Billing Administration

Bill Processing

Billing jobs produce notices for Direct Billing, List Bill, Group Bills, PAC/Bank Drafts, and Loan Interest. FIMMAS Billing may be run as often as needed. Billing also generates extract files for EFT and credit card billing.

Each of the billing processing jobs recaps the number of records selected and rejected; and summarizes the financial totals of the processed records.

Billing Notices

FIMMAS supports different styles of notices and informational statements. For example, you can have one style for policies with net amount due and another style for policies with zero net due. FIMMAS can bill via paper notices or electronic media. Notices can be printed with a bar code font so that you, your bank, or your collection agent can use scanning equipment to process the payment.

Copies of billing notices can be sent to assignees, owners, servicing agents, payers, or other designated parties. The rules indicating which individuals are to receive copies are set by your organization. User-defined rules also specify how many notices are to be sent and at what intervals.

Billing functions support preparation of annual notices for loan interest. When the first loan transaction is entered for a contract, the system creates a loan value and loan interest billing date in the Contract Funds File during cash value processing. The Contract Funds File maintains the outstanding principal balance and any information that controls billing for loan interest.

FIMMAS supports a wide range of modes. Users can change mode as of the paid-to-date. Typical billing frequencies include annual, semi-annual, quarterly, monthly, semi-monthly, weekly, biweekly, ninthly (9 monthly billings), tenthly (10 monthly billings), eleventhly (11 monthly billings), thirteenthly (13 billings per year), and no billing.

Billing Detail Inquiry

Complete billing detail is available for online inquiry. Transaction detail records remain in the database for as long as you wish to retain them.

Billing History Inquiry

Information about billing notices is retained in the billing history file, and is available for online inquiry and reporting. Billing history includes the due date, notice count, billing run date, billing method and amount, payer name and address, and bank information.

Lapse Processing

FIMMAS differentiates between lapse processing for traditional products (lapse triggered if premium is not paid on time) as defined by users; and lapse processing for non-traditional products (lapse triggered by negative fund value or failure to comply with minimum premium provisions).

For UL policies, FIMMAS calculates minimum premiums from user-defined rate tables and adjusts for policy fee, substandard ratings, and other items. The minimum premium rates can be based on a monthly deduction plus any "cushion" needed to cover items over and above the monthly deduction.

FIMMAS lapse processing checks to see if the plan has a guaranteed no lapse provision, based on payment of a minimum premium. User-defined rules specify whether or not to allow a policy to go negative (maximum amount) and the length of time that a policy can be out of compliance before it lapses.

Lapse Notification

Lapse notifications are generated from due and unpaid records in the billing extract file. Such notifications may be restricted to policies that have a fixed premium but do not have an APL provision. User-defined parameters, set by plan, indicate when lapse notices are to be triggered in relation to the due date of the policy.

Lapse notifications for policies with flexible or interest-sensitive values are triggered when the net cash value or surrender value becomes zero or negative.

Waiver of Deduction/Waiver of Premium

FIMMAS supports both Waiver of Deduction and Waiver of Premium. For non-traditional policies with a fund value, waiver status is handled within monthaversary processing. A specified dollar amount or the monthly deduction can be waived. Waiver of premium for traditional products is automatically handled by changing the billing status. This creates a zero net due amount when billing is run. FIMMAS then generates the premium payment and the waiver accounting transactions.

FIMMAS provides reports to list all policies on permanent waiver or currently in a waiver status.  


FIMMAS simplifies policy reinstatement by retaining master file information when a policy lapses. Master file information is retained on the system for as long as you specify. To reinstate a policy, a user changes the status of the policy from "terminated" to "active" and indicates the effective date of the reinstatement. Based on rules, FIMMAS calculates the required premium needed to reinstate the policy.  Inforce underwriting is also part of the reinstatement process if desired.  For UL policies, missed deductions are automatically recovered when a policy is reinstated.

Contract Accounting

FIMMAS supports suspense accounting, policy/premium accounting, disbursement accounting, and commission accounting; with interfaces to external systems for General Ledger and check writing systems.


Suspense Data Capture

Suspense amounts may be tagged by client ID, application number, inforce policy number, group number, check number, date received, or other identifier. Amounts may be transferred from one identifier to another. The same policy can have multiple suspense entries.


General Ledger Mapping

FIMMAS provides a matrix for mapping policy accounting and commission accounting transactions to appropriate General Ledger numbers in your chart of accounts. An accounting transaction can be mapped by company, product type, qualified/non-qualified, and other items; users do not need to enter account numbers in order to complete a financial transaction. An extract provides transaction information to your General Ledger system. Accounting history files are automatically updated and retained, so that detailed accounting history records are available for inquiry and reporting.


Loadings and Fees

FIMMAS calculates charges against accounting transactions—especially premium payments—for selected contracts. A percentage load, a flat fee, or a combination of the two may be specified for each type of transaction.

Collection Features

Payments are recorded in batches to facilitate reconciliation to bank deposits. A batch may consist of one transaction or hundreds of transactions. Payments may be user-entered or imported from tape, lockbox, or other external sources. All payments, regardless of their source, are subject to the same edits and controls.

Supported payment types include:

  • Paid as billed

  • Excess/unbilled premium payments

  • Loan principal payments

  • Loan interest payments

  • Total loan payoff

  • Deposits to premium deposit funds or other accumulation funds

  • Initial premium payments (New Business)

  • 1035 Exchange money received

Any payment can be recorded, whether it is for a new business case, an inforce policy, or even if the policy number is not known. Premium types are completely user-defined. You can have as many as you need to distinguish differences in loadings and commissions. If the type of payment is not known, the payment can be recorded as a suspense item to be retained until the type is determined.

FIMMAS provides detailed and summary suspense reports. Suspense amounts can be optionally tagged by check number or descriptive remarks. Users can perform online searches to locate suspense payments by policy number, check number, remarks, date, type, and/or other identifiers.

Since 1982, Management Data, Inc. has specialized in insurance administration software solutions.

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