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End-to-End Example: Agency-Billed Commercial Policy for Petromax Carburettor
This example follows a single customer from policy creation through payment settlement, showing what data exists at each stage and how amounts move.
Customer and Business Context
Petromax Carburettor is a B2B manufacturer of automobile spare parts. The company operates a factory with multiple machines, including CNC lathes and die-casting machines, and employs approximately 2,500 people.
Petromax approaches Agent Sync Brokerages to purchase a Commercial Liability insurance policy. The policy must cover:
- Enterprise-wide liabilities
- Product- and equipment-related risks for specific machines
The carrier is Cumulus Insurance, and the agreed billing model is Agency Billing, meaning the broker manages invoicing and payments.
Policy Overview
| Attribute | Value |
| Policy Number | MX430-1121 |
| Policy Type | Commercial Liability |
| Effective Date | 1 Jan 2026 |
| Expiration Date | 31 Dec 2026 |
| Billing Responsibility | Agent Sync Brokerages |
| Billing Model | Agency Billing |
The policy spans a full one-year term. All components inherit this duration.
Enterprise-Level Coverages
Petromax requires liability coverages that apply across the organization.
| Coverage | Annual Premium (Standard Premium) | Tax (Surcharge Amount) |
| Errors & Omissions | 12,000 | 1,200 |
| General Liability (Tax 1) | 10,000 | 500 |
| General Liability (Tax 2) | 10,000 | 600 |
| Other Liabilities | 6,000 | 550 |
Each tax is modeled as a separate surcharge associated with its coverage.
Asset-Specific Risk Coverage
Petromax also insures two machines individually because they carry product and operational risk.
Asset: CNC Lathe AF05032
| Coverage | Annual Premium (Standard Premium) | Tax (Surcharge Amount) |
| Product Liability | 1,200 | 120 |
| Equipment Breakdown | 600 | 60 |
Asset: Die Casting Machine
| Coverage | Annual Premium (Standard Premium) | Tax (Surcharge Amount) |
| Product Liability | 1,000 | 100 |
| Equipment Breakdown | 450 | 40 |
Each asset has its own coverage records, even when coverage names are identical.
Annual Policy Totals
Once all coverages and surcharges are in place, the policy represents the following annual amounts.
| Amount Type | Total |
| Total Premium | 31,250 |
| Total Tax | 3,170 |
| Total with Tax | 34,420 |
Billing Configuration Chosen for the Policy
Agent Sync configures billing for Petromax as follows.
| Configuration | Value |
| Product Selling Model | Term Based – Monthly |
| Bill Day of Month | 10 |
| Billing Timing | In Advance |
| Proration Policy | Equal distribution, remainder added to last |
| Payment Term | Net 30 |
| Legal Entity | US Legal Entity |
Because of the Bill Day of Month, the policy produces 13 billing periods.
Billing Period Timeline
| Period | Start Date | End Date |
| 1 | 1 Jan 2026 | 9 Jan 2026 |
| 2 | 10 Jan 2026 | 9 Feb 2026 |
| … | … | … |
| 13 | 10 Dec 2026 | 31 Dec 2026 |
Billing Breakdown: Other Liabilities Coverage
Other Liabilities Coverage is billed monthly across all billing periods.
| Annual Amount | Value |
| Premium | 6,000 |
| Tax | 550 |
| Billing Periods | 13 |
Per-Period Amounts
| Type | Calculation | Amount |
| Premium | 6,000 ÷ 13 | 461.54 |
| Tax | 550 ÷ 13 | 42.31 |
Any rounding difference is adjusted in the final billing period.
First Invoice Generation
Agent Sync generates the first invoice shortly after policy issuance.
| Parameter | Value |
| Target Date | 2 Jan 2026 |
| Invoice Date | 30 Nov 2025 |
| Invoice Status | Posted |
Only the first billing period is included.
Invoice Lines (Other Liabilities)
| Charge Type | Amount |
| Premium | 461.54 |
| Tax | 42.31 |
Invoice Totals
| Field | Amount |
| Total Charges | 461.54 |
| Total Tax | 42.31 |
| Total with Tax | 503.85 |
Billing Schedule State After First Invoice
| Field | Value |
| Billed Amount | 461.54 |
| Remaining Amount | 5,538.46 |
| Next Billing Date | 10 Jan 2026 |
The billing window advances to the next period.
Generating a Multi-Period Invoice (Through March)
Agent Sync later generates another invoice covering multiple periods.
| Parameter | Value |
| Target Date | 20 Mar 2026 |
| Invoice Date | 10 Dec 2025 |
| Result | Value |
| Coverages | 7 |
| Billing Periods Included | 3 |
| Invoice Lines | 21 |
Payment Method Setup
Petromax provides a credit card for payment.
| Item | Value |
| Payment Method | Saved Credit Card (Stripe – Test) |
| Application Level | Invoice Line |
| Payment Schedule | Auto-generated |
Payment Processing
A payment run is executed on 19 Jan 2026.
| Field | Value |
| Payment Amount | 2,647.70 |
| Impact Amount | -2,647.70 |
| Result | Successful |
Payment Application Across Invoice Lines
| Step | Invoice Line | Applied Amount | Remaining Balance |
| 1 | Errors & Omissions | 1,015.39 | 1,632.31 |
| 2 | General Liability | 853.84 | 778.47 |
| 3 | Other Liabilities | 503.85 | 274.62 |
| 4 | Product Liability (Lathe) | 101.54 | 173.08 |
| 5 | Equipment Breakdown (Lathe) | 84.61 | 88.47 |
| 6 | Product Liability (Die Casting) | 50.77 | 37.70 |
| 7 | Equipment Breakdown (Die Casting) | 37.70 | 0.00 |
Final Outcome
Petromax Carburettor receives a fully issued Commercial Liability policy covering enterprise risks and machine-specific exposures for the 2026 term.
Agent Sync Brokerages generates invoices, collects payment, and settles all billed amounts under the Agency Billing model.
All billing schedules advance correctly, payments are applied at the invoice-line level, and the account balance reaches zero.
| Item | Status |
| Policy | Issued |
| Invoices | Generated |
| Payments | Applied |
| Outstanding Balance | 0.00 |
| Billing Schedules | Advanced |
