On or after the effective date of EFT, your policy premium will begin to be deducted from your designated bank account each month under ACH regulations. No installment fees apply to EFT payments. You select the day of the month that each payment will occur (the "Draft Date") at inception; one change may be made per term. If your automatic payment is to be drafted on a weekend or holiday, such payment will be drafted on the following business day. The designated account must be in the name of the insured.
When your EFT election request is processed, we will mail you a notice showing a schedule of your future EFT payment amounts and dates. EFT cannot be implemented mid-term; election during this time will become effective on the renewal of term. If you are currently receiving paper bills from us, you should continue to make payments for these paper bills (to avoid cancellation) until the EFT payment schedule is effective.
If a change to your policy premium occurs during the policy term, a new EFT payment schedule will be mailed to you. Changes made to this payment option (including customer changes to banking information or draft date), or withdrawal from the EFT payment plan, must be received by Alfa Alliance Insurance at least fifteen days prior to the automatic payment date in order to be processed for that billing cycle. If a policy change causes your premium to increase or decrease and there are more than 15 days until your next payment, the change in premium will be spread evenly over all future payments, including the next one. If there are fewer than 15 days until your next payment, the change in premium will be spread over all future payments, excluding the next one.
The renewal down payment will automatically be drafted from the account number you have authorized unless you withdraw your EFT authorization via our website at least 15 days prior to the policy renewal date.
If an EFT payment fails due to incorrect banking information or insufficient funds, the Company may mail a cancellation notice to the policyholder. EFT payments will be suspended until the policyholder makes a manual payment to resolve the late balance. The Company reserves the right to change the pay plan of the policy to the most liberal paper pay plan available, at any time.
If you have a balance due on your policy after the expiration date or cancellation date, we will draft your account for the balance due approximately 20 days after expiration or cancellation. If you request that your EFT election be withdrawn at the time of cancellation or expiration, you agree that your EFT Withdrawal Request will be effective on the day after your account has been drafted for any balance due.
To initiate EFT, you must agree to the following statement:
“I authorize Alfa Alliance Insurance Corporation to initiate scheduled ACH deductions from my bank account, identified following, for payment of premium on the insurance policy identified below. This authorization applies to payment of premium on the policy below and on any renewals thereof, and to any credit entries to the account to correct any erroneous deductions or to provide a refund of premium. I understand that the Company may also refund premium with a paper check. I understand that this authorization allows the Company to adjust the scheduled deductions to reflect any premium changes. I understand that the Company will not mail me bills before each scheduled deduction is made. I authorize the financial institution identified by the routing number below to accept and post entries to the account. I have read and agree to all of the Alfa Alliance EFT terms and conditions. I represent that I am the owner of the account.”