Premium Funding

What is Premium Funding?

Premium Funding is An arrangement following an agreement between an Insured and a finance provider, whereby the insurance premiums owed by the Insured to the insurer are paid directly to the insurer by the financier, thereby creating a debt which then exists between the Insured and the financier. Power of Attorney over the insurance policy, including the ability to cancel the insurance policy and obtain a premium refund, is often used by the financier as security over such transactions. The Insured then repays the debt to the financier over a period of time being less than 12 months and/or less than the period of insurance, and such repayments include a proportion of interest for the financier.


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