Q. What is premium financing?

A. When you finance an insurance premium, you enter into a contract with Cybersurance to obtain a loan. You make a down payment usually 20% of the total premium and Cybersurance agrees to pay the insurance company the balance of the premium. You agree to repay Cybersurance in instalments according to an established schedule for the amount of the loan (principal), plus interest and any fees.

Premium financing is not an insurance policy, but a means of financing the purchase of insurance. There are other costs associated with the purchase of premium financing such as interest charges, late fees, cancellation fees. The contract exists between the borrower and Cybersurance, not the policyholder and the insurance company. Repayment of the loan is made directly to Cybersurance by the borrower. This means that you'll be expected to repay the loan even if you have a dispute with the insurance company and/or the broker.

Q. Should I finance my insurance premium?

A. Financing an insurance premium, like financing any consumer purchase, is an individual decision based upon economic considerations. For some it is a convenient way to pay for insurance. Others simply do not have the means to pay in advance.

Q. How does premium financing work?

A. The insurance agent or broker selling the policy can arrange premium financing for you.  A finance agreement form must be filled out.

The finance agreement includes the following information:

·        Insured's (borrower's) name, address, and phone number;

·        Loan/Account  number;

·        Listing of insurance policies assigned to one loan agreement. 

·        Disclosure Statement indicating (a) the amount financed, (b) the dollar amount of finance charges, (d) the total number of payments, (e) the amount of late payment charges, and (f) amount of each monthly payment.

·        Pre authorized payment (PAP)Cheques or monthly payment coupons

 Additionally we require a 20 percent down payment and one instalment in advance.

Q. What happens if my Pre-authorised payment (PAP) cheque gets returned from the bank?

A. All cheques returned by the bank incur a Four hundred Dollars ($400.00) returned cheque charge.

The Sum of the instalment returned and the $400.00 returned cheque charge must be paid to us in the form of cash or manager's cheque within five days of the returned cheque notice being mailed to you.

If you are a resident of urban Jamaica (Kingston, St Andrew and St Catherine), payment must be made at 4-6 Trafalgar Road, Kingston 5  .

If you are a rural customer, payment can be made to your broker in the form of a manager's cheque payable to Cybersurance Your broker will then forward the cheque to our offices, thus saving you a trip to Kingston.

Q What happens if I my payment is late?

A. If, for any reason, you know beforehand that your instalment payment will be late, contact Cybersurance in advance. Payments that are late will incur a late charge of Five Hundred Dollars ($500.00).

If payment is not received within ten (10) days after payment was originally due, your policy will be cancelled.

Q. Can I have more than one insurance premium financing loans running concurrently?

A. Yes, it is permissible to have more than one insurance premium financing loans running concurrently. However having more than one loan per policy is prohibited. It is not possible to obtain Cybersurance to pay off the balance on a premium that was already partially financed.

Q What happens if I want to pay off the balance on my loan with one lump sum payment?

Early payment is possible. Simply, go to our offices at 46 Trinidad Terrace, Kingston 5 and ask to speak with a credit officer, who will gladly assist you.

Q. Can I get financing for my US Dollar premium?

A. Yes. However, at present, we are limited to quoting rates for Jamaican insurable interests only.

Please contact Cybersurance directly for US Dollar quotes.

Q. If I wish to sell my car, can I cancel my policy and receive a partial refund?

A. Yes, you can always cancel your policy early. However, all policy refunds due from insurers will be paid directly to us. We will deduct any outstanding fees and or balances and forward the difference to your Broker, who will then refund your balance.

Q. What collateral, if any, is required to obtain Cybersurance?

A. The insurance policy is the collateral.

Failure to pay loan instalments will result in the insurance policy being cancelled for a pro rated refund.

Q. What should I do if I know that I don't have enough funds in my chequing account to cover my instalment that's due?

A. Early contact with Cybersurance is always advised.

Call our offices before the scheduled due date and ask to speak with a credit officer.

Q. If I have an accident or my car is stolen, do I still have to pay off my loan?

A. Yes, you will still be obligated to pay off your loan balance.

In instances when there is a claim cheque due from the insurer, the claim amount will be made payable to Cybersurance, who will deduct from it any balances on your loan. Subsequently, any remaining monies will be passed on to your broker who will then make the refund to you. 

Q. What happens if the policy is cancelled?

A. The insured (you), the insurance company (in certain circumstances) or Cybersurance (for non-payment of premium) may cancel.

If you don't pay on time, Cybersurance can cancel your loan agreement and charge you a cancellation fee.

If you wish to cancel the policy, you must contact the insurance company. The insurance company then forwards the unearned premium (refund) to Cybersurance. The cancellation date of the insurance policy is usually the date you told the insurance company to cancel your policy. The cancellation date of the loan of premium financing is the date the monies are received from the insurer, not when you notify the insurance company, since the unearned premium is the lender's collateral.

When Cybersurance receives the refund of unearned premium from the insurance company and/or the broker, the money is also used to pay off any outstanding loan balance. If the insurance company or broker does not refund the unearned premium to Cybersurance, you are still responsible for the balance owed on the account. When all deductions are made, the refund, if any, is returned to the agent or broker, who then should forward the refund to you.

Q. Why do you bill me for premium owed after the policy was cancelled?

A. Cybersurance will bill you for premium owed if the unearned premium received from the insurance company is insufficient to pay off the outstanding balance owed.

Q. I don't have a chequing account and I am a resident of rural Jamaica, do I have to travel to your Kingston office to pay my instalments each month?

A. No. You don't have to travel to Kingston each month. You can pay your monthly instalments to your Broker in the form of a manager's cheque payable to Cybersurance Payments can also be made to any other authorized person or entity.

Q. What can be done if the premium refund seems too small?

A. Write directly to Cybersurance requesting a statement of your account indicating all payments, charges, fees, earned and unearned premium amounts. If there are still discrepancies, contact one of our many Credit Officers who will gladly assist you.

Q. Will a policy be reinstated if payment is made to you after the policy has been cancelled?

A. The decision to reinstate an insurance policy can only be made by the insurance company. Usually, policies are not reinstated once a late payment is made. We can request reinstatement of the policy, but the insurer has the final say. It's important to note that insurance coverage stops on the expiration date shown on the cancellation notice. Coverage does not begin again until the insurer issues a notice of reinstatement.

Q. Must there be notification of cancellation for non-payment of premium?

A. Yes. Cybersurance will mail a notice of cancellation to the policyholder five days before it cancels insurance for non-payment of premium. This means that by the time you receive a notice in the mail, we may be about to cancel your insurance. Call Cybersurance right away to arrange for payment and to avoid cancellation of your insurance.