Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Tran Code 2600-01, Insurance Payment

This transaction is processed if the monthly loan payment is received from an insurance company (e.g., Accident & Health, Involuntary Unemployment). This transaction is similar to the regular payment (tran code 600), but this transaction posts with an insurance type, and you can waive any fees (such as late charges) at the same time as the payment.

 

An example of the Insurance Payment transaction is shown below:

 

 

For the Loan Descriptor field (Field 136, in the example above it's called "Insurance Type"), someone at your institution with proper security should change the name of this field to "Insurance Type," and then add all possible insurance descriptors used by your institution to the drop-list. This is explained in detail in the CIM GOLDTeller User's Guide > CIM GOLDTeller Screen Details > Functions > Administrator Options > Transaction Design > Creating a drop-list field. (For old GOLDTeller, see this section: User's Guides > GOLDTeller > Adv. GOLDTeller Features > Transaction Design > Field Attributes Screen.) See descriptor definitions below.)

 

The following are the descriptors (insurance types) used in the Loan Descriptor field:

 

 

The payment is applied in the order designated in the Payment Application field.

 

When making an insurance payment, an open policy must be in effect for the insurance type for which you are making the payment, or the transaction will not run.

 

If an amount is entered in the Waived Fee Amount field (called "Waived LC Amount" in the example above), the transaction will reduce the amount in the Late Charges Due field (LNLATE) in CIM GOLD. Note: You may want to change the Waived Fee Amount description to "Waived Late Charges" in the GOLDTeller setup to make it more clear. Changing field names is done on the Functions > Administrator Options > Transaction Design in CIM GOLDTeller. Right-click the Waived Fee Amount field to bring up the Field Properties screen and change the name of the field.

 

If you don't enter a late charge amount:

 

1.It automatically waives the last unpaid late charge.

2.It does not decrease the number of times assessed.

3.It does increase the number of times waived.

 

Note: Some states don't allow late charges to be collected after injuries or layoffs. You will need to determine what late charges were assessed before and after the injury, and waive the applicable charges.

 

If the Insurance Payment transaction is run for at least two consecutive months, the system automatically assigns Special Comments code AB (Account being paid by insurance) to the account for Credit Reporting purposes. See the Special Comments field on the Credit Reporting screen for more information.

 

The history description for this transaction is the type of insurance you entered in the Loan Descriptor field on this transaction (for example, "A&H Ins Payment"). See Walk-in Payment (tran code 2600-05) for more information about descriptors for certain transactions.