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1. 2. 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. 1. The finance agreement must be completed in detail including the annual percentage rate. A. Locate premium on rate chart. B. Determine down payment from chart and collect from insured. C. Insert financing information on application in spaces. D. Have applicant sign agreement. E. 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. 2. The insured will receive an approved copy of the finance agreement, payment envelopes and a letter explaining when all payments are due. Payments should be mailed directly to our office in the envelopes provided. 3. A copy of IDC's contract properly executed by the insured is to accompany and be attached to each insurance application and/or Agent's daily report on all financed policies. 4. Mail all IDC's copies of the agreement to us with a copy of the daily report or application. Upon acceptance we will mail you our check. 1. Down payments are to be no less than the amounts called for by IDC's rate charts. If the total premium is an odd amount, increase down payments by the odd amount so that the amount being financed is an "even dollar amount." 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 least 35% down. If the policy is over 90 days old and the additional premium is retroactive to the policy inception date, a 50% down payment will be required. 2. Additional premiums are to be treated as add-ons to the original agreement and submitted to IDC in letter form 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. 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 by him 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. XI. Request by Insured for Separate Contracts The North Carolina and South Carolina Departments of Insurance requires all premium service companies to have the enclosed form signed by the insured if multiple contracts are requested. 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. XIII. Federal Truth In Lending 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. These Rate Charts are furnished for your use in completing the Premium Finance Agreements of Installment Discount Corp. only. Any other use, including use to complete a premium finance agreement of another finance company, is not authorized by us and we assume no responsibility for same. Step-By-Step
instructions on filling out the Finance Agreement 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 Financing information as given on 6-month or annual rate chart. Example: Total premium = $645.00 on an annual auto policy. I You have the right to receive an itemization of the amount financed. Check this box to receive your itemization.
J
First payment due date - Determined by the effective
date of the policy, or
K
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.
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