Pre-authorized Debit (PAD) Requirement Scenarios
| Scenarios |
PAD Form Required |
|---|---|
| Start a New PAD | YES |
| Change the Payor on an existing PAD | YES |
| A new policy with request to use existing banking on file under another policy. This is indicated on the application for insurance under the PAD agreement section. | YES |
| "Easy Switch" change received directly from the bank on the client's behalf to update banking only (not Payor). This is a document rather than a VOID cheque and contains the bank's letterhead and/or stamp of authentication. | NO |
| Change to Withdrawal Date | NO |
| Change to the withdrawal amounts (+ or -) and includes special PAD requests related to shortages, etc. | NO |
| Resume PAD after an NSF/Stop Payment, etc. | NO |
| Stop PAD - (premium holiday) - Later resumed by client (same Payor) | NO |
| Lapse, Policy reinstated (same Payor). Bank changes must be done in writing and the instruction retained on file. | NO |
| Policy Conversions. Bank changes must be done in writing and the instruction retained on file. | NO |