Dear Agents,

We have recently made a change to electronic processing fees. Previously, our vendor was charging 3% on all electronic card payments as our vendor could not differentiate between debit and credit card payment methods. They now have the ability to distinguish between debit and credit card transactions. Going forward, the 3% processing fee will apply only to payments made by credit card. This is a processing fee retained by the vendor and is independent of Loudoun Mutual’s installment fees. Loudoun Mutual strives to provide our insureds with multiple payment methods as a convenience and encourage our insureds to use an alternative method to avoid this processing fee.

To avoid this processing fee, we encourage our insureds to log in to their accounts and switch to ACH (Automated Clearing House) or debit card payment methods, which will remain free of this processing fee. The processing fee is independent of any installment fees charged based on the payment plan selected by the insured.

Over the next few weeks, we will be issuing refunds for any previously charged debit card fees and returning those amounts to the policyholder. Unfortunately, due to limitations of the process, we were unable to put the funds directly back on the insureds card and will be issuing a check with an accompanying letter to the insured. If the policy had multiple payments that incurred a fee, these fees were combined and the insured will be issued a single refund.

If you have any questions, please do not hesitate to contact me. As always, thank you for your continued support of Loudoun Mutual Insurance Company.

Sincerely,

Kimberly Fry

Vice President/CFO