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No (clock stops) Yes No Yes RXQ.2.4Models RXQ.2.4.1 Determination of Initial Credit Limit – Process Flow Applicant Creditor (delays would add time to clock) Sends Credit Application Form to Applicant Contacts Creditor to apply Fills out Credit Application Form & supporting documents (Applicant or Guarantor) gathers needed financial information Submits Credit Application Form to Creditor Receives Credit Application Form from Applicant (clock starts/ restarts) (18.104.22.168) Checks Credit Application Form for completeness Complete? Sends request for missing data/ documents via overnight/ fax/e-mail Perform initial credit limit determination (within 10 Business Days) (22.214.171.124) Able to complete? Request needed clarification Initial credit limit determination completed Prepare and send written report of initial credit limit determination via overnight/fax/e-mail (within 5 Business Days) (126.96.36.199) Receives written results Evaluation complete Note: Individual Model Business Practice numbers cited only when they specify time frames Provide requested information Key: Solid Lines = Normal Process Dashed Lines = Exceptions If Credit Application Form is not complete, Creditor must notify the Applicant of missing items within 5 Business Days (188.8.131.52)
RXQ.2.4.2Reconsideration of Determination of Initial Credit Limit - Process Flow Applicant Creditor No Yes STOP No Receives reconsideration request Request reconsideration by Creditor Recd <=30 days of determination ? (184.108.40.206) Go to Challenge process flow Material Change? 12 months since evaluation? Initiate reconsideration Time for periodic review or aware of Material Change? Send Credit Application Form to Applicant Fills out Credit Application Form & supporting documents Gathers needed financial information Perform credit limit determination Submits Credit Application Form to Creditor Receives written results Process complete Receives notice denying reconsideration Send notice denying reconsideration request Note: Individual Model Business Practice numbers cited only when they specify time frames Same Process as Determination of Initial Credit Limit (See RXQ 2.4.1 Process Flow) No
No Yes RXQ.2.4.3Reconsideration of Determination of Initial Credit Limit – Challenge Process Flow Applicant Creditor Yes No Yes No Yes No Yes Send written report of results Receives and reviews written credit limit determination results Is determination acceptable ? Prepare and submit Challenge (within 30 Days) (220.127.116.11) Receives Applicants Challenge Received <= 30 days ? Provides rationale for Applicant review (within 5 Business Days) ( 18.104.22.168) Applicant and Creditor review initial determination and supporting data Material errors? Maximum Duration = 15 Business Days ( 22.214.171.124) Receives and reviews new written results Is determination acceptable? Is Creditor subject to ARAs (1) dispute resolution process Sends notice denying Challenge Note: Individual Model Business Practice numbers cited only when they specify time frames (1)ARA = Applicable Regulatory Authority No Evaluation complete Appeal to Applicable Regulatory Authority Receives notice denying Challenge Perform credit limit reevaluation (within 10 Business Days of receipt of corrected information) Prepare and send Written report of result (within 5 Business Days)
RXQ.2.4.4Disqualification/Remedies – Process Flow Applicant Creditor Yes Start (R)isk vs (S)ecurity? Send request for addl security Applicant request received Done Receives (lower) security arrangement in place R=S Stop Ask to reduce security? R< S Request addl security? Stop No Request new (lower) security arrangement Creditor request received Action taken Shortfall remedied within time limit? Reduce risk by stopping Enrollment Requests, move custs to Dual Billing, reduce product sales, or other ARA-approved remedy, including disqualification (if Applicant is Supplier) Done Establish new (lower) security arrangement Requests made via overnight, fax, or e-mail Reduce risk exposure Provide addl security None Stop No Yes No Yes
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