What is a Chargeback?
A chargeback is that portion of a payout that must be recovered from a member. Chargebacks occur when conditions under which a payout was made change.
Following are general rules regarding when a case is charged back:
- Face amount reductions can result in a partial chargeback
- Correction of overpayment of payouts on a policy
- Client decides they do not want coverage after application is submitted
- The application is denied for underwriting reasons
- The policy is not taken out
- Anytime a provider charges back part or full commissions on a policy
- The case is closed due to incomplete information
- The policy is cancelled within 30 days
- There are insufficient funds provided by the policyholder for the initial premium
- Other reasons as dictated by the Provider