Background
The following letter, which is in block format with mixed punctuation, is a response to a problem many readers likely have experienced: receipt of a past-due notice. When a policy holder receives a past-due notice, he/she often will call or write the underwriter immediately, asking for an explanation. Certainly the policy holder is afraid he/she will be without insurance only because the underwriter thinks the policy holder has not paid his/her premium.
From the underwriter's perspective, if the policy holder would wait, the firm likely would resolve the discrepancy. If it did not receive the policy holder's payment, the firm sends a legal notice that serves as a third chance to pay the premium. The firm is forced to cancel the policy if it does not receive payment after 30 days from the date on the original bill.
The letter is from a nonexistent insurance company, Free Insurance.
Example
Free Insurance
www.freeinsurance.org
One Premium Drive
Oklahoma City, OK 73112
(405) 866-4444
July 5, 2011
Mr. Stephen Tulloh
100 Maple Street
Columbia, SC 29205
Dear Mr. Tulloh:
You continue to have automobile insurance.
Free Insurance only mails a past-due notice if we have not processed a payment within three days after the date it was due. Sometimes there is a delay in the delivery of a payment; less often a policy holder forgets to include his/her policy number or signature on a check. When Free Insurance receives a check with all the necessary information, we promptly credit the account.
If Free Insurance does not receive a check within three days after the date the payment was due, the policy holder still has a 30-day grace period to pay the premium. The policy holder receives a second notice informing him/her that we have not received a payment. To keep his/her insurance operative, the policy holder only needs to stop payment on the first check and to send us another check.
Electronic maintenance of your account offers many benefits. First, it guarantees immediate receipt of a payment. Second, our well-trained agents can help you get any discounts (safe driver, good student, safety equipment, bundled policy, to list a few) for which you are eligible. Third, you can make a claim electronically so that your agent can quickly and safely get you mobile again. Fourth, you also will receive a check faster, usually within three weekdays.
During the current recession, your automobile, home and possessions are worth more. You can protect them with a Free Insurance bundled policy. Call John Doe at (803) 866-4444, and he will reveal how easy and affordable it is to be completely protected. If you only want to insure a mobile device, a valuable collection, or a fine antique, John will help you do that, for his job is to serve you.
Whatever your insurance needs may be, Free Insurance will help you personally and personably.
Sincerely,
Jane Doe
Director, Customer Services
Explanation
What makes it an effective letter? It opens with a positive statement that assures the reader. The explanation of Free Insurance's policy is in the second paragraph. The company does not assign blame, and the paragraph ends somewhat positively. The writer positively presents the negative information in the third paragraph. The second notice is not a threat; it is an announcement of a 30-day extension. Because the writer suggests a way to resolve the problem, there is no need for further correspondence. The writer, in the fourth paragraph, proposes another way to resolve the problem, presents additional benefits of computers, and includes some benefits of continual coverage by Free Insurance. In the penultimate paragraph, the writer softly sells other policies the firm offers and prepares the reader for the close.
