Finance Management

Overview

Premium finance allows insureds to spread their annual premium over monthly or quarterly installments rather than paying the full amount upfront. LAMS tracks finance accounts, installment schedules, payment history, and any cancellations for non-payment. Finance accounts are separate from direct bill arrangements — finance is managed by an internal finance plan or a third-party premium finance company.

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Finance vs. Standard Installment Plan

Feature	Premium Finance Account	Standard Installment
Who manages it	LAMS finance module	Simple deposit schedule
Interest charged	Yes (finance charge applied)	No
Cancellation on non-pay	Yes — formal NOC process	Depends on policy
Batch type	FIN- batch	D- deposit batch
Tracking	Finance account dashboard	Accounting notes

Finance Account Dashboard

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Finance account dashboard showing a list of financed policies with insured name, policy number, total premium, installments paid, next due date, and status

Finance account dashboard showing a list of financed policies with insured name, policy number, total premium, installments paid, next due date, and status

1. Navigate to Accounting > Finance Accounts.
2. The dashboard lists all active finance accounts.
3. Use filters to narrow by producer, due date, or status (Current, Delinquent, Cancelled).

Creating a Finance Account

Finance accounts are typically created at the time of binding when the insured has selected a payment plan.

1. Open the policy record.
2. Navigate to the Finance tab.
3. Click Create Finance Account.
4. Enter the financing details:
   • Down payment amount (collected at binding)
   • Number of installments (typically 9 or 10 for annual policies)
   • Finance charge rate (annual percentage)
   • First installment due date
5. The system calculates and displays the installment schedule.
6. Click Save Finance Account.

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Finance account creation form showing down payment, installment count, finance rate, and first due date fields

Finance account creation form showing down payment, installment count, finance rate, and first due date fields

Note

Finance charges must comply with applicable state regulations. The finance charge rate is pre-configured by your administrator. Do not change rates without authorization from the accounting supervisor.

Viewing the Installment Schedule

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Installment schedule table showing due date, installment amount, status (paid/unpaid), and payment date for each installment

Installment schedule table showing due date, installment amount, status (paid/unpaid), and payment date for each installment

1. Open the finance account record.
2. The Installment Schedule tab shows each installment with its due date, amount, and status.
3. Paid installments show a green status with the payment date.
4. Unpaid upcoming installments show in grey.
5. Overdue installments show in red.

Recording a Payment

1. Open the finance account for the policy.
2. Click Record Payment next to the installment due.
3. Enter the Payment Date and Amount Received.
4. Select the Payment Method.
5. Click Save Payment.

The installment is marked as paid and the next installment becomes active.

Finance Tracking Notes

Finance accounts often require follow-up notes to document communication with the insured about missed payments.

1. Open the finance account.
2. Click the Tracking Notes tab.
3. Click Add Note.
4. Enter the note text (e.g., “Called insured 12/5 — insured will mail check by 12/10”).
5. Click Save Note.

Notes are timestamped and attributed to the user who created them. They cannot be edited after saving.

Finance Batches

Finance payments are grouped into FIN- batches for accounting purposes.

1. Navigate to Accounting > Batch Management.
2. Filter by Finance batch type.
3. Open the current open finance batch.
4. Payments recorded against finance accounts in this period are automatically included.
5. When the period closes, close the batch following the standard batch closure process.

See Batch Management for full batch lifecycle details.

Cancellation for Non-Payment

If an insured fails to make an installment after follow-up notices, the policy may be cancelled for non-payment.

1. Open the finance account record.
2. Click Initiate Non-Pay Cancellation.
3. Confirm the last payment date and the amount overdue.
4. The system generates a Notice of Cancellation (NOC) based on the state-required notice period.
5. If payment is not received by the NOC date, the policy is cancelled.
6. See Cancellation for the full cancellation workflow.

Caution

State regulations govern the minimum notice period for cancellation for non-payment. LAMS automatically applies the correct notice period based on the policy state. Do not manually override the cancellation date without confirming compliance.