The Bank Draft Authorization Forms and procedures for completing the forms are critical steps in getting cases quickly and accurately drafted, credited for payment and issued. Some of the key points of this process are listed below.
Bank Draft Authorization Forms
The Bank Draft Authorization forms can be found in Forms Depot and are also included in the application packets.
Bank Draft Authorization Form Number:
At issue, if the bank draft form has been received and there are no other outstanding requirements, the initial premium will be drafted automatically if the following conditions are met:
- The premium amount on the form matches the premium on the new policy.
- Only one modal premium is due at the time of issue.
- For UL products, the preferred draft day must be on or before the effective date of the policy within the same month. (For example: If we are issuing today and today’s date is August 15, the preferred draft date should be between the 1st and 15th of that month).
If any of the above requirements are not met, the Producer will be contacted prior to issue for permission to draft. Also, if the preferred date is after the effective date, we will need to draft 2 premiums in the same month to prevent the policy from lapsing when placing the policy inforce.
Bank Draft Authorization Procedures
- A change in premium amount and/or draft date can be accepted verbally. If the policy has already been conditionally issued when the request is made, a
letter will be sent to the account holder confirming the change.
- A change in bank account and/or bank routing numbers will require a newly completed and signed Bank Draft Authorization form.