1. (1) Funds deposited into a trust account shall be limited to:

   1. (a) premiums, which may include commissions;
   2. (b) return premiums;
   3. (c) fees or taxes paid with premiums;
   4. (d) financed premiums;
   5. (e) funds held pursuant to a third-party administrator contract;
   6. (f) funds deposited with a title insurance agent regarding an escrow settlement or closing;
   7. (g) funds necessary to cover trust account bank charges; and
   8. (h) interest on the trust account, except as provided under Subsection 31A-23a-406(2)(b).

2. (2) Disbursements from a trust account shall be limited to:

   1. (a) premiums paid to insurers;
   2. (b) return premiums to policyholders;
   3. (c) commission and fee transfers;
   4. (d) fees or taxes collected with premiums paid to an insurer or taxing authority;
   5. (e) funds paid pursuant to a third-party administrator contract;
   6. (f) funds a title insurance agent disburses regarding an escrow settlement or closing; and
   7. (g) accrued interest transfers.
3. (3) Personal or business expenses may not be paid from a trust account, even if the trust account has sufficient commissions to cover the personal or business expenses.
4. (4) A commission may not be disbursed from a trust account before the beginning of the policy period for which the premium is collected.
5. (5) A commission attributed to premiums and fees collected shall be disbursed from a trust account on a date no later than the first business day of the calendar quarter after the end of the policy period for which the funds were collected.

6. (6) A premium due to an insurer may not be paid from a trust account unless:

   1. (a) the premiums relating to the amount due are being held in the trust account; or
   2. (b) a licensee placed the funds in the trust account to finance premiums on the insured's behalf.
7. (7) Premiums financed by a licensee shall be accounted for as a loan and accrue interest at the contracted rate.

KEY: insurance

Date of Last Change: May 26, 2022

Notice of Continuation: February 7, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-406; 31A-23a-409; 31A-23a-412; 31A-25-305