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Notifications

As you may be aware from recent media reports over the last few days, there has been a cyberattack on Microsoft® Corp.’s email server software. The cyberattack is believed to have infected tens of thousands of businesses, government offices, and schools in the U.S., according to people briefed on the matter. You can read a recent Reuters article about the situation here.

Microsoft has said that it appears that the hackers have been exploiting several flaws in their software to gain access to systems and data, as well as install software to allow the attackers to maintain a persistent presence in the environment even after patching.

As our valued client, we want to reassure you that BankDirect Capital Finance is aware of this situation and we are actively investigating and monitoring our systems for any issues. Our IT team has fully patched all relevant systems with the emergency patches Microsoft provided on March 2, 2021. We are also in contact with our vendors to ensure they are investigating this situation on their side, as well.

So far, our forensic investigators believe our systems have not been compromised, but we will continue to investigate and remain vigilant. We want to ensure that you are also aware of this situation so that you can take any steps you deem necessary to protect yourself and/or your business.

As a reminder, it is always a good security practice to be wary of emails or messages from senders you aren’t familiar with and to never click on links that you don’t recognize. By staying aware of potential cybersecurity threats, we can all help to prevent fraud before it happens.

If you have any specific questions regarding this cyberattack, we encourage you to contact your IT administrator or visit Microsoft’s Security site page for the latest updates on the attack.

We hope this information has been helpful and as always, thank you for being a BankDirect Capital Finance client.

May 29, 2020 - New Jersey & California Agents: Notification to Insurance Intermediaries and Insurers

On behalf of BankDirect Capital Finance, we hope that you and your families and your colleagues are safe and healthy!

As you are probably aware, certain state authorities, most notably California and New Jersey at the current time, have issued Bulletins ordering insurance companies to issue premium refunds to insureds. (California Department of Insurance Bulletin 2020-3 dated April 13, 2020 and New Jersey Department of Banking and Insurance Bulletin 20-22 dated May 12, 2020). Each Bulletin contains similar language indicating “Insurers” may comply with the mandated premium refund by providing their insureds premiums credits, reductions, return of premium, dividends or other appropriate premium adjustments.

On the policies financed with BankDirect, the insured assigned a security interest in the unearned premium to us. To that end, BankDirect sent a communication to the general agents and insurance companies reminding them of our security interest in the unearned premium and that the unearned premium is due to BankDirect. To see a copy of the communication that was sent, CLICK HERE

THANK YOU for your partnership with BankDirect. If you have any questions, please don’t hesitate to contact us at 877-226-5456 or by email at assetmgmt@bankdirectcapital.com

Stay healthy!

On behalf of BankDirect Capital Finance, we hope that you and your families and your colleagues are safe and healthy!

As you are probably aware, certain state authorities, most notably California and New Jersey at the current time, have issued Bulletins ordering insurance companies to issue premium refunds to insureds. (California Department of Insurance Bulletin 2020-3 dated April 13, 2020 and New Jersey Department of Banking and Insurance Bulletin 20-22 dated May 12, 2020). Each Bulletin contains similar language indicating “Insurers” may comply with the mandated premium refund by providing their insureds premiums credits, reductions, return of premium, dividends or other appropriate premium adjustments.

On the policies financed with BankDirect, the insured assigned a security interest in the unearned premium to us. To that end, BankDirect sent a communication to the general agents and insurance companies reminding them of our security interest in the unearned premium and that the unearned premium is due to BankDirect. To see a copy of the communication that was sent, CLICK HERE

THANK YOU for your partnership with BankDirect. If you have any questions, please don’t hesitate to contact us at 877-226-5456 or by email at assetmgmt@bankdirectcapital.com

Stay healthy!

The purpose of this email is to share important regulatory updates from the New York Department of Financial Services. If you are receiving this communication, then one or more of your commercial insurance customers who have financed their insurance policies through BankDirect Capital Finance (“BankDirect”) may be eligible for payment relief from BankDirect. CLICK HERE to see a copy of the most recent notice that is being sent.

For your reference, the New York Department of Financial Services (“NYDFS”) has extended its emergency regulation regarding premium finance agreements and customers suffering financial hardship as a result of COVID-19. The premium finance industry is currently seeking clarification from the NYDFS to confirm if the customer is eligible for more than one deferment, or if the intent is that they are eligible for only one deferment as it relates to the extension. The Emergency Regulation extension can be found here: https://www.governor.ny.gov/news/no-20228-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency.

The NYDFS recently, per Executive Order 202.28, has extended the regulation modifications from May 7, 2020 to June 6, 2020:

  1. 1. The extension applies to only those Borrowers with an upcoming scheduled installment due while this Emergency Regulation is in effect – i.e. prior to and including June 6, 2020. Barring further extensions of this Emergency Regulation, any payments due after June 6, 2020 will be due as set forth in the Premium Finance Agreement in the ordinary course.
  2. 2. The NYDFS has published an Emergency Regulation FAQ. This document indicates the relief does not apply to commercial non-admitted policies except for E&S Fire policies.

If Borrowers Complete and Return the Attestation Form and they have an installment payment that comes due before the expiration of the Emergency Regulation (currently June 6, 2020), they may be eligible for a 60-day grace period with respect to this installment payment. Receipt of the document does not automatically convey eligibility. Eligibility for a deferment will be reviewed upon receipt of a fully completed attestation request indicating the customer would like to be reviewed to determine any potential eligibility. By way of example, if a qualifying Borrower has a payment due on May 31, that payment will now be due July 31.

Please know that BankDirect is committed to providing support to you and your insureds during this difficult time. If you have any questions regarding this communication or a particular account, please send an email to assetmgmt@bankdirectcapital.com, or contact your BankDirect representative at 877-226-5456.

The purpose of this announcement is to share important regulatory updates from the New York Department of Financial Services. If you are receiving this communication, then one or more of your commercial insurance customers who have financed their insurance policies through BankDirect Capital Finance (“BankDirect”) may be eligible for payment relief from BankDirect. CLICK HERE to see a copy of the most recent notice that is being sent.

As you know, on March 29, 2020, New York’s governor signed Executive Order 202.13 (the “Executive Order") which, in part, modified sections of the New York Insurance Law to provide relief to certain policyholders experiencing financial hardship as a result of the COVID-19 pandemic. In response to the Executive Order, the New York Department of Financial Services (“DFS”) promulgated Regulation 216 (11 NYCRR 229) and amended Regulation 27-A (11 NYCRR 185), Regulation 27-C (11 NYCRR 187), and Part 405 of the New York Code of Rules and Regulations on an emergency basis (collectively, the “Emergency Regulation”). The Emergency Regulation, among other things, imposes new requirements on insurers and premium finance companies to provide grace periods for the payment of premium and premium repayment by certain policyholders. The Emergency Regulation can be found at https://www.dfs.ny.gov/press_releases/pr202003301. The New York Department of Financial Services recently, per Executive Order 202.14, has extended the regulation modifications from April 28, 2020 to May 7, 2020:

  1. 1. The extension applies to only those Borrowers with an upcoming scheduled installment due while this Emergency Regulation is in effect – i.e. prior to and including May 7, 2020. Barring further extensions of this Emergency Regulation, any payments due after May 7, 2020 will be due as set forth in the Premium Finance Agreement in the ordinary course.
  2. 2. The New York Department of Financial Services has published an Emergency Regulation FAQ. This document indicates the relief does not apply to commercial non-admitted policies except for E&S Fire policies.

Please read the following summary that covers the additional guidelines by which this ordered relief will be reviewed and potentially granted by BankDirect:

1. The Emergency Regulation Only Applies to Individuals and Small Business

Small Business is defined in the Emergency Regulation as those businesses that: (1) is resident in New York; (2) is independently owned and operated; and (3) employ 100 or fewer individuals. For all other insured/borrowers the Emergency Regulation does not apply, and, as a result, does not qualify for relief and the grace periods specified in the Emergency Regulation.

2. Borrowers Will Have to Attest that They are a “Small Business” and Have Suffered Financial Hardship as a Result of COVID-19

BankDirect is sending a Notice to its qualified New York Borrowers advising them of the Emergency Regulation and providing them with an option to attest that they are a “Small Business” that has suffered financial hardship as a result of COVID–19. Borrowers will need to simply sign the Notice affirming that they meet the criteria as defined above and return the Notice to BankDirect as prescribed in the notification.

3. If Borrowers Complete and Return the Attestation Form . . .

And they have an installment payment that comes due before the expiration of the Emergency Regulation (currently May 7, 2020), they may be eligible for a 60-day grace period with respect to this installment payment. By way of example, if a qualifying Borrower has a payment due on April 30, that payment will now be due June 30.

Please know that BankDirect is committed to providing support to you and your insureds during this difficult time. If you have any questions regarding this communication or a particular account, please send an email to assetmgmt@bankdirectcapital.com, or contact your BankDirect representative at 877-226-5456.

Dear Valued Agent:

We hope this notice finds you and your family safe and healthy. The purpose of this email is to share important regulatory updates from the New Jersey Department of Financial Services that may apply to your business. If you are receiving this communication, then one or more of your commercial insurance customers who have financed their insurance policies through BankDirect Capital Finance ("BankDirect") may be eligible for payment relief from BankDirect. CLICK HERE to see a copy of the notice that is being sent.

For your reference, the New Jersey Department of Banking and Insurance recently issued a bulletin regarding premium finance agreements and customers suffering financial hardship as a result of COVID-19. This bulletin indicates insureds may be eligible for a 90-day grace period on their premium installments. To be eligible for relief, they are required to opt-in and must meet the following criteria:

  1. 1. they are experiencing financial hardship due to COVID-19 and
  2. 2. their loan/account had to be in good standing under the terms and conditions of the related premium finance agreement on March 1, 2020.

Please note, relief is not applicable to any premium finance agreements entered on or after March 1, 2020. Bulletin No. 20-17 only covers insurance premium finance arrangements entered and effective prior to March 1, 2020.

To be considered for relief, the insured is required to complete and submit our financial hardship form that was mailed to every eligible insurance premium finance client by BankDirect Capital Finance.

If you have any questions regarding the specific relief that may be granted to your eligible client available under Bulletin No. 20-17, please send an email to assetmgmt@bankdirectcapital.com, or contact your BankDirect representative at 877-226-5456.

April 27, 2020 - Notification to New Jersey Insureds

The New Jersey Department of Banking and Insurance recently issued a bulletin regarding premium finance agreements and customers suffering financial hardship as a result of COVID-19. This bulletin indicates you may be eligible for a 90-day grace period on your premium installments.

In order to be eligible for relief, you are required to opt-in and must meet the following criteria:

  1. 1. You must be experiencing financial hardship due to COVID-19 and
  2. 2. Your loan/account had to be in good standing under the terms and conditions of the related premium finance agreement on March 1, 2020.

Please note, relief is not applicable to any premium finance agreements entered into on or after March 1, 2020. Bulletin No. 20-17 only covers insurance premium finance arrangements entered into and effective prior to March 1, 2020. In order to apply (opt-in) for relief, the insured must fill out and submit the form to BankDirect Capital Finance. If you have any questions regarding eligibility available under Bulletin No. 20-17 please send an email to assetmgmt@bankdirectcapital.com.

The New Jersey Department of Banking and Insurance recently issued a bulletin regarding premium finance agreements and customers suffering financial hardship as a result of COVID-19. This bulletin indicates you may be eligible for a 90-day grace period on your premium installments.

In order to be eligible for relief, you are required to opt-in and must meet the following criteria:

  1. 1. You must be experiencing financial hardship due to COVID-19 and
  2. 2. Your loan/account had to be in good standing under the terms and conditions of the related premium finance agreement on March 1, 2020.

Please note, relief is not applicable to any premium finance agreements entered into on or after March 1, 2020. Bulletin No. 20-17 only covers insurance premium finance arrangements entered into and effective prior to March 1, 2020. In order to apply (opt-in) for relief, the insured must fill out and submit the form to BankDirect Capital Finance. If you have any questions regarding eligibility available under Bulletin No. 20-17 please send an email to assetmgmt@bankdirectcapital.com.

We value our premium finance relationship with you! The purpose of this announcement is to share important regulatory updates from the New York Department of Financial Services that may apply to your business.

On March 29, 2020, New York’s governor signed Executive Order 202.13 (the “Executive Order") which, in part, modified sections of the New York Insurance Law to provide relief to certain policyholders experiencing financial hardship as a result of the COVID-19 pandemic. In response to the Executive Order, the New York Department of Financial Services (“DFS”) promulgated Regulation 216 (11 NYCRR 229), and amended Regulation 27-A (11 NYCRR 185), Regulation 27-C (11 NYCRR 187), and Part 405 of the New York Code of Rules and Regulations on an emergency basis (collectively, the “Emergency Regulation”). The Emergency Regulation, inter alia, imposes new requirements on insurers and premium finance companies to provide grace periods for the payment of premium and premium repayment by certain policyholders experiencing financial hardship as a result of COVID-19. The Emergency Regulation can be found here: https://www.dfs.ny.gov/press_releases/pr202003301.

1. The Emergency Regulation Only Applies to Individuals and Small Business

Small Business is defined in the Emergency Regulation as those businesses that: (1) is resident in New York; (2) is independently owned and operated; and (3) employ 100 or fewer individuals. For all other insured/borrowers the Emergency Regulation does not apply, and, as a result, our business practices do not change. Relief may not be available to commercial excess lines policies and policyholders. Clarification has been requested from our regulators.

2. Borrowers Will Have to Attest that They are a “Small Business” and Have Suffered Financial Hardship as a Result of COVID-19

BankDirect is sending a Notice to its qualified New York Borrowers advising them of the Emergency Regulation and providing them with option to self-certify as a “Small Business” that has suffered financial hardship as a result of COVID–19. In order to do so, Borrowers will need to simply sign the Notice affirming that they meet the criteria as defined above and return the Notice to BankDirect. To view a copy of the Notice that was sent to the qualified New York customers, click here.

3. If Borrowers Complete and Return the Attestation Form . . .

And they have an installment payment that comes due before the expiration of the Emergency Regulation (currently April 28, 2020), they will be eligible for a 60-day grace period with respect to this installment payment. By way of example, if a qualifying Borrower has a payment due on April 20, that payment will now be due June 20. Note: this will not happen automatically, the Borrower will have to call BankDirect to work out the payment plan with respect to this one payment. Finally, it is possible the April 28 date may be extended, in which case the 60-day grace period may apply to a second installment payment.

4. What Payments Does this Emergency Regulation Apply to?

Only those Borrowers with an installment due within this Emergency Regulation is in effect – i.e. prior to April 28, 2020. Barring an extension of this Emergency Regulation, any payments due after April 28, 2020 will be due as set forth in the Premium Finance Agreement in the ordinary course.

5. How Does This Emergency Regulation Impact BankDirect’s Collateral?

The Emergency Regulation is structured to provide insureds with payment relief and also to preserve premium finance companies’ collateral positions. For that reason, the Emergency Regulation provides that if the financed policy is cancelled based on the payment subject to the 60-day grace period, the carrier shall return the gross unearned premiums that are due under the property/casualty insurance policy on a pro rata basis, calculated as if the property/casualty insurance policy had been cancelled 60 days prior to the effective date of such cancellation. By way of the example above (i.e. where the April 20 installment was adjusted to June 20 based on the 60-day grace period), if the borrower then does not timely make the June 20 installment and the premium finance company cancels, the carrier will treat the cancellation based on the cancellation date requested but will be required to provide an additional 60 days of return premium in addition to the return premium based on the cancellation effective date.

Please know that BankDirect is committed to providing support to all our clients and is here to help you and your insured borrowers during this difficult time. Please reach out with any questions or concerns.

Dear Valued Clients,

Please rest assured that BankDirect Capital Finance is following a strategic business plan and we stand committed to ensure the continuity of our business operations while providing unparalleled customer service. Many of our mutual clients have concerns about their ability to meet their financial obligations and manage their essential business functions during these uncertain times. BankDirect is working hard to assist our agent/broker clients and our mutual customers in every possible way. We are all in this together!

Account Retention and Client Flexibility:

We provide one of the most robust and proactive cancellation prevention programs in the industry. Each client is informed multiple times about a missed payment through several forms of communication (mail, electronic messaging, phone calls). In addition to a 24/7 online system with dynamic reporting and account information, we also provide individual notifications and weekly reporting of past due accounts and cancellations to our agency/broker partners.

Clients are provided a minimum grace period of 21 days beyond their payment due dates to make their installment payments. During that grace period we work with our clients to provide additional consideration and flexibility before policies are cancelled (i.e. loan extensions, weekly and bi-monthly payments, partial payments, cancellation holds, late fee waivers).

Proactive steps to reduce losses and preserve the assets of your insurance client:

  • Request coverage adjustments to reduce premiums
  • Ask Carriers for a stop/hold or provide an adjustment to premium earnings schedule
  • Ask Carriers to waive their minimum earned amounts
  • Ask Carriers to waive accelerated or fully earned policy provisions (which are extremely punitive)
  • Ask Carriers to ensure that policies are earned on a pro-rata basis
  • Ask for return premium credits (we will work with brokers/clients to apply credit confirmations to outstanding loans)

Customer Service:

We have staff strategically located throughout the United States working from every time zone. We are open for business from 7:00 AM – 7:00 PM CST and our system operates 24/7 with real time updates. BankDirect has an established team for each agency partner which consists of an outside sales contact, business development contact, and portfolio management member that stand ready to help with quotes and/or account inquiries. All team members are available via telephone and e-mail. We also can be contacted through our customer service center email address which is info@bankdirectcapital.com (please try to include the insureds name and account number if a specific inquiry is made).

Payment Options:

Payments made via mail (checks and invoices) continue to be handled through our lock box provider and they are processing payments daily. The insureds are provided with many other payment options which include:

  • Payment by phone (*Credit Card and ACH)
  • Payment by website (*Credit Card and ACH)
  • Wire Transfers
  • Recurring ACH

*paying by credit card can provide clients with some short-term financial flexibility

Efficiency of Paperless Booking and Processing:

BankDirect has developed down payment collection technology that combines with our DocuSign E-Signature feature to execute and book premium finance agreements. This is the easiest, fastest, and most secure way to send, sign, and manage the premium finance origination process.

  • Set up with a few clicks
  • Get notifications every step of the way
  • Sign electronically with ease via e-signature
  • Insured is offered the ability to make down payment (along with first installment where necessary) via ACH or Credit Card
  • When down payment funds have been verified, BankDirect funds the appropriate parties the gross amount due

Governmental Regulatory and Cancellation Information:

BankDirect is continuously monitoring the impact of our regulatory environment regarding any orders pertaining from state and federal regulators, and we are in regular communications with our industry competitors. BankDirect absolutely tries to provide as much flexibility as possible for our mutual clients to stay current with their loan obligations. The challenge with a financed policy is that each day a policy is in force it declines in value, and that policy value has been pledged to us by the insured to collateralize our loan balance. Unlike pledging a hard asset against a loan (house, property, etc.), at the end of the 12-month policy the asset value pledged against the loan is zero.

In the event a client does not make their contractual payment obligation and we can’t work through an acceptable solution with them, we are forced to send out our cancellation to the carrier which will ultimately preserve the collateral value of the loan using the original cancellation date. Many of the State Regulators have issued Emergency orders, Mandates/Moratoriums for insurance companies. In many instances the orders either strongly urge or may prohibit the Insurance Company from cancelling insurance policies for non-payment. In a premium finance transaction, insurance companies receive premiums in full on behalf of the insured by the premium finance company. The insured/borrower on the loan is obligated to make loan payments to the premium finance company and the premium finance company has been granted with the power of attorney (via the executed premium finance agreement by the borrower) to cancel the insurance policies on behalf on the insured if the insured defaults under the provisions of the agreement.

How to contact us:

Again, we remain steadfast to helping your business and your clients with their premium finance needs during these extraordinary and critical times. You can continue to generate quotes and/or monitor accounts using our BDSecure Platform at www.bankdirectcapital.com, and please do not hesitate to contact our dedicated team at 877-226-5456. If you have any additional questions or concerns, please e-mail us at info@bankdirectcapital.com.

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