Premium Financing
Thanks for your email and questions about premium financing and disclosures. Financing can generally be accomplished through one of the following ways: a third-party premium financing company, the brokerage itself or a separately established premium financing company owned by the brokerage or its brokers.
Brokers and/or brokerages who establish a separate business entity for the purposes of premium financing require a Secondary Business exemption from the Qualification & Registration Committee. There is an application process for brokerages wishing to operate an Insurance Premium Financing secondary business . I’ve attached a copy of the form for your information.
Although a separately established business, brokers and brokerages involved in the financing business are still subject to the requirements outlined in the RIB Act and Regulations, including the RIBO Code of Conduct. These requirements would include general disclosure requirements concerning its relationship and/or ownership of the premium financing company, etc.
Please review the RIBO Reference Manual for more information.
Brokers and/or brokerages who establish a separate business entity for the purposes of premium financing require a Secondary Business exemption from the Qualification & Registration Committee. There is an application process for brokerages wishing to operate an Insurance Premium Financing secondary business . I’ve attached a copy of the form for your information.
Although a separately established business, brokers and brokerages involved in the financing business are still subject to the requirements outlined in the RIB Act and Regulations, including the RIBO Code of Conduct. These requirements would include general disclosure requirements concerning its relationship and/or ownership of the premium financing company, etc.
Please review the RIBO Reference Manual for more information.
Updated on: 21/12/2023
Thank you!