Lienholder transactions are generated at the policy billing screen when you designate a customer policy as Lienholder Billed in the Bill Mode field with the appropriate lienholder and process the transactions for that policy. This situation usually occurs on homeowners policies where the party who holds the mortgage on the insured item is billed for the coverage.
Follow the steps below to Lienholder bill items:
- Enter the transaction for the premium amount.
- The transaction amount is then transferred to the lienholders account and becomes a receivable due from the lienholder.
- The customer account no longer shows the item as due.
- Each transaction on a lienholder billed policy creates three transactions:
- One to debit the client (e.g., NEW)
- One to credit the client (CRL)
- One to debit the lienholder (e.g., NEW)
The item is billed from the customer level, but the balance moves to the lienholder file. All three of these transactions file with the same item number in TAM.
- Every transaction should hold the seven-digit customer code, then the description of the transaction. This makes it easy to work with a lienholder level.
- You cannot finance (FIN) a lienholder item.
Last Revised: April 01, 2008 11:37 AMSWE5477