- (1) An insurer may access licensee trust funds in a trust relationship when a licensee takes reasonable steps to prevent misappropriation by limiting access to trust funds.
(2) An insurer may access funds in a licensee's trust account if:
(a)(i) the contract between the insurer and the licensee allows fund transfers into or out of the licensee's trust account;
- (ii) the contract expressly permits the insurer to withdraw only the amount the licensee authorizes for each transaction; and
- (iii) the insurer receives the licensee's authorization to withdraw a specific amount from the licensee's trust account before the insurer withdraws the funds; or
- (b) the licensee provides the insurer electronic funds transfer into or out of a separate trust account set up solely for trust funds deposited for that insurer.
- (3) An insurer that implements electronic funds transfers from a licensee's trust account accepts the commissioner's right to oversight on all electronic funds transfers between the insurer and the licensee.
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