Mark a payment as non-sufficient funds (NSF)

While you can mark a payment as NSF from the Payment Log, it’s recommended that you mark a payment as NSF from the Accounts Receivable screen within the individual policy. When you mark a payment as NSF, BriteCore will treat the payment as if it never occurred. BriteCore will use the Due Date and Cancel Date of the outstanding invoice to determine the course of action. For example, if a payment is marked NSF and the Due Date of that payment has passed, the policy will enter Cancellation Pending, Non-Payment of Premium. Before you mark a payment as NSF, it is important to determine the following:

  • That the policy is in force.
  • What the outcome would be if the payment was never made.

Considerations

Determine if the policy is in force

If a policy has never been issued, BriteCore won’t attempt to cancel the policy when a payment on the policy is marked NSF.

To determine if the policy is in force:

  1. Search for and access the policy.
  2. In the policy’s header, view the Policy Status. If the Policy Status is Active, the policy is likely in force. If the Policy Status was manually set to Active before the policy was issued, use the below tips to ensure the policy is in force.
    • If the button Commit Revision appears in the policy header, this could indicate that the policy hasn’t been submitted or that an endorsement is pending on the policy. If the policy hasn’t been submitted, the policy isn’t in force, even if the Policy Status is Active. To verify that the policy has been submitted and is in force, use the following tips:
      • If Pending appears in the policy header, above Revision, this indicates that the policy has been submitted, but there is a pending endorsement on the policy.
      • In the Accounts Receivable screen of the policy, if the premium balance on the policy is displayed, the policy has been submitted.
      • If the Policy ID matches the configuration of policy numbers rather than quote numbers, the policy has been submitted. For example, Policy IDs on quotes may start with Q and Policy IDs on policies may start with P.
  3. If the policy is in force, move to Determine what would occur if the payment was never made. If the policy isn’t in force, move to Mark a payment as NSF.

Determine what would occur if the payment was never made

When you mark a payment as NSF, BriteCore treats the payment and the policy as though the payment was never made. Depending on the Due Date and the Cancel Date on a policy, the policy could automatically enter Cancellation Pending, Non-Payment of Premium, or the policy could automatically be canceled. Before you mark a payment as NSF, determine what course of action BriteCore would take.

To determine what would occur if the payment was never made:

  1. Navigate to the Accounts Receivable screen of the policy.
  2. Scroll to the Account History table on the Billing Overview screen.
  3. Locate the invoice(s) that would be outstanding if the payment never occurred.
  4. Select the row(s) of the identified invoice(s) to open the invoice details.
  5. Under Details, note the invoice Due Date and Cancel Date.
  6. Consider today’s date and the Due Date and Cancel Date. If the payment was never made, consider if the policy would enter Cancellation Pending, Non-Payment of Premium or if the policy would automatically cancel.

You can change the Due Date and Cancel Date of an invoice to safely NSF a payment without canceling the policy. To learn more about how to change the invoice Due Date and Cancel Date, see Mark a payment as NSF when the Due Date or Cancel Date has passed.

Mark a payment as NSF

To mark a payment as NSF:

  1. Navigate to the Accounts Receivable screen of the policy.
  2. Scroll to the Account History table on the Billing Overview tab.
  3. Locate the payment that you want to mark as NSF.
  4. Select the row of the identified payment to open the payment details.
  5. Select the Non-Sufficient Funds button. The Non-Sufficient Funds Payment dialog box will open.
  6. Select one of the following options:
    • Assess NSF fee of <NSF fee amount> due with next bill.
    • Assess NSF fee of <NSF fee amount> due immediately.
    • Waive NSF fee of <NSF fee amount>.
  7. Select one of the following options:
    • Allow policy to cancel.
      • If you select this option, the policy will cancel based on the current due and cancel dates on the invoice.
    • Postpone past outstanding invoices due date.
      • If you select this option, you can choose a new invoice due date, which will provide the payor additional time to pay the premium before the policy enters Cancellation Pending, Non-Payment of Premium. You will be prompted to use the date picker to select the new due date.
  8. Select Submit.

Note: If you mark a payment as NSF and select Postpone past outstanding invoices due date and you expect the policy to go into Cancellation Pending, Non-Payment of Premium, the policy will only enter this if the remaining amount owed is above the Non-Pay Threshold setting, found in Setting > Modules > Policies > Policy Lifecycle > Non-Pay.

Mark a payment as NSF when the Due Date or Cancel Date has passed

By default, BriteCore will send a policy to Cancellation Pending, Non-Payment of Premium if you mark a payment NSF and the Due Date has already passed. If you mark a payment NSF and the Cancel Date has passed, BriteCore will automatically cancel the policy. You can change this behavior by amending the Due Date and Cancel Date on the outstanding invoice. Use the following steps if you want to change the Due Date and Cancel Date of the invoice, which will delay the policy from entering Cancellation Pending, Non-Payment of Premium or from being canceled. You can also use these steps if you want to cancel the policy on a specific date.

To safely mark a payment as NSF when the Due Date or Cancel Date has passed:

  1. Navigate to the Accounts Receivable screen of the policy.
  2. Scroll to the Account History table on the Billing Overview screen.
  3. Locate the outstanding invoice you want to change the Due Date and Cancel Date on.
  4. Select the row of the invoice to open the invoice details.
  5. Select Edit and Reprint. The Edit and Reprint dialog box will open.
  6. In the Due On box, use the date picker to select the new Due Date.

    Note: The Cancel Date will automatically update to reflect the required number of days after the Due Date that a policy can cancel.

  7. Uncheck the Print automatically checkbox.
  8. Select Submit.
  9. In the Account History table, navigate to the payment you want to mark as NSF.
  10. Select the row of the payment to open the payment details.
  11. Select Non-Sufficient Funds. The Non-Sufficient Funds dialog box will open.
  12. Select one of the following options:
    • Assess NSF fee of <NSF fee amount> due with next bill.
    • Assess NSF fee of <NSF fee amount> due immediately.
    • Waive NSF fee of <NSF fee amount>.
  13. Select Allow policy to cancel.
  14. Select Submit.

Usage considerations

If you’re marking a payment as NSF and the policy is on autopay, you will need to first change the Payment Method to Manual Pay.

Although it’s recommended to mark a payment as NSF from the Accounts Receivable screen of the policy, you can also mark a payment as NSF on the Payment Log screen:

  1. Navigate to Policies > Payments > Payment Log.
  2. Locate the payment you want to mark as NSF.
  3. Select NSF?. The NSF Payment dialog box will open.
  4. Select one of the following options:
    • Assess NSF fee of <NSF fee amount> due with next bill.
    • Assess NSF fee of <NSF fee amount> due immediately.
    • Waive NSF fee of <NSF fee amount>.
  5. Select one of the following options:
    • Allow policy to cancel.
      • If you select this option, the policy will cancel based on the current Due Date and Cancel Date.
    • Postpone past outstanding invoice to: 
      • If you select this option, you will need to enter the new payment Due Date in the New Due Date (MM/DD/YYYY) boxes.
  6. Select OK.