Insurance Code Mandates and Trust Account ManagementMost vendors who use a large multi-vertical payment processor have a simple business model: receive payment in exchange for goods or services provided. It’s straightforward. No fancy accounting required. Think coffee shops, digital storefronts, hotdog guy at the block party. But not the insurance industry. As you know, premium payments in some states are subject to insurance code regulations. When you receive premiums you are operating in a “fiduciary” capacity. You are not the “owner” of the premiums paid but are acting as a fiduciary of those funds. As such, you must keep premiums in separate trust accounts that are segregated from the agency’s business operating funds. This is to protect premium funds from agency creditors. And you can’t take them out of the trust account without proper documentation of the commission earned and an audit trail, either. Truth be told, general payment processors are not set up for this level of sophistication. Volume, yes. Sophisticated accounting, no. Trust account (TA) management is a huge responsibility with potentially heavy consequences. You need a payment processor that understands the “ins and outs” — which, for insurance agents, involves more than simply depositing money from the client into your agency account, or even passing it directly through to the carrier! Terms like net funding and premium funds should sound familiar.
State Compliance and RegulationsEach state has its own set of regulations for selling insurance. The requirements in Ohio may be different from those in New York, California or Florida. That’s one reason why the trusted choice / BIG I associations are so valuable. They keep you on track to maintain compliance with any and all state-specific mandates. Needless to say, the big global payment processing companies are not operating at this micro (state regulations) level. But you are. And so are we at ePayPolicy. We maintain close relationships with the Big I / Trusted Choice state insurance associations nationwide and are in the process of getting all 50 states endorsements. Their stamp of approval is their way of saying, “This vendor gets it. We trust them. You should, too.”
An insurance Industry-Specific SolutionI’ve kind of hinted at the solution in the “issues/problems with general payment processors” sections above. Yes. I am talking about ePayPolicy — the insurance payment processing platform built specifically for independent insurance agents. We are not a general-purpose payment processor. We are a payment processor that was built by insurance professionals for insurance. We work exclusively with and for the insurance industry. By focusing on your business needs, as well as the highly regulated nature of insurance, we have created an ecosystem that streamlines your operations while ensuring compliance across the board. Check out ePayPolicy. We make collecting credit card and ACH payments as easy as possible and to get started takes only 5 minutes.
AUSTIN, Texas, October 8, 2019 – The Missouri Association of Insurance Agents (MAIA) has named ePayPolicy as its preferred provider for electronic payment processing. The endorsement means MAIA members will have access to an industry-exclusive platform to accept credit card and ACH payments online, with transaction fees passed on to the payer. This endorsement brings the number of state insurance associations recommending ePayPolicy as the preferred payment processor to over 28!
ePayPolicy co-founder Todd Sorrel commented: “We developed ePayPolicy with the needs of independent agents/brokers in mind. It’s validating that MAIA shares our goal of bringing InsurTech solutions to Missouri’s independent agents. MAIA members looking to offer online payment convenience to their clients, speed up receivables and bind policies faster have a true partner in ePayPolicy.”
Said Matt Barton, MAIA CEO: “We may be the oldest insurance association in the state, but MAIA is dedicated to offering the most modern tools and resources to help our members thrive in today’s market. We set out to find a payment processing vendor that understands the unique needs of independent agents. ePayPolicy meets and exceeds our criteria. We recommend ePayPolicy because it’s easy to use and has no merchant account, long-term contracts or hidden fees. It is secure and compliant. And we know our members’ clients want this convenience.”
Concluded Sorrell: “We’re ready, willing and eager to prove our worth to agents in the Show-Me State. Based on the feedback we’re getting from other states, we’re confident MAIA members will see a real difference in their efficiency, their client engagement and their bottom lines.”
About Missouri Association of Insurance Agents
Missouri Association of Insurance Agents is the oldest and largest association of insurance agents in the state of Missouri. The association was established in 1899 in St. Louis. “Independent” insurance agents and brokers offer their clients the products of more than one insurance company.
MAIA educates, informs, promotes and advocates for independent agents and their clients, encourages networking, high standards, and works to perpetuate the independent agency system.
For more information visit https://www.moagent.org/
ePayPolicy is the simplest way to collect digital insurance payments. Austin, Texas-based ePayPolicy is the nation’s foremost provider of payment processing developed exclusively for independent agencies, brokers/MGAs and premium finance agencies. The company’s innovative electronic payment processing portal enables clients to accept credit card or ACH without messy merchant accounts or hidden fees. ePayPolicy sets up quickly, integrates seamlessly with leading management systems, and is endorsed by independent insurance associations nationwide.
To find out more visit https://epaypolicy.com
The company’s annual InsurTech Agency Award recognizes independent insurance agencies/brokerages for leveraging technology to enhance their sales, marketing, and customer service. Details and call for entry are at https://www.insurtechaward.com/