How to record claim deductible reimbursement
Recording the receipt of a deductible amount from an insured that is held by the broker for the carrier.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Fiduciary Cash | Debit | 2,500.00 | - |
| Deductible Recovery Liability | Credit | - | 2,500.00 |
💡 Accountant's Note
If a broker or MGA collects a deductible directly from the policyholder to reimburse the loss fund or the carrier, it is recorded as a fiduciary asset and a liability until remitted.
Practitioner & Systems Framework
💻 ERP Architecture
Use a clearing account specifically for deductible recoveries to separate from premium cash flow.
⚠️ Audit Flags
Mismatches between deductible billing and claim payment records.
📄 Required Documentation
Insured's payment advice and the claim file reference.
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Discussion & Community Questions
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