Did you hear the one about the premium finance company that borrowed funds from itself to pay its insurance premiums? For those who don't quite get it, a premium finance primer is in order.
Premium financing is the practice of lending cash to a personal or commercial venture to pay its vital property/casualty insurance premiums in one lump sum, and spread the payments over the fiscal year.
Insureds like it because it frees up funds and allows for better cash management. Premium financiers like it because it's a win-win situation: The insured pays a monthly finance charge, and assigns them power of attorney to cancel the policies for nonpayment.
And brokers and agents