Understanding Billing Types in BindHQ

Last updated: July 5, 2025

Applies to:

  • All Users

  • Accounting Teams

  • Policy Administrators

Last Updated: April 2025

 

This article explains how to access the BindHQ API documentation and how to go through a basic flow of creating an application, quoting, and binding it through the BindHQ API.

 

Overview

This article provides definitions and context for the billing designations used in BindHQ. These designations help clarify how premiums are invoiced and who is responsible for collecting and remitting payments throughout the policy lifecycle.

 

Billing Designations Defined

Direct Bill

  • The insurer (carrier) sends invoices directly to the policyholder.

  • The policyholder pays the carrier.

  • The carrier remits the net premium or commission back to your company.

Insured Direct Bill

  • Your company invoices the insured directly.

  • The insured pays your firm (not the carrier).

  • Your company is responsible for remitting the net premium to the marketing company or wholesaler.

  • Useful when you want to manage communications and collections directly with the insured.

Agency Bill

  • Your company invoices the retail agency or sourcing broker.

  • The retail agency collects from the insured and remits payment to your firm.

  • Your firm remits the net premium to the marketing company or wholesaler.

  • Common when working with a network of retail agents or brokers.

Summary Table

Designation Who Receives the Invoice Who Pays You Who You Remit To
Direct Bill Carrier to Insured Carrier (commission) Carrier
Insured Direct Bill You to Insured Insured Marketing Company/Wholesaler
Agency Bill You to Retail Agency Retail Agency Marketing Company/Wholesaler

 

Notes

  • Insured Direct Bill and Agency Bill both require your firm to remit the net premium to the marketing company or wholesaler.

  • Choosing the right billing designation ensures proper cash flow and clarity in who is responsible for collections.

 

Keywords for Search:

  • Billing Types

  • Direct Bill

  • Insured Direct Bill

  • Agency Bill

  • Net Premium

  • Remittance