| In light of these challenging economic times, Stillwater Insurance Group is introducing a 15% credit for all in force Auto and BOP policies nationwide for the months of April and May. Within the state of California, this credit will apply to the months of March and April. We are currently obtaining approval for the credits. Once we receive approval we will apply the credits. During our month end process, we will post a credit of 15% of the insured’s Monthly Earned Premium — found using the following formula: (Number of days in the month) / (Number of days in the policy term) * (Total Policy Premium) The total credit applied to the insured’s account will then be deducted from their next payment. For those on monthly pay plans, that means their next monthly installment would be reduced by the total credit amount. For those who have paid their policy in full, their renewal amount would be reduced by the total credit amount instead. For example — an insured on a monthly pay plan with a 12-month policy (keep in mind 2020 is a leap year) with a total premium of $1,200 would receive the following credits: April – (30 days in April) / (366 days in term) * 1200 * 15% = $14.75 deducted from May installment
May – (31 days in May) / (366 days in term) * 1200 * 15% = $15.25 deducted from June installment If the same insured in the example had instead paid their policy in full (i.e. was not on a monthly pay plan), the total credit amount ($14.75 + $15.25) would be deducted from their policy’s renewal amount. If the policy was to cancel prior to the expiration and was paid up, we will return the unearned premium plus the total credit amount. There’s nothing you or your customers need to do. All active auto and BOP policies will automatically be credited at month end. Once again, we must receive approval from your state before the credits can be applied. As the nation continues to adhere to shelter-in-place and stay-at-home orders, our collective efforts to help stop the spread of the Coronavirus have resulted in a powerful decrease in commuting, and the temporary closure of small businesses. We recognize that these are unprecedented times, and we are committed to doing our part to help ease any financial hardship our shared customers may be currently experiencing. As always, our promise is to be here when you need us. We appreciate your business and support as we navigate through these uncharted waters. Thank you. | 
