STANDARD PREMIUM FINANCE HOLDINGS, INC.

Standard Premium Finance Holdings, Inc. is a specialized finance company incorporated in Florida in 1991 as Standard Premium Finance Management Corporation. In 2016, it established a holding company structure, with Standard Premium Finance Management Corporation and Standard Premium Finance Leasing, Inc. as wholly-owned subsidiaries. The company provides collateralized loans to businesses and individuals to finance the insurance premiums for their commercial property and casualty insurance policies. Standard Premium began operations in 1991 and is currently licensed in thirty-seven states. It works with insurance agents and brokers in its market area who offer these insurance premium loans to their customers. The company underwrites each loan application based on its specific criteria. Upon approval, the borrower typically makes a down payment of 20% to 25% of the annual premium, and Standard Premium finances the remaining balance. Borrowers then repay the company in fixed monthly installments over nine to eleven months. The unearned premium on the insurance policy serves as collateral for these loans. If a borrower defaults, Standard Premium is contractually authorized to terminate the insurance policy and receive the unearned premium. This unearned premium represents the portion of the insurance premium that is returned if the policy is canceled early and is designed to fully cover the outstanding loan balance in the event of a default.