NAI Premium Finance, Inc.

ALLOW US TO FINANCE YOUR RISKS PLACED WITH NSB/NAI, LLC

Our system is very simple and convenient. A finance contract is included with all new and renewal quotes, requiring it only to be executed at the time of binding the risk. We attempt to provide a premium finance quote with most new quotes when possible. If not provided with the quote, simply submit a request and one will be faxed to your office.

NFI is able to include up to five (5) NAI policies per premium finance contract and provide all of the transaction services as described in the following example. This change is due to the input provided by you the agent thus allowing improved service to your client by having only one payment coupon.

At the time of binding, execute the contract with both the signature of the insured and broker, fax a copy to NAI. Mail the original to NFI within seven days and retain a photocopy for both your office as well as a copy for the insured.

Upon receipt of the fax copy of the executed agreement NAI will process the binder and NFI will set up the finance account and forward coupons to your insured. This provides the insured ample time before the first installment is due. Should the insured’s payment be late, you the retail agent are the first to know, providing the opportunity to contact the insured, hopefully saving the account as well as valuable commission dollars.

As shown by the two following examples, the amount financed is first applied to the initial invoice:

After month end close on the last day of each month the same transaction will appear on your Accounts Current due the 15th of the following month:

As indicated by the above, convenience and simplicity provide you, the retail agent, a smooth almost
seamless method for financing those risks placed with NAI. For further information about our program
please contact our finance department.

NFI

Phone: (800) 824-1740,
FAX: (256) 764-3017
Web Site: www.NAI1982.com
EMAIL: Stephen.blevins@nai1982.com

Note: Insured’s can pay their installments with credit cards by calling NFI at the above “800” number.
We offer financing in: Arkansas, Alabama, Georgia, Kentucky, Oklahoma, Tennessee and Mississippi.

If you do not wish to receive fax information from NAI you may contact John Speir at 1-800-824-1740 (phone) 1-888-NAI-1982 (fax) or email him at john.speir@nai1982.com.

PFS

NAI and NSB/NAI can offer a PFS Finance Agreement in all states that is not covered by NAI Finance. A finance contract is included with all new and renewal quotes, requiring it only be executed at the time of binding the risk. If not provided with the quote, simply submit a request and one will be faxed or emailed to your office.

NAI has more control over the insured’s financed account with NAI Finance therefore we encourage financing with NAI Finance. But if a lower down payment or APR is needed a PFS finance agreement can be provided upon request.

At the time of binding, execute the contract with both the signature of the insured and broker, fax a copy to NAI. Mail the original to NAI or NSB/NAI within seven days and retain a photocopy for both your office as well as a copy for the insured. Upon receipt of the fax copy of the executed agreement NAI will process the binder and PFS will set up the finance account and forward coupons to your insured. This provides the insured ample time before the first installment is due.

Once an agreement is executed with PFS the insured would need to contact PFS directly regarding questions on their account. NAI will not have access to that information.

As shown by the two following examples, the amount financed is first applied to the initial invoice:

As indicated by the above, convenience and simplicity provide you, the retail agent, a smooth almost seamless method for financing those risks placed with NAI and NSB/NAI.

For further information about our program please contact our finance department.

NFI

Phone (800) 824-1740; FAX (256) 764-3017
Web Site: www.NAI1982.com
EMAIL: Stephen.blevins@nai1982.com

CCIC MONTHLY BILLING

Payment options:

• 20% Down 9 Installments (Premium must be at least $2,500 for this option)
   
• Continuous Pay Plan—12 installments w/ deposit equal to 2 installments (Any premium amount for this option)
   
• *Annual 100%

Annual bill option:

Full premium will be billed to agent’s account current.

Agency Bill (Pay Plan) - Signed NFI 0% agreement required by NAI for this option.

Agent to collect down payment/deposit at binding but will have the option to pay by their agency statement as the down pay/deposit will be billed to their account. NAI will bill insured direct for monthly installments and will provide the agent a copy of the installment invoice each month.

The agent will not be paid total commission up front but will be given commission credit on their agency statement each month as installments are billed. Commission is not paid on continuous pay plan deposits.

Endorsements are added directly to the pay plan and spread evenly over the remaining unbilled installments. The deposit for continuous pay plan billing will be adjusted for each endorsement and will be billed/credited to the agent’s account current.

Should a policy cancel, any unpaid installment commission will be debited back to the agent’s account current and will be due at the same time of the statement for that month. The cancellation credit will also go on the agent’s account statement.

Agent should advise insured payments are due in our office by the due date shown on the payment coupon. The insured can pay by VISA, MASTERCARD or DISCOVER over the phone or mail a check or money order. If payment is not received within 10 days after the due date, DNOC will be issued for non pay.

Cancellations

All policies are audited after the cancellation date (this may take 60 to 90 days to receive) Carrier sends in the A/P or R/P and it is booked directly on the agents account current Carrier returns deposit after A/P or R/P is calculated and this also runs through account current.

CNA

Payment options:

1. Annual bill
    
2. Direct bill 25% down, 9 installments
    

Annual bill option:

• Full premium will be billed to agent’s account current.

Direct Bill option:

• Agent to collect down pay at binding and forward to NAI by agency check or card payment. NAI will forward the agent’s check to CNA with proof of mailing. If paid by card payment, NAI will forward our company check to CNA with proof of mailing.

The check to CNA should indicate the following information:

1. Agency branch #880
    
2. Agency code #026022
    
3. Insured name
    
4. Policy number

Agent should advise the insured they will receive an invoice from CNA directly for the monthly installments and all payments should be mailed to the address shown on the invoice. The first invoice will include the down pay and the 1st installment therefore the agent should direct the insured to deduct the amount they have already paid for the down payment and forward the difference directly to CNA by the due date.

Once CNA receives the down payment they will pay us the full commission. NAI will send a check to the agent for their commission once it is received from CNA. Agency commission will not be paid through the agent’s account current.

Endorsements are sent directly to CNA once NAI receives them.

Endorsement additional and return premiums are billed and due from the effective date of the endorsement and any remaining amounts owed as of the current date are spread evenly across the remaining installments.

Return premiums are subject to the account balance.

Should a return endorsement be processed the agent will be sent a letter by NAI requesting the return commission be paid within 15 days. The return commission due will not be reflected on the agent’s account current.

Should a policy cancel, the agent will be sent a letter by NAI requesting the return commission be paid within 15 days. The return commission due will not be reflected on the agent’s account current.

CNA TERMS FOR DIRECT BILLING:

1. Payments are due on or before the due date
    
2. Late fee added on 5th day after due date
    
3. Cancellation notice issued on 11th day after due date
    
4. If cancellation notice issued the past due payment plus the next month installment must be received by the date indicated on the cancellation notice in order to reinstate.
    
5. If the insured is a pay problem and has several cancellation notices issued for non pay, CNA does reserve the right to revoke the installment plan and will require the balance be paid in full in order to reinstate the policy.

They have the ability to accept telephone payments with a check. This is a free service so please stress to the insured to use this service if they are going to pay late so the payment will be posted the next day. This will avoid cancellation notice being issued and putting them in jeopardy of getting installment plan revoked. CNA CUSTOMER SUPPORT CENTER 877-276-7507

ZURICH

Payment options-Agency (Pay Plan) and Direct Bill:

(Agency Bill-To qualify for payment options, other than annual, the account premium must be $2500 or more)

• Monthly 15% Down - 9 equal installments
   
• Monthly 25% Down - 9 equal installments
   
• Bi-monthly 25% Down - 5 equal installments
   
• Quarterly 40% Down - 3 equal installments
   
• Semi-Annual 60% Down  -1 installment (balance)
   
• Annual 100%

Annual bill option:

Full premium will be billed to agent’s account current.

Direct Bill -There is no minimum premium.

Direct Bill Payment Option: 15% Down 9 installments

Direct Bill option:

Agent to collect down pay at binding and forward to NAI by agency check or card payment. Once Zurich creates the billing account for the insured and posts it to their website, NAI will pay the down payment by ACH. Zurich will not bill insured the monthly installments until the down payment has been received by them therefore the agent must send us the down payment immediately.

Once Zurich receives the down payment they will pay us the full commission. NAI will send a check to the agent for their commission once it is received from Zurich. Agency commission will not be paid through the agent’s account current.

Should a policy cancel, the agent will be sent a letter by NAI requesting the return commission be paid within 15 days. The return commission due will not be reflected on the agent’s account current.

Endorsements are sent directly to Zurich when received by NAI

Endorsement additional and return premiums are billed and due from the effective date of the endorsement and any remaining amounts owed as of the current date are spread evenly across the remaining installments.

Return premiums are subject to the account balance.

Should a return endorsement be processed the agent will be sent a letter by NAI requesting the return commission be paid within 15 days. The return commission due will not be reflected on the agent’s account current.

Agency Bill (Pay Plan) - Signed NFI 0% agreement required by NAI for this option.

Agent to collect down payment at binding but will have the option to pay by their agency statement as the down pay will be billed to their account. NAI will bill insured direct for monthly installments and will provide the agent a copy of the installment invoice each month. The agent will not be paid total commission up front but will be given commission credit on their agency statement each month as installments are billed.

Endorsements are added directly to the pay plan and spread evenly over the remaining unbilled installments.

Should a policy cancel, any unpaid installment commission will be debited back to the agent’s account current and will be due at the same time of the statement for that month.

The cancellation credit will also go on the agent’s account statement.

Agent should advise insured payments are due in our office by the due date shown on the payment coupon. The insured can pay by VISA, MASTERCARD or DISCOVER over the phone or mail a check or money order. If payment is not received within 10 days after the due date, DNOC will be issued for non pay.

GROSS RECEIPTS/MILEAGE CCIC AND ZURICH

ELIGIBILITY

• CCIC- Must be at least 16 power units
   
• ZURICH- Minimum policy premium of $10,000 for Auto or Auto w/MTC
   
• 5 units for monoline MTC

REPORTING FREQUENCY

• CCIC- Monthly
   
• ZURICH- Monthly

MINIMUM DEPOSIT

• CCIC- 20%
• ZURICH- 20%

Deposit can be paid by cash or LOC

EXPLANATION OF BILLING

• Deposit is due at issuance - no commission is paid on the deposit
   
• If policy includes GL coverage the annual premium for this coverage is billed in full at inception.
   
• Monthly premiums are billed based on the actual mileage/receipts for the month. Mileage/receipts x quoted rate = billed premium. Zurich does not have a minimum monthly premium, however, CCIC does. If the actual mileage/receipts are not higher thanthe minimum premium, the min. premium will be billed. If the mileage/receipts are higher than the min, then the actual premium will be billed.
   
• If physical damage coverage is included on the monthly reporting, then you will use the stated values reported each month and multiply by the rate provided on the policy. There is no minimum premium on the physical damage.
   
• Reports are due by the 15th of each month. For example, the July report will be due by August 15.
   
• All premiums are billed on the agent's account current - commissions are paid on eachmonthly billing.

CANCELLATIONS/EXPIRATIONS

• *All policies are audited after the cancellation/expiration date (this may take 60 to 90 days to receive)
   
• *Carrier sends in the A/P or R/P and it is booked directly on the agents account current
   
• *Carrier returns deposit or LOC after A/P or R/P is calculated and this also runs through account current