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Insurance premium financing guidelines
  Commercial Loans:

General Guidelines:
  • Property and casualty policies only.
  • Best rating of B++ or higher.
  • Standard or surplus lines domestic companies or Lloyds of London acceptable American representative.
  • Fixed premium policies only.
Terms and down payments:
  • Maximum term of 9 monthly payments.
  • No minimum term.
  • No quarterly payments.
  • Down payment is computed on the pure premium only; do not include fees, as they are not financeable.
    • Standard companies - 20%
    • Surplus lines - 25% or the minimum earned premium, whichever is greater.
  • Commercial vehicle policies with filings, requiring 30 days notice of cancellation, must be indicated in the appropriate space of the loan agreement. The minimum down payment on these loans is 35%.
  • Auditable policies will require a 30% down payment and a maximum of 8 months.
Unacceptable financings:
  • No worker's comp. policies will be financed.
  • No fully earned premium policies can be financed.
Other guidelines:
  • Additional premiums can be financed as long as there are at least two payments remaining on the loan. Agents must first call Southern to obtain new loan figures.
  • Agent is responsible for notifying Southern, by indicating in the appropriate space of the loan agreement or a faxed memo, of any and all lien holders or additional insureds, if any. Failure to do so, in a timely manner, may result in the agent being liable to Southern for any lost return premium resulting from a cancellation.


  Personal Loans:

General Guidelines:
  • Property and casualty policies only.
  • Best rating of B++ or higher or admitted company (licensed in the state).
  • Standard or surplus lines domestic companies or Lloyds of London acceptable American representative.
  • Fixed premium policies only.
Terms and down payments:
  • Maximum term of 9 monthly payments.
  • No minimum term.
  • No quarterly payments.
  • Down payment is computed on the pure premium only; do not include fees, as they are not financeable. Down payment is 25% or the minimum earned premium, whichever is greater.
  • Special lines vehicles such as motorcycles, boats, trailers, motor homes, etc. will require a 30% down payment and a maximum term of 8 months.
Other Guidelines:
  • Additional premiums of more than $300.00 may be financed as long as there are at least two monthly payments remaining on the loan.
  • Agent is responsible for notifying Southern, by indicating in the appropriate space of the loan agreement or a faxed memo, of any and all lien holders or additional insureds, if any. Failure to do so, in a timely manner, may result in the agent being liable to Southern for any lost return premium resulting from a cancellation.