1. (a) On receiving a premium, contribution, or return premium, an administrator shall:

   1. (1) timely deliver the funds to the person entitled to the funds according to terms of the written agreement; or
   2. (2) promptly deposit the funds in a fiduciary bank account established and maintained by the administrator.

2. (b) If premiums or contributions deposited in a fiduciary bank account were collected on behalf of more than one insurer, plan, or plan sponsor, the administrator shall:

   1. (1) maintain records that clearly record separately the deposits to and withdrawals from the account on behalf of each insurer, plan, or plan sponsor; and
   2. (2) on request of an insurer, plan, or plan sponsor, provide to the insurer, plan, or plan sponsor a copy of the records relating to deposits and withdrawals on behalf of that insurer or plan.

3. (c) The requirements of Subsection (b):

   1. (1) are in addition to requirements of any other federal or state law; and
   2. (2) do not authorize the commingling of funds if otherwise prohibited by law.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.