Claim Processing Overview
There are generally five basic phases in processing your assignments: Verification, Funding, Processing, Follow-Up and Documentation. An explanation for each is listed below.
Verification
All cases are verified through the respective Insurance Company. Some of the questions we may ask are:
Ø Will this policy cover the assigned amount of the funeral bill?
Ø Do we have the correct beneficiary (ies) signing the claim form and assignment?
Ø Does the Insurance Company require a claim form? (Funeral Funding of Michigan has claim forms for more than 200 insurance carriers which we will fax to you if needed. In cases where a claim form is required but the Insurance Company will only mail directly to the beneficiary, we are still able to fund your case.)
Ø Does the date of birth (DOB) provided for the deceased match the Insurance Company’s records?
Ø Are there any outstanding loans or premiums due against the policy?
Additionally, we must ensure the policy is past the contestable period (two years for most insurance companies). We do not fund contestable policies but we will, however, work with policies classified as “Graded” or “Reduced Paid Up”.
Due to many insurance companies’ privacy standards, we may request the funeral home to participate in a conference call with the insurance company in order for us to be able to verify policy information. It has also been our experience that, under certain circumstances, we may need to participate in a conference call with the beneficiary as well in order to validate information concerning their case. However, Funeral Funding of Michigan respects the circumstances and will strive to not involve the beneficiaries as much as possible throughout the entire process.
To begin our verification process, simply fax us a Request for Funding Form, your Funeral Home Assignment and the Irrevocable Reassignment form. Please note that all forms submitted to us must be properly completed (i.e., dollar amounts filled in, assignments signed and notarized, etc.), accurate and legible in order to expedite our verification. Funeral Funding of Michigan will inform the funeral home if/when additional requirements arise or if the verification process may take longer to complete.
Once the information is verified, we proceed with funding your claim and, in most cases, this can be done the same day we receive your faxed paperwork. Funeral Funding of Michigan can fund your case simply from your faxed documentation.
Additionally, we must receive your original documentation within 14 days of funding, even if you have not yet received the certified death certificate. Paperwork not received within 14 days may delay future fundings.
Funding
Ø Once we have processed your funding, we fax a Notification of Intent to the insurance company stating that Funeral Funding of Michigan has taken a reassignment from your funeral home for this case.
Ø Funeral Funding of Michigan will then fax confirmations of ACH’s to the funeral home or cemetery, as applicable. ACH’s are processed at no charge to our customer's and are normally available in your account the following business day.
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We can send a certified check via overnight shipping. A fee will be deducted from the assigned amount to cover the cost of the check. Optionally you can request to receive a standard business check via regular mail at no charge.
Ø Our Representative’s will immediately begin processing your claim with the insurance company.
Processing
Ø The funeral home sends all original documentation to us for processing*.
Ø Original documents are shipped by us to the insurance company with delivery confirmation.
Ø All processed cases are followed through to completion.
Follow Up
Ø The insurance company is contacted within two weeks of shipping the original documents and as often as required until the claim is paid.
Ø Additionally, we will maintain contact with the funeral home or cemetery to inform you of the current status of your claim, or to follow up on additional documents required that we have not received*.
Ø Once the claim is paid in full, we will provide you with a copy of the invoicing for each case funded.
*Funeral Directors must understand that Funeral Funding of Michigan will not be reimbursed for the funding until we have received your original documentation and forwarded it to the appropriate insurance company. Even if the funeral home has not received a certified death certificate, you still must mail the assignments, claim forms, funeral bill, etc., to us within 14 days of funding so we can begin our claim process with the insurance company. It is the funeral homes' responsibility to be prompt in providing all necessary documents in a timely manner.
Documentation
Ø Irrevocable Reassignment
Ø Funeral Home Assignment
Ø Request for Funding sheet
Ø Claim Checklist
In order to provide quality and efficiency, we pride ourselves in maintaining a straightforward and simple paperwork process. We do require, however, that all documents are complete, accurate and legible. Documents submitted that are incorrect or incomplete may delay your funding. Additionally, insurance companies will not accept documentation that has been altered in any way.
The Irrevocable Reassignment must be completed by the Funeral Home and signed where indicated by the term “Individually” by either the Funeral Director or the funeral home owner. Additionally, this document must be notarized. The amount stated on the Irrevocable Reassignment is due within ninety (90) days from the date of funding. We understand that some insurance companies may take longer to pay a claim due to extenuating circumstances (such as coroners’ cases) and Funeral Funding of Michigan will consider this factor.
The Funeral Home Assignment form must be signed by the correct beneficiary (ies) as required by the insurance company. You can download a generic Funeral Home Assignment form by clicking the above link.
The Request for Funding sheet is the fastest way to submit a claim for verification. This form includes all necessary information for us to begin verifying your funding. Simply fax the completed sheet to us and we will let you know how soon the policy can be verified. If you prefer, you can call one of our Representative’s at (800) 544-4145 and we will take the information over the phone. Once verified, we will contact you with the information so you can complete any additional paperwork required and mail the original documentation to our office.
The Claim Checklist is a tool for you to ensure all necessary documentation is completed and included with your claim. We urge you to use shipment tracking to avoid potential delays or loss of receipt of your documents. Insurance companies may also require additional paperwork such as a funeral bill (usually required for fundings over $5000), small estate affidavit, etc. Funeral Funding of Michigan will inform you if additional forms or documentation is required.
© 2008, Funeral Funding of Michigan, Inc.