SL Premium Finance

The rule the whole thing rests on

Cover can be cancelled to recover an unpaid balance, but only the part of the premium the insurer has not yet earned is recoverable — and only its own share of the price to begin with. The tax, the sticker fee and the registration go out on the day the policy is issued and never come back. Nothing is refunded to us: the unearned premium is deducted from the next settlement we owe that insurer. So the amount still owed must stay below it at every payment date, and that is what decides the deposit.