What do I do when a person pays multiple months of insurance premiums in advance? »

15) What do I do when a person pays multiple months of insurance premiums in advance?

  • Enter the entire amount into a receipt on the current invoice, thus showing a credit on their account.
  • Apportion the amounts across each coverage type (MED, DEN, VIS, etc.).

What not to do:

  • Do not create future invoices.
  • Do not change due dates to future dates.
  • Note: These things are done automatically by BPP each month.

As long as their coverage remains active, each month the following happens:

  • A new invoice is automatically created by BPP
  • If the credit is enough to cover this entire new invoice, BPP automatically applies the credit to the new invoice, removing the appropriate amount from the invoice showing a credit
  • Due dates are advanced one month for each full premium payment during the BPP billing month-end process

Until used up, the credit shows in the Prepay Account in the accounting system.  It is also reflected on the Prepay report produced each month by BPP and placed on File Depot.

 

This page was last updated on 10/4/2012 16:15:23