What Are The Risks Of Owning A Commercial Premium Finance Company?

• The risks of owning a premium finance company are minimal, it is a business venture, so risk does exist.

The Three (3) Biggest Risks Include:

• Selecting the wrong interest rate and payment terms – failure to do this correctly can have a negative impact on your return;
• Inexperience – running a premium finance operation requires a solid backroom operation and an in-depth knowledge of state laws and policy provisions;
• Carrier insolvency –

  • If a licensed carrier becomes insolvent

    • Most states have a guarantee fund that covers the return of unearned premiums to a premium finance company,
    • A licensed carrier’s financial stability is still an important consideration when it comes to financing.

  • If a non-admitted carrier goes bankrupt, the insured is still obligated to repay the loan.

Risks Are Minimized With AIS As Third Party Administrator Of “Own Your Own”® Premium Financing Companies

• Our highly experienced staff’s in-depth understanding of pricing and terms, coverage and policy provisions, carrier stability and state laws and requirements minimizes the risks often associated with other client-owned premium financing alternatives.

Questions? Contact us: email or phone: (local) 314-576-0007; (toll free) 800-624-6308

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