FREQUENTLY ASKED QUESTIONS

Direct Bill means that all invoices for insurance premiums will be sent directly to the insured by Prime Insurance Company, and payments (premium, downpayment, collateral, etc.) will be made directly to Prime Insurance. Most of the current binding procedures will remain unchanged. Prime will continue to require premium payment before an account can be bound. Prime will not provide any installment billing or accept payments on an installment basis. Such payment arrangements will only be available through premium financing.

• Direct Billing to Insureds: Insureds will remit payments directly to Prime Insurance. Producers will no longer collect premiums but will receive copies of invoices showing their commission amounts.
• E&S Tax Filing: XINSURANCE will handle all filing and payment of E&S taxes.
• Producer Agreement Requirement: All wholesale and retail producers must sign the new Producer Agreement to continue doing business with Prime/XINSURANCE.
• Existing Policies: Existing policies will not transition to Direct Bill until their renewal.

• Credit card
• ACH payments will be accepted for Non-Rush Binds, provided there are at least 4 days between the submission of all required binding documents and the policy effective date. ACH payments are subject to a mandatory 4-day fund verification period before binding can occur
• Wire transfer
• Premium Finance Agreement, including:
  • Greenlight Premium Finance Company
  • Outside Premium Finance Companies
• Please note: Checks are no longer an acceptable form of payment

If the insured is not utilizing Greenlight Premium Financing or an outside premium finance company, payment in full is required at the time of binding. Partial payments, including a down payment with the balance due in 30 days, will not be accepted.

The payment link is sent to the client (insured) once all required documents to bind coverage are completed and any subjectivities have been satisfied. The process for sending the payment link remains unchanged.

The process for collateral payments remains the same. These payments will be processed through the payment link provided to the client.

Effective 1/1/2025, Prime will be Direct Bill.

A “Rush” bind occurs when a request to bind coverage, along with all required documents, signatures, and subjectivities, is submitted to Policy Services via email at [email protected] with an effective date of 72 hours or less.

“Non-Rush Binds” are requests submitted with at least 4 days between the submission of complete binding documents and the desired policy effective date. These binds may utilize ACH payments, subject to the 4-day clearance period. “Rush Binds” are those requiring binding within 3 days or less and have specific payment requirements, excluding ACH.

To process a “Rush” bind request, one of the following must be received by Prime Insurance:

1. 1. Wire transfer confirmation
   2. Bank confirmation of an initiated wire transfer
   3. Credit card authorization with sufficient available funds

For Rush Binds, ACH payments are not accepted due to the 4-day fund verification period. Only payment methods that allow immediate fund verification, such as wire transfers or credit card payments, will be accepted. This ensures that coverage can be bound without delay.

Producers should:

• Proactively educate clients about the payment timeline requirements. Clients should be informed that ACH payments are not accepted for Rush Binds, and payments must be made using verified methods such as wire transfers or credit cards for immediate processing.
• Explain state filing requirements to reduce last-minute requests
• Communicate the importance of direct payments for down payments

You can use any premium finance company if they through their own due diligence carefully review and accept the risk based on the terms and conditions of our policy, including the terms relating to calculation and return of unearned premium and cancellation. As you know, the policy likely differs significantly from policies issued by other insurers. Please request sample policy language from our Underwriting team during the quoting process to provide to your preferred premium finance company.

If you prefer a quote from our affiliate Greenlight Premium Finance Company, ask the Underwriter to include their financing options in the indication quote.

Greenlight remains an option, and adjustments are being made to improve its terms:

• Installment Payments: Greenlight will continue to offer up to nine installments
• Down Payments: Flexibility in down payment requirements will be reviewed on a case-by-case basis

Yes, clients may continue to use outside Premium Finance companies. The relationships between these companies and retail agents will remain the same. It is the responsibility of wholesalers and retail agents to communicate changes, including the direct down payment requirement. Prime will also provide additional resources on the website to assist with this transition.

Yes, Prime will continue to accept outside financing as part of the Direct Bill process. The premium finance company will then be responsible for paying the remaining balance directly to Prime.

Producers must ensure that Premium Finance companies understand Prime’s earned premium requirements:

• If a Premium Finance company allows for a down payment that is less than the earned
  premium, the finance company assumes the risk for the gap between the down payment and the earned premium.
• Clear communication of these requirements will help avoid potential issues and ensure a smooth financing process.

Yes, Prime believes they will, as this process is similar to other carriers. Communication with finance companies by wholesalers and retail agents will help facilitate this transition.

No, the down payment must be paid to Prime to bind. The premium finance company will then be responsible for paying the remaining balance directly to Prime.

Greenlight sends funds to the carrier.

No, a down payment is required so we must have the physical check in hand to bind. A copy will not suffice for payment by check. There are other options such as an ACH if account holder allows this type of transaction or credit card with acceptance of a tech fee. A payment link for these options may be sent.

No, return premium is sent to Greenlight on the very next business day. Upon receipt, all remaining payments are lowered equally.

The borrower must pay 30% down to the company and request the balance to be added to Greenlight. It is best to include the request with service request. In addition, the insured must be in good standing with contract and must have at least two payments remaining.

1. Producers should ensure clients understand that down payments must be made directly to Prime Insurance, not the premium finance company.
2. When working with premium finance companies, please ensure they are aware of Prime’s earned premium requirements. Specifically:
   1. If a premium finance company allows for a down payment that is less than the earned premium, the finance company assumes the risk for the gap between the down payment and the earned premium.

We are in the process of finalizing a detailed step-by-step guide to assist with making payments. This workflow guide will be shared with you as soon as it is available.

• Direct Down Payments: Down payments must be made directly to Prime Insurance, not the finance company.
• Endorsements: Endorsements will follow the same process as before, provided the Premium Finance company agrees.
• Communication with Finance Companies: Wholesalers and retail agents are responsible for communicating these changes to finance companies.

Evolution Insurance Brokers, LC d/b/a XINSURANCE (“XINSURANCE”) will be responsible for filing surplus lines tax on all policies bound after 1/1/2025.

Yes, if you were responsible for filing taxes before 1/1/2025, you will still be responsible for filing taxes on these policies until they are re-written.

The Producer Agreement ensures compliance with the new Direct Bill and E&S tax filing processes. It includes key terms such as ACH payment options and commission structures.

Failure to meet the deadline may result in a disruption of your ability to place business with
Prime/XINSURANCE. While we will accept Producer Agreements submitted after the deadline, please note that policies effective January 1, 2025 and later cannot be bound without a signed Producer Agreement.

The new Producer Agreements will be emailed starting Monday, December 9th, and we anticipate completing the process within two weeks.

The signed Producer Agreement must be returned by December 15, 2024, to avoid disruptions in placing business with Prime/XINSURANCE.

Any premium paid for policies effective 1/1/2025 or later will be paid by the 25th of the following month. Please note, the insured must be in good standing—if under notice of cancellation, commissions will not be paid until the insured is either active or terminated.

Currently, commissions are paid via check. We anticipate ACH transfers to be implemented toward the end of the first quarter of 2025.

Yes, a statement or backup will be included with the payment.

Please contact Billing and Finance at 800-851-3495. Note: Commissions will not be paid if the insured is under notice of cancellation until they are active or terminated.

Yes, each commission payment will include only accounts that were both bound and paid in the prior month. The insured must be in good standing; if under notice of cancellation, commissions will not be paid until the insured is active or terminated.

For policies effective in 2024 and prior, commissions, terms, and surplus line taxes will continue to be handled the same way until the policy expires. Endorsements will be paid separately; however, if there are balances due, commissions may be reduced. Note: The insured must be in good standing; commissions will not be paid if the insured is under notice of cancellation until they are active or terminated.

Checks are mailed to the mailing or billing address provided in your producer agreement.

We are currently working towards offering ACH payments and anticipate implementation toward the end of the first quarter of 2025. At this time, commissions are paid via check.

Please review your quote, as commissions are determined by our Underwriting team per the addendum in your agreement. Any changes should be addressed during the quoting process. If the amount paid does not match the agreed quote, contact Billing and Finance at 800-851-3495.

Yes, we write in all 50 states as well as, D.C., Guam, Puerto Rico, and the U.S. Virgin Islands.

No, there is no minimum to write with us.

Neither, we are a carrier.

No, we do not require a signed agreement on file until you are ready to bind a risk.

Once we receive all necessary documents, we typically have the appointment finished within 24-48 hours.

Our agreements are applicable to the type of business you are writing.

You can get online access through the producer code we sent you in your acceptance letter. If you worked with a wholesaler and you are the retail agent, you will need to get access through the wholesaler.

Yes, they can get access using their policy number.

30 days.

This is an Indication Quote only. The prices listed below are subject to review and change after receipt of any requested additional information. The Indication Quote is valid for thirty (30) days unless the company withdraws this indication in writing or issues a new or revised Indication Quote.

Evolution Insurance Brokers, LC is an excess and surplus lines specialty brokerage. The company provides solutions for property & casualty, specialty, and unique risks.

XINSURANCE is a d/b/a of Evolution Insurance Brokers, LC (“EIB”), an excess and surplus lines brokerage licensed in all 50 states and the US Virgin Islands. EIB provides the necessary licenses and regulatory compliance to facilitate excess and surplus lines insurance business.