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Frequently Asked Questions

General


General

What is Premium Financing?
After an insurance agent places coverage with an insurance company on behalf of an insured, the insured may then request that the insurance agent arrange the financing of the insurance coverage. The insured signs a premium finance agreement which is then submitted by the insurance agent to a premium finance company.  The premium finance company then pays the insurance premium on behalf of the insured.
What is the relationship between the insured and the premium finance company?
By financing their insurance, the insured has entered into a loan contract with the premium finance company and has given the premium finance company the authority to cancel the financed insurance coverage in the event the insured defaults in making scheduled loan payments.

By financing their insurance, the insured has also given the premium finance company a security interest in any unearned insurance premiums which, when received by the premium finance company, are applied to the outstanding loan balance due from the insured.

What payment options are available?
Generally payment plans have a down payment at the time the premium finance quote is signed followed by equal monthly installments.  The monthly installments normally begin one month from the earliest inception date of the insurance policies listed on the contract.
The amount of the down payment and number of installments will vary depending on the type of coverage, policy term and conditions of the insurance policies being financed.  The complete terms of the premium finance loan, payment schedule and interest rate charged, are reflected on the finance contract.