Last Updated 10/30/24
Soon, endorsements that generate additional premium in the amount of $500 or more will require a down payment to bind.
Key Details:
- Effective Date: Soon!
- What’s Changing: Previously, premium-bearing endorsements on policies with an annual premium under $10,000 did not require an upfront down payment; additional amounts were added to the existing premium or loan balance. To align with standard industry practices a down payment will be required for all endorsements that generate additional premium in an amount of $500 or more.
- Down Payment Amount: The required down payment amount will vary based on the remaining term of the policy’s financing.
Why This Change? The new requirement enhances financial responsibility and encourages proactive policy management among agents and policyholders.