New Requirement: Down Payments on Premium-Bearing Endorsements
Last Updated 1/12/2026
Endorsements that generate additional premium in the amount of $500 or more will require a down payment to bind.
Key Details:
- 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.
- Under $500: Payment in full is required. Financing is not available.
Why This Change? The new requirement enhances financial responsibility and encourages proactive policy management among agents and policyholders.