Introduction to the
Accounting Process
PREMIUM
The Telco agrees to charge, collect, and be responsible
for the following Premium amounts from Customer (and
only these amounts) for each of the following
coverages:
•Non-Keyboard Phones (as determined solely
by Company):
•
•
•
Tier 1 (Accidental Damage/Breakdown):
$2.99 per month per phone
Tier 2 (Theft): $1.99 additional per month per
phone
Tier 3 (Loss): $2.99 additional per month per
phone
PREMIUM
The Telco agrees to charge, collect, and be responsible
for the following Premium amounts from Customer (and
only these amounts) for each of the following
coverages:
•Keyboard Phones (as determined solely by
Company):
•
•
•
Tier 1 (Accidental Damage/Breakdown):
$4.99 per month per phone
Tier 2 (Theft): $3.99 additional per month per
phone
Tier 3 (Loss): $4.99 additional per month per
phone
PREMIUM
• Further, in all cases above, Telco agrees that
coverage must be purchased in direct succession
starting at Tier 1. That is, consumer can only
purchase Tier 2 coverage (Theft) if also purchasing
Tier 1 coverage (Accidental Damage/Breakdown).
Likewise, Tier 3 coverage can only be purchased if
BOTH Tier 1 and Tier 2 coverage purchased.
• Telco also agrees to be responsible for collection of
the deductible from consumer when invoiced by
Telcom.
Reports and Payment of Premium
• Monthly, you will be billed for business from the
prior month by Telcom Insurance Group. It will be
the Net of the following amounts:
–
–
–
–
Premiums Due for new/ in force business for the month
Less Billing & Collection Fee to Telco for that month
Plus Deductible Due on each claim (up to $50 per claim)
Less Reimbursement to Telco for Telco’s Actual Cost, not
retail, (plus 5%) of approved claims settlement for that
month.
These funds are due by the 15th of the following
month for business bound by the 30th of the prior
month. Carryover, if any, to be adjusted in following
month.
Sample Invoice
Insured Telco: ABC Telco
Billing Cycle: 02/01/08-02/29/08
Invoice #: 02-08
Insured Name
ABC Telco
Phone #
555-123-4567
123-456-7890
301-220-3200
Cert #
Total Premium Collection Fee
IMP2862607_554 2.99
.20
IMP2826307_566 2.99
.20
IMP1234567_101 4.99
.20
ABC Telco Total Due
Deductible
34.75
5% Margin Amount Owed
37.54
184.47
(181.68)
2.79
(141.35)
When will I know how much to charge
the customer for a deductible?
Once a decision is made on a claim, you will
receive notice from the claim representative.
You will not be able to invoice your
customer until you see the charge come
through on your monthly bill from Telcom.
This is to ensure that you charge your
customer the correct amount.
Why do we need to fill out the
inventory list quarterly?
The quarterly inventory list is an important
tool that helps our claims department
reimburse you for the correct amount of a
BER (Beyond Economic Repair) phone. You
should always keep your quarterly inventory
list up to date with Great American to help
speed up your customer’s claim process.
Who should I contact if I think there is
an error on my Stay Connected Bill?
If you think there is a billing issue,
please contact Bill Cleave by email at
[email protected] or phone
609-818-9534.