Adelaide-based premium funder Principal Finance is rolling out a new product built around the company’s National Credit Code exclusion.

The new product, called Pay By the Month (PBM), can be negotiated by brokers and other intermediaries without needing a credit licence or having to comply with the responsible lending obligations required by the National Consumer Credit Protection Act 2009.

Last month insuranceNEWS.com.au reported that Principal Finance MD David Palyga had secured the first exclusion from the requirements of the Act granted to a premium funder after nine months of negotiation.

Mr Palyga says brokers have welcomed “the removal of an additional layer of regulation” from the premium funding process.

“PBM is a simple one-page deduction authority which continues on renewal of the policy,” he told insuranceNEWS.com.au.