Annual Premium Calculator Tool
You know those two little premium fields next to the "red" premium fields where we invoice? "Written Premium" and "Full Term Premium". These two fields are very commonly left blank, but they are very valuable fields. Strangely I have never seen Vertafore train an agency on how to use these fields. Even their invoicing video is silent on them.
When these fields are properly populated they appear in reports. Both Fields appear in the Book of Business report. Full Term Premium also appears in the Cancellation report. The Full Term Premium field on these reports will help the agency estimate the production and revenue affects of the annualized premiums for a transaction.
So let's say your agency decides to start using them. The Written Premium field is simple, it is the same as what you just invoiced. But, the Full Term Premium is a bit tougher. This is the annualized premium for the endorsement. If the carrier has provided it, then it is simple as well. But what if they did not? Then you can use the pro-rate wheel and do some math to get that value. (By the way, the pro-rate wheel does not work for leap year policies)
Or, you can use my new Annual Premium Calculator tool! You enter the effective and expiration date of the policy, the endorsement effective date and endorsement premium. It then calculates the annual premium and even puts it into the clipboard! Then all you have to do is paste it into the field in the policy.
Click here to see a video of the tool in use.
If you would like a copy of the tool to use in your office, I am providing it at a very low cost of $75.00. It can then be shared with anyone inside your agency. If you would your own copy, drop me a email at Michael@Ins-Automation or call me at 805-573-3725.
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Insurance Agency Automation Associates