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PREMIUM FINANCE PROCEDURE

When Using our Quotes Software
  1. CREATE THE FINANCE AGREEMENT
    Use the APFC Quotes Software to create the Premium Finance Agreement.
    Print the Finance Agreement and First Payment Coupon and then print Funding Draft if allowed by program.
    Obtain the signature of the Insured on the Finance Agreement.
     
  2. COLLECT THE REQUIRED DOWN PAYMENT FROM THE CUSTOMER
    Collect the full Down Payment stated on the Finance Agreement from the customer.
     
  3. SEND THE FINANCE AGREEMENT TO APFC
    Send the Finance Agreement to APFC via the Internet.
    If you DID NOT USE the Electronic Signature feature - you must MAIL the Original Finance Agreement to APFC.
    If you used the Electronic Signature feature - DO NOT mail the Original Finance Agreement.
     
  4. MAIL THE FINANCE AGREEMENT AND DOWN PAYMENT TO THE INSURANCE COMPANY
    Mail a copy of the signed Finance Agreement and the Down Payment to the Insurance Company or General Agent.  If this is an Assigned Risk Policy, mail these documents to the Assigned Risk Plan.  If the Insurance Company allows your agency to retain your Commission, send the full Down Payment less your Commission.
     
  5. FAX THE DECLARATIONS PAGE OR INVOICE TO APFC
    Upon receipt of the Declarations Page or Invoice from a General Agent, fax that document to APFC at 800-662-8854.  APFC will only fund the policy after receipt of the Declarations Page or Invoice where the premium information matches the Finance Agreement.
When Completing the Finance Agreement by hand

This is our Premium Finance Procedure in general. 
Please refer to the specific terms and instructions we provide for your State.

  1. Complete Insurance Company Application (Assigned Risk Plan 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 write ASSIGNED RISK PLAN Name.
For other companies, write name of insurance company.
If writing through a General Agent, write the General Agent - Insurance Company Name. 

     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.  Transfer the numbers on the line of the gross premium to the Premium Finance Agreement.

4.  Fill-in Federal Truth-In Lending Section: Total Premium (total of policy premium listed under Schedule of Policies), Down Payment (Percentage of the Gross Premium as stated in our Procedures for your State), Amount Financed, Finance Charge, Total of Payments, Total Sale Price, APR Rate, Amount of each payment, Number of Payments (9 payments for Personal policies), Payment Due Date (30 days from the effective date of the policy).

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.  Note:  The Assigned Risk Plan requires a Money Order or Agency Check as payment of the Insured’s Down Payment.  Do not send the insured's personal check.

8.  Write out an APFC Funding Draft payable to the insurance company or Assigned Risk Plan.

     A.  Draft Amount: % of the policy premium as stated in the Procedures for your State.

     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 Insured's Down Payment  attached to the Insurance Company Application to the insurance company or Assigned Risk Plan.   Note:  The Assigned Risk Plan requires a Money Order or Agency Check as payment of the Insured’s Down Payment.  APFC will fund the balance due the insurance company after receipt of the Declarations Page from the agent's office.

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 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.