Loan Screens > Insurance Screen Group > Policy Detail Screen > Finance Charge Information tab

Entry: User, drop-down menu

F/M: Yes

Mnemonic: INIMET

Screen: Loans > Insurance > Policy Detail > Finance Charge Information tab

Use this field to indicate the method used to refund the finance charge in the event the selected insurance policy is canceled or the loan is paid off early. Possible selections in this field are:

Method	Description
0 - Use Premium Method	This method uses the amortization method used by the insurance premium.
1 - Add-On Rate Method	Unearned Premium / 12 x Remaining Term of the insurance policy x Add-on Rate Add-on Rate Calculation: Total Payments = Original P/I Constant (LN78OP) x Original Loan Term (LNTRMO) Interest Amount = Total Payments - Amount Financed (LN78OP) Annualized Interest = (Interest Amount / Original Loan Term (LNTRMO)) x 12 Add-on Rate = Annualized Interest / Amount Financed (LN78OP) Example: Amount financed: 11688.67 Loan term: 13 Monthly payment: 1006.00 Total payments = 1006.00 x 13 = 13078.00 Interest amount = 13078.00 - 11688.67 = 1389.33 Annualized interest = (1389.33 / 13) x 12 = 1282.46 Add-on rate = 1282.46 / 11688.67 = .1097
2 - Use Loan Interest Method	This refund method is only for precomputed loans. If you select this refund method, the system refunds any finance charges back to the customer based on what is entered in the Refund Rule field on the Loans > Precomputed Loans screen. See the Refund Rule field on that screen for calculations and methods.
3 - Refund All If Flat Cancel	If the insurance policy is canceled with a Cancellation Code of 2 - Flat Cancel, the customer is refunded back the entire finance charge amount.