Here are the top reasons why a specialized software is needed for premium financing:

1. To ensure that the finance charge is calculated in accordance with State regulations
2. To handle adjustments to finance charges for increases in premiums (Additional Premiums)
3. To process a finance charge credit in the event of a reduction in premium
4. To calculate interest rebates on early payoffs
5. To be able to track unearned premium refunds from companies in the event of cancellation
6. To calculate and manage insured refunds in accordance with State regulations
7. To be able to provide the required reports in the event of a State Audit
8. To ensure all disclosure requirements are met
9. To automatically track payments, generate late notices, and execute cancellation in the event of non-payment accordingly

With the right software solution, carrying out the above activities to manage a portfolio of 1000 financed policies will take about 2 hours a day.