No

(clock stops)

Yes

No

Yes

RXQ.2.4 ModelsRXQ.2.4.1 Determination of Initial Credit Limit – Process Flow

Ap

pli

ca

nt

Cre

dit

or

(del

ays

wou

ld a

dd t

ime

to c

lock

)

Sends CreditApplication Form

to Applicant

Contacts Creditorto apply Fills out Credit

Application Form& supporting documents

(Applicant orGuarantor)

gathers neededfinancial

information

Submits CreditApplication Formto Creditor

Receives CreditApplication Formfrom Applicant(clock starts/

restarts)(2.3.3.5)

Checks CreditApplication Formfor completeness

Complete?

Sends request formissing data/documents

via overnight/fax/e-mail

Perform initialcredit limit

determination(within 10 Business

Days)(2.3.3.12)

Able tocomplete?

Request needed

clarification

Initial credit limitdetermination completed

Prepare and send writtenreport of initial creditlimit determination

via overnight/fax/e-mail(within 5 Business Days)

(2.3.3.13)

Receives writtenresults

Evaluationcomplete

Note: Individual Model BusinessPractice numbers citedonly when they specify timeframes

Providerequestedinformation

Key:

Solid Lines = Normal ProcessDashed Lines = Exceptions

If Credit Application Form is not complete, Creditor must notify theApplicant of missing items within 5 Business Days (2.3.3.6)

RXQ.2.4.2 Reconsideration of Determination of Initial Credit Limit - Process Flow

Ap

pli

ca

nt

Cre

dit

or

No

No

Yes

Yes

Yes

Yes

STOPNo

Receives reconsideration

request

Requestreconsideration

by Creditor

Rec’d<=30 days ofdetermination

?(2.3.4.1)

Go to Challenge

process flow

MaterialChange?

12 monthssince

evaluation?

Initiatereconsideration

Time for periodicreview or aware ofMaterial Change?

Send CreditApplication Form

to Applicant

Fills out CreditApplication Form

& supporting documents

Gathers neededfinancial

information

Perform creditlimit

determination

Submits CreditApplication Form

to Creditor

Receives writtenresults

Process complete

Receives noticedenying

reconsideration

Send noticedenying

reconsiderationrequest

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.2.4.3 Reconsideration of Determination of Initial Credit Limit – Challenge Process Flow A

pp

lic

an

tC

red

ito

r

Yes

No

Yes

No

Yes

No

Yes

Send writtenreport of results

Receives andreviews written

credit limitdetermination

results

Is determination

acceptable?

Prepare andsubmit Challenge(within 30 Days)

(2.3.4.1)

ReceivesApplicant’s Challenge

Received<= 30 days

?

Provides rationalefor Applicant review(within 5 Business

Days)( 2.3.4.2)

Applicant and Creditor review initial

determination and supporting data

Materialerrors?

Maximum Duration = 15 Business Days( 2.3.4.2)

Receives andreviews new

written results

Isdeterminationacceptable?

Is Creditorsubject to ARA’s (1)

dispute resolutionprocess

Sends noticedenying Challenge

Note: Individual Model Business Practice numbers cited only when they specify time frames

(1) ARA = Applicable Regulatory Authority

No

Evaluationcomplete

Appeal toApplicableRegulatoryAuthority

Receives noticedenying Challenge

Perform credit limitreevaluation

(within 10 BusinessDays of receipt of

corrected information)

Prepare and sendWritten report of

result(within 5 Business

Days)

RXQ.2.4.4 Disqualification/Remedies – Process Flow

Ap

pli

ca

nt

Cre

dit

or Yes

Start(R)isk vs

(S)ecurity?

Send request foradd’l security

Applicantrequest

received

Done

Receives (lower)security

arrangement in place

R=S Stop

Ask to reducesecurity?

R< S

R< S

Requestadd’l

security?

Stop

No

Request new(lower) security

arrangement

Creditorrequestreceived

Actiontaken

Shortfallremedied within

time limit?

Reduce risk bystopping Enrollment

Requests,move custs to Dual Billing,

reduce product sales,or other ARA-approved

remedy, includingdisqualification (if Applicant

is Supplier)

DoneEstablish new

(lower) securityarrangement

Requests madevia overnight,fax, or e-mail

Reduce risk exposure

Provide add’lsecurity

None

Stop

No

Yes

No

Yes