Preauthorized Check Plan


Definition of "Preauthorized check plan"

Jonathan Echevarria real estate agent
Jonathan Echevarria, Real Estate Agent United Real Estate

Plan for the automatic payment of premiums due through drafting by the insurer of the policyowner's preauthorized bank account. Usually, the insurer drafts this account on a monthly basis for the premium payment owed. Studies show that persistency is highest when premium payments are made through bank draft plans.

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