10-26-12 BILLING
INDEX Topic Page (s) Pay Plans and Due Dates 3 Accessing the Kemper Billing System (KBS) 4 Policy History 5 EFT 7 Automatic Payments Credit Cards 9 ebilling 10 Changing Pay Plans 11 Agency Sweep echeck 12 echeck 18 Credit Card Payments 23 Billing Dates and Timings 24 Billing Fees and Charges 26 State Specific Billing Fees 27 Miscellaneous (overpayments, underpayments, etc) 28 Interactive Voice Response System 30 Billing FAQs 31 Customer Web Site 32 Contact Information 34 Kemper Billing 10-26-12 Company Confidential Do not distribute
BILLING Pay Plans Available Monthly Non Automatic Payments = 20% down ( n/a California, Colorado and Oregon require 1 month) Automatic Payments -EFT& Credit Cards = 1 month down Equal amount due each month Quarterly (annual policies only) - annual premium divided by 4 25% down; 25% due every 3 months Two-Pay premium divided by 2 OVERVIEW Annual policies 50% down; 50% due in 6 months Semi-annual policies 50% down; 50% due in 3 months One-Pay** - full premium due on or before policy effective date Due Day = Policy Effective Date If effective date is 29 th 31 st, due day (Automatic EFT/ Credit Card or Paper Bill) = 28 th Due day can be changed up to twice during the policy term for Automatic Payments only (EFT & Credit Cards) If Automatic Payment is discontinued, the selected due day remains **Mortgagee billed homeowner policies are always one-pay. Endorsements processed after mortgagee has been billed are billed directly to the insured. 3
KEMPER BILLING SYSTEM (KBS) Accessing KBS 1. Log onto www.agentinside.com 2. Select Billing from the Quick Touch menu or Billing (KBS) Web from the Billing Link 3. Enter policy number; click Search OR Click Name Search if policy # unknown 4. Select from menu options Billing menu options 4
MENU POLICY INFO Policy History -starting point in KBS Displays recent activity on a policy such as: One Time Payments Automatic Payments Billing activities Policy Status Payer Info -basic information about the policy payer Payment Schedule -displays current amount due, due date, balance, remaining installments, payer, policy term, and pay plan Statement of Account -displays policy history by payer, with details for each bill, including endorsements, bill charges, and fees that may apply 5
SAMPLE POLICY HISTORY SCREEN RB812618 RB812618 JOHN R*SMITH* Displays the effective date of the policy, pay plan, policy term and current status Clicking All History will show all prior activity process/issue date deposit/due/effective GO TO used to display expanded view; drop-down box will appear when item is selected 6
AUTOMATIC PAYMENTS -EFT Set Up, Change, or Delete EFT Select EFT Maintenance from Customer Service menu in KBS EFT (Electronic Funds Transfer) = insured s payments are automatically deducted from personal/business bank account Billing charges are $2.00 per installment (most states see chart page 27) withdrawal day may be selected Available for monthly, quarterly, two-pay or onepay If the amount of withdrawal changes by more than $1.00 from the previous withdrawal, a premium notice is sent to the payer 7
AUTOMATIC PAYMENTS -EFT Bank Information When you enroll a payer in EFT or make a change to EFT banking information, click the check box to pay the current minimum due with the new banking information check box will appear if ten days or more in advance of the current bill due date 8
AUTOMATICPAYMENTS CREDIT CARDS Set Up, Change, or Delete Automatic Payments for Credit Card Select RCC Maintenance from Customer Service menu in KBS Automatic Payments (RCC/Recurring Credit Card) = insured s payments are automatically charged to Visa or MasterCard Billing charges are $2.00 per installment (most states, see chart page 27) charge day may be selected Available for monthly, quarterly, two-pay or one-pay If the amount of charge changes by more than $1.00 from the previous charge, a charge notice is sent to the payer 9
EBILLING This electronic billing capability allows your customers to receive, view and pay their Kemper bills at their bank s website or at MyCheckFree.com ebilling Advantages Save time and stamps Consolidate and organize bills in one place Convenience and security; paperless billing How to enroll: Customers can go to their bank site or MyCheckFree.com and agree to the Terms and Conditions for the site. Next, select the option to enroll in ebilling and follow the steps including validating their Kemper policy number and agreeing to the Terms and Conditions. If they re already enrolled for ebilling at the site for other bills, they can choose to also enroll in ebilling for their Kemper policies. 10
CHANGINGPAY PLANS Select Pay Plan Change from Customer Service menu in KBS Status must be = ACTIVE, PENDING RENEWAL PAYMENT, or PENDING NBS SPECIAL COD Change Pay Plan in drop-down menu; click OK * To modify the amount of the pending chargeif a change has been made to the payment plan for CREDIT CARDS only; contact the Agency Resource Center at 866-675-3345 Option 3. Please note: modification of a pending charge amount can only be made if you contact us prior to 7:00 PM Eastern Time on the day the pending bill is due. Confirmation message will appear Can change pay plan up to twice during policy term 11
SWEEP Sweep Payment Agency must be signed up for Sweep with Kemper Insured makes payment to agency; agency deposits insured s check or cash Select Agent Cash from Payment Processing menu in KBS Check Numberfield -enter check # or the word cash Amount field - enter payment for appropriate Payer; click OK NOTE: the process is not complete yet an additional step is required to finalize the Sweep payment see next slide 12
SWEEP Agent Sweep Payment Verification screen appears. The payment has NOT been submitted. To finalize the payment, choose one of the options below: If Submit Payment and Print Receipt or Submit Payment is selected, the money is then swept from agency account to Kemper account in three (3) business days Printed receipt will reflect date and time stamp Note: Sweep payments will NOT display on Policy History screen until the next day. Sweep payments can be viewed immediately on the Agent Sweep Inquiry payment detail screen (see next slide). 13
SWEEP Printing Sweep Receipt DAY OF PAYMENT If you did notprint a receipt From the Agent Sweep PaymentVerification screen you may: From the Agent Sweep Inquiry payment detail screen select the radio button for the appropriate payment; select PRINT RECEIPT from the GO TOmenu then PRINT RECEIPT" on the Agency Sweep Payment Receipt Screen. AFTER DAY OF PAYMENT Same as above 14
SWEEP Sweep Reconciliation Report Select Ag Sweep Inq from Agent Sweep menu Enter desired From Date and To Date; click Search To view report, click at bottom of screen To print, scroll to bottom of report and click Print; choose Landscape To close the report, click Cancel Total Sweep Amount= total of payments swept on that date Select (click on Sel) then select Agent Sweep Detail from the GO TO dropdown list to view detail of all sweep payments on that date 15
SWEEP Deleting or Modifying Sweep Payments Must be deleted or modified on the same day as entered Locate payment on Agent Sweep Summary screen and Select your payment. From the GO TO menu choose Modify Payment or Delete Payment. 16
SWEEP Processing NSF Payments Select payment on Policy History Select NSF Payment from the drop-down GO TO list In Reimbursement Amountfield on NSF Payment Screen, enter onlythe NSF fee charged to you by your bank; click OK Kemper bills the Payer for the amount of the NSF payment plusany state-specific NSF fee The NSF Paymentand Reimbursement Amountare swept back into your account 1 business day after the NSF activity is processed 17
ECHECK echeck Payment Select echeck Payment from Payment Processing menu in KBS Can be used for physical check or check by phone payment Insured s payment is automatically withdrawn from their bank account echeck is a single transaction; free of charge Transaction appears as EFTon bank statement Enter the echeck only once. Verify payment on echeck Summary Screen. Write VOID-eCheck onthe check and file (do NOT deposit check or mail to Kemper) echeck Summary Print receipt; view, modify, delete echeck payments on the day of entry by the same ID used to enter the payment. Place cursor on to view GO TOdrop-down menu options 18
SAMPLE ECHECK PAYMENT SCREEN Select Payer Type, Account Use (Personal or Business), Account Type (Checking or Savings) Select Payment Method ** Physical Check= Actual check has been delivered for payment (takes 3 days before deducted from account) Phone Check= Used when an Agent does not have a physical check (takes 7 days before deducted from account) Enter Check Owner Info. (if same as insured is not checked), Check Date, Check #, Bank Routing #, Bank Account # and Check Amount. Re-enter information where indicated; click OK You may elect to enroll using this bank information for future payments by checking both boxes. Withdrawal Day may also be selected. 19
SAMPLE CHECK **Note: echeck may not work for cashiers checks, money orders, mortgage company, title company and other corporate checks Check Number Check Number Bank Routing Number Account Number 20
ECHECK echeck Payment adjustments can be made on day of entry only Select echeck Summary from Payment Processing menu Locate payment on echeck Summary screen and Select the payment to be modified. From the Go To menu select Modify Payment Enter corrected amount and click OK The echeck Summary Screen will redisplay with the corrected amount and will return to the Policy History screen. 21
ECHECK Deleting echeck payments (day of entry only) Select echeck Summary from Payment Processing menu Locate the payment on the echeck Summary screen and Select the payment to be deleted. The Item Amountwill then be shaded and no further entry will be permitted. Select Delete Payment from the Go To menu. After the deletion has been processed, the system returns to the Policy History screen. The entry is no longer reflected on the echeck Summary 22
CREDIT CARDS Credit /Debit Card Payment Select Credit Card Pmt from KBS Payment Processing menu VISA & Master Card accepted as a one-time transaction or may be set-up for automatic payments Credit card transactions cannot be deleted If incorrect amount or other error is made during entry process, contact Agency Resource Center -866-675-3345, option #3 Corrections can be made afterpayment has posted to KBS (next day, in most cases) Credit card authorization occurs during payment entry process Our customer relations phone number (877-252-7878) appears on payer s credit card statement Funds draft 2 business days from transaction date Minimum payment $1.00; maximum $24,999.99 Credit Card Summary Print receipt & view credit card payments processed on current day only 23
BILLING DATES & TIMING When Are Bills Issued For New Business? 10 days after the last bill due date Mid-term bills, EFT Premium Notices and Recurring Credit Card Charge Notices are issued 10 days after the due date of the previous bill, EFT Premium Notice or Recurring Credit Card Charge notice Example: Policy issued 6/1/12; monthly pay plan. Installment bills are issued on the 11 th of the month. 18 Day Requirement for non Automatic payments 10 Day Requirement for Automatic payments KBS requires 18 daysbetween bill issue date & bill due date for non automatic payments (paper bill) and 10 days for automatic payments (EFT and Credit Cards) This is important on new business example: Automatic payments Package policy issued 1-1-12 effective 01/5/12; premium $1509 Normally, annual premium is divided by 12 to calculate monthly payments However, this policy was not issued with a sufficient amount of time - 1/1/12 01/5/12 is not 10 days. The billing system must push the due date forward to the following month and divide by 11. The first payment will be due on 02/5/12 instead of 01/5/12 $1509/11 = $137.18 + $6 (billing charge) = $143.18 24
BILLING DATES & TIMING Expiration Notices & Non-Pay Cancellation Notices Sent to insured; agent may receive a copy Issued 10 days after renewal effective date if sufficient payment not received Renewal cancellation due date (due date on the expiration notice) is state-specific timing plus mailing time. For Expiration Notices the due date is one month after the renewal effective day Due date on mid-term non-pay cancellation notice is state-specific timing plus mailing time A return premium endorsement in the current term does not reduce the amount due on any Cancellation Notice unless the return premium is more than the balance on the policy. If the Cancellation Notice is paid, the return premium amount is spread over the remaining installments A return premium endorsement for the prior term does reduce the amount due on cancellation notice; however, a new Cancellation Notice is not re-issued Mortgagee Billed Policies Bill sent to mortgagee only once per policy term If full payment is not received from the Mortgagee, the unpaid premium amount will be transferred/billed to the insured (approximately 10 days after the mortgagee bill was due) Once the mortgagee has been billed, any mid-term homeowner endorsements are billed to insured and the amount due will be based on insured s payment plan. For monoline home, we bill the insured as one pay. 25
BILLING FEES & CHARGES Bill Charges Included in minimum due every time a bill is issued Varies by state see chart on the next page Late Fees Assessed on the next bill or non-pay cancellation notice issued if at least the minimum due (within $10.00) is not received within 3 days of the due date (7 days for AZ) Reinstatement Fees Added to the insured s balance when a policy has been cancelled for nonpayment during the policy term and subsequently reinstated Returned Payment Fees Assessed on the next bill or cancel notice issued after a payment has been returned unpaid by the bank or financial institution 26
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BILLING MISCELLANEOUS Overpayments Applied to the next installment (s) reducing or eliminating minimum due until the overage has been used Allows paying ahead to avoid bills & installment fees If a bill is not issued, a billing charge is not added Underpayments Included in minimum due of the next monthly bill or non-pay cancellation notice (based on equity) An interim bill or non-pay cancellation is issued on the first available monthlybill issue date for the amount of the underpayment, even when payment plan is One Pay, Two Pay or Quarterly Debit & Credit Endorsements Current term Spread over the remaining unbilled installments of the term Prior term Billed or applied in full to the next installment (not spread over the remaining unbilled installments) Fees Not spread out; due on current installment 28
BILLING MISCELLANEOUS Disbursements Active policies -credit balances of $2.00+ are normally disbursed on the next available monthly bill issue date Exceptions: Credits generated within 50 days of renewal date are held & applied to renewal but will be disbursed upon insured s request Disbursements over $500 are not automatically disbursed. Come-up is generated for billing review & will be disbursed to insured if credit balance meets guidelines. Inactive policies -disbursements scheduled to occur 5 business days from the maximum of either: (1) the current date, or (2) the effective date of cancellation (i.e. a future effective date) Mail Payments To: Kemper Preferred Box 70839 Charlotte, N.C. 28272-0839 29
BILLING Interactive Voice Response System (IVR) Agent Access: 1-866-675-3345, Option #1 Available 24 hours a day, 7 days a week Provides high level billing information including: Policy Status Policy Balance Last Payment Received Latest Invoiced Amount and Due Date Monday thru Friday from8:00 AM to 8:00 PM Eastern Time, agents can press zero to speak directly with a customer service representative Customer Access via Bill Pay Line: 1-877-488-7488 -Available 24 hours a day, 7 days a week Provides high level billing information including: Policy Status Policy Balance Last Payment Received Latest Invoiced Amount and Due Date Make one-time payments by echeck & MasterCard or Visa debit & credit cards Monday thru Friday from 8:00 AM to 8:00 PM Eastern Time, customers can press zero to speak directly with a customer service representative for questions or to sign up for automatic payments 30
BILLING FAQs (1) If payment is made for only one side of a package, what will happen to the package policy if payments are not made on the other side? If payment received on the home side (i.e. mortgagee paid home premium) but a payment is not made on the auto side, we will continue to bill the payer until equity is exhausted at which time notice of cancellation will be generated. If the home side was paid in full, any earned premium for the auto side will be taken from the home payment. Any remaining credit balance will be returned to the Insured. If money is still owed, an earned premium letter is sent to insured. If payment is made on the auto side but the home side is not paid by the mortgagee, insured will be billed for the home side and the amount of installment bills will increase. (2) New business when will a bill generate if a down-payment is not included at the time of issuance? If no down payment is indicated, a bill will be sent immediately (3) What happens if a bill is not paid when will the next bill be sent? If no payment is received, the next bill *or* possibly a cancellation notice is sent 10 days after the due date (4) If the 2nd bill is not paid, when does the cancellation notice go out? Sometimes the 2 nd bill is the cancellation notice, depending on the policy equity. If not, the cancellation notice goes out 10 days after the due date of the last bill. 31
CUSTOMER WEB SITE Insureds who register on the Kemper customer web site (www.kemperpreferred.com) can make payments & view history, set up Automatic Payments (EFT and Credit Cards), report claims, print declarations, bills, ID cards and claim information, set preferences to receive bills electronically (paperless billing) When insured signs up for Automatic Payments, a confirmation notice is mailed advising to pay any non-automatic bills to avoid late fees or non-pay cancellations Customer web site users receive email confirmation when payment entry is complete & can also print a receipt from the confirmation screen Payments made via Customer web site cannot be viewed by agents until posted to KBS If incorrect amount or other error is made by the customer during entry, the insured should first attempt to have the error corrected through the credit card company, however, Kemper can make an adjustment if needed. No modifications or deletions can be made on the date the payment was entered, however, the corrections can be made after the payment has posted to KBS (the next day, in most cases) Pay by phone -OR enroll in EFT by phone -available for insureds 877-488-7488 8:00 AM 8:00 PM Eastern Time (Monday -Friday) 32
CUSTOMER WEB SITE PAYMENT TIMING Credit card payments on customer web site are accepted 24 x 7 If entered before 8:00 PM Eastern Time, will process the same night If entered after 8:00 PM Eastern Time, will process the next business day ECheck payments on customer web site are accepted 24 x 7 If entered before 12:00 AM Eastern Time, will process the same night If entered after 12:00 AM Eastern Time, will process the next business day Exception Applies to echeckpayments on the last business day of the month, the cut-off time changes from 12 AM to 10 PM Eastern Time Applies to Credit Card payments have a cut-off time of 8 PM Eastern Time, except for Sundays. Sunday payments are processed on Monday night @ 8 PM Eastern Time. 33
TRAINING View & sign up for training by selecting Live Training from the Training Tools menu on www.agentinside.com or contact the trainer for your state 34