Rescind

A voided cancellation.

SAB Suspense Applied to Bill

Credit applied to an open bill from a suspense item.

SUS Suspense Item

Credit to the policy that has not yet been applied to an outstanding bill or returned to the customer.

TPI Transfer Payment In

Premium due/credited reflecting the amount of the corresponding TPO (Transfer Payment Out) transaction.

TPO Transfer Payment Out

Bill/credit for the premium owed/due before the effective date of the move.

TRI Transfer Return In

Return premium due to customer that is transferred to an active policy.

TRO Transfer Return Out

Return premium due to customer that is transferred from an inactive policy.

TSR Texas Sr-22 Surcharge

Surcharge applicable to a Texas rated policy only.

UN1 Collection Letter 1

Created when the first collection letter is generated. Created in the bill pull process.

UN2 Collection Letter 2

Created when the second collection letter is generated. Created in the bill pull process.

WAV Waver of Premium

Automatic system waiver of premium based on company guidelines.

WOP Waiver of Overpayment

Automatic system waiver of overpayment based on company guidelines.

WUP Waiver of Underpayment

Automatic system waiver of underpayment based on company guidelines.

Suspense Maintenance Transaction Codes

APD Applied Postdated Item

A postdated suspense item that has been applied to a policy.

ASI Applied Suspense Item

A suspense item, other than a postdated, that has been applied to a policy.

• If the employee number on the Suspense Maintenance

Details screen or on the Suspense Inquiry Details screen

is 9999, the system applied the suspense item automatically.

• If the employee number is a number other than 9999 on

either of the above screens, the suspense was manually applied to the policy by the employee associated with the number shown.

BOT Back Out Transaction

Used to cancel a suspense transaction or to reduce the amount of a suspense transaction.

Note: The amount entered for a BOT transaction reduces an SCI transaction by any amount, not to exceed the remaining balance.

CSI Manually Converted Suspense

Used during the conversion from the old suspense system to the new suspense system. This transaction is seen on REN and MEX transactions, and is the same as an SCI.

ISB Insufficient Funds Bill

If a customer's check is returned for insufficient funds, a billing is sent to the customer for the amount of the ISF.

ISF Insufficient Funds

A customer's check was put in suspense, but is returned for insufficient funds.

Note: The amount entered for the ISB must equal the amount of an SCI on the policy.

PIB Payment on Insufficient Bill

A payment that is applied to the ISB. These payments are made through the Cash Preparation system, not through a suspense transaction.

RTC Return to Customer

Used to return suspended money to a customer.

Note: This transaction does not automatically cause a check to print for the customer. The amount entered with this transaction must equal the remaining balance of an SCI on the policy. After entering this transaction:

•NGIC must manually type a draft in order to send a check to the customer.

• MICG creates a check through the Financial Management system.

SAS System-Applied Suspense Item

The system found an open A/R bill and applied the suspense money automatically. The system automatically applies suspense money to a policy except when for POST and NSF suspense accounts.

SCI Suspended Cash Item

Used to suspend money when it cannot or should not be applied to the policy.

SIB Suspense Applied to Insufficient Bill

Used when money resides in a suspense account and an ISB is put onto the policy. The suspense money reduces the amount of the ISB.

SPD Suspended Postdated Item

A suspense item in the POST suspense account.

TRS Transfer Suspense

Used when suspense money is transferred from one policy suffix to another, in the same customer number.

Note: TRS, TSI, and TSO transactions are all done with the same transaction code: TRS. TSI and TSO are internal to the program and are not entered.

TSI Transfer Suspense In

Used to transfer suspense money into a policy when transferring from one line of business to a different line of business.

Note: TSI and TSO are internal to the program and are not entered.

Automobile/Motorcycle InsuranceCoverage Codes

This is a list of automobile and motorcycle coverage codes. If coverage applies to one state only, the state is shown in parentheses ().

Code Description

AHC Auto Home Coverage - This is for TV antennas, awnings, and cabanas or equipment designed to create additional living space. (NC-RVs only).

ALC Auto Loan Coverage - Pays outstanding lien against a new motor vehicle in the event of loss or damage to the vehicle. (WA)

BI Bodily Injury Liability - Pays for the injuries and associated economic loss suffered by others as a result of our insured's negligent use of an automobile. (All states). Limit example: $100,000 per person/$300,000 per accident.

CB Citizen Band Radio Equipment - Provides coverage for non-standard electronic equipment permanently installed in an automobile or RV. Includes CB radios, telephones, two way mobile radios, scanning monitor receivers, television monitor receivers, video cassette recorders, audio cassette recorders, and personal computers. Excludes radar detectors. Limit example: ACV (actual cash value).

CL Collision - Physical damage protection for the insured's vehicle when damage results from impact with another object or an upset, regardless of fault. Must carry CP to carry CL. (All states) Limit example: ACV (actual cash value) less $200 deductible.

CLB Collision Broadened - Physical damage protection for the insured's vehicle when damage results from impact with another object or an upset, regardless of fault. Deductible applies only if insured is more than 50% at fault. (MI)

CLG Collision with Full Glass - No deductible for glass damage resulting from a collision. Deductible applies to all other damage. (NY) Limit example: ACV (actual cash value) less $100 deductible. 9/17/2002 Automobile/Motorcycle Coverage Codes Appendix-3

CLL Collision Limited - Damage to insured's vehicle paid only if insured is less than 50% at fault. No deductible applies. (MI)

CLR Collision Rental - Collision coverage that may be purchased on liability only policies to cover rented vehicles. (AK) Limit example: ACV (actual cash value) less $200 deductible.

CLWD Collision Waiver of Deductible - Collision deductible is waived only if vehicle is damaged by an at-fault, uninsured motorist. Must offer if insured carries UMBI coverage. If

policy carries UMBI, then CLWD or UMPD must be offered. (CA)

COVP Covered Property - Auto Home coverage not covered by automobile comprehensive, including awnings, cabanas,  and equipment designed to create additional living facilities. (MICG only)

CP Comprehensive - Physical damage protection for the insured's vehicle when damage results from something other than collision losses such as fire, glass breakage, theft, vandalism, collision with an animal, or acts of nature. (All states) Limit example: ACV (actual cash value) minus $50

deductible.

CPG Comprehensive Full Glass - Comprehensive with no deductible for glass damage only. Deductible applies to other comprehensive losses. See state book for availability. (In Florida CPG coverage applies to windshield only.)

CPR Comprehensive Rental - Comprehensive coverage that  may be purchased on a liability-only policy to cover rented vehicles. (AK) Limit example: ACV (actual cash value) less  $200 deductible.

DD Death and Dismemberment - Added coverage if any eligible covered person on the policy suffers death and/or loss of a limb. There is usually a specific dollar amount assigned to the coverage. See state book for availability and offering requirements.

ENOL Extended Non-owned Liability - Bodily Injury and Property Damage coverages extended to the named insured in the policy, the spouse (must reside in same household), or

a resident relative furnished an automobile for regular use (cannot be employed by a garage). (MD)

ETEC Extended Transportation Expenses - Optional coverage for a collision loss that pays transportation expenses incurred when there is a loss to a covered auto, and loss of use expense for which the insured is legally responsible when there is a loss to a non-owned auto. Requires CL and CP coverage. N/A for RVs. (MO)

LI Loss of Income - Payment made to an eligible injured person for wages lost due to a covered accident. Usually has a limit stated on the policy. See state book for availability and offering requirements.

MCAC Motorcycle Accessory Coverage - Pays for damage to accessories used on a motorcycle. The first $1500 is provided free of charge along with physical damage coverage on motorcycles.

MCCA Michigan Catastrophic Claims Association - Helps pay for injuries in excess of $250,000 sustained by Michigan residents. (MI)

MDIA Media Coverage - Optional coverage for tapes, records, discs, and other media only (requires CB coverage) in excess of $200.

MP Medical Payments - Covers the medical and funeral expenses of a covered person who is injured in an auto accident. See state book for availability. Limit example: $5000 per person.

MPEX Extended Medical Payments - In addition to paying for medical and funeral expenses limited to $2000, $5000, or $10000 per person, this coverage also includes up to $100 a week for loss of income incurred as the result of an accident for a maximum of 52 weeks. (SD)

OBEL Optional Basic Economic Loss - Works with personal injury protection. Once the insured's basic PIP has been exhausted, the OBEL coverage applies. Once the OBEL

coverage is exhausted, additional PIP (if any) applies. (NY) Limit example: $25000.

PD Property Damage Liability - Pays to repair damage to the property of others when our insured is at fault. Limit example: $50000 per accident.

Note: In Florida, PD can be written with a deductible. See Michigan for unusual application of coverage.

PDLB Additional Property Damage (Property Damage Liability Buyback) - The insured is responsible for the first $500 of any loss they are legally liable for in an accident in the state of Michigan. If the insured purchases PDLB, priced at $5 per vehicle, we will pay this $500. (MI)

PE Personal Effects - Coverage for personal property used in an RV only. See the PE endorsement for dollar amounts. The first $1500 or $2000 is paid by CP coverage (except in

Texasand North Carolina where PE applies to entire loss and doesn't cover theft.)

 Different Types of PE Coverage:

PE1 NC Personal Effects with Malicious Mischief

PE2 NC Personal Effects w/o Malicious Mischief

PE8 Personal Effects under $1500

PE9 Personal Effects over $1500

Auto Insurance Policy Rating

Your Premium Rating depends upon the following Factors. This Factors based on companies discretion can also be grouped into Tiers (Risk Levels)  and can be then used as part of Tier Rating Model.

1.Your driving record

Your driving record is weighed heavily when it comes to determining your auto insurance premium. In many states, if you have a good driving record, you can receive a good driver discount. However, if have a speeding ticket or an auto insurance claim on your record, you should expect to pay higher auto insurance rates.

2.Your family’s driving record

If you share an auto insurance policy with your family, spouse, or domestic partner, you may be eligible for a multi-car/multi-driver auto insurance discount. However, be warned that combining policies will also mean that you share in your family’s speeding tickets and auto insurance claims— which, if present, will mean higher auto insurance premiums!

3.Type of Vehicle (model, year, and value):

Statistics show that the accident rates are different for different cars. Some kinds of cars are also more expensive to repair.

4.Vehicle Usage (i.e., pleasure, work):Using your vehicle for work will probably increase your premium.

5.Age,sex and marital status:

Older drivers, female drivers and married drivers statistically tend to have better driving records. Therefore, they tend to have lower premiums.

6.Where You Live:

Some states have higher accident rates than others. In particular, states with high population density tend to have more accidents. Other local factors, such as the type of insurance system in the state, also affect insurance rates.

7.Prior Insurance Coverage:

Being a new driver, or a driver with no previous history of insurance coverage, will probably mean higher rates.

8.Your Credit Score

Over 90% of U.S. insurance companies use credit-based insurance scores to establish eligibility for payment plans and to help determine insurance rates. If you have a high credit score, you can generally expect lower auto insurance rates than someone with a low credit score.  

•Discounts:

Based on requird qualification/eligibility Rating determines applicable Discounts that can be used in reducing the Actual Premium.

Few of the Common discounts available across the Industry are as listed below: 
  • Good Driver Discount
  • Good Student
  • Car with Anti-theft and Security features Discount 

•Surcharge:

Surcharge is additional fee or tax per state regulation charged in addition to actual Premium. Rating determines this surcharge and includes it with Actual Premium. Some Insurance companies impose higher surcharge for  high risk/less preferred insured.

 
Buying an Auto Insurance Policy

Before an insurance policy can be issued, the prospective insured can apply to the insurance company by:

1.Request ing for Quote:

An approximation received from Insurance company though any of the distribution channel viz. Direct/Agency/Ecommerce regarding the Premium for the requested coverage. It is also called Direct/Quick Quote.

2.Insurance application:

Prospective Insured if agrees upon with the Direct/Quick Quote must apply to the insurance company through any of the available policy distribution channel viz. Direct/Agency/Ecommerce for Policy. The application contains underwriting information to help the company decide whether it should accept or reject the prospect's offer to become an insured. The application also contains Primary rating information that will help the insurance company decide how much the insured will be charged if the policy is issued.

3.Binder:

After an agent has completed the application, he or she may have the authority to issue a binder for insurance. This is an oral or written statement made by the agent that the insured has immediate protection that is valid for a specified time.

4.Underwriting

When the application comes to the insurance company, underwriters review it for its acceptability. In addition to the application, underwriters may turn to other sources of information to help them evaluate the risk. These may include

  • Inspection services viz. Carfax for Car History
  • Government bureaus  viz. DMV (Department of Motor Vehicle) for Motor Vehicle Report
  • Financial information service organizations viz. Credit Bureaus for Credit Check
  • Previous insurers  viz. C.L.U.E Reports
  • The company's own claim files

5.Rating:

When an insurance company agrees to issue a policy, a premium must be determined based on Rating Factors and Discounts and Surcharge.

6.Cancellation and Nonrenewal

Most insurance policies are issued with a definite effective date and expiration date. The policy period or term—the time between the effective date and the expiration date—can be six months, one year, or even three years. But at times, the insured or the insurance company might want to cancel the insurance before the policy expires.The insured can cancel the policy by writing a letter to the insurance company or by surrendering the policy to the company. The insurance company returns any unearned premium; that is, any premium not yet "used up" during the policy period.

What is Auto Insurance in America

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:
 

  • Property coverage pays for damage to or theft of your car.
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses  
Your auto policy may include six coverage's. Each coverage is priced separately.
 
1. Bodily Injury Liability (BI)

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

 2. Medical Payments or Personal Injury Protection (PIP)
 
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car.
 
3. Property Damage Liability
 
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property.
 
4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium.

5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible. States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

 6. Uninsured and Underinsured Motorist Coverage (UI,UIM) This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

There are also other coverage options that you may need for greater protection in case of an accident or loss. Here are some of the other types of coverage that can help meet your special vehicle insurance needs:

  • umbrella coverage: lets you extend your homeowners and auto insurance liability coverage up to $1 million or more for greater protection.
  • recreational vehicle coverage: for your all-terrain vehicle, motor home, travel trailer and more.
  • classic auto coverage: for that high value, older model special vehicle.
  • antique auto coverage for your 25 year old or more passenger car that you bring out and show off on special occasions.
  • exotic vehicle coverage for that one-of-kind , special edition or limited production car.
  • modified vehicle coverage for the unique changes you've made to your vehicle.
  • street rods coverage for that replica or older vehicle you take to car shows, events and occasionally drive.
  • motorcyles include basic models, high performance, custom bikes, etc.
  • watercraft coverage for your motor boat or sail boat, houseboat, jetski, and more. 

 

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