Premium Finance Loans
Loans to finance insurance premiums are made to commercial customers
of insurance agencies. The loan proceeds are paid to insurance companies
to pay for the borrower's insurance. The loans are financed over
a flexible payment schedule, with repayment being secured by the
finance company holding the power of attorney to cancel the insurance
policy, and receive the cancellation proceeds, should the borrower
fail to make payments.
We provide to insurance agencies a selection of options in providing
a quote to an insured. These options include internet quoting and finance
company assisted quoting by phone or email. With
the Internet-based quote, an agency can generate contracts at its location
and have the insured sign the contract immediately, thus expediting
the funding process. Rates and contract terms are negotiable, and can
be modified at the request of an agent.
In addition, we provide on-line account access through the internet.
This is provided through the accounts-in-view
program that is updated daily, and the insured and agent can check the
insured’s account status at any time without making a phone call.
Benefits of Insurance Premium Financing
The benefits to all involved parties of the Insurance Premium Financing
product:
Benefits to the insured:
- Flexible payment period for premium cost.
- Reinvest the cash flow savings back into working capital.
- Tax deduction for the associated finance charge.
- The premium underwriting rate is fixed for the year in advance,
despite being paid in installments, and can be accurately budgeted.
Benefits to the Agent:
- Internet Quoting available to have contracts ready for insured
to sign.
- Quick turn around on funding for contracts.
- Internet access to verify status of insured's account.
- More service options for your clients.
- Potential of additional income through producer fees.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.