What is AFCO insurance for?
AFCO Credit Corporation, doing business as AFCO Insurance Premium Finance, provides premium financing services. The Company offers loans for businesses, finance property, and casualty insurance premiums. Afco Insurance Premium Finance serves clients worldwide.
What type of insurance is AFCO?
commercial property and casualty insurance
Working directly with insurance agents and brokers, AFCO provides the loans that finance commercial property and casualty insurance. Whether the insured business is large or small, AFCO customizes insurance financing as needed to help agents and brokers support their clients across the spectrum of industry needs.
What is premium finance insurance?
Premium financing is the lending of funds to a person or company to cover the cost of an insurance premium. The premium finance company then pays the insurance premium and bills the individual or company, usually in monthly installments, for the cost of the loan.
How do you qualify for premium financing?
These qualities include:
- An insured that is financially savvy with a high net worth.
- Wealthy, but limited cash or liquid assets.
- Insured is generally under age 70.
- A clearly demonstrated insurable interest and financial need.
- An amount the insured would qualify for even if financing was not involved.
What is financed insurance?
Financed Insurance — the payment of life insurance premiums with borrowed funds, usually from the cash value of the contract.
How do premium finance companies make money?
A finance company generates income by borrowing money at a certain interest rate from one source (i.e. a bank, private investors, etc.) and lending that money at a higher rate to policyholders that request financing. Profits from premium financing also include late fees and other incidental charges.
What does financed MI mean?
Financed MI enables a borrower to cover the insurance cost at closing and essentially include the cost into the principal of the home loan. It is available on both fixed rate and adjustable rate programs.
How is premium charged?
When you sign up for an insurance policy, your insurer will charge you a premium. This is the amount you pay for the policy. Some insurers allow the policyholder to pay the insurance premium in installments—monthly or semi-annually—while others may require an upfront payment in full before any coverage starts.
What is the MIP?
Mortgage insurance premium (MIP) is paid by homeowners who take out loans backed by the Federal Housing Administration (FHA). FHA-backed lenders use MIPs to protect themselves against higher-risk borrowers who are more likely to default on loans. FHA mortgages require every borrower to have mortgage insurance.
How is MI Finance calculated?
Divide the loan amount by the property value. Then multiply by 100 to get the percentage. If the result is 80% or lower, your PMI is 0%, which means you don’t have to pay PMI.
What is the AFCO CAFO IQ?
The AFCO CAFO IQ system provides Internet quoting, from the simplest to the most complex transactions, and online account information search capabilities, all at the speed of your Internet connection, from anywhere, anytime.
Is AFCO responsible for the content on the linked site?
Who is the CEO of AFCO Credit?
Bob Pinkerton, President & CEO of AFCO Credit Corporation, delivers a message about the current COVID-19 pandemic. Add value to the agent insured business relationship.
Why choose AFCO for business insurance?
AFCO in the United States and CAFO in Canada have been leaders in financing business insurance premiums since the mid 1950s. We have the flexibility and capacity to handle complex financing and the experience to work with you or your insurance agent to achieve the best results.