Cornerstone Premium Finance Company
HomeAboutFAQ'sContactAgent ApplicationMake a PaymentAgent Login

Premium Finance FAQ

What is Insurance Premium Financing?

It is a loan made between an individual or company (an insured") and the premium finance company ("lender") to pay for the cost of the insured's insurance coverage. Typically, the insurance agent who handles the insurance coverage on behalf of the insured is the one who arranges for the financing for the insured. The loan is collateralized by the unearned premium on the insurance policy being financed.

What are the advantages to premium financing for the Insured?

  • Improves Cash Flow
    Eliminates the need for a lump-sum payment to the insurance company.
  • Fixed Rate
    The annual percentage rate is fixed for the life of the loan.
  • Consolidates Billing Process/Payments
    Multiple insurance policies with various effective dates can be placed on one finance agreement which provides for a single payment option, which eliminates the need of paying multiple monthly or quarterly checks to various insurance companies.
  • No Pre-Payment Penalty
    In most states, early payment of a finance loan will not result in additional charges beyond the interest earned until the time the loan is paid-off.

What are the advantages to premium financing for the Agent?

  • Improves Cash Flow
    Prompt funding improves the agency cash flow by receiving all commissions up front.
  • Accessible and Efficient Processing Helps Preserve and Retain Business
    • Online Quoting and account status information
    • E-mail or fax requests for expedient service
    • Online payments
  • Special Programs
    Customized pay plans available to suit your client's special needs such as seasonal businesses.
Home   |   About   |   FAQ's   |   Contact   |   Agent Application   |   Make a Payment   |   Agent Login
200 Montgomery Avenue   |   West Pittston, PA 18643   |   Phone: 877-881-2732   |   Fax: 570-655-9031   |
All Rights Reserved 2021, Cornerstone Premium Finance Company   |   Web Design by Alt Media Studios