Introduction to the Accounting Process

1. Introduction to the Accounting Process

2. PREMIUM The Telco agrees to charge, collect, and be responsible for the following Premium amounts from Customer (and only these amounts) for each of the following coverages: • Non-Keyboard Phones (as determined solely by Company): • Tier 1 (Accidental Damage/Breakdown): $2.99 per month per phone • Tier 2 (Theft): $1.99 additional per month per phone • Tier 3 (Loss): $2.99 additional per month per phone

3. PREMIUM The Telco agrees to charge, collect, and be responsible for the following Premium amounts from Customer (and only these amounts) for each of the following coverages: • Keyboard Phones (as determined solely by Company): • Tier 1 (Accidental Damage/Breakdown): $4.99 per month per phone • Tier 2 (Theft): $3.99 additional per month per phone • Tier 3 (Loss): $4.99 additional per month per phone

4. PREMIUM • Further, in all cases above, Telco agrees that coverage must be purchased in direct succession starting at Tier 1. That is, consumer can only purchase Tier 2 coverage (Theft) if also purchasing Tier 1 coverage (Accidental Damage/Breakdown). Likewise, Tier 3 coverage can only be purchased if BOTH Tier 1 and Tier 2 coverage purchased. • Telco also agrees to be responsible for collection of the deductible from consumer when invoiced by Telcom.

5. Reports and Payment of Premium • Monthly, you will be billed for business from the prior month by Telcom Insurance Group. It will be the Net of the following amounts: • Premiums Due for new/ in force business for the month • Less Billing & Collection Fee to Telco for that month • Plus Deductible Due on each claim (up to $50 per claim) • Less Reimbursement to Telco for Telco’s Actual Cost, not retail, (plus 5%) of approved claims settlement for that month. These funds are due by the 15th of the following month for business bound by the 30th of the prior month. Carryover, if any, to be adjusted in following month.

6. Sample Invoice Insured Telco: ABC Telco Billing Cycle: 02/01/08-02/29/08 Invoice #: 02-08 Insured Name Phone # Cert # Total Premium Collection Fee Deductible 5% Margin Amount Owed ABC Telco 555-123-4567 IMP2862607_554 2.99 .20 34.75 37.54 123-456-7890 IMP2826307_566 2.99 .20 184.47 (181.68) 301-220-3200 IMP1234567_101 4.99 .20 2.79 ABC Telco Total Due (141.35)

7. When will I know how much to charge the customer for a deductible? Once a decision is made on a claim, you will receive notice from the claim representative. You will not be able to invoice your customer until you see the charge come through on your monthly bill from Telcom. This is to ensure that you charge your customer the correct amount.

8. Why do we need to fill out the inventory list quarterly? The quarterly inventory list is an important tool that helps our claims department reimburse you for the correct amount of a BER (Beyond Economic Repair) phone. You should always keep your quarterly inventory list up to date with Great American to help speed up your customer’s claim process.

9. Who should I contact if I think there is an error on my Stay Connected Bill? If you think there is a billing issue, please contact Bill Cleave by email at billcleave@cleavegroup.com or phone 609-818-9534.