FAQs

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How does premium financing help me?
For what clients does premium financing make sense?
How does premium financing factor in to an agent's full-service approach?
How much commission can an agent deduct from the down payment?
How will I receive my commission if it is not deducted directly from the down payment?
Where should I send the original Premium Finance Agreement?
Do you bill the insured?
Where should the insured send payments?
Is the agent notified when an account is delinquent?
If the insured pays off the account early, do they get any money back?
What is "Online Quotes" and how can I obtain access?

Q: How does premium financing help me?

A: Premium financing helps you make insurance coverage more affordable for your clients, and encourages them to be fully insured.

Q: For what clients does premium financing make sense?

A: Premium financing can be the right choice for small and family owned businesses, larger firms, major corporations, non-profit organizations and individuals with specialized needs, including those with unique personal property assets, as well as professionals, consultants and investors.

Q: How does premium financing factor in to an agent's full-service approach?

A: Premium financing can play an important role in your offering. When your clients finance their insurance, they can free up cash flow for more strategic initiatives. Also, your customers have the assurance that their premiums are paid and in-force, and fully budgeted for the fiscal year.

Q: How much commission can an agent deduct from the down payment?

A: You may deduct the total commission on base premium quoted by the Managing General Agent, the amount of which is usually found on the Underwriting quote.

Q: How will I receive my commission if it is not deducted directly from the down payment?

A: The insurance company, broker or Managing General Agent will send it directly to the agent.

Q: Where should I send the original Premium Finance Agreement?

A: The original Premium Finance Agreement should be sent to Royal Premium, P.O. Box 257, Southfield, MI 48037-0257. The Managing General Agent is notified by Royal Premium upon acceptance of the Premium Finance Agreement; therefore, do not send the original copy to them.

Q: Do you bill the insured?

A: Yes. Payment coupons are mailed directly to the insured on the next business day after acceptance of the Premium Finance Agreement.

Q: Where should the insured send payments?

A: Payments should be sent to Royal Premium, P.O. Box 257, Southfield, MI 48037-0257.

Q: Is the agent notified when an account is delinquent?

A: Yes. The Notice of Intent to Cancel is mailed simultaneously to both the insured and the agent.

Q: If the insured pays off the account early, do they get any money back?

A: Yes. A refund of any unearned interest is returned to the insured in accordance with the terms of the Premium Finance Agreement.

Q: What is "Online Quotes" and how can I obtain access?

A: Our Online Quotes system gives agents the option of producing finance quotes and premium finance contracts anytime, anywhere. There's no need to install and maintain software on your computer, and access to the quoting software is easily made through your favorite internet browser.

Online Quotes Instructions:
To access Online Quotes you will need a username and password.
Call 800-477-7889 for further information.