New Business Down Payments

down payment
August 9, 2022

The first payment for a new insurance policy, also known as a down payment, is many times the most important. The payment is calculated as 25% of the total annual premium, plus any applicable New York State Fire Fees in full, plus a full installment fee. If the payment plan selected is Annual, the full premium amount, plus any applicable New York State Fire Fees would be the down payment amount. With the exception of the Annual payment plan, a full installment fee is due for every down payment. It is imperative the down payment is calculated correctly. If an invalid or short down payment is made by or on behalf of the insured this could result in a new policy being sent into a cancellation pending status within the first month of the policy being bound, which we try to avoid as much as possible.

In lieu of making the payment yourself, payment information can be included with the application on our payment form that accompanies every quote. Once the policy has been accepted with underwriting, the accounting department will process the down payment. In the event the amount written for the down payment was calculated incorrectly or the payment form was not completed in its entirety, we would need to connect with the agent to rectify. This can result in a delay of getting the policy documents to the insured.

Authors & Contributors: Patricia Abenanti Dianna Polchinski, Nicole Nardone, Becky LaVolpe and Margaret Stephens-Osorio.

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