Any fire and casualty insurance policy is eligible to be financed, except those excluded below.
1. Policies issued for a term of less than six months.
2. Policies not cancellable in accordance with Standard Pro Rata or Short Rate tables.
3. Policies on which the insuring company will not recognize IDC's interest or honor IDC's Power of Attorney in the event of cancellation.
4. Policies which cannot be cancelled by the insuring company or the insured on 30 days or less notice.
5. 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.
6. Interim Audit Deposit policies.
7. Policies which contain a minimum earned premium provision which is more than $10.
8. Policies subject to retrospective rating - Reporting Form.
9. 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.)
10. Policies not acceptable or covered above may be submitted for special consideration.
11. We can no longer finance Workers Compensation policies.
1. The finance agreement must be completed in detail including the annual percentage rate.
A. Have applicant sign agreement.
B. Witness the finance agreement.
2. The first payment date is determined by the effective date of the policy according to the following schedule.
IV. Distribution of Premium Service Agreement
1. 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.
IDC cannot accept the insured's check for the down payment, only for monthly payments.
VI. Additional Premiums
1. Additional premiums of more than $20 may be financed if the insured's account is not paid out or more than 10 days past due. When the additional premium is less than $20, the entire amount may be financed. However, if it is more than $20, the agent should collect at additional down payment. The percentage of down payment may be calculated on our website or call our office.
2. 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, less the down payment. Upon receipt, IDC will forward check and revised payment schedule to the agent. A new schedule and revised payment book will be sent to the insured.
VII. Return Premiums
1. 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).
1. 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.
2. 5 Days after Due Date - All past due insureds are mailed a Notice and notified as to IDC's intent to request cancellation if payment is not received within 10 days. The producer is forwarded a copy of those insureds who were mailed 10 day notices.
3. 5 Days "before" Cancellation - Producer is forwarded a "Final List of Unpaid Accounts" and informed when cancellation will be instituted. (Should the Producer wish to do so, this permits time to contact the insured concerning the non-payment.)
4. 20 to 25 Days after Due Date - Cancellation requests are prepared and all copies are mailed.
1. IDC should be notified of all policy changes and any additional premium being due on any policy.
1. IDC premium service agreements are subject to a minimum service charge and origination fee.
1. 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.
Provide the following information:
A Insured's name and/or his business name, address, and telephone number.
B Agent's name and address.
C Policy dates If more than one policy is being financed, list separately.
D Policy number If not yet assigned, give binder number.
E Name of insurance company and general agent's name and address when a general agent exists.
F Type of coverage.
G Premium amount. If more than one policy, list each amount separately.
H Total premium with taxes and fees.
Example: Total premium = $645.00 on an annual auto policy, no taxes and fees on this policy.
I You have the right to receive an itemization of the amount financed. Check this box to receive your itemization.
First payment due date - Determined by the effective
date of the policy, or
Signature of applicant. All insureds named in (A)
must sign the agreement.
L Date the agreement is signed and copy received by insured.
M Signature of witness, agent or broker.