Q: What return can I achieve on premium financing?
A. Businesses financing $1,000,000 make over $50,000 annually in revenues. This includes fees from finance charge (interest) and other fees. Click [here] for a full break down of how much money you can make from premium financing.
Q: What are the regulatory requirements of setting up a premium finance program?
A. Businesses need to register and obtain a license from the State.
Q: What’s involved in licensing?
A. An application for a financing business has to be filed with the State along with the forms and notices that will be used with clients.
Q: What forms need to be filed with the State?
A. The key forms are the Premium Finance Agreement, Notice of Financing, Notice of Assignment, Notice of Intent to Cancel and Notice of Cancellation. There are a handful of other forms that are required such as Notice of Reinstatements, Renewal Letters, etc. but these are not required for State licensing.
Q: What are the risks involved in premium financing?
A: Premium financing is a low risk venture since the unearned portion of the premiums are assigned to the financing company as collateral. Any cancelled policies can be fully secured with conservative payment plans.
Q: What is the initial investment is required to begin premium financing?
A: Since an infrastructure already exists within the brokerage, premium financing operations require just a modest investment for software licensing and minor office expenditures.
Q: Where can I attain the funding to provide premium financing?
A: Third Eye Solutions has relationships with lenders who are experienced with providing funds to companies wishing to provide premium financing. Third Eye will introduce you to a lender to help expedite the setup for you.
Q: Where can I gain the knowledge to learn more about premium financing?
A: In addition to providing software solutions, Third Eye has a team of individuals who are highly experienced in premium financing. Third Eye provides consulting services to assist organizations in the establishment of a premium financing operation and to enhance their level of expertise in the delivery of the service to their clients.
Q: Who should do “In-House” premium financing?
A: In-House premium financing is a value added service which can create a definitive advantage for any Insurance Broker or General Agent. Third Eye Solutions can tailor make a software solution that will suit any organization.