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PREMIUM
FINANCE PROCEDURE FOR
NEW
JERSEY
1.
Complete Insurance Company Application (NJAIP or Direct
Appointment).
2.
Complete APFC Premium Finance Agreement and Disclosure Statement.
A.
Insured's Name, Address, Drivers License Number, Social Security
Number, Home telephone, Business
telephone in upper left box.
B.
Agent's Name, Address, Telephone and three Digit Agent Code
assigned by APFC to the Agent in the upper right box.
C.
Fill-in Schedule of Policies:
D. Effective Date is
the actual effective date of the policy.
E.
Name of Insurance Company: For
an Assigned Risk Policy through NJAIP write NJAIP, for other companies
write Name of insurance company.
F.
Coverage: Liab or
Comp
G.
Term: number of
months, i.e. 12
H.
Premium Amount: Gross Premium amount
3.
Look up Premium amount in APFC Rate Book to determine Federal
Truth-In Lending numbers.
4. Fill-in Federal Truth-In Lending Section: Total Premium
(total of policy premium listed under Schedule of Policies), Down
Payment (25% on Personal policies, 20% on Commercial policies subject to
any Minimum Earned Premium), Amount
Financed, Finance Charge, Total of Payments, Total Sale Price, APR Rate,
Amount of each payment, Number of Payments (9 payments for Personal
& 9 payments on Commercial policies), Payment Due Date (20 days from
effective date on Personal Policies and 30 days from the effective
date on Commercial policies).
5.
Have Insured sign and date Premium Finance Agreement.
6. Agent prints name on lower left line of premium Finance
Agreement and signs Agent's name on lower right line.
7.
Collect appropriate Down Payment from Insured.
8. Write out an APFC Funding Draft payable to the insurance
company or NJAIP for Plan policies.
The Draft amount should be for the amount financed (75% of the
policy premium on Personal Policies).
For Commercial Plan Policies (NJCAIP), the Draft amount should be 20% of
the premium.
A.
Draft Amount: see above.
B.
Write name and address of insured in upper left box.
C.
Write your APFC Agent Number and Agent Name on lower right line.
9. Send copy of Premium Finance Agreement marked "Insurance
Co.",
along with APFC Funding Draft and Down Payment collected from
insured, attached to the Insurance Company Application, to the insurance
company or NJAIP. Send
ONLY a Money Order or Your Agency Check as payment of the insured’s
down payment. DO NOT Send The Insured’s Personal Check.
10.
Send Original signed Premium Finance Agreement and yellow copy of
Draft to APFC in Arizona.
11.
Give Insured copy of Premium Finance Agreement marked "Insured's
Copy".
12.
Retain copy of Premium Finance Agreement and Draft for your
records.
13.
APFC upon receipt of the Premium Finance Agreement, will mail to
the Insured a letter and Coupon Book advising the insured that the
premium is being financed and where and when to send payments to APFC.
14.
Upon receipt of the Declarations Page from the insurance Company,
the Agent must fax the Declarations Page to APFC at
800-662-8854.
APFC will fund the balance due the insurance company if any, upon receipt
of the Declarations Page.
Review
all Declaration Pages or Premium Billing Notices from the insurance carrier.
If the premium is greater than the premium written on the original
finance agreement, any greater amount is treated as an Additional Premium.
In cases of Additional Premiums, follow our Additional
Premium Procedures.
You must contact the Insured and get him or her to bring you the new down
payment required on the uprate and have them sign an Additional Premium Finance
Agreement.
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