Feature #191
Updated by Dheeraj Kumar about 2 months ago
**Additional Premium** a.An additional premium (AP) is charged by the broker when the calculation of the original premium is incorrect. 1.The increase in premium can be for several reasons (e.g. Increase in sum insured, adding additional drivers etc) b.The client may elect to pay the premiums one of two (2) ways i.e: 1.Full payment to the broker 2.Insurance Premium Financing (through the broker) from the Finance company (FCIF) c.FINANCING an ADDITIONAL PREMIUM (AP) 1.Assume an additional premium of $10,000.00 for (9) months. Further assume (6) installment have been paid 2.The calculation is now ((AP+15%)/ # of OS installments) 1.$10,000+15%=$11.500 divided by 3 2.$3,833.33 for each of the 3 remaining months The 15% is GCT d. Interest on AP The original interest rate (unless otherwise indicated) is charged to the AP premiums a)Assume the original interest rate was 12.5% add-on b)The calculation is as follows: i.$11,500.00 * 12.5% = 1437.50 / # of OS installments or Interest is charged on the AP using the interest rate of the original loan. For example, if the interest rate from the original loan was 12.5% the interest on the AP would be 11,500x12.5% = $1,437.50. The interest from the AP will be divided equally over the remaining life of the loan. $476.17 per month