Preauthorized check plan

{
  "id": "MLC-T-INS-002621",
  "term": "Preauthorized check plan",
  "field": "Insurance and risk management",
  "definition": "An arrangement that allows an insurer to automatically withdraw premium payments directly from a policyholder's bank account on scheduled dates. The policyholder provides written authorization and their banking information to the insurance company to establish the recurring debits. This payment method is a form of electronic funds transfer (EFT) and is commonly offered for life, health, and auto insurance policies with monthly or quarterly premium schedules.",
  "url": "https://mlchart.com/terminology/insurance/preauthorized-check-plan/"
}