Binder Bill

If your agency elects to use policy binder transactions, the binder should be confirmed using the Binder Bill form when you receive the policy or endorsement from the company. This assures that your accounting transactions post properly.

Binder Bill Form Selections

Field

What is this?

What Binder transaction are you replacing?

All binder transactions for the current policy appear in this list. Select the transaction you want to replace.

Replace With

Transaction Option

What is this?

New

Select this option and choose the appropriate policy transaction from the list.

This option creates a new policy transaction, and moves all billed/unbilled premium/non-premium from the original binder transaction to the new transaction.

Example:

This is most frequently used when a binder policy transaction is created prior to receiving the policy. Upon receipt of the policy, the appropriate policy transaction needs to be created.

Use this option to create the new transaction, and move the billed/unbilled, premium/non-premium from the original binder transaction to the new transaction.

The selected transaction description appears, but can be changed.

This Description is printed on the invoice, statement, and other reports. It also appears in views throughout AMS360.

Existing

Select this option and choose an existing non-binder policy transaction from the list.

This option moves all billed/unbilled, premium/non-premium from the original binder transaction to the selected policy transaction.

Example:

This is most frequently used when a binder policy transaction is created prior to receiving the policy. When the company binds the policy, they send the transaction to the agency via download.

Use this option to move all billed/unbilled, premium/non-premium from the original binder transaction to the downloaded policy transaction.

The selected transaction description appears, but can be changed.

This Description prints on the invoice, statement, and other reports. It also appears in views throughout AMS360.

Binder Bill Posting Example

A Binder invoice was issued to an agency customer for $10,000 in P & C premium, at 10% agency commission, 50% to agency producer. Binder billing done with no change in premium. The original invoice was billed to the insurance company.

Upon replacing the binder transaction, the contra amount originally posted to the 11213-Deferred A/R Agency Business account is reversed and posted to the appropriate company payable, commission payable, commission income, and commission expense accounts. Credits are represented in parenthesis.

This example is based on the Binder Post Method = Post Expense After Replaced on Later of Effective or Replace Date.

Original Binder Invoice Transaction
11211000 A/R - Agency Business	10,000.00	11213-Deferred A/R Agency Business	(10,000.00)
Replace Binder Invoice Transaction
11213-Deferred A/R Agency Business	10,000.00	21111-Account Payable to Insurance Companies	(9,000.00)
		40111-Agency Commission P&C Insurance Companies	(1,000.00)
		21131-Commissions Payable Agency Business	(500.00)
		51110-AB Commission Expense Agency Business	500.00

What's Next?

Do you need to create a cover letter to send with the policy? See Form Letters for more information.