Loan Screens > Insurance Screen Group > Policy Detail Screen > Policy Information tab > Insurance Information field group

Entry: User, numeric

F/M: Yes

Mnemonic: INOBAL

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

Use this field to indicate the add-on insurance premium amount on the customer loan account. This field is used in calculating the Earned and Unearned premium amounts.

When a loan is originated and an insurance policy purchased, the system divides this amount by the insurance policy term and adds the amount to the P/I Constant. For example, if the account owner purchased GAP insurance of $240 (with a policy term of 12 months) at the time the loan was originated, the system would divide 240 by 12 to get $20. If the P/I Constant was $200, the system would add $20/month until the insurance term was over, making the P/I Constant $220 per month.

Note: If the policy type requires Taxes and/or Finance charges, this field is increased by those amounts, which also causes the P/I Constant to increase.