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Insurance Abstract
A method for providing an insurance deductible payment service includes
a service provider receiving contributions from a client and limiting
the client's rights to the contributions to withdrawal for the purpose
of paying an insurance deductible. As a result of an deductible
assessed to the client, the method includes making an advance of
contributions, as a loan, to pay at least a portion of the deductible.
The method may include educating a client regarding financial management
benefits potentially obtained by increasing a collision deductible
and entering an agreement with the client to provide payment services.
A method for initiating a payment service contract includes presenting
to a potential client an offer of a service provider to receive
one or more contributions as above. The presentation includes an
offer to make an advance of contributions, as a loan, to pay at
least a portion of the deductible.
Insurance Claims
1. A method for providing an insurance deductible payment plan and
related services comprising a service provider: receiving one or
more contributions from a client and limiting the client's rights
to the contributions to withdrawal for the purpose of paying a specified
insurance deductible; and as a result of an insurance deductible
assessed to the client by an insurance carrier, making an advance
of contributions, as a loan, to pay at least a portion of the insurance
deductible.
2. The method of claim 1 wherein the insurance deductible is an
automobile insurance collision deductible.
3. The method of claim 1 wherein the service provider is not an
insurance carrier.
4. The method of claim 1 wherein the contributions are monthly
contributions.
5. The method of claim 1 further comprising limiting the client's
rights to the contributions to exclude trustor and trust beneficiary
rights.
6. The method of claim 1 further comprising obtaining the client's
authorization to use the contributions to acquire and retain every
kind of property and investment.
7. The method of claim 1 further comprising obtaining the client's
agreement that no obligation exists to pay the client any interest
on the contributions.
8. The method of claim 1 further comprising obtaining the client's
agreement that no obligation exists to pay to or apply for the benefit
of the client any gross or net income generated by investment of
the contributions.
9. The method of claim 1 wherein advances are made only to an automobile
service center with no exception being made for collision repairs
not reported in a claim to the insurance carrier.
10. The method of claim 1 wherein the contributions occur during
a service duration agreed to by the client and the method further
comprises disbursing contributions after obtaining client's confirmation
of continuing the service for the remaining duration.
11. The method of claim 1 further comprising not accruing interest
on the loan.
12. The method of claim 1 further comprising not assessing fees
or loan interest to the client as long as the client continues any
required contributions and any required repayment of advanced contributions.
13. The method of claim 1 wherein the advance pays the entire insurance
deductible.
14. The method of claim 1 further comprising, upon termination
of the service, assessing to the client a management fee the amount
of which decreases with increasing length of service.
15. The method of claim 14 further comprising reducing the management
fee to zero for termination due to exceptional circumstances.
16. A method for providing an insurance deductible payment plan
and related services comprising a service provider: receiving one
or more monthly contributions from a client and limiting the client's
rights to the contributions to withdrawal for the purpose of paying
an automobile insurance collision deductible; limiting the client's
rights to the contributions to exclude trustor and trust beneficiary
rights; obtaining the client's authorization to use the contributions
to acquire and retain every kind of property and investment; obtaining
the client's agreement that no obligation exists to pay the client
any interest on the contributions; obtaining the client's agreement
that no obligation exists to pay to or apply for the benefit of
the client any gross or net income generated by investment of the
contributions; as a result of an insurance deductible assessed to
the client by an insurance carrier, making an advance of contributions,
as a loan, to pay the entire insurance deductible, the advance being
made only to an automobile service center with no exception being
made for collision repairs not reported in a claim to the insurance
carrier; not assessing fees or loan interest to the client as long
as the client continues any required contributions and any required
repayment of advanced contributions; and upon termination of the
service, assessing to the client a management fee the amount of
which decreases with increasing length of service.
17. A method for providing an insurance deductible payment plan
and related services comprising: educating a client regarding financial
management benefits potentially obtained by increasing an automobile
insurance collision deductible; and entering a written, mutual agreement
with the client to provide an insurance deductible payment plan
and related services, the agreement including: a promise to receive
one or more monthly contributions from a client whose rights to
the contributions are limited under the agreement to withdrawal
for the purpose of paying the collision deductible; and a promise
to make an advance of contributions, as a 0% interest loan, to pay
at least a portion of the collision deductible when assessed to
the client by an insurance carrier.
18-26. (canceled)
27. A method for initiating a contract for an insurance deductible
payment plan and related services comprising presenting to a potential
client an offer of a service provider to: receive one or more contributions
from a client whose rights to the contributions are limited in a
contract to withdrawal for the purpose of paying an insurance deductible;
and make an advance of contributions, as a loan, to pay at least
a portion of the insurance deductible when assessed to the client
by an insurance carrier.
28. The method of claim 27 wherein presenting the offer is performed
by an independent agent of the service provider.
29-38. (canceled)
39. The method of claim 27 wherein the contract states a duration
of continuing until termination.
Insurance Description
TECHNICAL FIELD
[0001] The invention pertains to insurance deductible payment plans
and related services, for example, methods for providing such plans
and related services and methods for initiating an insurance deductible
payment plan and service contract for insured's including all forms
commercial and private insurance and all types of private and/or
commercial vehicles, equipment, and services.
BACKGROUND OF THE INVENTION
[0002] Insurance coverage of various types constitutes a significant
expense for many individuals and businesses. As a financial management
technique, it is possible to increase or, in some cases, maximize
insurance deductibles. For many types of insurance, insurance premiums
decrease with increasing deductible amounts. Accordingly, savings
may be realized with the lower premiums. For example, typical savings
associated with raising private automobile insurance collision deductibles
to $1,000 can reach 10% to 40%. In the case of commercial vehicles,
the savings may be substantially more. However, many individuals
and/or businesses prefer instead to avoid the risk of paying a large
deductible by maintaining higher premiums. In a disciplined approach,
individuals and/or businesses can establish a sufficient amount
of savings to cover elevated deductibles in the event that an insurance
claim becomes necessary. However, the discipline needed to establish
and maintain sufficient savings regardless of other monetary demands
evades many. Accordingly, only some find themselves in the circumstances
allowing low risk realization of the premium savings associated
with high deductible insurance policies. At least for such reasons,
it would be an improvement to provide a service enabling more people
or businesses to take advantage of high deductibles.
SUMMARY OF THE INVENTION
[0003] In one aspect of the invention, a method for providing an
insurance deductible payment plan and related services includes
a service provider receiving one or more contributions from a client
and limiting the client's rights to the contributions to withdrawal
for the purpose of paying a specified insurance deductible. As a
result of an insurance deductible assessed to the client by an insurance
carrier, the method includes making an advance of contributions,
as a loan, to pay at least a portion of the insurance deductible.
[0004] In another aspect of the invention, a method for providing
an insurance deductible payment plan and related services includes
educating a client regarding financial management benefits potentially
obtained by increasing an automobile insurance collision deductible
and entering a written, mutual agreement with the client to provide
an insurance deductible payment plan and related services. The agreement
includes a promise to receive one or more monthly contributions
from a client whose rights to the contributions are limited under
the agreement to withdrawal for the purpose of paying the collision
deductible. The agreement also includes a promise to make an advance
of contributions, as a 0% interest loan, to pay at least a portion
of the collision deductible when assessed to the client by an insurance
carrier.
[0005] In a further aspect of the invention, a method for initiating
a contract for an insurance deductible payment plan and related
services includes presenting to a potential client an offer of a
service provider to receive one or more contributions from a client
whose rights to the contributions are limited in a contract to withdrawal
for the purpose of paying an insurance deductible. The presentation
includes an offer to make an advance of contributions, as a loan,
to pay at least a portion of the insurance deductible when assessed
to the client by an insurance carrier.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0006] In the context of the present document, a "deductible"
refers to an amount specified in an insurance policy that relieves
the insurer of responsibility for an initial specified loss of the
kind insured against. Depending upon the type of insurance and other
circumstances, a "deductible" may be referred to as a
copayment or some other term. One possibility for assisting people
and businesses in obtaining the advantages of high deductible insurance
policies includes providing insurance deductible payment plans and
related services. Potentially, such plans and related services could
meet one or more of the following objectives for clients: cover
insurance deductibles, increase cash flow, improve personal savings
program, enhance financial position, and manage personal resources
more efficiently. A service contract between a service provider
and a client, private or commercial, may be used to allow the client
to pay a lower insurance premium while assuring their capability
to meet a higher deductible.
[0007] According to one aspect of the invention, a method for providing
an insurance deductible payment plan and related services includes
a service provider receiving one or more contributions from a client
and limiting the client's rights to the contributions to withdrawal
for the purpose of paying an insurance deductible. As a result of
an insurance deductible assessed to the client by an insurance carrier,
the method includes making an advance of contributions, as a loan,
to pay at least a portion of the insurance deductible. By way of
example, the insurance deductible may be an automobile insurance
collision deductible. Research indicates that, in comparison to
collision coverage, premiums for other types of automobile insurance
coverage, e.g. comprehensive coverage, are affected less dramatically
by raising or lowering deductibles. However, the aspects of the
inventions described herein are not limited to collision deductibles
or even automobile insurance deductibles generally. Medical and
homeowner's insurance coverage, as well as all other types of insurance,
private and commercial, potentially present additional opportunities
for applying the aspects of the inventions.
[0008] Also, for example, the service provider is not necessarily
an insurance carrier. In fact, significant advantages may be realized
when the service provider is not an insurance carrier. Aspects of
the invention may be arranged so as to operate outside the realm
of insurance and/or securities regulation. The most advantageous
arrangement may be characterized as financial resource management
programs that operate in the realm of service contracts. Personal
financial resource management appears to provide the most opportunity
for applying the aspects of the inventions, however, there are many
viable commercial applications for applying all aspects of the inventions.
Without insurance and/or securities regulation, an insurance deductible
payment service may operate with greater efficiency and flexibility,
reducing the cost of doing business. Such circumstance translates
into improved profitability for the service provider and lower fees
for private and commercial clients.
[0009] An insurance deductible payment service offers additional
advantages to at least three distinct entities. As described herein,
the client may increase cash flow and savings, as well as obtaining
other benefits. The service provider may generate income by investing
contributions made by clients, ultimately realizing a profit after
the expenses of operating the service. The insurance carrier also
benefits from an insurance deductible payment service. With the
increased prevalence of insured parties opting for higher deductibles,
the insurance carrier's loss ratio may improve. As known to those
of ordinary skill, loss ratio is typically the ratio of incurred
losses and loss-adjustment expenses to a net earned premium. Loss
ratio measures an insurance carrier's underlying claims results,
or loss experience, on its overall business. Loss ratio may be used
along with other factors to reflect the overall profitability of
the insurance carrier's underwriting.
[0010] That is, satisfying an insurance claim results in a loss
to the insurance carrier. If the deductible is high, then the insurance
carrier experiences less loss in satisfying the claim in comparison
to the loss associated with a lower deductible. Accordingly, an
insurance deductible payment service may be arranged to benefit
the clients and service provider as well as insurance carriers.
[0011] The method for providing an insurance deductible payment
plan and related services may further include limiting the client's
rights to the contributions to exclude trustor and trust beneficiary
rights. Limiting the client's rights in this manner avoids the limitations
and restrictions that might arise if the service provider is considered
a trustee, holding the client's contributions in trust for later
withdrawal. Since the benefits to the service provider result at
least in part from investing the client's contributions, the method
may include obtaining the client's authorization to use the contributions
to acquire and retain every kind of property and investment. Similarly,
the method may include obtaining the client's agreement that no
obligation exists to pay the client any interest on the contributions.
Further, the method may include obtaining the client's agreement
that no obligations exists to pay to or apply for the benefit of
the client any gross or net income generated by investment of the
contributions. Authorizations and agreements such as described or
in like manner clarify the respective rights and roles of the service
provider and client.
[0012] Making, paying, and advancing contributions may be arranged
in a variety of ways. The Table in the Example below summarizes
only a few of the possible ways. As a financial resource management
program, it appears most beneficial to clients that their contributions
be monthly, although other arrangements are conceivable. Monthly
contributions teach the principal of making regular and consistent
efforts to secure one's financial well-being.
[0013] In the event of an insurance deductible being assessed to
the client, the service provider may provide an advance of contributions
to pay the entire insurance deductible. Paying the entire deductible
with an advance is generally more beneficial to the service provider
than the alternative of the client withdrawing accumulated contributions
and obtaining an advance of contributions to pay a remaining portion
of the deductible. Since clients are required to continue making
contributions until their account is mature, and are also generally
required to repay any advance(s) of contributions, there is typically
no disadvantage to the client in this manner of operation.
[0014] As a further benefit to the client, the method may include
not accruing interest on the loan arising from the advance of contributions.
As is apparent, it thus remains advantageous for clients if an advance
of contributions is required to pay a portion of or the entire insurance
deductible. As another benefit to the client, the method may include
not assessing fees or loan interest to the client as long as the
client continues any required contributions and any required repayment
of advanced contributions.
[0015] One example of a possible fee includes a management fee,
which might be referred to or defined as a "deferred"
management fee, assessed to the client upon termination of the service.
The amount of the management fee may decrease with increasing length
of service or remain constant over a specified period of time or
the life of the account. Accordingly, the management fee may be
less for clients that use the service for a longer period of time.
For long term clients, the management fee may be reduced to zero.
The contributions may occur during a service duration agreed to
by the client. The method may further include disbursing contributions
after obtaining a client's confirmation of continuing the service
for the remaining duration. If a client elects not to confirm continuing
the service, then any applicable fees can be deducted prior to disbursing
contributions, saving the effort of collecting fees after diminishing
the account balance.
[0016] Also, allowance may be made for exceptional circumstances.
Thus, the management fee may be reduced to zero for termination
due to exceptional circumstances, such as, without limitation, loss
of a driver's license due to medical and/or health reasons, disability,
illness, etc.
[0017] As may be appreciated from the various possibilities discussed
herein, an insurance deductible payment service may be arranged
such that a client accumulates contributions for paying an entire
insurance deductible in a timely manner. In the meantime, any insurance
deductibles assessed may be paid entirely by an advance of contributions.
Provided the client continues any required contributions and any
required repayment of advanced contributions, the client might not
incur fees or loan interest. Long term clients may ultimately improve
their financial condition and then terminate the service, but still
not incur a management fee, typically deducted from their accumulated
contributions.
[0018] It is a significant advantage that clients who demonstrate
discipline in accumulating contributions, repaying advanced contributions,
and maintaining the service for an extended period may obtain the
provided services at little or no expense. All of the accumulated
contributions of long term clients may be returned if not used.
These features and advantages, along with others, potentially make
the payment service very attractive to potential clients. The ability
of a service provider to assist clients in such manner arises at
least in part from characterization as a service contract instead
of insurance and/or securities. Exclusion of trustor and trust beneficiary
rights also helps. Otherwise freeing the service provider to acquire
and retain every kind of property and investment without obligation
to the client regarding interest, gross income, or net income, along
with other aspects of the inventions described herein, further helps.
[0019] Additional advantages of an insurance deductible payment
plan and related services include the ease with which such a service
may be implemented and continued. That is, immediate coverage for
a client's collision insurance deductible may begin without requiring
an initial payment. An agreement for continuing the service and
early termination fee may be structured so as to motivate continued
use of the service, even if a deductible is assessed prior to accumulating
a significant amount of contributions. Also, the payment service
may operate independent of insurance carriers so that clients may
change carriers without affecting the payment service.
[0020] Also, the payment service may be arranged to stay with a
client regardless of vehicle ownership. Buying or selling a particular
vehicle need not affect the payment service. The agreement may allow
the payment service to cover a client, co-client, and all direct
dependents along with all vehicles owned by the covered parties.
In a commercial aspect, using, for example, collision deductibles,
the payment plan and service may be used to cover a single vehicle
or fleet and all authorized drivers. In the event that the number
of covered parties and/or vehicles is large, the client(s) may elect
to open one or more additional insurance deductible payment plan
accounts so as to provide additional coverage in the event of multiple
deductibles. Additional accounts may be opened at any time, such
as when a dependent or employee becomes a new driver or a new vehicle
is purchased. Other types of analogous arrangements can be implemented
for applying aspects of the inventions to all other types of property,
casualty, liability and surplus lines of insurance.
[0021] The payment service may be arranged to be flexible in allowing
clients to increase contributions at any time, reaching accumulation
goals more quickly. Similarly, an advance of contributions may be
repaid at a minimum amount, for example, $25 per month, or repayment
may be accelerated according to a client's desire. However, it is
advantageous that repayment occurs in addition to any contribution
requirements. Again, stressing consistent efforts to ensure one's
financial well-being, regardless of mishap. Automatic and/or electronic
debit of designated checking and/or savings accounts held by a client,
or any other form of automated billing and/or collection processes
effectively reduces labor requirements and processing costs and
improves payment consistency.
[0022] As a measure to avoid potential deception and fraud by clients,
the method may include paying advanced contributions only to an
automobile service center. Further, the method may include making
no exception for collision repairs not reported in a claim to the
insurance carrier. That is, a relatively common practice among insured
parties includes paying for collision repairs themselves without
reporting a claim to the insurance carrier. Even though such practice
may attempt to avoid insurance premium increases, verification of
deductible authenticity may be enhanced in the aspects of the inventions
by making no exception for collision repairs not reported in a claim
to the insurance carrier. Clients resorting to paying for repairs
themselves would thus not necessarily be able to rely upon their
accumulated contributions in an insurance deductible payment service.
[0023] In another aspect of the invention, a method for providing
an insurance deductible payment plan and related services includes
educating a client regarding financial management benefits potentially
obtained by increasing an automobile insurance collision deductible
and entering a written, mutual agreement with the client to provide
insurance deductible payment plans and related services. The agreement
includes a promise to receive one or more monthly contributions
from a client whose rights to the contributions are limited under
the agreement to withdrawal for the purpose of paying the collision
deductible. The agreement also includes a promise to make an advance
of contributions, as a 0% interest loan, to pay at least a portion
of the collision deductible when assessed to the client by an insurance
carrier. By way of example, the method may further include investing
the contributions. Also, the mutual agreement may be written so
as to contain and/or implement the various features associated with
other aspects of the inventions described herein.
[0024] In a further aspect of the invention, a method for initiating
a contract for an insurance deductible payment plan and related
services includes presenting to a potential client an offer of a
service provider to receive one or more contributions from a client
whose rights to the contributions are limited in a contract to withdrawal
for the purpose of paying an insurance deductible. The presentation
includes an offer to make an advance of contributions, as a loan,
to pay at least a portion of the insurance deductible when assessed
to the client by an insurance carrier. By way of example, presentation
of the offer may be performed by an independent agent of the service
provider. The offer and/or contract may be arranged so as to contain
and/or implement the various features associated with other aspects
of the inventions described herein. Accordingly, the contract may
state that no interest accrues on the loan unless the client defaults.
Also, the contract may state that its duration continues until the
contract is terminated.
[0025] One example of combining the various features of aspects
of the invention described herein is provided below. The example
represents but one of many possible combinations of features and
also includes additional features not otherwise described herein.
Such additional features may be incorporated into other aspects
of the inventions described herein.
EXAMPLE
[0026] Selected details of an exemplary Administrative Services
and Management Contract for collision insurance are described below.
[0027] SERVICES PROVIDED: Client has chosen to participate in the
Service Plan for their automobile collision insurance only and agrees
to the following terms and conditions as set forth below. The purpose
of the Service Plan is to provide a, disciplined approach to the
management and more efficient use of financial resources. The Service
Plan is designed to ensure that the client can meet his or her collision
deductible for the first collision following enrollment in the Service
Plan. Pursuant to the Contract, Company agrees to provide Client
with the following services:
[0028] (1) Administrative Services: Company will automatically
and electronically debit Client's designated checking or savings
account for the required monthly plan contributions ("Contributions")
and/or any additional required Contributions in accordance with
Client's Monthly Contribution Plan ("Plan") selected by
Client at the time of application.
[0029] (2) Records: Company will keep a record of all Client Contributions
received from Client. Authorized agents will keep copies of all
pages of new account applications for a minimum of four years.
[0030] (3) Disbursement Services: During Client's participation
in the Service Plan, Company may disburse Client's Contributions
to authorized service centers, designated by Company, Client or
Client's insurance company as required. (See "Withdrawal and
Use of Contributions" below.)
[0031] (4) Loan Services: Company agrees to provide Client with
one or more zero interest loans ("Advances") PROVIDED
that the total amount of any and all Advances do not exceed the
applicable Service Plan Advance Limits at any given time; notwithstanding
applicable advance limits and credit policies. All Advances shall
be provided in accordance with the conditions and provisions hereinafter
set forth and the Company's Service Plan Advance Request and Disbursement
Policy. (See also "Advance of Contributions" below.)
[0032] MONTHLY CONTRIBUTIONS: Client agrees to make monthly Contributions
in accordance with the Plan. Contributions shall be deemed "prepayments"
on Advances that "may" or "may not" be requested
by Client under the terms set forth in "Withdrawal and Use
of Contributions" and/or "Advance of Contributions,"
below.
[0033] (1) Contribution Schedule: Contributions will begin in the
month immediately following the month of application, provided that
said Application was received and processed on or before the last
day of the month received. Contributions will continue until the
Client has contributed the Plan Target Amount ("Target")
required by the Plan selected, at which time Contributions will
stop.
[0034] (2) Failure to Make Monthly Contributions: Failure to make
Contributions in accordance with the chosen Plan may result in termination
of Client's Service Plan. Upon such termination, Client shall be
responsible for any and all fees, charges and expenses due, as described
and set forth herein.
[0035] (3) Additional Contributions: In order to more rapidly increase
the Client's withdrawal and/or borrowing capacity in accordance
with the Service Plan, Clients may increase their Plan and/or Advance
Repayments at any time, but at no time may Clients contribute less
than the Plan amount indicated on the Service Plan New Account Application
or the minimum Advance payment requirement as applicable.
[0036] Management and Disposition of Contributions:
[0037] (1) Deposit of Contributions: Client Contributions may initially
be deposited by Company in an account maintained by a state or federally
chartered bank. Client shall have no rights to the Contributions
except as stated herein.
[0038] (2) Management of Funds: Upon deposit of Contributions,
Company is authorized to use said Contributions to acquire and retain,
for Company's own account, every kind of property, real, personal,
or mixed, and every kind of investment specifically including but
not by way of limitation, debentures and other corporate obligations,
and stocks (preferred or common) in the sole discretion of Company.
[0039] (3) Obligation to Pay: Company is not obligated to pay to
or apply for the benefit of Client, at any time, any portion of
the gross or net income received by Company from the investment
of Contributions held by Company; and the Client further expressly
agrees and understands that Company shall have no obligation to
pay Client any interest on Client's Contributions while held at
any time during or: after the contribution phase of Client's Plan.
WITHDRAWAL AND USE OF CONTRIBUTIONS:
[0040] (1) Use of Contributions: Client acknowledges that, subject
to the terms and conditions hereof, Client may request the withdrawal
of the Contributions ONLY for the purpose of paying Client's authorized
and bona-fide collision insurance deductible.
[0041] (2) Request for Funds: A Request for Funds is a "withdrawal"
request made by a Client, for any amount, from the Client's Service
Plan Account. If available Contributions are not sufficient to pay
Client's required collision insurance deductible, Client "may"
request an Advance in accordance with the terms and provisions set
forth below in Advance of Contributions. Clients shall file a Request
for Funds ONLY after filing a formal collision (or "loss")
claim with Client's insurance carrier. A copy of the completed insurance
claim, in addition to any other documents required by the Company
prior to processing any Request for Funds, will be submitted prior
to the disbursement of any requested funds and/or Advance proceeds.
A Request for Funds, partial or full, shall never exceed the balance
of the Client's Account. Requests shall include, but not be limited
to, an acknowledgement that Client agrees to continue to maintain
a Service Plan Account in accordance with Client's original Contribution
Plan. (See "Continuation of Account" below.) The documents
required, when filing a Request for Funds, are listed below in "Verification
of Requests for Funds."
[0042] (3) Continuation of Account: At the time of any Request
for Funds, Client shall be required to confirm their intention to
continue their Service Plan represented by this Contract. If Client
elects to terminate their Service Plan, at the time, the applicable
Contingent Deferred Management Fee ("Management Fee"),
if any, "may" be charged as set forth herein. Should the
available Account balance be insufficient to pay the applicable
Management Fee, the outstanding balance shall be invoiced directly
to Client, due and payable upon receipt, as set forth in the Termination
of Contract provisions below. The Management Fee, if applicable,
shall be deducted from the existing balance of Client's Account,
prior to disbursement of Account proceeds. Notwithstanding termination
of Client's Service Plan, Client may request an Advance in accordance
with the provisions set forth below in "Advance of Contributions."
[0043] (4) Verification of Requests for Funds: Upon submission
of an authorized Request for Funds, Client agrees to provide the
Company with the following: (a) A copy of the current and completed
(open or closed) insurance claim filed by Client and signed by Client's
insurance agent or authorized insurance company representative;
(b) an Affidavit of Inspection and Verification (to be completed
by the licensed and/or bonded authorized service provider which
will be performing repairs as authorized by Client's insurance carrier);
and (c) any additional documents deemed necessary by Company that
may be required by Company to determine the validity of Client's
Request for Funds, the status thereof, or the authorized payee.
Request for Funds will not be processed, nor shall funds be disbursed,
until Company has received all requested documents.
[0044] (5) Disbursement upon Approval: Upon Company's approval
of Client's Request for Funds (and all applicable loan documents
in the case of an Advance of Contributions), Company shall disburse
the requested funds (minus any applicable Management Fee) to the
appropriate party.
[0045] ADVANCE OF CONTRIBUTIONS: In the event Client does not have
sufficient Contributions in their Service Plan Account(s), available
for the purpose of paying Client's required automobile insurance
collision deductible(s) in full, as determined by the Service Plan
Request for Funds, the requested funds will be advanced in full
to Client from the Company, provided Client's account is in good
standing. Client may request an Advance for any amount (i.e. $100,
$250, $500, etc.) up to the maximum amount authorized by the Plan
chosen and the Service Plan Advance Request and Disbursement Policy;
however, at no time shall any single Advance be greater than $1,000
(or $2,000 for a Series 2000 Plan). Company agrees to provide Advances,
at the request of Client, in accordance with the following terms
and conditions:
[0046] (1) Advance Conditions: (a) All Client Service Plan Accounts
are current and in good standing; and (b) Supporting Documents:
Copies of the applicable insurance claim, in addition to any other
documents requested by Company, have been properly submitted, reviewed
and approved by Company.
[0047] (2) Advance Limit: Notwithstanding the Company's Service
Plan Advance Request and Disbursement Policy, the Advance request
shall not cause the total of all outstanding Advances to exceed
a maximum of $1,000 (or $2,000 for a Series 2000 Plan).
[0048] (3) Limitation of Advances and Plan Benefits: Should Client
have the maximum amount of $1,000 outstanding (or $2,000 for a Series
2000 Plan), funds available to cover additional collision deductibles
shall be limited ONLY to the amount of Plan Contributions available
in Client's Account which may or may not be sufficient to cover
"additional" collision deductibles. Example: Assume that
a client has accumulated twenty Contributions over twenty months
($25.times.20) and has an account balance of $500 in their Service
Plan Account. At that time, the client is involved in a collision
requiring a $1,000 collision deductible payment or copayment. The
client may file a Request for Funds for $1,000, which will be provided
in the form of an Advance in the amount of $1,000 (as client's Account
balance is only $500 and not sufficient to cover the "total"
request). The $1,000 Advance would then be used, by the client,
to pay the authorized collision deductible of the same amount. At
that time, the client would have $1,000 of the maximum available
advance limit of $1,000 outstanding. The maximum amount that would
be immediately available to the client (in the event of a second
collision) would be the account balance of $500 which may be requested
to cover a second collision deductible, by completion of a Request
for Funds, in addition to any other required documents. Had the
Client's Service Plan Account been mature (with $1,000) in this
example, a full $1,000 would be available for a second collision.
If Client wishes to guarantee availability of an additional $1,000
(or $2,000 for a Series 2000 Plan), available in the form of an
Advance, the Client must open a second Service Plan with Company.
There is no limit to the number of Accounts that a client may open,
provided that all Accounts are active and in good standing.
[0049] (4) Written Request Required: All Advance requests shall
be in writing on an approved Company form.
[0050] (5) Promissory Note and Repayment Agreement: In addition
to the Request for Funds, Client shall, prior to the approval of
any Advance request and disbursement of funds, submit a completed
and signed Promissory Note and Advance Repayment Agreement ("Note")
providing for repayment of the Advance at zero percent (0.00%) interest
per annum, at monthly payments of not less than $25.00 per month.
Client understands that any and all Advance repayments will be repaid
in monthly installments of not less than $25.00 per month, IN ADDITION
TO any Contributions due in accordance with the selected Contribution
Plan and current Service Plan Contract(s).
[0051] (6) Interest Rate Adjustment: Should Client terminate any
Account(s), or should any Account(s) and/or Advance repayment(s)
be more than 30 days outstanding, the Account(s) and/or Advance(s)
shall be deemed "in default" and the applicable interest
rate ("Rate") on the balance of any outstanding Advance(s)
as of the date of default may be imposed by the Company. Said Rate
shall be not more than 10.000% per annum. Client's monthly payment
under the Note may be increased to reflect any interest accrued
(from the date of the default) on the outstanding principal balance.
[0052] (7) Default: Failure to repay any Advance in accordance
with the signed Note may result in an acceleration of the payment
of the outstanding balance of the Advance and the termination of
Client's Account. Client agrees that, at that time, the accelerated
balance will be deducted from any previous Contributions made by
Client whether under this Contract or any other Service Plan Account
which Client may have with the Company.
[0053] (8) Effect of Termination: Upon termination of Client's
Account(s), Client shall be invoiced for all applicable fees; charges
and expenses associated with said termination(s), as described and
set forth herein (see "Fees, Charges, Expenses, and Deductions"
below).
[0054] FEES, CHARGES, EXPENSES AND DEDUCTIONS: By execution of
this Contract, or any attachment, document or addendum incorporated
by reference, Client agrees to pay the following fees, charges,
expenses and deductions:
[0055] (1) Contingent Deferred Management Fee ("Management
Fee"): For all services provided to Client by Company (excluding
miscellaneous fees and charges referenced in section (3) below),
Client agrees to pay to Company a Management Fee. This fee is payable
in minimum installments of $25 per month. The monthly installments
shall be deferred while Client's Account is in good standing and
this Contract remains in effect. If this Contract is terminated
for any reason, the Management Fee will be due and payable in full
and upon demand, to Company, according to the following schedule:
(a) Month 1 through Month 60 (Years 1-5): $325; (b) Months 61 through
120 (Years 6-10): $200; (c) Months 121-180 (Years 11-15): $100;
(d) Thereafter through the life of the Account: $0.00. The Management
Fee shall be deducted from any Contributions due Client less any
additional fees and charges due Company at the time of termination
of Client's Account(s).
[0056] (2) Processing Fee ("Processing Fee"): All accounts
cancelled or terminated for cause, whether voluntarily or involuntarily,
or terminated by Client for Legal Termination (see "Legal Termination"
below), shall be subject to a $25 Processing Fee.
[0057] (3) Insufficient Contributions: In the event Client does
not have sufficient Contributions in said Account at time of termination,
Company shall invoice Client for all fees and charges due. Client
hereby agrees to pay Company the balance due, in full, on receipt
of said invoice. If payment is not made within ten days of receipt
of said invoice, any and all outstanding balance shall accrue interest
at an amount not to exceed 10.000% per annum.
[0058] (4) Miscellaneous Fees and Charges: Client hereby agrees
to pay the following miscellaneous fees and charges: (a) All fees
generated by or at the request of Client, associated with Bank Checks,
Cashier's Checks, payments, distributions, refunds, wire fees, transfer
fees or any other form of payment to Client for any reason other
than "normal and routine" operations; (b) All fees generated
by or at the request of Client, associated with copies, filing,
billing and all other administrative charges incurred for actions
not originating from the "normal and routine" course of
operations (such fees shall be charged pursuant to Company's then-current
rate card, a copy of which is available upon request, and which
may be amended from time to time by the Company at its discretion,
without notice to Client), and (c) If any Contribution is 10 or
more days late, Client "may" be charged 5% of the unpaid
portion of the regularly scheduled payments or $10, whichever is
greater.
[0059] TERMINATION OF CONTRACT: Company and Client agree this Contract
may be terminated in accordance with the terms and provisions set
forth below.
[0060] (1) Right to Terminate: Company reserves the right to terminate
Client's Account(s) for failure to perform obligations under this
Contract or under any Note. Such notice of termination shall be
delivered by first class regular mail, postage prepaid. Such termination
"may" obligate Client to certain fees, charges, expenses
and deductions as described and set forth herein. (See "Fees,
Charges, Expenses, and Deductions" above).
[0061] (2) Authorized Persons: Client or Client's legal and appointed
representative may, for any reason, terminate Client's Account(s)
at any time. Such termination "may" obligate Client to
certain fees, charges, expenses and deductions as described and
set forth herein. (See "Fees, Charges, Expenses, and Deductions"
above).
[0062] (3) Request for Termination: Voluntary requests for termination
under Section (2) above shall be submitted on a Company approved
form or by submitting, in writing and thirty days prior to the next
scheduled Contribution if applicable, a written notice requesting
termination of Client's Account(s) and payment of Account Contributions.
[0063] (4) Account Termination: Upon receipt of written notification
from Client requesting that Company terminate said Account(s), Company
shall immediately close Client's Account(s).
[0064] (5) Legal Termination: Service Plan Client(s) and their
duly authorized representatives may "legally terminate"
their account for exceptional circumstances (i.e. loss of driver's
license due to medical and or health reasons, disability, illness,
etc.) without incurring any Deferred Management Fee. Such terminations
shall be subject to the $25 Processing Fee as set forth herein.
[0065] (6) Refund of Contributions: Within thirty (30) days of
termination, voluntary or involuntary, Company will return Client's
Contributions, less any fees, charges, expenses and deductions due
Company.
[0066] (7) Fees and Charges: Upon any termination (by Company or
by Client), Client will be liable for all applicable fees and charges
identified above in "Fees, Charges, Expenses and Deductions."
No termination shall affect Client's obligation to repay any outstanding
Note(s).
[0067] TERM OF CONTRACT: This Contract shall commence upon expiration
of Client's mandatory three day right to cancel and, notwithstanding
a properly executed Conditional Receipt, shall be effective on the
date that Company first receives Client's initial contribution (the
"Effective Date") as described above in Monthly Contributions
and shall continue until terminated in accordance with the provisions
set forth herein.
[0068] ADVANCE REQUEST AND DISBURSEMENT POLICY: The purpose of
the Service Plan Advance Request and Disbursement Policy is to clarify
the position of Company regarding the ability of Client to request
and obtain an Advance in accordance with the provisions set forth
in the Administrative Services and Management Contract. Client has
a variety of plans to choose from and the plan chosen dictates the
total amount of interest free Advances the client will be eligible
to receive.
[0069] Maximum Advance Limits: The following Table illustrates
the available Contribution Plans, the Plan Target Amount, and the
maximum amount of interest free advances for which the plan participant
will be eligible to have outstanding at any given time: TABLE-US-00001
TABLE Monthly Maximum Contribution Plan Target Advance Contribution
Plan 1000 Series Plan A (8 Months) $100.00 $800.00 $1,200.00 Plan
B (12 Months) $75.00 $900.00 $1,100.00 Plan C (20 Months) $50.00
$1,000.00 $1,000.00 Plan D (40 Months) $25.00 $1,000.00 $1,000.00
Contribution Plan 2000 Series Plan A (8 Months) $200.00 $1,600.00
$2,400.00 Plan B (12 Months) $150.00 $1,800.00 $2,200.00 Plan C
(20 Months) $100.00 $2,000.00 $2,000.00 Plan D (40 Months) $50.00
$2,000.00 $2,000.00
[0070] In compliance with the statute, the invention has been described
in language more or less specific as to structural and methodical
features. It is to be understood, however, that the invention is
not limited to the specific features shown and described, since
the means herein disclosed comprise preferred forms of putting the
invention into effect. The invention is, therefore, claimed in any
of its forms or modifications, including for private or commercial
application, within the proper scope of the appended claims appropriately
interpreted in accordance with the doctrine of equivalents.
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