ADDITIONAL
PREMIUM PROCEDURE
Whenever the original quoted premium is
increased by the company or an insured changes coverage which results in
an increase in the total annual premium, the agent should follow the
procedures listed below.
Where there is an increase in premium only
The agent should contact the insured,
advise him or her of the premium increase and advise him or her of the
options available.
Options Available:
-
Insured can pay the entire premium
increase in full, directly to the insurance company, and provide proof
of payment to Arizona Premium Finance Co.
-
Insured can finance the additional
premium after paying a new down payment to Arizona Premium Finance Co.
The additional amount financed will be added to the remaining monthly
payments and the monthly payment amount increased accordingly.
-
Insured can decline to continue with
the coverage and have the insurance agent request immediate cancellation
of the insurance policy.
The agent should collect the full
additional down payment amount from the insured. The amount of new down
payment is a percentage of the additional premium amount based upon the
number of days the policy has been in force. The table below shows the
down payment percentage required.
Additional premiums cannot be financed
unless the original premium was financed by APFC and the loan is current.
Additional premium amounts of $50 or less must be paid in full by the
insured.
DOWN PAYMENT REQUIRED ON ADDITIONAL
PREMIUMS WILL BE AS FOLLOWS:
|
Down Payment
Required |
Period Policy in Effect |
|
25% |
Within 30 days of original policy
effective date |
|
35% |
Within 60 days of original policy
effective date |
|
45% |
Within 90 days of original policy
effective date |
|
55% |
Within 120 days of original policy
effective date |
|
65% |
Within 150 days of original policy
effective date |
IF THE POLICY IS IN FORCE OVER 150 DAYS,
APFC WILL NOT FINANCE THE ADDITIONAL PREMIUM.
Completing the Premium Finance Agreement
The agent shall complete and submit a
regular Premium Finance Agreement, checking the Additional Premium Box on
the top center.
Complete
only the following parts of the form:
-
Insured's Name & Address box, the
Producer Name box.
-
Under the Schedule of Policies, list
the Policy Number, Effective Date, Insurance Company Name and Premium
Amount.
-
Write the additional premium amount in
the Total Premium box under the Insured's Name box.
-
Calculate the required Down Payment
based upon the Table above.
-
Write the Down Payment amount in the
Down Payment box under the Insured's Name box.
-
Have the Insured sign and date the
agreement.
-
The agent should print his name on the
bottom left line and sign it on the bottom right line.
The Agent then mails to Arizona Premium
Finance Co. the Original signed Additional Premium Finance Agreement, the
Down Payment Collected from the Insured, and a copy of the Declarations
Page or Premium Invoice from the Insurance Company. The Down Payment
should be payable to the named Insurance Company. APFC will add the
new amount financed to the existing loan balance due and recalculate the
monthly payment amount. A new payment coupon book will be mailed to the
insured. The agent should advise the Insured to continue making monthly
payments to APFC.
Where
there is New Coverage added to an existing policy
At
the time that the Additional Coverage is requested, the Agent must
complete a signed Additional Premium Finance Agreement and collect our
required Down Payment. The
minimum Down Payment required is 25% of the Additional Premium amount
(Within 30 days of the Change, 25% Down, afterwards 35% Down). The Agent then mails to Arizona Premium Finance Co. the Original signed
Additional Premium Finance Agreement. The Agent mails to the Insurance
Company a copy of the Additional Premium Finance Agreement, and the Down
Payment Collected from the Insured. APFC will add the new amount financed
to the existing loan balance due and recalculate the monthly payment
amount. A new payment coupon book will be mailed to the insured. The
agent should advise the Insured to continue making monthly payments to
APFC.
If the producer is unsuccessful
in collecting the full additional premium or the required down payment, he
must notify the insurance carrier in writing to immediately CANCEL the
policy.
If
you add coverage mid-term to a policy and do not collect
apfc's required Down Payment
and complete an Additional Premium Finance Agreement, then the Agent, is
responsible for any balances due to
apfc if the policy cancels.
New policies may not be added to existing
obligations. For New Policies, a new, signed premium finance agreement
must be submitted accompanied by a new down payment.
Additional
Premium Request Forms are available at:
http://www.apfcinc.com/forms.htm
View completed
Additional Premium Request Form
View completed
Additional Premium Finance Agreement
If the producer is
unsuccessful in collecting the full additional premium or the required
down payment, he must notify the insurance carrier in writing to
immediately CANCEL the policy.
New policies may not be added to existing obligations.
For New Policies, a new, signed premium finance agreement must be
submitted accompanied by a new down payment.
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