Metro 2 Special Comment Code BN: Paid by Insurance

Specification

Code	BN
Meaning	Paid by Insurance
Field	Special Comment (Field 31)
Record	Base Segment
Length / position	2 chars · 213–214
Category	Paid by a Third Party
CRRG reference	CRRG Exhibits 6 & 7 (Special Comment Codes)

BN identifies the payer. The obligation was satisfied, and the money came from an insurance policy.
BN does NOT mean the borrower made the payments. That distinction is the entire reason the comment exists.
BN does NOT apply to a partial insurance payment that leaves a balance outstanding. The remaining balance still reports as owed.
BN says nothing about whether the account was delinquent before the claim paid. The prior history reports as it happened.
BN is terminal: it describes a completed payoff event, not an ongoing condition.

1A credit-life policy pays off an installment loan after the borrower's death and the lender closes the account.
2A disability policy attached to a consumer loan makes the payoff after a qualifying claim.
3A gap policy retires the remaining auto-loan balance after a total-loss settlement.
4A mortgage payment-protection policy satisfies the outstanding balance following an approved claim.

Report BN only when insurance proceeds actually satisfied the balance.
Populate Date Closed and a zero Current Balance in the same record.
Do not use BN for a partial claim payment; report the remaining balance accurately instead.
Where the payoff followed the borrower's death, make sure the consumer's deceased indicator is handled through the Consumer Information Indicator, not through this comment.
Do not report BN on an account that is still open and performing.

A file can be structurally valid and still be wrong. These are the cross-field conditions Special Comment Code BN has to satisfy.

Current Balance and Amount Past Due must be zero, and Date Closed must be populated.
Account Status should describe a paid and closed account for the cycle the claim retired the balance.
A deceased consumer is reported through the Consumer Information Indicator on the applicable consumer's segment, never inferred from this comment.
On a joint obligation, check the ECOA Code and the J1 or J2 segments so the payoff is reflected for the correct consumers.
Date of First Delinquency stays anchored to any delinquency that occurred before the claim paid.