February 13,1979 M29-1, Part ll

Change 15

CONTENTS

CHAPTER 1. BILLING

PARAGRAPH PAGE\
1.01 General I-I\
1.02 Billing Callup Codes 1-1\
1.03 Processing **VA** Forms 29-369 (P)o Notice of Payment Due 1-I\
1.04 Billing of Frozen Accounts 1-2\
1.05 Billing of Temporary Master Records 1-3\
1.06 Billing Codes in Master Records 1-3\
1.07 Billing on Reinstated Accounts 1-3\
1.08 Clerical Billing 1-3\
1.09 Processing Damaged **VA** Forms 29-369(T), Notice of Payment Due
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September 30, 1977 M29-1 Part II\
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CHAPTER 1. BILLING

1.01 GENERAL

a\. Premium billing is an automatic function of the computer system
which is accomplished on a weekly cycle. The billing routine results in
the generation of bills each Monday of the month unless that day is a
holiday. If so, the callup code is set for the next workday. The bill
run is accomplished on Friday, and includes the callup dates through
Monday. If Friday is a holiday, the callup will still be for Monday, but
the billing will be generated with the runs that would start on Thursday
rather than Friday.

b\. The system will not generate premium notices after the premium due
date if the next premium due date in the master record is more than
\[401 days before the billing callup date. The Monday billing routine
must be taken into consideration in calculating the \[40\]-day callup
date limit, when clerically preparing documents to force the system into
the billing routine.

c\. Premium billing is performed on direct pay (how paid 9) accounts
only.

d\. Policy loan and lien interest billing is accomplished on the same
cycle as the premium billing.

e\. The billing output tapes for both offices are airmailed from the
Philadelphia DPC to the St. Paul DPC for / processing and preparation of
the notices. After the bills have been printed and punched, they are
delivered to the Administrative Division, St. Paul **VA** center, for
insertion and mailing.

f\. If the system will not initiate premium notices, they must be
prepared manually. RPO (record printout) reason codes in the 700 series
explain the types of cases involved. These reason codes are listed and
defined in MP-6, part II, supplement No. 1.4.

g\. Billing actions are not recorded on the transaction history lists.
During the reopening period for NSLI (National Service Life Insurance)
(May 1, 1965, to May 2, 1966) billing for J, JR and JS accounts was
recorded on the daily transaction lists. This was discontinued as of
June 3, 1968.

1.02 BILLING CALLUP CODES

The computer policy callup routine establishes a callup code 700 for
premium billing, 320 for 4 percent loan interest billing, 330 for 5
percent loan interest billing, 321 for premium lien interest billing,
and 322 for overpayment lien interest billing. Even though the callup
code on 5 percent loan interest billing is 330, on the transaction
history list it will be printed as 320. **In** addition, a callup code
701 is established to release a premium notice on other-than-monthly
accounts after the dividend credit withdrawals reduce the balance to an
amount which will pay one premium but not two. When the premium billing
callup is reached and bills cannot be **initiated, VA** Form 29-5886
\[b, Insurance\] Record Printout, will be generated showing a reason
code in the 700 **series,** unless the bills cannot be initiated because
of the (40\]-day limitation, in which case no RPO is generated. These
codes are listed and defined in MP6, part II, supplement No. 1.4. The
dates selected to initiate these billing actions are shown in MP-6, part
**II,** supplement No. 1.2, chapter 2.

1.03 PROCESSING VA FORMS 29-369 (P) OR (S), NOTICE OF PAYMENT DUE

a\. All **VA** Forms 29-369 are printed and punched from the billing
output tapes at the St. Paul DPC. Bills for the Philadelphia **VA**
center are printed and punched on white card stock and those for the St.
Paul **VA** center to have a **yellow** stripe across the top of the
card. The program generates appropriate messages and indicates the
**type** of notice released. The identification and messages are shown
in MP-6, part II, supplement No. 1.2 figure 101 .F23D.

b\. Only one **VA** Form 29-369 is produced from the output tapes for
billing of policy loan and lien interest and other than monthly modes
for premium. On monthly mode accounts for premium billing, 1 to 12
**VA** Forms 29-369 may be produced. **A** package of 12 notices is
referred to as a packet. When less than 12 notices are produced, they
are referred to as part packets.

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M29-1, Part II September 30, 1977

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c\. All **VA** Forms 29-369 produced by the St. Paul DPC are sent to the
Administrative Division of the St. Paul **VA** center for inserting and
mailing. The Administrative Division inserts return envelopes with the
**VA** Forms \~29-369 and 29-5934, Change of Address for Insurance
Purpose. A **VA** Form 29-5934 is mailed with each packet or single
**VA** Form 29-369 produced. White envelopes are used for the
Philadelphia accounts and light green envelopes for the St. Paul
accounts.

1.04 BILLING OF FROZEN ACCOUNTS

**A** frozen billing run for premium billing is accomplished monthly by
the Philadelphia DPC, and sent to the St. Paul DPC for processing as
outlined in paragraph 1.03. This run attempts to bill those accounts
when the master record is frozen and the callup (date\] cannot be
activated because of a life or policy freeze. The following conditions
must be met before premium notices are authorized on any frozen
accounts:

a\. There must be a life and/or policy freeze, and the how paid code
must be direct pay (9).

b\. The billing code must reflect a premium notice due or past due.

c\. **There** is no XC or CASH SURR. pending diary.

d\. There is no pending deduction transaction (100 series).

e\. There is no policy callup code in the 950 or 970 series.

f\. There is no invalid date in the record (999 policy callup code).

g\. There is no 203 pending transaction.

h\. There is no cutback bill due on an endowment plan.

i\. On term accounts, pending renewal must be on or after the billing
month.

j\. The next month due for TDIP and life premiums must be the same.

k\. If monthly mode:

\(I\) Next month due must be same as billing month, or

\(2\) Next month due 1 to 3 months before billing month, or

\(3\) Next month due 4 to 6 months before billing month with 200 or 201
pending transactions.

l\. If quarterly mode:

\(I\) Next month due must be the same as billing month, or

\(2\) Next month due must be exactly 3 months before billing month, or

\(3\) Next month due must be exactly 6 months before billing month with
200 or 201 pending transactions.

m\. If semiannual or annual mode:

\(l\) Next month due must be same as billing month, or

\(2\) Next month due must be exactly 6 months before billing month for
semiannual or exactly I2 months before billing month for annual mode
with 200 or 201 pending transactions.

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M29-1, Part II\
February 13, 1979 Change 15

1.05 BILLING OF TEMPORARY MASTER RECORDS

Premium billing on temporary master records is accomplished on **VA**
Form 29-369a, Payment Due on Pending Life Insurance Application, using
the same weekly cycle as for regular master records. The callup date for
billing will be 30 days before the next premium due date. The notices
are released in accordance with the mode of record except that in the
case of monthly modes, only a single bill is released. Packets are not
released on temporary master records.

1.06 BILLING CODES IN MASTER RECORDS

a\. The billing code on the master record is used by the system to
determine the billing callup date.

\(1\) On monthly mode accounts, the code is the last digit of the last
year billed. The system adds 1 to the code to determine the year in
which the next packet should be released. The month and day on which
bills should be released are taken from the policy effective date. The
next month due is used to determine whether a full packet or a part
packet should be released. If the next month due is beyond the
anniversary, bills are produced for the next month due through the month
before the following anniversary. When premiums are paid to the
following anniversary, no bills are generated but the bill code is
updated by 1 year.

\(2\) On other than-monthly accounts, the bill code is a numeric
representing the due month for which a notice was last released,
provided that premium is still unpaid, or the policy code is a zero to
indicate that there is no outstanding premium notice. If the code on an
other than monthly account is a number from 01 to 12, the system skips
the billing routine entirely. If the code is zero, it establishes a
callup date 45 days before the next month due except for foreign
accounts. Foreign accounts have a call up date of 2 months.

b\. Automatic withdrawal from dividend credit to pay premiums on other
than-monthly mode accounts will not change the bill code in the master
record until the dividend credit balance is exhausted. However, **VA**
Form 29-4459, Dividend Deposit (Credit Statement, will advise the
insured that no further premium notices will be released until such time
as a direct payment is made.

c\. When dividends are applied to premiums under the premium option on
other than-monthly mode accounts, the bill code is automatically set to
zero. On monthly mode accounts the bill code is not changed.

1.07 BILLING ON REINSTATED ACCOUNTS

Premium billing is automatically generated on monthly mode accounts
which are reinstated by the program.

1.08 CLERICAL BILLING

a\. when flee premium billing function cannot generate VA Forms
29-369(P) or (S) or 29-369a, an RPO with a reason code in the 700 series
will be received. These reason codes are listed and defined in MP-6 part
II supplement No. 1.4. It will be necessary to clerically prepare and
release one of the above forms with **VA** Form 29-5934 and return
envelope(s).

b\. When correspondence is received requesting premium notices, an RPO
will be requested to determine if billing is necessary. If the account
is paid in advance and billing is not necessary, FL 29-619 will be
released to the insured.

c\. If 3 monthly premium notices or less are required to provide bills
to the policy anniversary date, VA

Forms 29-369(S) or (P) will be clerically prepared. The paragraphs to be
entered in the blank space beneath 4 the THIS NOTICE IS FOR block on the
first notice may be overprinted on the bills if the volume warrants.

d\. If more than 3 monthly premium notices are required to provide bills
to the policy anniversary date and a request for bills is being
processed in the grace period of the unpaid premium, one VA Form
29-369(S) or (P) will be prepared. input will be prepared to remove the
freeze on the master record, if any, and to down date the

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M29-1, Part II February 13, 1979

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bill code l year prior to the year for which a packet is needed.
Normally, on the day input to down date a bill code is accepted, the
computer will establish a 700 callup and a date. 1f the input to down
date is accepted by the computer on a Monday, the callup date will be
Monday the same date. If the input to down date is accepted later than
Monday, the 700 callup date will be the next Monday. The downdating of
the bill code will not generate a part packet of **VA** Forms 29-369(S)
or (P) if the next premium due date in the master record is more than 40
days before the 700 callup date. If a part packet is not generated, the
bill code will remain downdated but the 700 callup will be reinserted
and the date of the callup will be Monday.

e\. When a request for a bill is received for an account on a mode other
than monthly, VA Form 29-369(S) or (P) will be clerically prepared.
Input will be prepared to remove the freeze, if any, and update the bill
code on the master record. The appropriate paragraph will be printed in
the space beneath the, THIS NOTICE IS FOR, block on VA Form 29.369(S) or
(P).

f\. Clerically prepared **VA** Forms 29.369(S) or (P) and return
envelopes will be sent to the insured.

g\. When TDIP coverage ends during the period for which premium notices
are to be released, the system will not initiate billing. It will also
not initiate billing if the flat extra premium charge will end during
the period for which premium notices are to be released. Instead, an RPO
reason code 702 or 703 is generated for clerical preparation of
appropriate premium notices. Billing must be accomplished clerically as
some portion of the premium notice(s) will cover the dual premium and
the remainder will be for the regular insurance premium only. The bill
code will have been updated by the system.

h\. If the policy will be automatically surrendered during the period
for which premium notices are to be released, premium notices will not
be released by the system. Instead, an RPO reason code 704 is generated.
The insured will be notified of the pending surrender. Premium notices,
at the correct mode, will be enclosed with the notification of automatic
surrender. The bill code will have been updated by the system.

\[1.09 PROCESSING DAMAGED VA FORMS 29-369(T), NOTICE OF PAYMENT DUE

a\. All VA Forms 29-369(T) that are damaged during the bursting,
inserting or sealing operations will be forwarded \~y the Administrative
Division to the Policy Service Section in the following manner:

\(1\) All damaged documents resulting from other than monthly or loan
interest billing should be grouped together, attached to a VA Form 3230,
Reference Slip, and forwarded to the appropriate Policy Service Unit.

\(2\) All damaged documents resulting from monthly packet billing should
be associated into a complete set, clipped together on an individual
basis, attached to a **VA** Form 3230 and forwarded to the appropriate
Policy Service Unit.

b\. When the damaged documents are received in the Policy Service Unit,
a **VA** Form 29-5886b will be requested and when received, associated
with the documents. Input will be prepared to:

\(I\) Downdate the bill code to \"00\" when an other-than monthly bill
is needed.

\(2\) Downdate the bill code to 1 year prior to the year for which a
packet is needed.

\(3\) Prepare a **VA** Form 29-369(P) or(S) if a loan interest bill is
needed.\] i

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