COMMERCIAL DEFERRED PAYMENT PLAN
Three Payment Plan | Ten Payment Plan

Insureds may choose to pay their insurance premium on installments. After payment of the premium deposit, the balance of premium must be paid in three equal payments:

  • The first payment is due 60 days from the effective date of the policy or renewal.
  • The second is due 120 days from the effective date of the policy or renewal.
  • The third payment is due 180 days from the effective date of the policy or renewal.
  • There will be a $5 service charge on each deferred payment.
  1. Once the deferred payment plan is selected, the installment charges are not returnable in whole or in part if the policy is cancelled for any reason or if the insured chooses to pay all remaining installments at one time.
  2. All payments are due in the offices of the servicing carrier on or before the date indicated in the payment notices. Late payments will lead to cancellation of the insurance coverage.
  3. Midterm policy premium adjustments will be incorporated into any remaining installments or billed directly as a separate item by the servicing carrier.
  4. Premium refunds are made by the servicing carrier or assigned company under all circumstances.

New Applicants -- After the applicant has been placed with a company, the company will rate the policy and bill direct. If the initial premium deposit is equal to at least $100 per auto or 25% of the annual premium, whichever is greater, the applicant will be offered the payment options as described above.

Forty-five days after coverage is in effect, insureds shall be advised that they may pay the remaining full premium balance, or three equal installments, due every 60 days, with the first installment or full payment due 60 days from the effective date of coverage.

Renewals -- Not less than 30 days prior to expiration of the existing policy, the servicing carrier must notify the insured that the annual premium for the renewal policy must be paid prior to expiration of the existing policy. If the insured chooses the deferred payment plan, 25% of the annual premium is due on or before the policy renewal date with three equal installments of 25% due 60 days, 120 days, and 180 days from the effective date of the policy.


Ten Payment Plan -- Insureds, whose estimated annual premium is $15,000 or more, may choose the deferred payment plan described below:

After payment of the premium deposit of 25%, the balance must be paid in nine equal installments.

  • The first payment is due 30 days from the effective date of the policy or renewal. Each subsequent payment is due every 30 days.
  •  Final payment is due 270 days after the effective date of the policy or renewal.
  • There will be a $5 service charge on each deferred payment for the deferred payment plan.
  1. Once the deferred payment plan is selected, the installment charges are not returnable in whole or in part.
  2. All payments are due in the offices of the servicing carrier on or before the date indicated in the payment notice.
  3. Midterm policy adjustments, less than one monthly installment, will be adjusted in full on the next billing installment by the servicing carrier. Midterm policy adjustments, greater than one monthly installment, will be adjusted over the remaining installments by the servicing carrier.
  4. Premium refunds are made by the servicing carrier under all circumstances.

New Applicants. After the applicant has been placed with the company, the company will rate the policy and bill direct. If the initial premium is $15,000 or more, applicant will be offered the deferred payment plan described above.

Renewal. Not less than 30 days prior to expiration, the servicing carrier must notify the insured that the annual premium for the renewal policy must be paid prior to the expiration of the existing policy. If the insured chooses the deferred payment plan described above, 25% of the annual premium is due on or before the policy renewal date.

The servicing carrier must receive the payments on policies on the deferred payment plan not later than 15 days after the billing period.

*If an insured’s previous JUA policy was cancelled midterm for nonpayment of premium, and it has an unpaid balance that has not been disputed, that insured will only be eligible for the following deferred payment plan on any subsequently issued new or renewal policies until any unpaid balance that has not been disputed is paid to the servicing carrier; 50% of the total estimated premium down with installments of 25% due at 30 and 60 days from inception date. No other deferred payment plans are available. After the unpaid balance that has not been disputed has been paid, the standard deferred payment plans will apply.  “Previous” is defined as within the immediately preceding two-year period (*Effective 7.1.2008).