Accounts Receivable Sample Policy
- Deliver invoice for 100 percent of premium or down payment and finance agreement 30 days prior to expiration date.
- Customer pays for coverage, not policies
- Estimate premium or use expiring premium with disclaimer if actual not available
- If payment not received on renewal date, send second invoice noting that coverage is subject to cancellation.
- If payment not received 30 days after renewal date, accounting department sends letter with 10 days notice of cancellation and producer is copied.
- Producer may intervene and sign a note guaranteeing payment. Producer becomes responsible for 100 percent of any uncollectibles. Producer must be creditworthy and prepared to pay when account is current and due to carrier.