TAM Broker Billing Overview

Product: WinTAM Series 6

When another agency writes business through your agency, set the other agency up as a Broker in TAM. When your agency writes business through a different agency or through an MGA, set the policy up as agency bill and set the other agency up as a Billing Company (BCO) in TAM.

Broker transactions are generated at the Policy Billing Screen when you designate a customer policy as Broker Billed in the bill mode field with the appropriate broker code and commission percentages and process transactions for that policy.

Follow the steps below to broker bill items.

  1. Set up the broker through the Broker File.
  2. Set up a policy at the customer level with a bill type of B for Broker.
  3. Transact the broker billed item from customer level.
    1. Enter the transaction for the full net premium amount, including all commissions.
      • TAM will automatically calculate the broker’s commission amount.
      • The net transaction amount (premium minus broker commission) is then transferred to the broker’s account and becomes a receivable due from the broker.
      • The customer account will no longer show the item as due.
    2. Each transaction on a broker bill policy creates three transactions:
      • One to debit the client (e.g., NEW)
      • One to credit the client (CRB)
      • One to debit the broker (e.g., NEW)

      The item is billed from the customer level, but the balance moves to the broker file. All three of these transactions file with the same item number in TAM.

    3. Every transaction should hold the seven-digit customer code, then the description of the transaction. This makes it easy to work with a broker level.
    4. You cannot finance (FIN) a broker billed item.

    Note: The Company Paid field (CPAID) on the two customer transactions is a "Y" so the items do not appear in reconciliations. The broker transaction files with a blank CPAID so the item can be accessed and flagged as paid in reconciliations.

  4. Adjust the transaction if necessary. Once an item has been broker billed, the commission on the company side can be adjusted, but the broker commission cannot be updated. If a change is made, the broker may not receive the correct amount. To prevent this problem, reverse the original invoice and re-enter the transaction, rather than adjusting broker billed items.
  5. Add payments, debits, and credits against this item. They will be applied to the Broker file.

Note: Broker billed items can be deleted if they are in the current month and have no items applied. This will delete the entries off the customer and broker side. If the item cannot be deleted, enter a reversing transaction.

Last Revised: April 06, 2011 04:14:24 PM