3. The premium financing company or the insurance producer provides the insured with a full copy of the contract or, by mail, to the insured at the address specified in the contract. Life insurers and high-end financiers use the same basic financial instruments. Insurance companies finance insurance contracts with corporate debt. Lenders provide liquidity at personal interest rates of debt. Corporate bond yields are lower than personal debt ratios. As a result, premium financing may have a negative difference for the client who funds the premiums. Indexed universal life insurance can provide interest credit in support of arbitration by indexing the policy. 3. Can an insurance agent who is not licensed as a premium financial agency enter into a premium financing contract for a fee borne directly or indirectly by the insured? No person, with the exception of a bank, savings bank or state savings bank or a combination of savings or loan funds, a licensed insurer or a lender licensed under Section 9 of this chapter, may operate the activities of a premium financial agency without a licence obtained by the Superintendent, as stipulated in this section. No licensed insurer, licensed insurance agent, employee or other representative of a licensed insurer, and no authorized insurance broker may knowingly charge or claim a rate or receive a premium that deviates from rates, rating plans, classifications, schedules, rules and standards in effect on behalf of the insurer, or that issues or makes a policy or contract with a violation of the insurer. The lender may have the right to call the loan at the end of the period.
Almost all premium financing loans are less than the duration of the policy. 4. An insurer would not participate in obtaining a premium financing contract for an insured and, therefore, such a fee would not be part of the insurance premium. 4. A premium finance company notifies the insurer of its financing no later than the 30th day after the premium financing agreement is received by the premium finance company. A notification under this subsection is effective, whether or not the insured`s insurance number is indicated in the notice of contract. [1969 v.639 No 9; 1971 c.231 No 38; 1983 c.239 no. 3; 2003 v.364 No 148] Assuming that the insurance agent is not licensed as a premium financing agency and that the fee is directly or indirectly borne by the insured, it is prohibited to obtain a premium financing contract from that agent.
As a general rule, representatives act on behalf and represent insurers and therefore can only receive compensation from those insurers. This compensation comes from a submitted or manual insurance rate (the gross amount that the insurer may charge under the law) that includes commissions to agents. Any additional compensation paid directly by the insured to the agent and beyond the commissions paid by a deposited insurer is contrary to the provisions of the New York Law on Authorization to Register and Rate Approval.