Do you have a procedure for when your agency receives notice from the courts that one of your clients files bankruptcy?
We don't have a specific procedure but are thinking that we need to put one in place...just to make sure that we do everything we can to avoid getting stuck with large receivables.
What we have done to date is follow a loose guideline that consists of:
* Do Not Increase Risk on any policy. Endorsements will be processed IF the client pays at the time of the request.
* If there is Premium Finance involved - notify the Fin Co
* Put a Sticky Note on the Policy List Screen - Client In Bankruptcy Proceedings
* Ask the producer if he/she is aware of the situation
* Make a concentrated effort for collections if there are outstanding balances
Are there any other suggestions gang?
Thanks.