American General: Billing, Grace and Lapse Communications for Customers on Direct Bill

Prompt notification for you and your client when a policy is in jeopardy of lapsing is critical to ensure the best possible customer experience.

To help you understand the communication points on our most recently issued products, we have provided the chart on page 2 outlining Direct Bill notifications by product, with timeframes for when you and your customer can expect a notice from us regarding the billing, grace, or lapse of a policy.

What to do if a policy lapses

If a policy lapses because of a missed payment, there is a short window following the lapse date during which the policy may be reinstated without underwriting. This window can range from 10 to 90 days, depending on the age and face value of the policy.

After this window has passed, formal reinstatement — including underwriting review — is required. Please refer to Policy Reinstatement Guide: When and How To Deal With Lapses to review the reinstatement guideline chart.

Tips for monitoring your business

• Ensure you and your downline are enrolled in eStation and your Inforce Proactive Communications are activated. These will alert you to lapses and allow you to act quickly.
• Encourage your customers to enroll in eService at aig.com/eservice, where they can manage their payment options and receive email alerts when a payment has been missed.
• Encourage your customers to use Bank Draft for premium payments. Form AGLC108866 can be found in Forms Depot or downloaded from our customer website at www.aig.com/lifeinsurance