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