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ADDITIONAL PREMIUM PROCEDURE

There are 2 types of Additional Premiums - Uprate by Insurance Company or Change of Coverage by Insured.  We have different procedures for each type.

Where there is an increase in QUOTED premium only

Whenever the original quoted premium is increased by the insurance company the agent should follow the procedures listed below.

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: 

  1. Insured can pay the entire premium increase in full, directly to the insurance company, and provide proof of payment to Arizona Premium Finance Co.
  2. 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.
  3. 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 25% of the additional premium amount.

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 IS 25%. 

 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: 

  1. Insured's Name & Address box, the Producer Name box.
  2. Under the Schedule of Policies, list the Policy Number, Original Policy Effective Date, Insurance Company Name and Premium Amount.
  3. Write the additional premium amount in the Total Premium box under the Insured's Name box.
  4. Calculate the required Down Payment based upon 25% rounded to the next whole dollar.
  5. Write the Down Payment amount in the Down Payment box under the Insured's Name box.
  6. Have the Insured sign and date the agreement.
  7. The agent should print his name on the bottom left line and sign it on the bottom right line.

The Agent then faxes to Arizona Premium Finance Co. the Original signed Additional Premium Finance Agreement, an Agency Check for the Down Payment Collected from the Insured, and a copy of the Declarations Page or Premium Invoice from the 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.

If you are using the APFC Quotes Software, submit the Additional Premium Quote to APFC and submit the Down Payment received through our website as a Payment By Agency Check and mark  "Down Payment" as the payment type.

 

Where there is New Coverage added to an existing policy

At the time that the Additional Coverage or Change of 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.  The Effective Date is the date the Coverage Was Added or the date a newly acquired  vehicle was purchased, whichever is earlier. 

The Agent then faxes 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 you are using the APFC Quotes Software, submit the "Adding or Changing" Quote to APFC and submit the Down Payment received through our website as a Payment By Agency Check and mark  "Down Payment" as the payment type.

 If the producer is unsuccessful in collecting the full additional premium or the required down payment, he may not add coverage to the financed policy or if it was added by the Insured, 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 Finance Agreement for:   INCREASE IN QUOTES PREMIUM

View completed Additional Premium Finance Agreement for:   ADDED OR CHANGE OF COVERAGE
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.