Premium Finance Loans Explained

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 lender 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 lender 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 by the Agency & Client Login. This program 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 (USA PATRIOT Act) requires all financial institutions to obtain and verify the identity of each person who opens an account. When you open an account we will ask for your business name, address, and EIN information to allow us to identify you.