A debit is an outstanding premium balance on an active policy account that is still due for collection.
Where it appears
- Collection logs and statements show current debit balances by account.
- Policy servicing teams may escalate unpaid debits before a lapse threshold.
- Debits also track geography or segments in some legacy agent collection models.
Claims effect
If debit remains unpaid, coverage may be suspended, cancelled, or converted depending on contract and grace terms. Claims submitted before cure may be treated under different payment clauses.
Practical example
An insured misses a scheduled premium payment on a non-automated commercial account. The debit record triggers reminder workflow and collection activity. If unpaid past grace, the policy transitions according to the policy’s terms.