NOBL Accounts Payable
Missing Link of Agency Automation
There are three types of accounts payables in insurance trust accounting: earned commission due to agency operating account, premium remittance, net of commission, due to insurance companies or general agents and premium refunds due to insureds or finance companies. The first one requires a Commission Transfer Memo which is reviewed in the NOBL-Commission Management Directory. The other two require remittance/refund check vouchers, which are reviewed here.
Remittance check vouchers are automatically generated after company statements and/or general agency invoices are entered in NOBL. They are first reconciled with policy data records and, should variances be reported, an agency manager will decide the remittance amount.
Premium refund vouchers are conditional upon reimbursements to the agency trust account of the unearned net premium by the insurance company/general agency and unearned commission from the agency operating account. For ease of operation, unearned commissions may be reimbursed from a commission reserved account maintained in the agency trust account.
For policy management reasons, premium remittance and/or premium refunds are reported in the Policy Remittance Detail reports.
Trust disbursement process is fully controlled to prevent fraudulent disbursements. Peace of mind to agency owners is NOBL’s primary concern.
Return premiums may be refunded in cash or credit to either insureds of finance companies. They may also be offset to another client’s policy and used to pay a down payment.
NOBL software includes 8 different products. To manage only accounts receivable agency owners will
require have to outsource only the first product. The complete list includes:
- Receivables (transacted premiums and endorsements)
- Agency & Producer Commission Management
- Insurance Company/General Agency Remittance
- Return Premiums/Cancellations
- Personal (non-fiduciary) Funds
- Direct Bill Commission
- Agency Production Reporting
- Trust Financial Solvency Management
The service fee is a usage fee set-up per policy record/policy term. Paulmar is programmed to upload
production reports so that a different software application can generate invoices and email them to
Very important! Since trust account management, trust accounting and financial solvency reporting are
above and beyond the insurance service, agencies can legally charge a broker/technology expense.
Information on software usage fees will be provided at the end of NOBL demo.
The NOBL demo will focus on two topics: (1) NOBL scope and place in the P&C insurance marketplace and (2) NOBL added value to the P&C agency business operation. NOBL will enhance the agency operation by (a) automating the trust account daily operations and (b) monitoring, controlling and reporting the trust financial solvency as required by Insurance Code.
Briefly presented will be NOBL management functions: Receivables, Agency Commission, Co Remittance, Return Premiums, Cancellation Endorsements and Premium Refunds, DB Commission, Production Reporting, Financial Solvency reporting.
Trust account management will be functionally separated from the agency sales and service management. Due to the complexity of premium and return premium financial transactions, premium trust funds will be maintained in a different ledger of accounts separate from the agency’s business funds.
NOBL will streamline the agency business operation and increase its competitive edge in the marketplace.
After signing the SaaS Agreement, Paulmar will train the agency personnel to prepare data entry source documents and run NOBL. Agency will be able to start working with NOBL immediately after NOBL is set up. The NOBL setup consists of creating data records of the agency’s CRSs and producers, insurance companies, general managing agencies, premium finance companies, setting up printers, etc. The training will focus on preparing source documents, working with data entry windows and running trust management functions, such as: commission income, company remittance, cancellation endorsements and premium refunds, etc.
NOBL will be implemented with new policies and renewals. There will be no disruption to the agency’s ongoing operation. Two agency personnel will be certified to operate NOBL. Designated management personnel will be trained to run production and financial solvency reports.
A two months free-of-charge trial period will allow an agency to decide whether to continue working with NOBL or stop it. No questions will be asked.