Short Rate Penalties
Posted: Tue Jul 29, 2008 3:15 pm
Does anyone know the short rate penalty structure for Applied Underwriters? I have an account that wants to leave but would like to calculate the penalty assessed prior to the move.
If you can do it on the renewal date, cancel the policy on that date. It is the easier battle with Applied. Be sure to have your client CROSS OUT the part that says the policy will renew by signing and returning the last payroll form. It is in the fine print buried in the middle of the weekly payroll form. Be sure to send in a Cancellation Notice (accord form) and a copy of the replacement policy.
Be prepared for a battle with Applied. They will try to apply a short rate to the cancellation on renewal, even with the Cancellation notice and replacement policy. We have fought this battle several times. They will call the client directly and tell him, "he must pay".
A cancellation mid-term, we have never been able to figure out how they calcuate the short rate.