Credit Agreement Forms 
Premium Credit granted by Insurance Companies should have a legally enforceable credit agreement form spelling out all the terms and conditions of credit. 

Deposit Premium 
A deposit equal to 40% of the total premium should be demanded before cover is granted. If after the statutory period of 90 days (three months) the remaining premium is not paid, the Company should go off cover. Until the client pays the 40% deposit, cover should not be granted. 

Interest on Credit 
Where Credit is granted, an interest element should be worked into the premium. Cash transactions therefore (which will attract no interest) will cost less. It is hoped that this will motivate policy buyers to pay up front. 
The interest charged should be 1 % below the 91-day Treasury bill rate. 

Personal Lines 
Personal lines should be sold on cash basis only. No credit should therefore be granted 
on personal lines. Personal lines here are defined as all non-life Insurance Policies purchased by individuals for their own benefit as opposed to corporate entities. 

Cheques
All cheques issued in respect of business transacted through Brokers should be issued in 
the name of the Insurance Company. 
On presenting the cheque to the Insurance Company, the Broker should attach a debit note for his commission.