Afco Finance Agreement


(17) INSURANCE AGENT OR BROKER: The insurance agent or broker referred to in this Agreement (the “Agent”) is the insured`s representative, not AFCO`s, and AFCO is not legally bound by anything that the Agent or Broker presents orally or in writing to the Insured. AFCO was not involved in the selection, placement, acquisition or underwriting of any funded insurance. All disclosures made by the Agent are made in his/her capacity as the Insured`s representative, and AFCO makes no representation as to the accuracy of such disclosures. Notwithstanding any breakdown of the amount funded by the Agent that the Agent may disclose, AFCO`s security will include all gross unearned premiums in addition to any other coverage referred to in subsection (3), and AFCO will disclose only one total amount funded in Block C. (12) CANCELLATION: AFCO may terminate all insurance policies financed by AFCO after 10 days` notice and the total balance due to AFCO will be payable immediately if the Insured fails to pay a deposit under the terms of this agreement or any other agreement with AFCO. The payment of unearned premiums is not considered to be a payment in instalments to AFCO, in whole or in part. Phone: (877) 701-1212E-mail: (a) Voluntary prepayment – (i) If the full prepayment is made within the first three months and 15 days after the earliest effective date of the insurance policy, as indicated at the beginning of the agreement, AFCO will charge a financing fee by adjusting the agreed fee rate, as set forth at the end of this Agreement, with outstanding principal balances for the number of days from the first Effective Date of the Policy to the date of full advance payment. AFCO will apply any payment made by the Insured first to finance the costs and then to the principal. AFCO will then deduct these actual financing costs from the financing costs specified in box D of the Agreement to receive the repayment credit. (ii) If the prepaid prepayment is made more than three months and 15 days after the earliest effective date of the insurance policy, the repayment credit will be calculated using the Rule 78 method. This insurance offer includes a “signature ready” premium financing agreement, which is indicated by a 20% down payment and 10 payments.* (6) ADDITIONAL PREMIUMS: The money paid by AFCO is intended only for the premium determined at the time the insurance policy is issued. The AFCO payment cannot be used by the insurance company to pay additional premiums due to the insured due to incorrect risk classification.

The insured pays the insurer any additional premiums or other amounts due for any reason. If AFCO assigns the same account number to an additional credit renewal or extension, (i) this Agreement and any other agreement identified by such account number will be considered a single, indivisible credit transaction, (ii) any default with respect to any component of that transaction will be considered a default with respect to all components of that transaction, and (iii) any unearned rewards in respect of any component of this transaction. may be collected by AFCO and applied to the entire transaction. (3) SECURITY AND POWER OF ATTORNEY: The Insured assigns to AFCO a security right in the full amount payable in this Agreement and in any other past, present or future loan extension: (a) any unearned premium or dividend payable for any reason under any insurance policy financed by AFCO, b) loss payments that reduce unearned premiums; subject to any mortgage interest or loss payment and (c) interest on government guarantee funds under a funded policy. If there are circumstances in which all premiums related to a policy could be fully earned in the event of a loss, AFCO will be designated as the loss payer in respect of that policy. AFCO may, in its sole discretion, enforce payment of such debt without recourse to the guarantee provided to AFCO. The Insured irrevocably appoints AFCO as its attorney with full authority to (i) terminate all insurance policies financed by AFCO for the reason set out in paragraph 12, whether as a result of this or any other agreement, (ii) receive all amounts assigned hereunder to AFCO, and (iii) execute and deliver on behalf of the Insured all documents, means of payment, forms and notices of any kind related to insurance to promote this Agreement. (b) Term Acceleration – If payment of the outstanding balance of the loan to AFCO is accelerated for any reason, AFCO will provide the same repayment or credit that would be required if this loan agreement was paid in full at the time of the acceleration. Paragraph 16 (a) defines the method of calculating the repayment or credit. The outstanding balance remaining after deduction of the repayment or the credit balance is treated in the same way as the balance of the outstanding capital. The Insured undertakes to pay AFCO interest on the balance of the outstanding principal invoiced at the agreed rate specified at the end of this Agreement until AFCO is actually paid in full, notwithstanding any cancellation of coverage. If AFCO issues a notice of cancellation, AFCO may recalculate the total financing costs payable under this Agreement, and the Insured agrees to pay interest on the principal amount set forth herein at the highest legal interest rate from the earliest effective date of the Coverage.

(21) DISCLOSURE: The insurance company(ies) and their agents, all intermediaries and the insurance agent or broker referred to in this Agreement and their successors have the right and instruction to provide AFCO with complete and complete information on all funded insurance policies, including, but not limited to, the status and calculation of unearned premiums. . . .