General Rules for Financing

Any fire and casualty insurance policy is eligible to be financed, except those excluded below.

Policies issued for a term of less than 12 months.
Policies not cancellable in accordance with Standard Pro Rata or Short Rate tables.
Policies on which the insuring company will not recognize IDC's interest or honor IDC's Power of Attorney in the event of cancellation.
Policies which cannot be cancelled by the insuring company or the insured on 30 days or less notice.
Policies covered by a deposit premium or provisional premium which is less than the anticipated premium to be earned for the full term of the policy.
Policies subject to retrospective rating - Reporting Form.
Agent policy fees and Notary fees cannot be financed. (The fees should be handled separately and collected by the Agent in addition to the down payment and the insured should be given a separate receipt.)
Policies not acceptable or covered above may be submitted for special consideration.
Policies which are audited such as Workers Compensation policies.

The finance agreement must be completed in detail including the annual percentage rate.
Have applicant sign agreement.
Agent must witness the finance agreement.
If the inception date of any policy is earlier than the date of the agreement, the first payment due date is to be determined from the policy inception date, or from the inception date of the oldest policy if more than one policy is being financed.
All agreements are to be in a current or advance condition at the time of receipt by IDC.

Federal Reserve Regulation Z, Truth in Lending, requires that the customer be furnished a copy of the agreement at the time the agreement is signed and down payment accepted.
The insured will receive from IDC an approved copy of the finance agreement, payment coupons, and a letter explaining when all payments are due, once the contract and down payment have been received and processed by IDC.

IDC cannot accept the insured's check for the down payment, only for monthly payments.
Down payment is generally 25% of the Total Premium including taxes and policy fees.

For accounts where Total Premium is less than $1,000, insured is allowed a maximum of eight (8) payments.
For accounts where Total Premium is $1,000 or greater, insured is allowed a maximum of nine (9) payments.

Additional premiums can be added to accounts in a current status with a minimum of two billable payments remaining.
An additional premium of $50.00 or less may be added without an additional down payment upon the agent's request.
An additional premium greater than $50.00 will require an additional down payment of 25% (50% if only two payments remain).
The percentage of down payment may be calculated on our website or you may call our office.
Additional premiums are to be treated as add-ons to the original agreement and submitted to IDC in writing requesting the additional premium be added to the contract. Upon receipt, IDC will process and forward money to the insurance company. A new schedule and revised payment book will be sent to the insured.

Any and all refunds or return premiums must be mailed to IDC for credit to insured's account. Checks payable to agent should be endorsed before mailing to IDC. If refund check is made payable to insured, IDC has authority to endorse insured's name and credit amount of refund to insured's account. Refund checks should never be given to insured if original premium was financed. All credits will be applied to the insured's final payment(s).

IDC will cancel a policy only as a last resort as cancellations are costly and inconvenient to the agent, insured, and the premium service company. IDC's cancellation procedures are designed to avoid and minimize cancellations.
5 Days after Due Date - All past due insureds (and their agents) are mailed a Late Notice and notified as to IDC's intent to request cancellation if payment is not received within 10 days.
6 Days "before" Cancellation - The insured will be sent a Cancellation Notice. The agent is forwarded a copy of the Cancellation Notice informing when cancellation will be instituted. (Should the Producer wish to do so, this permits time to contact the insured concerning the non-payment.)
20 to 25 Days after Due Date (depending on weekends and holidays) - Cancellation requests are prepared and sent to the insurance company.

IDC premium service agreements are subject to a minimum service charge and origination fee.

All agreements are to be in compliance with the law as well as the requirements covered herein, including any subsequent revisions or additions. If Installment Discount Corp. determines that the agreement is not in compliance, the agent or producer will be expected to indemnify IDC for any loss which may incur as a result.

As an arranger of credit, you are subject to Federal Reserve Regulation Z, Truth In Lending. If you have any questions concerning this law, you should consult your attorney.