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Important Information About ACI Premium Draft Dates

30-Mar-2012

Agents appointed with Continental Life Insurance Company of Brentwood, Tennessee (CLI) and American Continental Insurance Company (ACI) should keep the guidelines below in mind when submitting new business AND to appropriately advise an applicant so as to prevent account overdrafts from occurring. While the following guidelines apply in all states and for all products, Texas agents should pay particular attention as we soon offer both CLI and ACI Medicare Supplement plans in Texas.

Description ACI CLI

Initial Premium*

Prevent Overdrafts:

Inform the applicant as to when premiums will be drafted and advise them to plan accordingly.

Premium Paid by EFT*:

  • Premiums are drafted on Policy Issue Date, or at the request of the applicant, on Policy Effective Date.

Premiums Paid by Check:

  • Check is deposited upon receipt by the New Business Lockbox/Home Office.

Premium Paid by EFT or Check:

  • Immediately upon recept of the application by the Home Office.

Renewal Premium

Draft Dates (EFT only) - Premiums are due on the policyholder's Paid-To-Date (PTD).

Generally, premiums are drafted on the policyholder's PTD (same day of the month as the policy effective date). However, policyholders can request the bank draft to be on a specific day of the month.

Bank drafts:

  • Must occur within 10 calendar days of the PTD.
  • Must be between the 1st and 28th of a month.
  • Wil be taken in adance of PTD if the policyholder requests a draft date greater than 10 calendar days from PTD.
Premiums are drafted on the policyholder's PTD (same day of the month as the policy effective date).

Premium Refunds

(Declined applications)

Premium Paid by EFT:

  • Does not apply - as premiums are not not deducted until the policy is issued.

Premiums Paid by Check:

  • Refund check is made payable to the applicant BTU the check is mailed to the agent for delivery to the applicant.

Premium Paid by EFT or Check:

  • Refund check is made payable to the applicant BTU the check is mailed to the agent for delivery to the applicant.
Commissions Paid at Policy Issue (regardless of when premiums are applied).
*Electronic (Bank) Funds Transfer applies only to monthly premiums. Premium refunds do not include the Policy Fee, if applicable.

As we continue to transition the administration of all ACI and CLI products to a single system infrastructure, these administrative differences will be further reduced and allow us to better accommodate the needs of our agents and our customers.