By the Division of Banks

License Requirements For Entities Purchasing Insurance Premium Finance Agreements From Licensed Insurance Premium Finance Agencies

An insurance premium finance agency is defined as any person engaged, in whole or in part, in the business of acquiring premium finance agreements from insurance agents or brokers or other premium finance companies, under Mass. Gen. Laws chapter 255C § 1. There is no exemption in the statute for affiliated companies. Therefore, it is the position of the Division that a company purchasing insurance premium finance agreements from an insurance premium finance agency, whether affiliated or not, would also require an insurance premium finance agency license pursuant to Mass. Gen. Laws chapter 255C.