1. (a) The following are prohibited diversions or appropriations for personal use of money held in a fiduciary capacity:

   1. (1) use of fiduciary money, to which a licensee is not lawfully entitled, to pay

      1. (A) the personal or business expenses of a licensee;
      2. (B) the personal or business expenses of a firm of licensees or members of the firm;
      3. (C) a premium of an insured for whom the licensee has not complied with 3 AAC 23.210 - 3 AAC 23.380 concerning premium financing;
      4. (D) the return premium due of another insured;
   2. (2) use of money held in a fiduciary capacity for any purpose other than the one for which the money is being held.

2. (b) A licensee's money held or to be received in a fiduciary capacity may not be

   1. (1) pledged as collateral to secure an amount owing;
   2. (2) used to guarantee a contract of surety; or
   3. (3) assigned.
3. (c) Each of the prohibited activities listed in (a) and (b) of this section is a violation of AS 21.27.360.

(Eff. 8/29/90, Register 115; am 3/11/98, Register 145; am 3/30/2003, Register 165)

Authority: AS 21.06.090, AS 21.27.360, AS 21.36.490, AS 21.27.350, AS 21.36.100