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Premium finance companies exist to finance non-business insurance premiums generated from licensed insurance agents at rates specified in Minnesota Statute §59A.
Commercial or business premium financing is not subject to financing.
Licensing is required in Minnesota and information is available below.
Minnesota uses the Nationwide Multistate Licensing System (NMLS). Company/business applying for an insurance premium finance license are required to use the NMLS. Application requirements can be found on the NMLS., but some key ones include:
- $250 application fee, plus $200 annual license fee (total $450).
- Statement of applicant and statement of financial condition completed by each individual applicant, partner, stockholder, director, officer and manager.
- Provide a copy of the premium finance agreement, rate chart, 10 day notice of intent to cancel, notice of cancellation, and all other related forms.
- Licenses issued under Minnesota Statute §59A expire annually on May 31.
- Renewal notices will be sent to licensees at the address on record in April of each year.
- Renewal is done through the NMLS.
If a name and/or address change is proposed, information required is available on NMLS.